Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

CIT REPORTS FOURTH QUARTER 2014 NET INCOME OF $251 MILLION ($1.37 PER DILUTED SHARE);
FULL YEAR NET INCOME OF $1,130 MILLION ($5.96 PER DILUTED SHARE)

 

Fourth Quarter Highlights

 

§Solid Commercial Franchise Performance – Combined North American Commercial Finance and Transportation & International Finance financing and leasing assets grew 12% from a year ago; Pre-tax Return on Average Earning Assets of approximately 3% included benefits from discrete asset sales;
§Launched TC-CIT Aviation, a joint venture with Century Tokyo LeasingSold approximately $300 million of aircraft to the joint venture;
§Partial Reversal of Tax-Related Valuation Allowance – Fourth quarter net income benefited by $44 million, $0.24 per diluted share, from reversal of the Valuation Allowance related to certain international deferred tax assets. Full year net income benefited by $419 million, $2.21 per diluted share, from Valuation Allowance reversals, including $375 million related to the U.S. federal deferred tax asset;
§Advanced Portfolio Repositioning – Sold U.K. corporate lending portfolio; entered into agreements to sell Brazil and Mexico businesses; transferred U.K. equipment finance portfolio to held for sale;
§Ongoing Capital Return – Returned $145 million of capital to shareholders through dividends and the repurchase of 2.5 million shares.

 

NEW YORK – January 27, 2015 – CIT Group Inc. (NYSE: CIT), a leading provider of commercial lending and leasing services, today reported net income of $251 million, $1.37 per diluted share, for the fourth quarter of 2014, compared to net income of $130 million, $0.65 per diluted share, for the year-ago quarter. Income from continuing operations for the fourth quarter was $252 million, $1.37 per diluted share compared to $123 million, $0.61 per diluted share in the year-ago quarter.

 

Net income for the year ended December 31, 2014 was $1,130 million, $5.96 per diluted share, compared to $676 million, $3.35 per diluted share, for the year ended December 31, 2013. Income from continuing operations for the year ended December 31, 2014 was $1,078 million, $5.69 per diluted share, compared to $644 million, $3.19 per diluted share for the year ended December 31, 2013. Net income for the year ended December 31, 2014 included $419 million, $2.21 per diluted share, of income tax benefits associated with the partial reversals of the valuation allowances on certain domestic and international deferred tax assets.

 

"We made good progress in 2014 building our commercial franchise," said John Thain, Chairman and Chief Executive Officer. "In addition to growing our assets organically, we made two key acquisitions that will strengthen our commercial franchises and improve returns. Our focus on increasing shareholder value was reflected in the repurchase of more than $775 million of common shares and the increase in our dividend. In 2015,

 
2

we will continue to build long-term value by focusing on closing and integrating the acquisition of OneWest Bank, returning additional capital to our shareholders, and meeting the financing needs of our small and middle market customers."

 

 

Summary of Fourth Quarter Financial Results from Continuing Operations

All references in this section relate to continuing operations and therefore do not include any of the assets or results of operations of the discontinued operation.

Income from continuing operations of $252 million includes a $44 million reversal of an international tax-related valuation allowance. Income from continuing operations also reflects benefits from the sale of approximately $800 million of assets in our Commercial franchises that benefited other income, provision for credit losses and net finance margin, and $14 million in after-tax costs from our portfolio repositioning activities.

Total assets from continuing operations1 at December 31, 2014 were $47.9 billion, up from $46.5 billion at September 30, 2014, and $43.3 billion at December 31, 2013. Financing and leasing assets in North American Commercial Finance and Transportation & International Finance were $35.3 billion, a slight decrease from September 30, 2014 reflecting a high level of prepayments and asset sales, and up $3.9 billion (12%) from a year ago reflecting strong origination volumes and the acquisitions of Direct Capital and Nacco. The Non-Strategic Portfolios declined by approximately $0.2 billion from September 30, 2014 to $0.4 billion, and by $0.9 billion from a year ago, reflecting portfolio run off and asset sales, including the sale of the Small Business Lending portfolio in June 2014. Total loans of $19.5 billion decreased $0.3 billion from September 30, 2014 but increased by $0.9 billion from a year ago. Operating lease equipment decreased $0.3 billion from September 30, 2014 but increased $1.9 billion from a year ago to $14.9 billion. Cash and securities of $9.3 billion were up $1.7 billion from September 30, 2014 and $0.6 billion from December 31, 2013.

Net finance revenue2 was $373 million, improved from $325 million in the year-ago quarter and $365 million in the prior quarter. Average earning assets were $34.3 billion in the current quarter, up from $30.8 billion in the year-ago quarter and unchanged from the prior quarter. Net finance revenue as a percentage of average earning assets (“net finance margin”) was 4.34%, compared to 4.23% (4.29% excluding the impact of debt redemptions3) in the year-ago quarter and 4.26% in the prior quarter reflecting strong equipment utilization, a higher level of interest recoveries and the benefit of suspended depreciation on operating lease equipment held for sale, partially offset by portfolio re-pricing.

 


The following information was filed by Cit Group Inc (CIT) on Tuesday, January 27, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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