CIT Reports Third Quarter Results

Business Wire, Oct 17, 2007

* Net finance revenue as a percentage of average earning assets was essentially flat with last year.

* Net charge-offs increased from last year due to lower recoveries. Delinquencies and non-performing assets increased from last quarter, but remain below last year's levels.

* Volume decreased from record levels last year due to market conditions and the sale of the construction business.

* Return on risk-adjusted capital was 13.9%, improved from last quarter excluding the construction sale gain, and down from the prior year on lower other income and fewer recoveries.

Transportation Finance

* Total net revenues were up from last year due to asset growth, improved rental rates and higher gains on equipment sales.

* Net finance revenue as a percentage of average earning assets after depreciation was essentially flat with the prior year as continued strength in aerospace rentals was offset by a modest decline in railcar utilization (from nearly full utilization levels).

* Credit quality continued strong with net recoveries, stable delinquencies and level non-performing assets.

* Volume was strong, effectively doubling from the prior year, as we had good financing flow and took delivery of and placed four new aircraft on leases. All of the scheduled aerospace deliveries through March 2009 have been placed.

* Return on risk-adjusted capital improved from last quarter to 16.8% and declined from the prior year, as the year ago period benefited from the release of deferred tax liabilities.

Trade Finance

* Total net revenues were down slightly from last year as increased net finance revenue on higher net receivables was offset by lower commission rates.

* Factored volume seasonally increased in the third quarter, but was flat with the prior year.

* Net finance revenue as a percentage of average earning assets decreased from the prior year on competitive pricing.

* Net charge-offs, delinquencies and non-performing loans were all down from last quarter and last year.

* Return on risk-adjusted capital improved to 18.6% from both last quarter and last year.

Vendor Finance

* Total net revenues were up modestly from last year, as higher net finance revenues driven by asset growth more than offset lower other revenue.

* Net finance revenue as a percentage of average earning assets after depreciation was down from last year, primarily due to higher borrowing costs and lower international lending spreads, reflecting recent acquisition activity.

* Credit losses were flat versus last quarter and up slightly from last year. Delinquencies and non-performing asset levels increased over both periods.

* Total new business volume grew 13% over last year driven by international operations. US volumes were essentially flat as declines in Dell volume were offset by improved volume from new vendor relationships. Excluding Dell, volumes were up 60%.

* Return on risk-adjusted capital of 13.1% was down from last quarter and last year, reflecting lower joint venture earnings and recent acquisitions for which cost synergies have not yet been realized.