Exhibit 99.1
For Information: Valerie L. Gerard - Vice President - Investor Relations
(973) 422-3284
or
Yvette K. Rudich - Director - Corporate Communications
(973) 597-2095
CIT ANNOUNCES QUARTERLY RESULTS
o Net income of $141.3 million - diluted EPS of $0.67
o Lower delinquency and non-performing assets levels
o Higher origination volumes
o Continued progress with respect to funding initiatives
o Even stronger leverage ratios
NEW YORK, January 23, 2003 - CIT Group Inc. (NYSE: CIT) today reported net
income of $141.3 million, $0.67 diluted earnings per share, for the quarter
ended December 31, 2002, compared to $134.7 million, or $0.64 diluted earnings
per share for the prior quarter.
On November 5, 2002, our board of directors approved returning to a
calendar year end from a September 30 fiscal year end, effective December 31,
2002. The current quarterly results constitute a transitional fiscal period and
will be included in our December 31, 2002 Annual Report on Form 10-K to be filed
with the SEC.
"During the quarter, we experienced improved new business volume across
all business lines," said Albert R. Gamper, Jr., Chairman, President and CEO.
"More importantly, our delinquency and non-performing levels improved. Further,
the continued improvements in our leverage ratios underscore our commitment to
maintaining a strong, well capitalized balance sheet."
<Page>
Financial Highlights:
Funding and Liquidity.
The re-establishment of our commercial paper program continued
successfully as we issued commercial paper at attractive pricing levels, and the
program closed the quarter at $5.0 billion, up from $4.7 billion at September
30, 2002. At December 31, 2002, backstop liquidity of 105% was maintained to
cover outstanding commercial paper.
Outstanding bank line borrowings were $2.1 billion at December 31, 2002,
down almost $2.0 billion from September 30, 2002. In January 2003, we repaid an
additional $0.5 billion of the outstanding bank loans.
Term-debt issued during the quarter totaled $2.5 billion, with the
majority fixed rate, and was virtually evenly divided among global, medium-term
note and retail issues. Securitization volume was $1.2 billion, versus $1.0
billion in the prior quarter.
Portfolio and Managed Assets.
Total financing and leasing portfolio assets were $35.9 billion at
December 31, 2002, versus $36.4 billion at September 30, 2002 and $38.6 billion
at December 31, 2001. A $0.9 billion drop in the Commercial Finance segment,
reflecting seasonal runoff in both the factoring (Commercial Services) and
asset-based lending (Business Credit) businesses, drove the decline during the
quarter. Growth in most core portfolios during the quarter was offset by the
continued runoff in the liquidating portfolios. The liquidating portfolios
(owner-operator trucking, franchise, manufactured housing, recreational vehicle
and inventory finance loans) declined to $1.34 billion from $1.46 billion at
September 30, 2002. Managed assets closed the quarter at $46.4 billion, versus
$47.6 billion last quarter, as securitized receivables declined $0.8 billion.
Origination volume was up from last quarter in all of our strategic
business units with the exception of factoring, as total new business volume was
up 5.6% from last quarter. Factoring volume was down sequentially due to
seasonal trends, but was up from the prior year quarter.
<Page>
Net Finance and Risk Adjusted Margins.
Net finance margin, at 4.34% of average earning assets for the current
quarter, declined modestly from 4.37% during the prior quarter, as higher
funding costs reflected our term funding initiatives and improved liquidity
position. Higher yield-related fees substantially offset the higher funding
costs. Risk adjusted margin (net finance margin after provision for credit
losses) declined to $221.0 million or 2.70%, from $248.1 million or 2.92%. This
decline included a $10.7 million increase in the provision for credit losses due
to higher charge-offs.
Credit Quality.
Total 60+ day delinquencies declined to $1.001 billion (3.63% of finance
receivables), from $1.070 billion (3.76%) at September 30, 2002 and $1.183
billion (3.90%) at December 31, 2001, reflecting improvements in most
businesses, particularly the Commercial Finance segment and the Specialty
Finance - commercial unit. Managed 60+ day delinquencies decreased to $1.396
billion (3.55% of managed financial assets) at December 31, 2002 from $1.539
billion (3.78%) at September 30, 2002, and $1.701 billion (4.02%) at December
31, 2001.
