8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2017 (July 25, 2017)

CIT GROUP INC.

(Exact name of registrant as specified in its charter)

Delaware	001-31369	65-1051192
(State or other	(Commission	(IRS Employer
jurisdiction of	File Number)	Identification No.)
incorporation)

11 West 42^nd Street

New York, New York 10036

(Address of registrant's principal executive office)

Registrant's telephone number, including area code: (212) 461-5200

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[   ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[   ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[   ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[   ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
[   ]	Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
[   ]	If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition.

This Current Report on Form 8-K includes as an exhibit a press release, dated July 25, 2017, reporting the financial results of CIT Group Inc. (the “Company”) as of and for the quarter ended June 30, 2017. The press release is attached as Exhibit 99.1. This press release includes certain non-GAAP financial measures. A reconciliation of those measures to the most directly comparable GAAP measures is included as a table to the press release. The information reported under this Item 2.02, including Exhibit 99.1, shall be considered furnished, not filed, for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Section 7 – Regulation FD

Item 7.01. Regulation FD Disclosure.

In addition, this Form 8-K includes a copy of the Company’s presentation to analysts and investors of its Second Quarter 2017 Financial Results for the quarter ended June 30, 2017, which is attached as Exhibit 99.2. The information included in Exhibit 99.2 shall be considered furnished, not filed, for purposes of the Exchange Act. The Company also provides supplementary financial information on its website, which is not incorporated by reference in this Form 8-K.

Section 9 – Financial Statements and Exhibits

Item 9.01.   Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press release issued by CIT Group Inc. on July 25, 2017 reporting its financial results as of and for the quarter ended June 30, 2017.
99.2	Presentation by CIT Group Inc. on July 25, 2017 regarding its Second Quarter 2017 Financial Results.

Forward-Looking Statements

This Form 8-K contains forward-looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “commence,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this Form 8-K, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that CIT (i) is unsuccessful in implementing its strategy and business plan, (ii) is unable to react to and address key business and regulatory issues, (iii) is unable to achieve the projected revenue growth from its new business initiatives or the projected expense reductions from efficiency improvements, and (iv) becomes subject to liquidity constraints and higher funding costs. We describe these and other risks that could affect our results in Item 1A, “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission. Accordingly, you should not place undue reliance on the forward-looking statements contained in this Form 8-K. These forward-looking statements speak only as of the date on which the statements were made. CIT undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CIT GROUP INC.
(Registrant)
By:	/s/ John Fawcett
	John Fawcett
	Executive Vice President & Chief Financial Officer

Dated: July 25, 2017

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

CIT Announces Second Quarter 2017 Results

Highlights:

· Second quarter net income of $157 million or $0.85 per diluted common share; income from continuing operations of $41 million or $0.22 per diluted common share

· Second quarter income from continuing operations excluding noteworthy items1 of $126 million or $0.68 per diluted common share

· Completion of Commercial Air sale enabled significant liability management and capital actions

○ Returned $3.3 billion of common equity

○ Reduced unsecured borrowings by $5.8 billion

· Issued $325 million in preferred stock that qualifies as Tier 1 capital for regulatory purposes

· Received non-objection to 2017 capital plan, including a quarterly cash dividend of up to $0.16 per common share and common stock repurchases of up to $225 million

· Reached a definitive agreement to sell NACCO, our European rail leasing business

○ Transaction will further the simplification of the company

○ NACCO is CIT’s last remaining ongoing business outside of North America

· Remain on track to reduce annual operating expenses by $150 million by 2018

· 83% of Loans and Leases in CIT Bank; Deposits now represent 78% of total funding

o Loans and leases to deposits ratio of 96% at CIT Bank

NEW YORK – July 25, 2017 – CIT Group Inc. (NYSE: CIT) today reported second quarter net income of $157 million or $0.85 per diluted common share, compared to $17 million or $0.08 per diluted common share for the year-ago quarter. Income from continuing operations for the second quarter was $41 million or $0.22 per diluted common share, compared to $88 million or $0.43 per diluted common share in the year-ago quarter.

Income from continuing operations excluding noteworthy items for the second quarter was $126 million or $0.68 per diluted common share, compared to $94 million or $0.46 per diluted common share in the year-ago quarter.

“We made significant progress in advancing our strategic plan in the second quarter as we position CIT to be a leading bank serving the middle market and small businesses nationwide,” said Chairwoman and Chief Executive Officer Ellen R. Alemany. “We successfully closed on the sale of Commercial Air, completed nearly $9.5 billion of

1 Income from continuing operations excluding noteworthy items is a non-GAAP measure. See “Non-GAAP Measurements” at the end of this press release and starting on page 27 for reconciliation of non-GAAP to GAAP financial information.

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capital and liability management actions, reached an agreement to sell our last remaining ongoing overseas business, and received a non-objection on our 2017 capital plan.”

Alemany continued, “As we look ahead, we remain focused on executing our plan to achieve a 10 percent ROTCE by the end of 2018, which includes maximizing the potential of our businesses, achieving our expense goals, reducing funding costs and optimizing the capital structure.”

ROTCE2 for continuing operations was 2.84%. ROTCE for continuing operations excluding noteworthy items² was 8.14%. Tangible book value per common share at June 30, 2017, was $46.34. The preliminary Common Equity Tier 1 capital ratio increased to 14.4%, and the preliminary Total Capital ratio increased to 16.2%, at June 30, 2017. These capital ratios are calculated under the fully phased-in regulatory capital rules.

Financial results for the second quarter in both continuing and discontinued operations were impacted by noteworthy items related to our strategic initiatives.

Noteworthy items (after tax) in the second quarter of 2017 in continuing operations included:

· $100 million ($0.54 per diluted common share) in debt extinguishment costs related to the reduction of $5.8 billion in unsecured debt;

· $9 million ($0.05 per diluted common share) in net interest cost related to the elevated borrowings and cash balances for the period between the closing of the Commercial Air sale and the completion of liability management and capital actions;

· $19 million ($0.11 per diluted common share) benefit from the resolution of legacy tax items;

· $7 million ($0.04 per diluted common share) benefit from a deferred tax asset recognition related to the pending sale of NACCO; and

· $2 million ($0.01 per diluted common share) in restructuring charges.

Noteworthy items (after tax) in the second quarter of 2017 in discontinued operations included:

· $100 million ($0.54 per diluted common share) gain on the sale of Commercial Air;

· $12 million ($0.07 per diluted common share) net benefit related to Financial Freedom due to a net release of the interest curtailment reserve and a reduction in the FDIC indemnification asset, partially offset by an impairment charge related to mortgage servicing rights.

2 Return on Tangible Common Equity, which adjusts tangible common equity for the reversal of the valuation allowance and the amortization of intangibles in the numerator and the disallowed deferred tax asset related to regulatory capital in the denominator, and ROTCE excluding noteworthy items are non-GAAP measures. See “Non-GAAP Measurements” at the end of this press release and starting on page 27 for reconciliation of non-GAAP to GAAP financial information.

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Selected Financial Highlights

										2Q17 change* from:
($ in millions)		2Q17			1Q17			2Q16		1Q17				2Q16
Net interest revenue	$	269		$	293		$	287		$	(24	)	-8%	$	(18	)	-6%
Non-interest income		336			330			361			5		2%		(25	)	-7%
Total revenue		605			623			648			(18	)	-3%		(43	)	-7%
Noninterest expense		(591	)		(439	)		(425	)		(152	)	35%		(166	)	39%
Income from continuing operations before credit provision		14			184			223			(170	)	-93%		(209	)	-94%
Provision for credit losses		(4	)		(50	)		(23	)		45		-91%		19		-81%
Income from continuing operations before benefit (provision) for income taxes		9			134			199			(125	)	-93%		(190	)	-95%
Benefit (provision) for income taxes		32			(56	)		(111	)		88		-157%		143		-129%
Income from continuing operations		41			78			88			(37	)	-47%		(47	)	-53%
Income (loss) from discontinued operations, net of taxes		116			102			(71	)		14		14%		187		-263%
Net income	$	157		$	180		$	17		$	(23	)	-13%	$	140		822%
Key performance metrics
Net finance margin(1)		3.07%			3.57%			3.63%			-0.50%				-0.55%
Loans and leases to deposit ratio		1.20x			1.50x			1.51x
Return on average common equity		6.83%			7.11%			0.61%			-0.28%				6.22%
Return on tangible common equity(1)		7.76%			8.08%			0.88%			-0.32%				6.88%
Return on tangible common equity (continuing operations), excluding noteworthy items(2)		8.14%			7.40%			6.35%			0.74%				1.78%
Return on AEA		1.24%			1.54%			0.14%			-0.31%				1.09%
Return on AEA, excluding noteworthy items(1)		1.10%			1.40%			1.58%			-0.30%				-0.48%
Net efficiency ratio(1)		60.3%			58.6%			54.9%			-1.7%				-5.4%
Headcount		3,995			4,060			4,220			(65	)	-2%		(225	)	-5%
Per common share
Earnings per diluted common share	$	0.85		$	0.88		$	0.08		$	(0.03	)	-4%	$	0.77		914%
Tangible book value per common share (TBVPS)(1)	$	46.34		$	46.09		$	48.99		$	0.25		1%	$	(2.65	)	-5%
Average diluted common shares outstanding (in thousands)		183,796			203,348			202,275			(19,552	)	-10%		(18,479	)	-9%
Capital adequacy
CET1 Ratio(3)		14.4%			14.3%			13.4%			0.1%				1.0%
Total Capital Ratio(3)		16.2%			15.1%			14.0%			1.1%				2.2%
Asset quality
Net charge-offs as % of average loans		0.38%			0.37%			0.45%			0.01%				-0.08%
Allowance for loan losses as % of loans		1.47%			1.51%			1.31%			-0.04%				0.16%
* Certain balances may not sum due to rounding.
(1)See "Non-GAAP Measurements" at the end of this press release and beginning on page 27 for reconciliation of non-GAAP to GAAP financial information and Noteworthy items.
(2)2Q17 excludes noteworthy items. 1Q17 and 2Q16 excludes noteworthy items and pro forma for ~$3 billion capital reduction associated with Commercial Air sale that occurred in 2Q17.  See "Non-GAAP Measurements" at the end of this press release and beginning on page 27 for reconciliation of non-GAAP to GAAP financial information and Noteworthy items.
(3)Ratios based on the fully phased-in basis.

Unless otherwise indicated, all references below relate to continuing operations. Discontinued operations at the end of the second quarter consisted of the discontinued operations related to Financial Freedom, our reverse mortgage servicing business, and our Business Air portfolio. We completed the sale of our Commercial Air business, which also was in discontinued operations, in April 2017.

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Income Statement Highlights:

Net Finance Revenue

Net Finance Revenue*										2Q17 change from:
($ in millions)		2Q17			1Q17			2Q16		1Q17				2Q16
Interest income	$	478		$	456		$	479		$	22		5%	$	(1	)	0%
Rental income on operating leases		251			251			261			(0	)	0%		(10	)	-4%
Finance revenue		729			707			740			22		3%		(10	)	-1%
Interest expense		(209	)		(163	)		(192	)		(46	)	28%		(18	)	9%
Depreciation on operating lease equipment		(77	)		(74	)		(63	)		(4	)	5%		(14	)	23%
Maintenance and other operating lease expenses		(53	)		(54	)		(51	)		1		-1%		(3	)	5%
Net finance revenue	$	390		$	417		$	434		$	(27	)	-7%	$	(45	)	-10%
Average earning assets	$	50,676		$	46,639		$	47,893		$	4,037		9%	$	2,782		6%
Net finance margin		3.07%			3.57%			3.63%			-0.50%				-0.55%
Excluding Noteworthy Items(1)
Average earning assets	$	46,990		$	46,639		$	47,893		$	351		1%	$	(904	)	-2%
Net finance margin		3.44%			3.57%			3.63%			-0.14%				-0.19%
(1)See "Non-GAAP Measurements" at the end of this press release and beginning on page 27 for reconciliation of non-GAAP to GAAP financial information and Noteworthy items.
* Certain balances may not sum due to rounding.

Net finance revenue3 included $23 million in interest expense on approximately $5.8 billion of unsecured borrowings that previously was allocated to discontinued operations but was recorded in continuing operations following the Commercial Air sale on April 4, 2017, until the redemption of that debt later in the quarter. Partially offsetting this cost was $9 million in interest income related to the elevated cash balances for the period between the closing of the Commercial Air sale and the related liability management and capital actions.

Excluding these noteworthy items, net finance revenue³ was $404 million in the current quarter, compared to $417 million in the prior quarter. A driver of the decrease in net finance revenue was approximately $15 million in interest expense on certain borrowings that was allocated to discontinued operations in the prior quarter but recorded in continuing operations for the current quarter. The decrease in net finance revenue also was driven by a decline in gross yields earned in Rail, partially offset by higher purchase accounting accretion and investment income.

Average earning assets increased from the prior quarter related to elevated cash balances in continuing operations for the period between the closing of the Commercial Air sale and the related liability management and capital actions. Excluding the elevated cash balances, average earning assets³ in the current quarter was $47.0 billion, and the resulting net finance revenue as a percentage of average earning assets (“net finance margin³”) was 3.44%, a 13 bps decline from 3.57% in the prior quarter.

Compared to the year-ago quarter, net finance revenue excluding the aforementioned noteworthy items decreased $31 million or 7%, and net finance margin decreased 19 bps. These decreases primarily reflected the aforementioned reallocation of interest expense, along with lower gross yields in Rail and lower purchase accounting accretion, partially offset by lower average loans and leases.

3 Net finance revenue, net finance margin, net operating lease revenue and average earnings assets, and respective amounts excluding noteworthy items are non-GAAP measures. See “Non-GAAP Measurements” at the end of this press release and starting on page 27 for reconciliation of non-GAAP to GAAP financial information.

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Other Non-interest Income

Other Non-Interest Income*										2Q17 change from:
($ in millions)		2Q17			1Q17			2Q16		1Q17				2Q16
Fee revenues	$	28		$	29		$	26		$	(1	)	-2%	$	3		10%
Factoring commissions		23			26			24			(3	)	-11%		(1	)	-4%
Gains on sales of leasing equipment		14			9			23			6		65%		(9	)	-40%
Gains on loan and portfolio sales		7			5			8			3		54%		(0	)	-4%
Gains on investments		5			4			6			1		15%		(2	)	-25%
Gain on OREO sales		2			1			3			1		77%		(1	)	-32%
Net (losses) gains on derivatives and foreign currency exchange		(2	)		(11	)		11			10		-84%		(13	)	-117%
Impairment on assets held for sale		(2	)		(2	)		(13	)		(0	)	12%		11		-85%
Other revenues		9			18			12			(10	)	-53%		(3	)	-25%
Total other non-interest income	$	85		$	79		$	100		$	6		7%	$	(15	)	-15%
* Certain balances may not sum due to rounding.

Other non-interest income includes fee revenues, factoring commissions, gains and losses on sales of assets and valuation adjustments.

Total other non-interest income was $85 million, compared to $79 million in the prior quarter. The prior quarter included a noteworthy charge of $8 million related to a currency translation adjustment. Excluding that noteworthy item, other non-interest income was essentially flat. Factoring commissions declined by $3 million, reflecting seasonally lower volume in our Commercial Services division. Gains on sales increased by $10 million, primarily due to larger gains on sales of Rail equipment.

Compared to the year-ago quarter, other non-interest income decreased by $15 million or 15%, primarily due to lower mark to market gains. Fee income increased slightly, primarily due to higher capital markets fees. Factoring commissions decreased slightly, as growth in factoring volume in Commercial Services was offset by lower pricing.

Operating Expenses

Operating Expenses*										2Q17 change from:
($ in millions)		2Q17			1Q17			2Q16		1Q17				2Q16
Compensation and benefits	$	(145	)	$	(143	)	$	(147	)	$	(2	)	1%	$	1		-1%
Technology		(34	)		(33	)		(31	)		(1	)	4%		(3	)	9%
Professional fees		(32	)		(40	)		(37	)		8		-21%		5		-15%
Insurance		(25	)		(26	)		(29	)		1		-3%		4		-13%
Net occupancy expense		(15	)		(20	)		(17	)		5		-24%		2		-11%
Advertising and marketing		(10	)		(5	)		(4	)		(5	)	93%		(6	)	136%
Other expenses		(25	)		(24	)		(28	)		(1	)	3%		4		-13%
Operating expenses, before provision for severance and facilities exiting and intangible asset amortization		(286	)		(291	)		(293	)		5		-2%		7		-2%
Intangible asset amortization		(6	)		(6	)		(6	)		-		0%		0		-3%
Provision for severance and facilities exiting activities		(3	)		(15	)		(10	)		11		-77%		6		-65%
Total operating expenses	$	(296	)	$	(312	)	$	(309	)	$	16		-5%	$	14		-4%
Net efficiency ratio		60.3%			58.6%			54.9%			-1.7%				-5.4%
* Certain balances may not sum due to rounding.

Operating expenses excluding restructuring costs and intangible asset amortization4 was $286 million, down 2% from $291 million in the prior quarter, driven primarily by lower net occupancy expenses and professional fees

4 Operating expenses excluding restructuring costs and intangible asset amortization, net efficiency ratio and net efficiency ratio excluding noteworthy items are non-GAAP measures. See “non-GAAP Measurements” at the end of this press release and starting on page 27 for reconciliation of non-GAAP to GAAP financial information.

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related to CCAR and our strategic initiatives, partially offset by higher advertising and marketing costs, primarily in Consumer Banking. The current quarter also included a $5 million non-recurring charge related to our European Rail business.

Compared to the year-ago quarter, operating expenses excluding restructuring costs and intangible asset amortization decreased by $7 million or 2%, reflecting lower employee costs from our operating expense reduction initiatives and lower professional fees, partially offset by higher advertising and marketing costs.

The net efficiency ratio4 was 60% compared to 59% in the prior quarter, as a decrease in net finance revenue was partially offset by a decrease in operating expenses. The net efficiency ratio excluding noteworthy items⁴ was 59% compared to 58% in the prior quarter. Compared to the year-ago quarter, the net efficiency ratio increased as the reduction in operating expenses was more than offset by a decline in net finance revenue and other non-interest income.

Debt Extinguishment Costs

We recognized $165 million in debt extinguishment costs associated with the reduction of $5.8 billion of unsecured debt from the proceeds of the Commercial Air sale.

Income Taxes

The benefit for income taxes in the current quarter of $32 million included a $13 million net current tax benefit recognized for the resolution of an uncertain tax position, a $7 million net current tax benefit related to certain refunds expected, and a $7 million deferred tax benefit related to recognition of a deferred tax asset related to the Company’s investment in NACCO, which is now classified as “held for sale.” The provision for income taxes in the prior quarter of $56 million included $14 million in deferred tax expense related to the restructuring of legal entities in preparation for the Commercial Air sale. The provision for income taxes in the year-ago quarter of $111 million included $4 million of net discrete tax expense. Excluding discrete tax items and the tax effect of the debt extinguishment costs, the effective tax rate in the current quarter was 35%, compared to 33% in the prior quarter and 54% in the year-ago quarter. The effective tax rate excluding discrete tax items in the year-ago quarter was meaningfully above the U.S. federal statutory tax rate due to the impact of certain unfavorable tax adjustments, including certain international income that was subject to incremental tax in the U.S.

4 Operating expenses excluding restructuring costs and intangible asset amortization, net efficiency ratio and net efficiency ratio excluding noteworthy items are non-GAAP measures. See “Non-GAAP Measurements” at the end of this press release and starting on page 27 for reconciliation of non-GAAP to GAAP financial information.