Non-performing assets declined to $1.086 billion, 3.93% of finance
receivables, from $1.140 billion, 4.01%, at September 30, 2002 on reductions in
the Commercial Finance and Structured Finance Segments. Equipment Financing unit
non-performing assets declined sharply but were more than offset by additional
aerospace assets placed on non-accrual in the Capital Finance unit relating to
the bankruptcy filing of UAL Corp., the parent company of United Airlines.
The competitive local exchange carrier ("CLEC") portion of the
telecommunications portfolio totaled approximately $262.3 million at December
31, 2002 (before reserves), of which $92.9 million was on non-accrual status,
down from comparative September 30, 2002 balances of $275.2 million and $109.9
million, respectively.
Excluding liquidating portfolio charge-offs and telecommunication
charge-offs covered by specific reserving actions in prior quarters, charge-offs
were $118.6 million (1.94% of
<Page>
average finance receivables), up from $105.4 million (1.63%) last quarter. The
increase from last quarter was primarily the result of higher charge-offs in the
Business Credit unit, reflecting write-offs in connection with concluding
several loan workouts. Total charge-offs during the December quarter were $154.5
million (2.32%), including $15.5 million of telecommunication loan charge-offs,
compared to $141.0 million (1.99%) during the prior quarter. The tables that
follow detail charge-offs for the current and prior quarters by segment, both in
amount and as a percentage of average finance receivables ($ in millions).
Charge-offs:
<Table>
<Caption>
Quarter Ended December 31, 2002
-------------------------------------------------------------------
Excluding
Liquidating/Telecom Liquidating & Telecom Total
------------------- --------------------- ---------------
Equipment Financing & Leasing ............... $ 57.8 2.81% $ 13.3 9.25% $ 71.1 3.23%
Specialty Finance - commercial .............. 21.2 1.42% 2.0 36.36% 23.2 1.55%
Commercial Finance .......................... 33.5 1.92% -- -- 33.5 1.92%
Structured Finance .......................... -- -- 15.5 8.75% 15.5 2.24%
------ ------ ------
Total Commercial Segments ................ 112.5 1.93% 30.8 9.44% 143.3 2.33%
Specialty Finance - consumer ................ 6.1 2.11% 5.1 2.42% 11.2 2.24%
------ ------ ------
Total .................................... $118.6 1.94% $ 35.9 6.68% $154.5 2.32%
====== ====== ======
</Table>
Charge-offs:
<Table>
<Caption>
Quarter Ended September 30, 2002
-------------------------------------------------------------------
Excluding
Liquidating/Telecom Liquidating & Telecom Total
------------------- --------------------- ---------------
Equipment Financing & Leasing ............... $ 59.2 2.88% $ 11.6 5.13% $ 70.8 3.10%
Specialty Finance - commercial .............. 17.6 1.15% 1.2 10.74% 18.8 1.22%
Commercial Finance .......................... 22.4 1.06% -- -- 22.4 1.06%
Structured Finance .......................... -- -- 18.4 10.67% 18.4 2.78%
------ ------ ------
Total Commercial Segments ................ 99.2 1.60% 31.2 7.62% 130.4 1.98%
Specialty Finance - consumer ................ 6.2 2.27% 4.4 2.05% 10.6 2.17%
------ ------ ------
Total .................................... $105.4 1.63% $ 35.6 5.70% $141.0 1.99%
====== ====== ======
</Table>
Total reserves for credit losses were $760.8 million (2.75% of finance
receivables), compared to $777.8 million (2.73%) at September 30, 2002 and
$496.4 million (1.64%) at December 31, 2001. The reserve reduction during the
quarter was primarily the result of $15.5 million in telecommunication loan
charge-offs applied to the specific reserve. At December 31, 2002, the reserve
for credit losses excluding the telecommunication ($153.6 million) and Argentine
reserves ($135.0 million) was $472.2 million (1.77% of finance receivables),
versus $473.7 million (1.72%) at September 30, 2002. Additionally, the dollar
amount of loan impairment (as defined by SFAS 114) improved by approximately $50
million, due to both the
<Page>
previously mentioned conclusions of Business Credit workout activities and
improvement in the Equipment Financing portfolio.