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Balance Sheet Highlights:

Earning Assets

Earning Assets*										2Q17 change from:
($ in millions)		2Q17			1Q17			2Q16		1Q17				2Q16
Loans (including assets held for sale)	$	29,405		$	30,253		$	31,687		$	(849	)	-3%	$	(2,282	)	-7%
Operating lease equipment, net (including assets held for sale)		7,688			7,517			7,225			171		2%		463		6%
Loans and Leases		37,093			37,770			38,912			(678	)	-2%		(1,820	)	-5%
Interest bearing cash		4,739			5,415			6,559			(676	)	-12%		(1,820	)	-28%
Investment securities		5,530			4,476			3,229			1,054		24%		2,301		71%
Indemnification asset		209			313			386			(105	)	-33%		(178	)	-46%
Credit balances of factoring clients		(1,405	)		(1,547	)		(1,215	)		142		-9%		(190	)	16%
Total Earning Assets	$	46,165		$	46,428		$	47,871		$	(263	)	-1%	$	(1,706	)	-4%
Average Earning Assets	$	50,676		$	46,639		$	47,893		$	4,037		9%	$	2,782		6%
Average Earning Assets, excluding noteworthy items(1)	$	46,990		$	46,639		$	47,893		$	351		1%	$	(904	)	-2%
(1)See "Non-GAAP Measurements" at the end of this press release and beginning on page 27 for reconciliation of non-GAAP to GAAP financial information and Noteworthy items.
* Certain balances may not sum due to rounding.

Earning assets at June 30, 2017, declined from the prior quarter, primarily reflecting a decline in loans and leases partially offset by an increase in investment securities. Loans and leases decreased due to prepayments in Commercial Finance, a decline in factoring receivables in Business Capital and run-off of the Legacy Consumer Mortgage (LCM) portfolio. The increase in Average Earning Assets from the prior quarter reflects elevated cash balances for the period between the closing of the Commercial Air sale and the related liability management and capital actions. Excluding this impact, Average Earning Assets was $47.0 billion in the current quarter.

Compared with June 30, 2016, earning assets declined $1.7 billion, or 4%, which reflected a decline in loans in Commercial Finance along with run-off of portfolios in NSP and LCM, partially offset by growth in the other Commercial Banking divisions and an increase in cash and investment securities.

Cash and Investment Securities

Interest bearing cash and investment securities were $10.3 billion at June 30, 2017, consisting of $4.8 billion of interest-bearing cash and $5.5 billion of investment securities. In addition, there was approximately $0.6 billion of non-interest-bearing cash. During the quarter, investment securities increased by $1.1 billion reflecting the continued deployment of cash into investment securities.

Of the interest bearing cash and investment securities, $2.2 billion was at the financial holding company and $7.8 billion was at CIT Bank, while the remaining $0.3 billion consisted of amounts held at the operating subsidiaries and restricted balances. Approximately half of the $0.6 billion of non-interest bearing cash was at the financial holding company while the remainder was at CIT Bank and other operating subsidiaries.

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Deposits and Borrowings

Deposits and Borrowings*							2Q17 change from:
($ in millions)		2Q17		1Q17		2Q16	1Q17				2Q16
Noninterest-bearing checking	$	1,274	$	1,204	$	948	$	71		6%	$	327		34%
Interest-bearing checking		2,744		3,237		3,153		(493	)	-15%		(409	)	-13%
Money market		6,113		6,903		5,853		(791	)	-11%		260		4%
Savings		5,273		4,683		4,428		590		13%		844		19%
Time deposits		15,357		16,131		18,326		(775	)	-5%		(2,970	)	-16%
Other		165		178		155		(13	)	-7%		10		7%
Total Deposits	$	30,925	$	32,336	$	32,863	$	(1,411	)	-4%	$	(1,938	)	-6%
Unsecured borrowings	$	4,545	$	10,601	$	10,591	$	(6,055	)	-57%	$	(6,046	)	-57%
Secured borrowings		4,076		4,136		4,992		(59	)	-1%		(916	)	-18%
Total Borrowings	$	8,621	$	14,736	$	15,584	$	(6,115	)	-41%	$	(6,962	)	-45%
* Certain balances may not sum due to rounding.

Deposits represented approximately 78% of CIT’s funding at June 30, 2017, up from 69% at Mar. 31, 2017, reflecting the reduction of $5.8 billion in unsecured borrowings during the quarter. The weighted average rate on total outstanding deposits increased to 1.20% in the current quarter from 1.16% in the prior quarter, driven by higher interest rates that were partially offset by a shift in deposit mix. Compared to the year-ago quarter, the weighted average rate on total outstanding deposits declined by 1 basis point from 1.21% primarily driven by a shift in deposit mix.

Unsecured borrowings comprised 12% of the funding mix at June 30, compared to 22% at Mar. 31, 2017. The decrease was driven by the tender offer and redemptions that reduced unsecured borrowings by a total of $5.8 billion. Secured borrowings comprised 10% of the funding mix at June 30, compared to 9% at Mar. 31, 2017.

Capital

Capital*							2Q17 change from:
($ in millions, except per share data)		2Q17		1Q17		2Q16	1Q17				2Q16
Common Stockholders' Equity	$	7,026	$	10,165	$	11,093	$	(3,139	)	-31%	$	(4,067	)	-37%
Tangible Common Equity	$	6,275	$	9,345	$	9,895	$	(3,070	)	-33%	$	(3,619	)	-37%
Total risk-based capital(1)	$	7,070	$	9,737	$	9,500	$	(2,667	)	-27%	$	(2,430	)	-26%
Risk-weighted assets(1)	$	43,675	$	64,645	$	67,822	$	(20,971	)	-32%	$	(24,148	)	-36%
Book value per share (BVPS)	$	51.88	$	50.14	$	54.92	$	1.74		3%	$	(3.03	)	-6%
Tangible book value per share (TBVPS)	$	46.34	$	46.09	$	48.99	$	0.25		1%	$	(2.65	)	-5%
CET1 Ratio(1)		14.4%		14.3%		13.4%		0.1%				1.0%
Total Capital Ratio(1)		16.2%		15.1%		14.0%		1.1%				2.2%
Tier 1 Leverage Ratio(1)		12.1%		14.7%		13.8%		-2.6%				-1.7%
* Certain balances may not sum due to rounding.
(1)Balances and ratios based on the fully phased-in basis.

Common stockholders’ equity and tangible common equity decreased from the prior quarter, reflecting capital actions completed during the quarter, partially offset by an increase in retained earnings. During the quarter, we returned $3.3 billion of common equity through:

· an equity tender offer, in which we repurchased approximately 57.3 million common shares at a purchase price of $48 per share;

· open market repurchases of 818,071 common shares at an average share price of $46.45; and

 9

· an accelerated share repurchase program (ASR), in which we took initial delivery of approximately 9.25 million common shares. The total share delivery is subject to a true-up upon the final settlement of the ASR, which is expected to occur by the end of the third quarter of 2017.

Total common shares outstanding was 135.4 million at June 30, 2017.

During the quarter, we issued $325 million in Non-Cumulative Perpetual Preferred Stock, which qualifies as Tier 1 capital for regulatory purposes. Dividends on the preferred stock will be payable semi-annually in June and December at a fixed rate of 5.8% to June 2022 and at three-month LIBOR plus 3.972% thereafter.

Tangible book value per common share increased in the quarter to $46.34, as retained earnings in the quarter and the reduced share count were partially offset by the decline in equity from capital returns.

The Common Equity Tier 1 capital ratio increased slightly from the prior quarter, as the decline in Common Equity Tier 1 capital, primarily from capital returns net of retained earnings, was offset by a decline in risk-weighted assets (RWA), primarily from the Commercial Air sale, and to a lesser extent from the reduction of earnings assets. The Total Capital ratio increased from the prior quarter, as the decline in Total Capital was exceeded by the decline in RWA. The ratios presented are estimated Common Equity Tier 1 and Total Capital ratios under the fully phased-in Regulatory Capital Rules.

On June 28, 2017, we received a non-objection from the Board of Governors of the Federal Reserve to our capital plan as part of the Comprehensive Capital Analysis and Review (CCAR) that included a quarterly cash dividend of up to $0.16 per common share and common stock repurchases of up to $225 million.

On July 17, 2017, the Board of Directors declared a quarterly cash dividend of $0.15 per common share on its outstanding common stock. The common stock dividend is payable on Aug. 25, 2017, to common shareholders of record as of Aug. 11, 2017. In addition, the Board of Directors authorized up to $225 million in common share repurchases through June 30, 2018.

Asset Quality

Asset Quality*							2Q17 change from:
($ in millions)		2Q17		1Q17		2Q16	1Q17				2Q16
Net charge-offs (NCO)	$	28	$	28	$	34	$	0		1%	$	(7	)	-19%
NCO % of AFR		0.38%		0.37%		0.45%		0.01%				-0.08%
Non-accrual Loans	$	257	$	259	$	265	$	(2	)	-1%	$	(8	)	-3%
OREO	$	78	$	80	$	90	$	(1	)	-2%	$	(12	)	-13%
Provision for credit losses	$	4	$	50	$	23	$	(45	)	-91%	$	(19	)	-81%
Total Portfolio Allowance as a % of Finance Receivables (FR)		1.47%		1.51%		1.31%		-0.04%				0.16%
* Certain balances may not sum due to rounding.

Provision

The provision for credit losses was $4 million compared to $50 million in the prior quarter. The lower provision this quarter is below the normalized run rate and is principally the result of lower loan balances and net credit benefits

 10

from changes in portfolio mix in Commercial Banking. The provision for credit losses in the prior quarter included a specific reserve on a single account in the factoring business within Business Capital.

Compared to the year-ago quarter, the provision for credit losses decreased $19 million primarily due to lower loan balances and net credit benefits from changes in portfolio mix in Commercial Banking.

Net Charge-offs

Net charge-offs were $28 million (0.38% of average loans), essentially flat with the prior quarter and down from $34 million (0.45% of average loans) in the year-ago quarter. The decline from the year-ago quarter was primarily driven by lower charge-offs in the energy portfolio in Commercial Banking.

Loan Loss Allowance

The allowance for loan losses was $426 million (1.47% of loans, 1.70% excluding loans subject to loss sharing agreements with the FDIC) at June 30, 2017, compared to $449 million (1.51% of loans, 1.76% excluding loans subject to loss sharing agreements with FDIC) at Mar. 31, 2017, and $393 million (1.31% of loans, 1.56% excluding loans subject to loss sharing agreements with the FDIC) at June 30, 2016. The decrease in the allowance for loan losses from the prior quarter was principally due to lower loan balances and net credit benefits from changes in portfolio mix in Commercial Banking. The decrease from prior quarter also reflects the charge-off of previously established specific reserves on impaired loans. The increase in allowance for loan losses from the year-ago quarter reflects reserve build resulting from purchase accounting accretion on loans acquired from OneWest.