Other Revenue.
For the quarter, other revenue totaled $257.1 million, up from $209.0
million for the quarter ended September 30, 2002, reflecting lower venture
capital losses, increased factoring revenues, higher fee income and a modest
increase in equipment gains. These improvements were offset in part by lower
other income. Venture capital impairment valuations and write-downs of $6.4
million were recognized as a reduction to other revenue in the quarter compared
to $36.2 million of such charges in the previous quarter. Securitization gains
during the current quarter totaled $30.5 million, 12.9% of pretax income, on
volume of $1,189 million, compared to $29.2 million, 13.2% of pretax income, on
volume of $980 million during the prior quarter.
Salaries and General Operating Expenses.
Salaries and general operating expenses were $242.1 million for the
quarter, compared to $235.6 million reported for the September 2002 quarter. The
increase from last quarter included incremental expenses associated with our
return to public ownership and higher legal and collection expenses. Salaries
and general operating expenses were 2.18% of average managed assets during the
quarter, versus 2.08% for the prior quarter. The efficiency ratio for the
quarter (salaries and general operating expenses divided by operating margin,
excluding provision for credit losses) was 39.6% as compared to 40.6% in the
prior quarter.
Headcount was 5,835 at December 31, 2002 compared to 5,850 at September
30, 2002 and 6,375 at December 31, 2001.
Capitalization and Leverage.
The ratio of tangible equity to managed assets improved to 10.44% as of
December 31, 2002, compared to 9.93% as of September 30, 2002 and 8.72% in the
prior year quarter. The current quarter reflects our initial dividend of
approximately $25 million or $0.12 per share. The return on tangible equity was
12.7%, compared to 12.3% for the prior quarter.
<Page>
Conference Call and Webcast:
We will discuss this quarter's results, as well as on-going strategy, on a
conference call today at 11:00 am (EST). The interested parties may access the
conference call live today by dialing 800-810-0924 for U.S. and Canadian callers
or 913-981-4900 for international callers, with the pass-code 595885, or at the
following website: http://ir.cit.com. An audio replay of the call will be
available beginning no later than three hours after the conclusion of the call
through 12:00 am (EST) January 30, 2003, by dialing 888-203-1112 for U.S. and
Canadian callers or 719-457-0820 for international callers with the pass-code
595885, or at the following website: http://ir.cit.com.
Forward Looking Statements:
This release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All forward-looking
statements (including statements regarding future financial and operating
results) involve risks, uncertainties and contingencies, many of which are
beyond CIT's control, which may cause actual results, performance, or
achievements to differ materially from anticipated results, performance, or
achievements. All statements contained in this release that are not clearly
historical in nature are forward-looking, and the words "anticipate," "believe,"
"expect," "estimate," "plan," and similar expressions are generally intended to
identify forward-looking statements. Economic, business, funding market,
competitive and/or regulatory factors, among others, affecting CIT's businesses
are examples of factors that could cause actual results to differ materially
from those described in the forward-looking statements. More detailed
information about these factors are described in CIT's filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K for
the period ended September 30, 2002. CIT is under no obligation to (and
expressly disclaims any such obligation to) update or alter its forward-looking
statements, whether as a result of new information, future events or otherwise.
<Page>
About CIT:
CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance
company, provides clients with financing and leasing products and advisory
services. Founded in 1908, CIT has nearly $50 billion in assets under management
and applies its financial resources, industry expertise and product knowledge to
serve the needs of clients across approximately 30 industries. CIT holds leading
positions in vendor financing, U.S. factoring, equipment and transportation
financing, Small Business Administration loans, and asset-based and
credit-secured lending. CIT, with its principal offices in New York City and
Livingston, New Jersey, has approximately 6,000 employees in locations
throughout North America, Europe, Latin and South America, and the Pacific Rim.
For more information, visit www.cit.com.