Purchase credit impaired (PCI) loans acquired as part of the OneWest acquisition are carried at a significant discount to the unpaid principal balance. At June 30, 2017, PCI loans with an aggregate unpaid principal balance of $3.2 billion were carried at $2.2 billion, representing a 31% discount. The vast majority of the discount is related to our Legacy Consumer Mortgages portfolio in Consumer Banking.

Non-accrual Loans

Non-accrual loans of $257 million (0.88% of loans) were down slightly from the prior quarter and down from the year-ago quarter, primarily driven by lower balances in NSP.

 11

Commercial Banking

Earnings Summary*										2Q17 change from:
($ in millions)	2Q17			1Q17			2Q16			1Q17				2Q16
Interest income	$	317		$	308		$	323		$	9		3%	$	(7	)	-2%
Rental income on operating leases		251			251			257			(0	)	0%		(6	)	-2%
Interest expense		(128	)		(120	)		(130	)		(8	)	7%		3		-2%
Depreciation on operating lease equipment		(77	)		(74	)		(63	)		(4	)	5%		(14	)	23%
Maintenance and other operating lease expenses		(53	)		(54	)		(51	)		1		-1%		(3	)	5%
Net finance revenue		309			312			336			(2	)	-1%		(27	)	-8%
Other non-interest income		75			72			68			3		3%		7		10%
Provision for credit losses		0			(49	)		(22	)		49		-100%		22		-101%
Operating expenses		(177	)		(179	)		(188	)		2		-1%		12		-6%
Income before income taxes	$	208		$	156		$	194		$	52		33%	$	14		7%
Select Average Balances
Average loans(1)	$	22,701		$	22,750		$	23,347		$	(49	)	0%	$	(646	)	-3%
Average operating leases(1)	$	7,357		$	7,501		$	7,125		$	(144	)	-2%	$	232		3%
Average earning assets(2)	$	29,159		$	29,305		$	29,901		$	(146	)	0%	$	(742	)	-2%
Statistical Data
Pre-tax ROAEA		2.85%			2.13%			2.60%			0.72%				0.25%
Net finance margin		4.24%			4.25%			4.50%			-0.01%				-0.26%
New business volume	$	2,046		$	1,615		$	2,240		$	431		27%	$	(193	)	-9%
Net efficiency ratio		45.6%			46.2%			46.1%			0.6%				0.5%
(1) Amounts do not include held for sale. Average loans also does not include credit balances of factoring clients.
(2) AEA is net of credit balances of factoring clients.
* Certain balances may not sum due to rounding.

Segment Financial Results

Pre-tax earnings in the Commercial Banking segment increased from the prior quarter primarily driven by a lower credit provision. Compared to the year-ago quarter, pre-tax earnings increased, as lower operating expenses, greater other non-interest income and lower credit costs were partially offset by the decrease in net finance revenue.

Net Finance Revenue and Margin

Net finance revenue decreased slightly from the prior quarter as decreases in the Rail and Business Capital divisions were partially offset by increases in Commercial Finance and Real Estate. The decrease was primarily driven by lower earning assets and lower net rental income in the Rail division, partially offset by the impact of higher interest rates. Compared to the year-ago quarter, net finance revenue decreased primarily due to lower earning assets, lower purchase accounting accretion and lower net rental income in the Rail division. The Rail division’s net rental declines from both the prior and year-ago quarters are mainly driven by renewal rates that continue to price lower due to excess capacity in the market.

Average Loans and Leases

Average loans and leases, which comprise the vast majority of earning assets, were $28.9 billion, essentially flat from the prior quarter. The 2% decrease in average loans and leases from the year-ago quarter was driven by sales and prepayments in the Commercial Finance division, which offset increases in each of the other divisions.

New lending and leasing volume of $2.0 billion was up from the prior quarter, primarily reflecting an increase in Commercial Finance. Compared to the year-ago quarter, new lending and leasing volume was down, primarily due to a decrease in Real Estate Finance, partially offset by an increase in Commercial Finance.

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Factoring volume of $5.7 billion was down from the prior quarter, primarily driven by a decrease in volume against the technology industry, and up 4% compared to the year-ago quarter, driven by increased volume across all industries, especially technology.

Other Non-interest Income

Other non-interest income increased $3 million from the prior quarter, primarily driven by higher gains on asset sales of Rail equipment, partially offset by lower factoring commissions. Compared to the year-ago quarter, other non-interest income increased $7 million, driven by higher capital markets fee income and a valuation adjustment in the year-ago quarter on assets held for sale in Rail, partially offset by lower gains on asset sales of Rail equipment.

Operating Expenses

Operating expenses declined $2 million from the prior quarter, primarily driven by lower employee compensation costs. Compared to the year-ago quarter, operating expenses decreased by $12 million, reflecting lower employee related costs related to our operating expense reduction initiatives.

Asset Quality

The provision for credit losses was down from the prior quarter from lower loan balances and net credit benefits from changes in portfolio mix. In addition, the prior quarter included a specific reserve on a single account in the factoring business within Business Capital that was charged off this quarter. The decline from the year-ago quarter was in Commercial Finance and reflected lower provision amounts for the energy and maritime sectors.

Net charge-offs were $27 million (0.48% of average loans), compared to $27 million (0.48% of average loans) in the prior quarter and $35 million (0.59% of average loans) in the year-ago quarter. Compared to the prior quarter, decreases in net charge-offs in Commercial Finance and Real Estate Finance were offset by an increase in Business Capital. Compared to the year-ago quarter, the decrease primarily reflected lower net charge-offs on assets held for sale in the Commercial Finance division.

Non-accrual loans were $229 million (1.03% of loans), compared to $234 million (1.02% of loans) at Mar. 31, 2017, and $208 million (0.90% of loans) at June 30, 2016. The decrease from the prior quarter primarily reflected a reduction in the Commercial Finance division, including lower energy non-accrual loans. The increase from the year-ago quarter primarily reflected an increase in Commercial Finance, including C&I and sponsor finance loans, offset by a decrease in energy loans.

Commercial Banking Divisions

Commercial Finance

· Gross yield, net finance revenue and net finance margin increased from the prior quarter as the benefit of higher short-term interest rates and higher purchase accounting accretion offset the impact of lower average earning assets.

 13

Rail

· Loans and leases for North American Rail increased 1%, and rail car utilization in North American Rail remained at 94%, as strength in sand car demand offset continued weakness in coal car utilization.

· Gross yields declined 28 basis points as renewal lease rates continue to re-price lower on average across the North American portfolio.

· On June 30, 2017, we announced the sale of NACCO, our European Rail division, and transferred the portfolio to held for sale.

Real Estate Finance

· Funded volume increased 10% compared to the prior quarter. Loans and leases declined slightly in the current quarter, as an increase in funded volume was offset by higher prepayments and continued run-off of legacy portfolio assets.

Business Capital

· Loans and leases declined from the prior quarter, primarily driven by lower volume in the Commercial Services business, partially offset by growth in the Equipment Finance and Direct Capital businesses.

Consumer Banking

Earnings Summary*										2Q17 change from:
($ in millions)		2Q17			1Q17			2Q16		1Q17				2Q16
Interest income	$	102		$	100		$	104		$	2		2%	$	(2	)	-2%
Interest expense		10			7			(5	)		3		48%		14		-300%
Net finance revenue		111			107			99			5		4%		13		13%
Other non-interest income		6			8			12			(2	)	-28%		(6	)	-51%
Provision for credit losses		(5	)		(1	)		(1	)		(4	)	820%		(4	)	318%
Operating expenses		(96	)		(96	)		(86	)		(1	)	1%		(10	)	12%
Income (loss) before income taxes	$	16		$	18		$	23		$	(2	)	-12%	$	(7	)	-31%
Select Average Balances
Average loans(1)	$	6,751		$	6,889		$	7,142		$	(137	)	-2%	$	(391	)	-5%
Average earning assets	$	7,093		$	7,292		$	7,568		$	(199	)	-3%	$	(476	)	-6%
Statistical Data
Pre-tax ROAEA		0.91%			1.00%			1.23%			-0.10%				-0.32%
Net finance margin		6.27%			5.84%			5.22%			0.43%				1.05%
New business volume	$	150		$	155		$	261		$	(5	)	-3%	$	(112	)	-43%
Net efficiency ratio		78.3%			79.5%			73.7%			1.2%				-4.6%
(1) Amount does not include held for sale.
* Certain balances may not sum due to rounding.

Segment Financial Results

Pre-tax earnings in the Consumer Banking segment decreased slightly compared to the prior quarter, as lower other non-interest income and a higher provision for credit losses were partially offset by higher net finance revenue. Compared to the year-ago quarter, pre-tax income was down, as higher operating expenses and credit costs and lower other non-interest income were offset by higher net finance revenue.

Net Finance Revenue and Margin

Net finance revenue of $111 million increased from the prior and year-ago quarters due to the benefit in interest expense received from the other segments for the value of the excess deposits Consumer Banking generates.

 14

Interest income was up slightly compared to prior quarter, primarily from higher purchase accounting accretion. Compared to the year ago quarter, interest income decreased due to run-off in the LCM portfolio and lower purchase accounting accretion.

Average Loans

Average Loans, including held for sale, totaled $6.8 billion, down 2% from the prior quarter due to run-off of the LCM portfolio, partially offset by new business volume. The LCM portfolio made up $4.6 billion of the current quarter balance, with a significant portion covered by loss sharing agreements with the FDIC. The benefit of these agreements is recorded within the indemnification asset.

Other Non-interest Income

Other non-interest income was down compared to the prior and year-ago quarters, as the prior and year-ago quarters included valuation adjustments for the FDIC Receivable measured at fair value.

Operating Expenses

Operating expenses was flat compared to the prior quarter, as an increase in advertising and marketing expenses was offset by declines in other operating expenses. Compared to the year-ago quarter, operating expenses increased, primarily driven by higher advertising and marketing expenses.

Asset Quality

The provision for credit losses was higher compared to the prior and year-ago quarters due to modest credit deterioration related to non-performing residential mortgage loans. Non-accrual loans were $20 million (0.29% of loans) at June 30, 2017, up from $16 million (0.24% of loans) at Mar. 31, 2017, and up from $12 million (0.16% of loans) at June 30, 2016, essentially all of which are in the LCM portfolio. Certain LCM loans are subject to loss sharing agreements with the FDIC, under which CIT may be reimbursed for a portion of future losses.

Non-Strategic Portfolios (NSP):

Pre-tax loss in NSP of $0.4 million improved from a $2.9 million loss in the prior quarter, which included the recognition of currency translation adjustment charges associated with the liquidation of international entities. The decline in pre-tax income from $8.0 million in the year-ago quarter reflects the liquidation of the portfolios and a gain on asset sale in the year-ago quarter.

Assets held for sale at June 30, 2017, was $115 million, all related to our business in China, down nearly $50 million from Mar. 31, 2017, and down from $1.1 billion at June 30, 2016.

Corporate & Other:

Certain items are not allocated to operating segments and are included in Corporate & Other, including interest expense related to corporate liquidity, mark-to-market on certain derivatives, restructuring charges, certain legal

 15

costs and other operating expenses. In addition, certain costs associated with debt redemptions are maintained at Corporate.

The pretax loss of $214 million in the current quarter included the previously mentioned debt extinguishment costs. Excluding the debt extinguishment costs, the pre-tax loss was $49 million. Net finance revenue decreased from both the prior and year-ago quarters, reflecting higher interest expense attributable to the timing of the receipt of the Commercial Air sale proceeds and debt redemptions, also previously mentioned, which more than offset an increase in interest income, due to the higher cash balances. Other non-interest income increased from the prior quarter, driven by greater gains on asset sales, and declined from the year-ago quarter, which included mark-to-market benefits of $9 million on the total return swap and $5 million on MBS securities carried at fair value. Operating expenses totaled $21 million, compared to $35 million in the prior quarter and $23 million in the year-ago quarter. Operating expenses in the prior quarter included $17 million in consulting spending related to CCAR project costs and organizational design and $7 million in systems write-offs. Operating expenses for the quarter also included $3 million in restructuring charges, compared to $15 million in the prior quarter and $10 million in the year-ago quarter.

Discontinued Operations:

Discontinued operations at the end of the second quarter consisted of our Business Air portfolio and Financial Freedom, our reverse mortgage servicing business. We completed the sale of our Commercial Air business in April 2017 for $10.4 billion and recorded a pre-tax gain of $146 million.

Income from Discontinued Operations was $115 million, which included income of $105 million from Commercial Air and $10 million from Financial Freedom. Income from Commercial Air in the current quarter reflected the gain on sale. Income from Financial Freedom was driven by a $12 million net release of servicing-related reserves, including a net release of the interest curtailment reserve (following an agreement with the FDIC and Fannie Mae to resolve certain legacy contingent liabilities), partially offset by an impairment charge related to mortgage servicing rights. In connection with the net release of servicing-related reserves, the FDIC indemnification asset covering servicing-related obligations for reverse mortgage loans was reduced by $77 million. In addition, during the quarter CIT agreed to a settlement with the HUD OIG and the Department of Justice to resolve servicing-related claims for an amount within the existing reserve.

Prior quarter income from Discontinued Operations was $102 million, which included income of $111 million from Commercial Air and Business Air, partially offset by a loss of $9 million from Financial Freedom. The income in Commercial Air and Business Air included a $39 million loss on debt extinguishment, a $14 million gain as a result of the sale of the TC-CIT joint venture and the benefit of $113 million of suspended depreciation on operating lease equipment held for sale. The year-ago quarter loss of $71 million was driven by a loss in Financial Freedom of $166 million, mostly related to a curtailment reserve, which offset income of $95 million in Commercial Air and Business Air.

 16

Business Air loans and leases totaled $249 million at June 30, 2017, down from $341 million at Mar. 31, 2017, and $671 million at June 30, 2016.

Financial Freedom loans totaled $328 million at June 30, 2017, compared to $353 million at Mar. 31, 2017, and $413 million at June 30, 2016.

 17

Conference Call and Webcast

The Company will host a conference call today, July 25, 2017, to discuss its second quarter 2017 results. All interested parties are welcome to participate. An investor presentation will accompany the conference call and be available prior to the start of the conference call at the Investor Relations page of CIT's website at cit.com/investor under Presentations & Events.

Conference call details:

Time:	8:00 am (Eastern Time)
Dial-in:	(888) 317-6003 for U.S. callers
	(866) 284-3684 for Canadian callers
	(412) 317-6061 for international callers
	Conference ID 8272958

The conference call will also be webcast, which can be accessed from the Investor Relations page of CIT's website at cit.com/investor under Presentations & Events.

A replay of the conference call will be available beginning shortly after the end of the call through September 1, 2017, by dialing (877) 344-7529 for U.S. callers, (855) 669-9658 for Canadian callers or (412) 317-0088 for international callers and using conference ID 1011054, or at cit.com/investor under Presentations & Events.

About CIT

Founded in 1908, CIT (NYSE: CIT) is a financial holding company with more than $50 billion in assets as of June 30, 2017. Its principal bank subsidiary, CIT Bank, N.A., (Member FDIC, Equal Housing Lender) has more than $30 billion of deposits and more than $40 billion of assets. CIT provides financing, leasing, and advisory services principally to middle-market companies and small businesses across a wide variety of industries. It also offers products and services to consumers through its Internet bank franchise and a network of retail branches in Southern California, operating as OneWest Bank, a division of CIT Bank, N.A. For more information visit cit.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “commence,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that CIT (i) is unsuccessful in implementing its strategy and business plan, (ii) is unable to react to and address key business and regulatory issues, (iii) is unable to achieve the projected revenue growth from its new business initiatives or the projected expense reductions from efficiency improvements, and (iv) becomes subject to liquidity constraints and higher funding costs.  We describe these and other risks that could affect our results in Item 1A, “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission.  Accordingly, you should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. CIT undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.

Non-GAAP Measurements

Net finance revenue, net operating lease revenue and average earning assets are non-GAAP measurements used by management to gauge portfolio performance. Operating expenses excluding restructuring costs and intangible amortization is a non-GAAP measurement used by management to compare period over period expenses. Net efficiency ratio measures operating expenses (net of restructuring costs and intangible amortization) to our level of total net revenues. Total assets from continuing operations is a non-GAAP measurement used by management to analyze the total asset change on a more consistent basis. Tangible book value and tangible book value per common share are non-GAAP metrics used to analyze banks. Net income excluding noteworthy items, income from continuing operations excluding noteworthy items, and Return of Tangible Common Equity excluding noteworthy items are non-GAAP measures used by management. The Company believes that adjusting for these items provides a measure of the underlying performance of the Company and of continuing operations.

 18

###

CIT MEDIA RELATIONS:	CIT INVESTOR RELATIONS:
Gina Proia	Barbara Callahan
(212) 771-6008 Gina.Proia@cit.com	(973) 740-5058 Barbara.Callahan@cit.com

 19

CIT GROUP INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Income

(dollars in millions, except per share data)

		Quarters Ended									Six Months Ended June 30,
		June 30, 2017			March 31, 2017			June 30, 2016
											2017			2016
Interest income
	Interest and fees on loans	$	421.3		$	412.1		$	447.6		$	833.4		$	899.5
	Other Interest and dividends		56.9			43.6			31.1			100.5			62.1
	Total interest income		478.2			455.7			478.7			933.9			961.6
Interest expense
	Interest on borrowings		(114.6	)		(69.1	)		(92.2	)		(183.7	)		(187.7	)
	Interest on deposits		(94.6	)		(94.0	)		(99.4	)		(188.6	)		(198.9	)
	Total interest expense		(209.2	)		(163.1	)		(191.6	)		(372.3	)		(386.6	)
Net interest revenue			269.0			292.6			287.1			561.6			575.0
Provision for credit losses			(4.4	)		(49.7	)		(23.3	)		(54.1	)		(112.8	)
Net interest revenue, after credit provision			264.6			242.9			263.8			507.5			462.2
Non-interest income
	Rental income on operating lease equipment		251.2			251.3			261.0			502.5			525.1
	Other non-interest income		84.6			79.1			99.8			163.7			184.6
	Total non-interest income		335.8			330.4			360.8			666.2			709.7
Non-interest expenses
	Depreciation on operating lease equipment		(77.4	)		(73.5	)		(63.1	)		(150.9	)		(124.4	)
	Maintenance and other operating lease expenses		(53.3	)		(53.8	)		(50.6	)		(107.1	)		(99.5	)
	Operating expenses		(295.6	)		(311.6	)		(309.3	)		(607.2	)		(639.4	)
	Loss on debt extinguishment and deposit redemption		(164.8	)		-			(2.4	)		(164.8	)		(4.0	)
	Total non-interest expenses		(591.1	)		(438.9	)		(425.4	)		(1,030.0	)		(867.3	)
Income from continuing operations before benefit (provision) for income taxes			9.3			134.4			199.2			143.7			304.6
Benefit (provision) for income taxes			31.9			(56.2	)		(111.2	)		(24.3	)		(155.6	)
Income from continuing operations			41.2			78.2			88.0			119.4			149.0
Discontinued operations
	Income (loss) from discontinued operations, net of taxes		8.3			89.0			(71.0	)		97.3			14.0
	Gain on sale of discontinued operations, net of taxes		107.2			12.7			-			119.9			-
	Income (loss) from discontinued operations, net of taxes		115.5			101.7			(71.0	)		217.2			14.0
Net income		$	156.7		$	179.9		$	17.0		$	336.6		$	163.0
Basic income per common share
	Income from continuing operations	$	0.23		$	0.39		$	0.43		$	0.62		$	0.74
	Income (loss) from discontinued operations, net of taxes		0.63			0.50			(0.35	)		1.13			0.07
	Basic income per common share	$	0.86		$	0.89		$	0.08		$	1.75		$	0.81
Average number of common shares - basic (thousands)			182,347			202,449			201,893			192,286			201,647
Diluted income per common share
	Income from continuing operations	$	0.22		$	0.38		$	0.43		$	0.62		$	0.74
	Income (loss) from discontinued operations, net of taxes		0.63			0.50			(0.35	)		1.12			0.07
	Diluted income per common share	$	0.85		$	0.88		$	0.08		$	1.74		$	0.81
Average number of common shares - diluted (thousands)			183,796			203,348			202,275			193,460			202,208