###
<Page>
CIT GROUP INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED INCOME STATEMENTS
For the Quarters Ended December 31, 2002 and 2001
(dollars in millions, except per share data)
<Table>
<Caption>
2002 (1) 2001 (1)
-------- -----------------------------------------
CIT TCH Consolidated
Finance income .................................................... $ 971.7 $1,199.0 $ -- $1,199.0
Interest expense .................................................. 340.0 373.0 -- 373.0
-------- ---------------------------------------
Net finance income ................................................ 631.7 826.0 -- 826.0
Depreciation on operating lease equipment ......................... 277.3 338.5 -- 338.5
-------- ---------------------------------------
Net finance margin ................................................ 354.4 487.5 -- 487.5
Provision for credit losses ....................................... 133.4 112.9 -- 112.9
-------- ---------------------------------------
Net finance margin after provision for credit losses .............. 221.0 374.6 -- 374.6
Other revenue(2) .................................................. 257.1 245.1 -- 245.1
-------- ---------------------------------------
Operating margin .................................................. 478.1 619.7 -- 619.7
-------- ---------------------------------------
Salaries and general operating expenses ........................... 242.1 230.5 8.2 238.7
Intercompany interest expense - TCH ............................... -- -- 76.3 76.3
-------- ---------------------------------------
Operating expenses ................................................ 242.1 230.5 84.5 315.0
-------- ---------------------------------------
Income before provision for income taxes .......................... 236.0 389.2 (84.5) 304.7
(Provision) benefit for income taxes ............................. (92.0) (147.8) 29.6 (118.2)
Minority interest in subsidiary trust holding
solely debentures of the Company, after tax .................... (2.7) (2.4) -- (2.4)
-------- ---------------------------------------
Net income ........................................................ $ 141.3 $ 239.0 $ (54.9) $ 184.1
======== =======================================
Earnings per share
Basic earnings per share .......................................... $ 0.67
Diluted earnings per share ........................................ $ 0.67
</Table>
(1) TCH was a wholly-owned subsidiary of a Tyco affiliate domiciled in Bermuda
and was the holding company for the acquisition of CIT by Tyco. Prior to the IPO
of CIT on July 8, 2002, the activity of TCH (net deficit) was offset via a
capital contribution from Tyco. The consolidated financial statements of CIT
were not impacted by TCH subsequent to June 30, 2002.
<Table>
<Caption>
December 31, December 31,
(2) Other Revenue 2002 2001
------------ ------------
Fees and other income $ 169.2 $ 173.5
Factoring commissions 55.1 38.3
Gains on securitization 30.5 28.0
Gains on sales of leasing equipment 8.7 2.7
(Losses) gains on venture capital investments (6.4) 2.6
-------- --------
Total other revenue $ 257.1 $ 245.1
======== ========
</Table>
Fees and other income include: servicing fees, structuring and advisory fees,
syndication fees and gains from other asset and receivable sales.
8
<Page>
CIT GROUP INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
<Table>
<Caption>
December 31, September 30,
2002 2002
-----------------------------
ASSETS
Financing and leasing assets:
Finance receivables ................................. $ 27,621.3 $ 28,459.0
Reserve for credit losses ........................... (760.8) (777.8)
---------------------------
Net finance receivables ............................. 26,860.5 27,681.2
Operating lease equipment, net ...................... 6,704.6 6,567.4
Finance receivables held for sale ................... 1,213.4 1,019.5
Cash and cash equivalents .............................. 2,036.6 2,274.4
Goodwill ............................................... 384.4 384.4
Other assets (1) ....................................... 4,732.9 4,783.6
---------------------------
Total Assets ........................................... $ 41,932.4 $ 42,710.5
===========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Debt:
Commercial paper .................................... $ 4,974.6 $ 4,654.2
Variable-rate bank credit facilities ................ 2,118.0 4,037.4
Variable-rate senior notes .......................... 4,906.9 5,379.0
Fixed-rate senior notes ............................. 19,681.8 18,385.4
---------------------------
Total debt ............................................. 31,681.3 32,456.0
Credit balances of factoring clients ................... 2,270.0 2,513.8