20

CIT GROUP INC. AND SUBSIDIARIES

Unaudited Consolidated Balance Sheets

(dollars in millions, except per share data)

		June 30, 2017*			March 31, 2017			December 31, 2016			June 30, 2016
Assets
	Total cash and deposits	$	5,337.9		$	6,156.9		$	6,430.6		$	7,435.5
	Investment securities		5,530.0			4,476.3			4,491.1			3,229.1
	Assets held for sale		1,324.8			562.6			636.0			1,639.1
	Loans		29,031.7			29,691.4			29,535.9			30,093.8
	Allowance for loan losses		(426.0	)		(448.6	)		(432.6	)		(393.1	)
	Loans, net of allowance for loan losses		28,605.7			29,242.8			29,103.3			29,700.7
	Operating lease equipment, net		6,736.0			7,516.2			7,486.1			7,179.1
	Indemnification assets		208.5			313.1			341.4			386.0
	Goodwill		625.5			686.1			685.4			1,044.1
	Intangible assets		125.4			134.3			140.7			154.2
	Unsecured counterparty receivable		205.0			212.0			394.5			570.2
	Other assets		1,149.2			1,075.9			1,240.4			2,407.4
	Assets of discontinued operations		630.9			12,718.2			13,220.7			12,960.8
	Total assets	$	50,478.9		$	63,094.4		$	64,170.2		$	66,706.2
Liabilities
	Deposits	$	30,925.0		$	32,336.2		$	32,304.3		$	32,862.5
	Credit balances of factoring clients		1,405.3			1,547.1			1,292.0			1,215.2
	Other liabilities		1,567.9			1,577.4			1,897.6			1,557.6
	Borrowings
	Unsecured borrowings		4,545.1			10,600.5			10,599.0			10,591.2
	Structured financings		1,680.8			1,725.1			1,925.7			1,997.3
	FHLB advances		2,395.5			2,410.7			2,410.8			2,995.1
	Total borrowings		8,621.4			14,736.3			14,935.5			15,583.6
	Liabilities of discontinued operations		607.8			2,731.9			3,737.7			4,394.0
	Total liabilities		43,127.4			52,928.9			54,167.1			55,612.9
Equity
	Stockholders' equity
	Preferred stock		325.0			-			-			-
	Common stock		2.1			2.1			2.1			2.1
	Paid-in capital		8,711.8			8,782.6			8,765.8			8,749.8
	Retained earnings		1,826.9			1,701.1			1,553.0			2,625.5
	Accumulated other comprehensive loss		(88.4	)		(123.7	)		(140.1	)		(107.6	)
	Treasury stock, at cost		(3,426.2	)		(196.9	)		(178.1	)		(177.0	)
	Total common stockholders' equity		7,026.2			10,165.2			10,002.7			11,092.8
	Noncontrolling interests		0.3			0.3			0.4			0.5
	Total equity		7,351.5			10,165.5			10,003.1			11,093.3
	Total liabilities and equity	$	50,478.9		$	63,094.4		$	64,170.2		$	66,706.2
Book Value Per Common Share
	Book value per common share	$	51.88		$	50.14		$	49.50		$	54.92
	Tangible book value per common share	$	46.34		$	46.09		$	45.41		$	48.99
	Outstanding common shares (in thousands)		135,419			202,736			202,088			201,990
* Preliminary

21

CIT GROUP INC. AND SUBSIDIARIES

Average Balances and Rates

(dollars in millions)

	Quarters Ended
	June 30, 2017				March 31, 2017				June 30, 2016
	Average Balance			Rate	Average Balance			Rate	Average Balance			Rate
Assets
Interest bearing deposits	$	9,510.5		1.00%	$	5,652.4		0.88%	$	6,584.1		0.50%
Investments		5,016.1		2.64%		4,452.4		2.79%		3,130.7		2.92%
Loans and loans held for sale (net of credit balances of factoring clients)
U.S.		28,014.9		6.06%		28,241.4		5.71%		29,475.6		5.86%
Non-U.S.		259.0		10.66%		463.9		14.31%		1,160.2		8.40%
Total Loans		28,273.9		6.10%		28,705.3		5.85%		30,635.8		5.96%
Total interest earning assets / interest income		42,800.5		4.56%		38,810.1		4.78%		40,350.6		4.83%
Operating lease equipment, net (including held for sale)
U.S.		6,026.0		6.44%		6,044.9		6.72%		5,794.2		8.18%
Non-U.S.		1,569.3		5.99%		1,456.0		6.15%		1,372.2		8.40%
Total operating leases, net		7,595.3		6.35%		7,500.9		6.61%		7,166.4		8.22%
Indemnification assets		280.0		-13.86%		327.9		-9.50%		376.4		-9.14%
Average earning assets ("AEA")		50,675.8		4.73%		46,638.9		4.97%		47,893.4		5.23%
Non-interest earning assets
Cash and due from banks		647.2				783.6				938.1
Allowance for loan losses		(439.9	)			(436.0	)			(394.7	)
All other non-interest bearing assets		2,124.6				2,321.3				4,250.6
Assets of discontinued operation		1,108.1				12,969.7				12,947.7
Total Average Assets	$	54,115.8			$	62,277.5			$	65,635.1
Liabilities
Borrowings
Deposits	$	30,222.9		1.25%	$	30,953.0		1.21%	$	31,644.4		1.26%
Borrowings		10,702.5		4.28%		14,815.0		1.87%		15,848.8		2.33%
Total interest-bearing liabilities		40,925.4		2.04%		45,768.0		1.43%		47,493.2		1.61%
Non-interest bearing deposits		1,411.2				1,387.3				1,108.8
Other non-interest bearing liabilities		1,609.1				1,778.8				1,626.2
Liabilities of discontinued operation		904.8				3,223.6				4,253.6
Noncontrolling interests		0.3				0.3				0.5
Stockholders' equity		9,265.0				10,119.5				11,152.8
Total Average Liabilities and Shareholders' Equity	$	54,115.8			$	62,277.5			$	65,635.1
		Six Months Ended
		June 30, 2017			June 30, 2016
Assets
Interest bearing deposits	$	7,559.1		0.96%	$	6,743.5		0.50%
Investments		4,771.1		2.69%		3,045.7		2.97%
Loans and loans held for sale (net of credit balances of factoring clients)
U.S.		28,135.7		5.88%		29,534.3		5.83%
Non-U.S.		351.2		13.34%		1,230.6		8.26%
Total Loans		28,486.9		5.97%		30,764.9		5.92%
Total interest earning assets / interest income		40,817.1		4.66%		40,554.1		4.80%
Operating lease equipment, net (including held for sale)
U.S.		6,041.1		6.57%		5,723.9		8.52%
Non-U.S.		1,511.5		6.06%		1,349.7		8.49%
Total operating leases, net		7,552.6		6.47%		7,073.6		8.51%
Indemnification assets		302.6		-11.55%		386.6		-6.05%
Average earning assets ("AEA")		48,672.3		4.84%		48,014.3		5.26%
Non-interest earning assets
Cash and due from banks		711.7				943.2
Allowance for loan losses		(436.4	)			(374.7	)
All other non-interest bearing assets		2,238.2				4,253.5
Assets of discontinued operation		6,927.5				12,965.3
Total Average Assets	$	58,113.3			$	65,801.6
Liabilities
Borrowings
Deposits	$	30,534.4		1.23%	$	31,727.6		1.25%
Borrowings		12,751.6		2.88%		15,992.8		2.34%
Total interest-bearing liabilities		43,286.0		1.72%		47,720.4		1.62%
Non-interest bearing deposits		1,402.9				1,086.8
Other non-interest bearing liabilities		1,672.3				1,632.7
Liabilities of discontinued operation		2,061.5				4,257.7
Noncontrolling interests		0.3				0.5
Stockholders' equity		9,690.3				11,103.5
Total Average Liabilities and Shareholders' Equity	$	58,113.3			$	65,801.6

22

CIT GROUP INC. AND SUBSIDIARIES

Select Accounts

(dollars in millions)

	Quarters Ended									Six Months Ended June 30,
	June 30, 2017			March 31, 2017			June 30, 2016
										2017			2016
OTHER NON-INTEREST INCOME
Fee revenues	$	28.2		$	28.9		$	25.6		$	57.1		$	55.9
Factoring commissions		23.1			26.1			24.1			49.2			50.5
Gains on sales of leasing equipment		14.0			8.5			23.3			22.5			28.1
Gains on loan and portfolio sales		7.4			4.8			7.7			12.2			8.0
Gains on investments		4.7			4.1			6.3			8.8			2.2
Gain on OREO sales		2.3			1.3			3.4			3.6			5.1
Net (losses) gains on derivatives and foreign currency exchange		(1.8	)		(11.3	)		10.7			(13.1	)		20.0
Impairment on assets held for sale		(1.9	)		(1.7	)		(12.8	)		(3.6	)		(33.1	)
Other revenues		8.6			18.4			11.5			27.0			47.9
Total other non-interest income	$	84.6		$	79.1		$	99.8		$	163.7		$	184.6
OPERATING EXPENSES
Compensation and benefits	$	(145.4	)	$	(143.3	)	$	(146.8	)	$	(288.7	)	$	(304.5	)
Technology		(33.9	)		(32.7	)		(31.0	)		(66.6	)		(61.3	)
Professional fees		(31.6	)		(39.8	)		(37.0	)		(71.4	)		(74.3	)
Insurance		(24.9	)		(25.6	)		(28.7	)		(50.5	)		(53.6	)
Net occupancy expense		(15.1	)		(19.9	)		(17.0	)		(35.0	)		(34.9	)
Advertising and marketing		(10.4	)		(5.4	)		(4.4	)		(15.8	)		(9.6	)
Other expenses		(24.7	)		(23.9	)		(28.3	)		(48.6	)		(58.4	)
Operating expenses, before provision for severance and facilities exiting and intangible asset amortization		(286.0	)		(290.6	)		(293.2	)		(576.6	)		(596.6	)
Intangible asset amortization		(6.2	)		(6.2	)		(6.4	)		(12.4	)		(12.8	)
Provision for severance and facilities exiting activities		(3.4	)		(14.8	)		(9.7	)		(18.2	)		(30.0	)
Total operating expenses	$	(295.6	)	$	(311.6	)	$	(309.3	)	$	(607.2	)	$	(639.4	)
	June 30, 2017*			March 31, 2017			December 31, 2016			June 30, 2016
TOTAL CASH AND INVESTMENT SECURITIES
Total cash and deposits	$	5,337.9		$	6,156.9		$	6,430.6		$	7,435.5
Investment securities		5,530.0			4,476.3			4,491.1			3,229.1
Total cash and investment securities	$	10,867.9		$	10,633.2		$	10,921.7		$	10,664.6
OTHER ASSETS
Tax credit investments and investments in unconsolidated subsidiaries	$	265.8		$	213.4		$	220.2		$	179.5
Property, furniture and fixtures		184.6			188.2			191.1			190.9
Other counterparty receivables		97.6			31.5			42.8			146.7
Fair value of derivative financial instruments		79.1			75.4			111.2			134.0
Other real estate owned and repossessed assets		78.6			79.8			72.7			90.8
Current and deferred federal and state tax assets		68.5			101.1			201.3			1,141.3
Tax receivables, other than income taxes		29.4			39.2			50.7			80.3
Other		345.6			347.3			350.4			443.9
Total other assets	$	1,149.2		$	1,075.9		$	1,240.4		$	2,407.4
OTHER LIABILITIES
Accrued expenses and accounts payable	$	500.3		$	483.1		$	580.4		$	530.8
Current and deferred taxes payable		248.8			265.4			250.6			202.8
Fair value of derivative financial instruments		115.2			53.3			69.0			154.1
Accrued interest payable		97.0			130.0			181.2			193.5
Equipment maintenance reserves		44.2			44.8			45.9			14.8
Security and other deposits		15.0			24.3			59.0			36.3
Other liabilities		547.4			576.5			711.5			425.3
Total other liabilities	$	1,567.9		$	1,577.4		$	1,897.6		$	1,557.6
* Preliminary