Accrued liabilities and payables ....................... 2,853.2 2,725.2
---------------------------
Total Liabilities ...................................... 36,804.5 37,695.0
Company-obligated mandatorily redeemable preferred
securities of subsidiary trust holding solely
debentures of the Company ............................ 257.2 257.7
Stockholders' Equity:
Common stock ........................................ 2.1 2.1
Paid-in capital ..................................... 10,676.2 10,674.8
Accumulated deficit ................................. (5,606.9) (5,722.8)
Accumulated other comprehensive loss ................ (200.7) (196.3)
---------------------------
Total Stockholders' Equity ............................. 4,870.7 4,757.8
---------------------------
Total Liabilities and Stockholders' Equity ............. $ 41,932.4 $ 42,710.5
===========================
</Table>
(1) Other Assets primarily include the following at December 31, 2002: $1.5
billion of securitization assets, $0.7 billion of accrued interest and
receivables from derivative counterparties, $0.7 billion of investments and
receivables from joint ventures and non-consolidated subsidiaries, $0.4 billion
of deposits on flight equipment, $0.3 billion of equity investments, $0.2
billion of repossessed and off-lease equipment, $0.1 billion of prepaid
expenses, and $0.1 billion of investments in aerospace securities. The remaining
balance includes furniture and fixtures, miscellaneous receivables and other
assets.
9
<Page>
CIT GROUP INC. AND SUBSIDIARIES
OWNED AND MANAGED ASSET COMPOSITION
(dollars in millions)
<Table>
<Caption>
December 31, September 30, December 31,
2002 2002 2001
------------ ------------- ------------
Equipment Financing & Leasing Segment
Equipment Financing
Finance receivables ............................................ $ 7,357.8 $ 7,522.2 $ 9,191.9
Operating lease equipment, net ................................. 668.3 765.8 931.6
Finance receivables held for sale .............................. 119.1 110.8 186.9
---------- ---------- ----------
Owned assets ................................................. 8,145.2 8,398.8 10,310.4
Finance receivables securitized and managed by CIT ............. 3,936.2 4,384.1 4,564.4
---------- ---------- ----------
Managed assets ............................................... 12,081.4 12,782.9 14,874.8
---------- ---------- ----------
Capital Finance
Finance receivables ............................................ 1,335.8 1,479.5 1,694.7
Operating lease equipment, net ................................. 4,719.9 4,388.9 3,574.5
---------- ---------- ----------
Owned assets ................................................. 6,055.7 5,868.4 5,269.2
---------- ---------- ----------
Specialty Finance Segment
Commercial
Finance receivables ............................................ 5,958.1 6,091.5 6,413.6
Operating lease equipment, net ................................. 1,257.3 1,353.2 1,892.8
Finance receivables held for sale .............................. 764.3 528.7 319.3
---------- ---------- ----------
Owned assets ................................................. 7,979.7 7,973.4 8,625.7
Finance receivables securitized and managed by CIT ............. 3,377.4 3,703.1 4,337.4
---------- ---------- ----------
Managed assets ............................................... 11,357.1 11,676.5 12,963.1
---------- ---------- ----------
Consumer
Finance receivables - home equity .............................. 962.7 934.2 2,640.1
Finance receivables - other .................................... 1,044.4 831.8 475.3
Finance receivables held for sale .............................. 330.0 380.0 660.5
---------- ---------- ----------
Owned assets ................................................. 2,337.1 2,146.0 3,775.9
Home equity finance receivables securitized and managed by CIT . 2,213.6 2,115.9 230.8
Other finance receivables securitized and managed by CIT ....... 955.2 1,031.6 1,309.6
---------- ---------- ----------
Managed assets ............................................... 5,505.9 5,293.5 5,316.3
---------- ---------- ----------
Commercial Finance Segment
Commercial Services
Finance receivables ............................................ 4,392.5 5,040.4 4,316.2
---------- ---------- ----------
Business Credit
Finance receivables ............................................ 3,649.1 3,869.8 3,541.0
---------- ---------- ----------
Structured Finance Segment
Finance receivables ............................................ 2,920.9 2,689.6 2,060.2
Operating lease equipment, net ................................. 59.1 59.5 66.7
Finance receivables held for sale .............................. -- -- 343.6