23

CIT GROUP INC. AND SUBSIDIARIES

Loans and Leases

(dollars in millions)

	June 30, 2017		March 31, 2017		December 31, 2016		June 30, 2016
Commercial Banking
Commercial Finance
Loans	$	9,440.5	$	9,638.0	$	9,923.9	$	10,666.5
Assets held for sale		114.4		332.1		351.4		490.9
Total loans and leases		9,554.9		9,970.1		10,275.3		11,157.4
Rail
Loans	$	83.5	$	104.7	$	103.7	$	106.9
Operating lease equipment, net		6,298.2		7,120.5		7,117.1		6,864.2
Assets held for sale		1,039.4		0.6		0.3		6.9
Total loans and leases		7,421.1		7,225.8		7,221.1		6,978.0
Real Estate Finance
Loans		5,601.2		5,655.4		5,566.6		5,569.6
Total loans and leases		5,601.2		5,655.4		5,566.6		5,569.6
Business Capital
Loans		7,216.0		7,480.5		6,968.1		6,630.7
Operating lease equipment, net		437.8		395.7		369.0		314.9
Assets held for sale		-		3.7		6.0		10.4
Total loans and leases		7,653.8		7,879.9		7,343.1		6,956.0
Total Segment
Loans		22,341.2		22,878.6		22,562.3		22,973.7
Operating lease equipment, net		6,736.0		7,516.2		7,486.1		7,179.1
Assets held for sale		1,153.8		336.4		357.7		508.2
Total loans and leases		30,231.0		30,731.2		30,406.1		30,661.0
Consumer Banking
Legacy Consumer Mortgages
Loans		4,503.1		4,692.8		4,829.9		5,146.4
Assets held for sale		52.4		41.4		32.8		34.6
Total loans		4,555.5		4,734.2		4,862.7		5,181.0
Other Consumer Banking
Loans		2,187.4		2,120.0		2,143.7		1,973.7
Assets held for sale		4.0		22.7		35.4		3.2
Total loans		2,191.4		2,142.7		2,179.1		1,976.9
Total Segment
Loans		6,690.5		6,812.8		6,973.6		7,120.1
Assets held for sale		56.4		64.1		68.2		37.8
Total loans		6,746.9		6,876.9		7,041.8		7,157.9
Non-Strategic Portfolios
Assets held for sale		114.6		162.1		210.1		1,093.1
Total loans and leases		114.6		162.1		210.1		1,093.1
Total Loans		29,031.7		29,691.4		29,535.9		30,093.8
Total operating lease equipment, net		6,736.0		7,516.2		7,486.1		7,179.1
Total assets held for sale		1,324.8		562.6		636.0		1,639.1
Total loans and leases	$	37,092.5	$	37,770.2	$	37,658.0	$	38,912.0

24

CIT GROUP INC. AND SUBSIDIARIES

Credit Metrics

(dollars in millions)

	Quarters Ended
	June 30, 2017					March 31, 2017					June 30, 2016
Gross Charge-offs to Average Loans
Commercial Banking	$	32.3		0.57%		$	32.4		0.57%			38.0		0.65%
Consumer Banking		0.9		0.05%			0.6		0.03%			0.5		0.03%
Total CIT	$	33.2		0.45%		$	33.0		0.45%		$	38.5		0.51%
		Six Months Ended June 30,
		2017					2016
Commercial Banking(1)	$	64.7		0.57%		$	74.1		0.63%
Consumer Banking		1.5		0.04%			1.2		0.03%
Total CIT	$	66.2		0.45%		$	75.3		0.49%
		Quarters Ended
		June 30, 2017				March 31, 2017					June 30, 2016
Net Charge-offs to Average Loans
Commercial Banking	$	27.0		0.48%		$	27.4		0.48%		$	34.7		0.59%
Consumer Banking		0.7		0.04%			0.1		0.01%			(0.3	)	-0.02%
Total CIT	$	27.7		0.38%		$	27.5		0.37%		$	34.4		0.45%
		Six Months Ended June 30,
		2017				2016
Commercial Banking(1)	$	54.4		0.48%		$	66.8		0.57%
Consumer Banking		0.8		0.02%			(0.4	)	-0.01%
Total CIT	$	55.2		0.37%		$	66.4		0.44%
Non-accruing Loans to Loans(1)		June 30, 2017				March 31, 2017					December 31, 2016				June 30, 2016
Commercial Banking	$	229.2		1.03%		$	233.9		1.02%		$	250.9		1.11%	$	207.8	0.90%
Consumer Banking		19.5		0.29%			16.2		0.24%			17.4		0.25%		11.7	0.16%
Non-Strategic Portfolios		8.1		NA			8.7		NA			10.3		NA		45.1	NA
Total CIT	$	256.8		0.88%		$	258.8		0.87%		$	278.6		0.94%	$	264.6	0.88%
PROVISION AND ALLOWANCE COMPONENTS
		Provision for Credit Losses
		Quarters Ended							Six Months Ended
		June 30, 2017		March 31, 2017			June 30, 2016		June 30, 2017			June 30, 2016
Specific allowance - impaired loans	$	(5.6	)	$	9.6	$	(0.5	)	$	4.0	$	13.2
Non-specific allowance		10.0		40.1			23.8		50.1			99.6
Totals	$	4.4		$	49.7	$	23.3		$	54.1	$	112.8
		Allowance for Loan Losses
		June 30, 2017		March 31, 2017			December 31, 2016		June 30, 2016
Specific allowance - impaired loans	$	33.4		$	39.5	$	33.7		$	29.4
Non-specific allowance		392.6		409.1			398.9		363.7
Totals	$	426.0		$	448.6	$	432.6		$	393.1
Allowance for loan losses as a percentage of total loans		1.47%		1.51%			1.46%		1.31%
Allowance for loan losses as a percent of loans/Commercial		1.78%		1.85%			1.81%		1.64%

1) Non-accrual loans include loans held for sale. NSP non-accrual loans reflected loans held for sale; since portfolio loans were insignificant, no % is displayed.

 25

CIT GROUP INC. AND SUBSIDIARIES

Segment Results

(dollars in millions)