Equity investments ............................................. 335.4 341.7 338.2
---------- ---------- ----------
Owned assets ................................................. 3,315.4 3,090.8 2,808.7
---------- ---------- ----------
Total
Finance receivables ............................................ $ 27,621.3 $ 28,459.0 $ 30,333.0
Operating lease equipment, net ................................. 6,704.6 6,567.4 6,465.6
Finance receivables held for sale .............................. 1,213.4 1,019.5 1,510.3
Equity investments ............................................. 335.4 341.7 338.2
---------- ---------- ----------
Owned assets ................................................. 35,874.7 36,387.6 38,647.1
Finance receivables securitized and managed by CIT ............. 10,482.4 11,234.7 10,442.2
---------- ---------- ----------
Managed assets ............................................... $ 46,357.1 $ 47,622.3 $ 49,089.3
========== ========== ==========
</Table>
10
<Page>
CIT GROUP INC. AND SUBSIDIARIES
CREDIT METRICS
(dollars in millions)
<Table>
<Caption>
For the Quarters Ended
------------------------------------------------------------------------
December 31, 2002 September 30, 2002 December 31, 2001
$ % $ % $ %
------------------------------------------------------------------------
Net Credit Losses - Owned as a Percentage of
Average Finance Receivables
Equipment Financing and Leasing .......... $ 71.1 3.23% $ 70.8 3.10% $ 62.1 2.22%
Specialty Finance - Commercial ........... 23.2 1.55% 18.8 1.22% 20.7 1.25%
Commercial Finance ....................... 33.5 1.92% 22.4 1.06% 16.6 0.80%
Structured Finance ....................... 15.5 2.24% 18.4 2.78% -- 0.00%
--------- --------- ---------
Total Commercial ....................... 143.3 2.33% 130.4 1.98% 99.4 1.41%
Specialty Finance - Consumer ............. 11.2 2.24% 10.6 2.17% 13.4 1.70%
--------- --------- ---------
Total .................................... $ 154.5 2.32% $ 141.0 1.99% $ 112.8 1.44%
========= ========= =========
December 31, 2002 September 30, 2002 December 31, 2001
$ % $ % $ %
------------------------------------------------------------------------
Finance Receivables Past Due 60 days or more -
Owned as a Percentage of Finance Receivables
Equipment Financing and Leasing .......... $ 444.8 5.12% $ 452.2 5.02% $ 471.8 4.33%
Specialty Finance - Commercial ........... 182.9 3.07% 215.4 3.54% 293.1 4.57%
Commercial Finance ....................... 172.3 2.14% 209.4 2.35% 197.7 2.52%
Structured Finance ....................... 67.6 2.31% 65.8 2.45% 37.7 1.83%
--------- --------- ---------
Total Commercial ....................... 867.6 3.39% 942.8 3.53% 1,000.3 3.68%
Specialty Finance - Consumer ............. 133.7 6.66% 127.2 7.20% 183.1 5.88%
--------- --------- ---------
Total .................................... $ 1,001.3 3.63% $ 1,070.0 3.76% $ 1,183.4 3.90%
========= ========= =========
Non-performing Assets - Owned as a Percentage of
Finance Receivables(1)
Equipment Financing and Leasing .......... $ 558.4 6.42% $ 548.5 6.09% $ 422.3 3.88%
Specialty Finance - Commercial ........... 98.2 1.65% 103.1 1.69% 150.6 2.35%
Commercial Finance ....................... 136.2 1.69% 176.1 1.98% 145.1 1.85%
Structured Finance ....................... 151.6 5.19% 172.2 6.40% 92.5 4.49%
--------- --------- ---------
Total Commercial ....................... 944.4 3.69% 999.9 3.75% 810.5 2.98%
Specialty Finance - Consumer ............. 141.4 7.04% 139.9 7.92% 171.0 5.49%
--------- --------- ---------
Total .................................... $ 1,085.8 3.93% $ 1,139.8 4.01% $ 981.5 3.24%
========= ========= =========
Finance Receivables Past Due 60 days or more -
Managed as a Percentage of Managed Financial
Assets(2)
Equipment Financing and Leasing .......... $ 631.2 4.95% $ 710.6 5.27% $ 790.6 5.06%
Specialty Finance - Commercial ........... 265.1 2.62% 303.3 2.94% 419.0 3.78%
Commercial Finance ....................... 172.3 2.14% 209.4 2.35% 197.7 2.52%
Structured Finance ....................... 67.6 2.31% 65.8 2.45% 37.7 1.57%
--------- --------- ---------
Total Commercial ....................... 1,136.2 3.36% 1,289.1 3.64% 1,445.0 3.91%
Specialty Finance - Consumer ............. 259.4 4.71% 249.5 4.71% 256.1 4.82%
--------- --------- ---------
Total .................................... $ 1,395.6 3.55% $ 1,538.6 3.78% $ 1,701.1 4.02%
========= ========= =========
Reserve for Credit Losses
Reserve for credit losses as a percentage
of finance receivables ................. $ 760.8 2.75% $ 777.8 2.73% $ 496.4 1.64%
</Table>
(1) Total non-performing assets reflect both commercial and consumer finance
receivables on non-accrual status and assets received in satisfaction of loans.
(2) Managed financial assets exclude operating leases and certain equity
investments.
11
<Page>
CIT GROUP INC. AND SUBSIDIARIES
SELECTED DATA AND OWNED PORTFOLIO INFORMATION
(dollars in millions unless specified)
<Table>
<Caption>
Selected Data For the Quarters Ended
---------------------------------------------------
December 31, September 30, December 31,
2002 2002 2001
---------------------------------------------------
Profitability
Net finance margin as percentage of AEA ..... 4.34% 4.37% 5.20%
Net finance margin after provision as
percentage of AEA ......................... 2.70% 2.92% 4.00%
Salaries & general operating expenses as
percentage of AMA(1) ...................... 2.18% 2.08% 1.93%
Efficiency ratio ............................ 39.6% 40.6% 31.5%
Securitization Volume(2)
Equipment Financing ......................... $ 310.6 $ 305.5 $ 488.0
Specialty Finance - Commercial .............. 590.6 410.5 735.8
Specialty Finance - Consumer ................ 288.1 264.0 --
------------------------------------------------
Total ....................................... $ 1,189.3 $ 980.0 $ 1,223.8
================================================
Average Assets
Average Finance Receivables (AFR) ........... $ 26,586.6 $ 28,325.8 $ 31,345.9
Average Earning Assets (AEA) ................ 32,693.2 33,959.4 37,471.2
Average Managed Assets (AMA)(1) ............. 44,361.8 45,356.5 47,420.7
Average Operating Leases (AOL) .............. 6,605.0 6,615.0 6,426.1
Note: Based on ending four month average.
December 31, September 30, December 31,
2002 2002 2001
---------------------------------------------------
Capital & Leverage(3),(4)
Tangible stockholders' equity to
managed assets ............................ 10.44% 9.93% 8.72%
Debt (net of overnight deposits) to
tangible stockholders' equity(5) .......... 6.22x 6.54x 7.79x
</Table>
Note: The above data for all relevant periods shown reflects the activity for
CIT only and excludes the consolidating TCH expenses.
(1) "AMA" or "Average Managed Assets" represents the sum of average earning
assets, which are net of credit balances of factoring clients, and the average
of finance receivables previously securitized and still managed by the Company.
(2) Quarter ended December 31, 2002 excludes trade receivables securitization
activity.
(3) Tangible stockholders' equity excludes goodwill.
(4) Tangible stockholders' equity (excludes the impact of accounting changes for
derivative financial instruments and unrealized gains) includes
Company-obligated mandatorily redeemable preferred securities of subsidiary
trust holding solely debentures of the Company ("Preferred Capital Securities").
(5) Total debt excludes, and stockholders' equity includes, Preferred Capital
Securities.
<Table>
<Caption>
Owned Portfolio Information December 31, September 30, December 31,
2002 2002 2001
--------------------------------------------------
Liquidating Portfolios:
Balance ..................................... $ 1,339.0 $ 1,459.9 $ 2,047.5
Non-performing accounts ..................... $ 160.9 $ 155.8 $ 208.7
Past due 60+ days ........................... $ 131.0 $ 146.2 $ 203.3
Telecommunications(6):
Financing and leasing assets ................ $ 710.1 $ 707.2 $ 742.0
Number of accounts 52 52 59
Largest customer account balance ............ $ 32.9 $ 34.1 $ 26.5
Non-performing accounts ..................... $ 120.2 $ 137.0 $ 41.5
Number of accounts 13 11 6
Past due 60+ days ........................... $ 37.3 $ 24.2 $ 22.6
CLEC exposure ............................... $ 262.3 $ 275.2 $ 326.2
Equity and Venture Capital Investments:
Total investment balance .................... $ 335.4 $ 341.7 $ 338.2
Direct investments .......................... $ 188.8 $ 196.6 $ 190.0
Number of companies 57 60 61
Private equity funds ........................ $ 146.6 $ 145.1 $ 140.8
Number of funds 52 52 52
Remaining fund commitments .................. $ 164.9 $ 176.6 $ 214.5
Aerospace:
Financing and leasing assets
Commercial ................................ $ 4,072.8 $ 3,986.7 $ 3,472.0
Regional .................................. $ 344.0 $ 245.0 $ 177.8
Investment in aerospace assets .............. $ 95.5 $ 96.7 $ --
Number of planes:
Commercial ................................ 194 193 201
Regional .................................. 117 94 88
Remaining purchase commitment deliveries
(through 2007) ............................ 79 82 90
Remaining purchase commitments
(through 2007) ($ in billions) ............ $ 3.8 $ 3.9 $ 4.3
</Table>
(6) Telecommunication portfolio data consists of lending and leasing directly to
the telecommunication sector, and does not include lending and leasing for
telecom related equipment to non-telecom companies.
12
<Page>
CIT GROUP INC. AND SUBSIDIARIES
Commercial Aerospace Portfolio Data as of December 31, 2002
(dollars in millions unless specified)
Commercial Aerospace Portfolio:
By Region: Net Investment Number
-------------- -------
Europe ...................................... $ 1,506.5 51
North America ............................... 1,042.2 75
Asia Pacific ................................ 853.6 35
Latin America ............................... 595.9 29
Africa / Middle East ........................ 74.6 4
--------- ---
Total ....................................... $ 4,072.8 194
========= ===
By Manufacturer: Net Investment Number
-------------- -------
Boeing ...................................... $ 2,388.1 135
Airbus ...................................... 1,647.9 42
Other ....................................... 36.8 17
--------- ---
Total ....................................... $ 4,072.8 194
========= ===
By Body Type(1): Net Investment Number
-------------- -------
Narrow body ................................. $ 2,799.4 142
Intermediate ................................ 859.2 17
Wide body ................................... 377.4 18
Other ....................................... 36.8 17
--------- ---
Total ....................................... $ 4,072.8 194
========= ===
Largest customer net investment ............... $ 193.0
Number of accounts ............................ 78
Weighted average age of fleet (years) ......... 6.9
New Aircraft Delivery Order Book
(dollars in billions) Amount Number
------ -------
Calendar Year:
2003 ...................................... $ 0.8 19
2004 ...................................... 1.0 22
2005 ...................................... 1.3 27
2006 ...................................... 0.6 10
2007 ...................................... 0.1 1
----- ---
Total ..................................... $ 3.8 79
===== ===
Total calendar 2002 delivery book was $0.7 billion and 16 planes.
The order amounts are based on current appraised values in 2002 base dollars and
exclude CIT's option to purchase additional planes. Contractual maturities,
sales and other dispositions, as well as depreciation expense are expected to
largely offset the new deliveries.
(1) Narrow body are single aisle design and consist primarily of Boeing 737 and
757 series and Airbus A320 series aircraft. Intermediate body are smaller twin
aisle design and consist primarily of Boeing 767 series and Airbus A330 series
aircraft. Wide body are large twin aisle design and consist primarily of Boeing
747 and 777 series and McDonnell Douglas DC10 series aircraft.
13