	Quarters Ended									Six Months Ended June 30,
	June 30, 2017			March 31, 2017			June 30, 2016
										2017			2016
Commercial Banking
Total interest income	$	316.6		$	307.5		$	323.4		$	624.1		$	647.3
Total interest expense		(127.8	)		(119.8	)		(130.3	)		(247.6	)		(260.4	)
Provision for credit losses		0.2			(49.2	)		(22.2	)		(49.0	)		(108.6	)
Rental income on operating leases		251.2			251.3			257.0			502.5			517.3
Other non-interest income		74.8			72.3			68.0			147.1			126.0
Depreciation on operating lease equipment		(77.4	)		(73.5	)		(63.1	)		(150.9	)		(124.4	)
Maintenance and other operating lease expenses		(53.3	)		(53.8	)		(50.6	)		(107.1	)		(99.5	)
Operating expenses		(176.5	)		(178.7	)		(188.0	)		(355.2	)		(385.4	)
Income before provision for income taxes	$	207.8		$	156.1		$	194.2		$	363.9		$	312.3
Funded new business volume	$	2,046.3		$	1,615.4		$	2,239.5		$	3,661.7		$	4,016.5
Average Earning Assets	$	29,158.6		$	29,304.7		$	29,900.9		$	29,231.8		$	29,906.2
Average Operating Leases	$	7,357.0		$	7,500.7		$	7,125.1		$	7,416.3		$	7,027.2
Average Loans	$	22,700.8		$	22,749.7		$	23,346.8		$	22,703.3		$	23,385.1
Consumer Banking
Total interest income	$	101.6		$	100.0		$	103.5		$	201.6		$	208.8
Total interest expense		9.6			6.5			(4.8	)		16.1			(12.8	)
Provision for credit losses		(4.6	)		(0.5	)		(1.1	)		(5.1	)		(4.2	)
Other non-interest income		5.7			7.9			11.7			13.6			19.9
Operating expenses		(96.2	)		(95.6	)		(86.0	)		(191.8	)		(171.1	)
Income before provision for income taxes	$	16.1		$	18.3		$	23.3		$	34.4		$	40.6
Funded new business volume	$	149.6		$	154.7		$	261.3		$	304.3		$	475.7
Average Earning Assets	$	7,092.8		$	7,291.8		$	7,568.3		$	7,192.6		$	7,575.3
Average Loans	$	6,751.3		$	6,888.7		$	7,142.2		$	6,821.0		$	7,140.5
Non-Strategic Portfolios
Total interest income	$	6.2		$	7.0		$	23.2		$	13.2		$	48.2
Total interest expense		(5.0	)		(5.0	)		(13.8	)		(10.0	)		(28.3	)
Rental income on operating leases		-			-			4.0			-			7.8
Other non-interest income		0.2			(2.9	)		6.7			(2.7	)		21.2
Operating expenses / loss on debt extinguishment		(1.8	)		(2.0	)		(12.0	)		(3.8	)		(24.2	)
(Loss) income before benefit (provision) for income taxes	$	(0.4	)	$	(2.9	)	$	8.1		$	(3.3	)	$	24.7
Funded new business volume	$	-		$	-		$	61.1		$	-		$	105.4
Average Earning Assets	$	319.5		$	367.5		$	1,383.3		$	342.8		$	1,455.0
Corporate and Other
Total interest income	$	53.8		$	41.2		$	28.6		$	95.0		$	57.3
Total interest expense		(86.0	)		(44.8	)		(42.7	)		(130.8	)		(85.1	)
Other non-interest income		3.9			1.8			13.4			5.7			17.5
Operating expenses / loss on debt extinguishment and deposit redemption		(185.9	)		(35.3	)		(25.7	)		(221.2	)		(62.7	)
(Loss) income before benefit (provision) for income taxes	$	(214.2	)	$	(37.1	)	$	(26.4	)	$	(251.3	)	$	(73.0	)
Average Earning Assets	$	14,104.9		$	9,674.9		$	9,040.9		$	11,905.0		$	9,077.8
Total CIT
Total interest income	$	478.2		$	455.7		$	478.7		$	933.9		$	961.6
Total interest expense		(209.2	)		(163.1	)		(191.6	)		(372.3	)		(386.6	)
Provision for credit losses		(4.4	)		(49.7	)		(23.3	)		(54.1	)		(112.8	)
Rental income on operating leases		251.2			251.3			261.0			502.5			525.1
Other non-interest income		84.6			79.1			99.8			163.7			184.6
Depreciation on operating lease equipment		(77.4	)		(73.5	)		(63.1	)		(150.9	)		(124.4	)
Maintenance and other operating lease expenses		(53.3	)		(53.8	)		(50.6	)		(107.1	)		(99.5	)
Operating expenses / loss on debt extinguishment		(460.4	)		(311.6	)		(311.7	)		(772.0	)		(643.4	)
Income from continuing operations before (benefit) provision for income taxes	$	9.3		$	134.4		$	199.2		$	143.7		$	304.6
Funded new business volume	$	2,195.9		$	1,770.1		$	2,561.9		$	3,966.0		$	4,597.6
Average Earning Assets	$	50,675.8		$	46,638.9		$	47,893.4		$	48,672.2		$	48,014.3
Average Loans	$	29,452.1		$	29,638.4		$	30,489.0		$	29,524.3		$	30,525.6

 26

CIT GROUP INC. AND SUBSIDIARIES

Segment Margin

(dollars in millions)

	Quarters Ended						Six Months Ended June 30,
	June 30, 2017		March 31, 2017		June 30, 2016
							2017		2016
Commercial Banking
Total Segment
AEA	$	29,158.6	$	29,304.7	$	29,900.9	$	29,231.8	$	29,906.2
Net Finance Revenue		309.3		311.7		336.4		621.0		680.3
Gross yield		7.79%		7.63%		7.76%		7.71%		7.79%
Net Finance Margin		4.24%		4.25%		4.50%		4.25%		4.55%
Average Earning Assets (AEA)
Commercial Finance	$	9,858.1	$	10,216.9	$	11,542.6	$	10,035.0	$	11,696.2
Rail		7,393.3		7,320.0		7,036.6		7,363.4		6,954.7
Real Estate Finance		5,646.0		5,565.4		5,460.9		5,598.6		5,407.4
Business Capital		6,261.2		6,202.4		5,860.8		6,234.8		5,847.9
Net Finance Revenue
Commercial Finance	$	100.9	$	97.8	$	115.1	$	198.7	$	228.6
Rail		77.6		81.8		94.0		159.4		194.2
Real Estate Finance		52.3		48.2		51.7		100.5		106.2
Business Capital		78.5		83.9		75.6		162.4		151.3
Gross yield
Commercial Finance		5.61%		5.16%		5.39%		5.38%		5.29%
Rail		11.70%		11.98%		13.16%		11.83%		13.45%
Real Estate Finance		5.34%		4.90%		5.17%		5.12%		5.30%
Business Capital		8.80%		9.01%		8.38%		8.90%		8.36%
Net Finance Margin
Commercial Finance		4.09%		3.83%		3.99%		3.96%		3.91%
Rail		4.20%		4.47%		5.34%		4.33%		5.58%
Real Estate Finance		3.71%		3.46%		3.79%		3.59%		3.93%
Business Capital		5.02%		5.41%		5.16%		5.21%		5.17%
Consumer Banking
Total Segment
AEA	$	7,092.8	$	7,291.8	$	7,568.3	$	7,192.6	$	7,575.3
Net Finance Revenue		111.2		106.5		98.7		217.7		196.0
Gross yield		5.73%		5.49%		5.47%		5.61%		5.51%
Net Finance Margin		6.27%		5.84%		5.22%		6.05%		5.17%
Average Earning Assets (AEA)
Other Consumer Banking	$	2,168.0	$	2,165.9	$	1,921.0	$	2,170.4	$	1,848.9
Legacy Consumer Mortgages		4,924.8		5,125.9		5,647.3		5,022.2		5,726.4
Net Finance Revenue
Other Consumer Banking	$	52.5	$	46.6	$	37.1	$	99.1	$	70.8
Legacy Consumer Mortgages		58.7		59.9		61.6		118.6		125.2
Gross yield
Other Consumer Banking		3.56%		3.46%		3.62%		3.51%		3.66%
Legacy Consumer Mortgages		6.68%		6.34%		6.10%		6.51%		6.12%
Net Finance Margin
Other Consumer Banking		9.69%		8.61%		7.72%		9.13%		7.66%
Legacy Consumer Mortgages		4.77%		4.67%		4.36%		4.72%		4.37%
Non-Strategic Portfolios
AEA	$	319.5	$	367.5	$	1,383.3	$	342.8	$	1,455.0
Net Finance Revenue		1.2		2.0		13.4		3.2		27.7
Gross yield		7.76%		7.62%		7.87%		7.70%		7.70%
Net Finance Margin		1.50%		2.18%		3.87%		1.87%		3.81%

Gross Yield includes interest income and rental income as a % of AEA.

Net Finance Margin (NFM) reflects Net Finance Revenue divided by AEA. 

 27

CIT GROUP INC. AND SUBSIDIARIES

Non-GAAP Disclosures

(dollars in millions)

Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information.  These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.

	Quarters Ended									Six Months Ended June 30,
	June 30, 2017			March 31, 2017			June 30, 2016
Total Net Revenues(1)										2017			2016
Interest income	$	478.2		$	455.7		$	478.7		$	933.9		$	961.6
Rental income on operating lease equipment		251.2			251.3			261.0			502.5			525.1
Finance revenue (Non-GAAP)		729.4			707.0			739.7			1,436.4			1,486.7
Interest expense		(209.2	)		(163.1	)		(191.6	)		(372.3	)		(386.6	)
Depreciation on operating lease equipment		(77.4	)		(73.5	)		(63.1	)		(150.9	)		(124.4	)
Maintenance and other operating lease expenses		(53.3	)		(53.8	)		(50.6	)		(107.1	)		(99.5	)
Net finance revenue (NFR) (Non-GAAP)		389.5			416.6			434.4			806.1			876.2
Other non-interest income		84.6			79.1			99.8			163.7			184.6
Total net revenues (Non-GAAP)	$	474.1		$	495.7		$	534.2		$	969.8		$	1,060.8
NFR (Non-GAAP)	$	389.5		$	416.6		$	434.4		$	806.1		$	876.2
Excess interest costs over interest income from Commercial Air proceeds usage		23.4			-			-			23.4			-
Interest on excess cash		(9.1	)		-			-			(9.1	)		-
Adjusted NFR (Non-GAAP)	$	403.8		$	416.6		$	434.4		$	820.4		$	876.2
NFR as a % of AEA		3.07%			3.57%			3.63%			3.31%			3.65%
NFR as a % of AEA, adjusted for noteworthy items		3.44%			3.57%			3.63%
Net Operating Lease Revenues(2)
Rental income on operating leases	$	251.2		$	251.3		$	261.0		$	502.5		$	525.1
Depreciation on operating lease equipment		(77.4	)		(73.5	)		(63.1	)	$	(150.9	)	$	(124.4	)
Maintenance and other operating lease expenses		(53.3	)		(53.8	)		(50.6	)	$	(107.1	)	$	(99.5	)
Net operating lease revenue (Non-GAAP)	$	120.5		$	124.0		$	147.3		$	244.5		$	301.2
		June 30, 2017			March 31, 2017		December 31, 2016				June 30, 2016
Period End Earning Assets(3)
Loans	$	29,031.7		$	29,691.4		$	29,535.9		$	30,093.8
Operating lease equipment, net		6,736.0			7,516.2			7,486.1			7,179.1
Assets held for sale		1,324.8			562.6			636.0			1,639.1
Credit balances of factoring clients		(1,405.3	)		(1,547.1	)		(1,292.0	)		(1,215.2	)
Interest bearing cash		4,739.0			5,415.2			5,608.5			6,558.9
Investment securities		5,530.0			4,476.3			4,491.1			3,229.1
Indemnification assets		208.5			313.1			341.4			386.0
Total earning assets (Non-GAAP)	$	46,164.7		$	46,427.7		$	46,807.0		$	47,870.8
Average Earning Assets (for the respective periods) (Non-GAAP)	$	50,675.8		$	46,638.9		$	46,964.7		$	47,893.4
AEA adjustment for Commercial Air sale impacts		(3,686.0	)		-			-			-
AEA, excluding noteworthy items (Non-GAAP)	$	46,989.8		$	46,638.9		$	46,964.7		$	47,893.4
	Quarters Ended									Six Months Ended June 30,
		June 30, 2017			March 31, 2017			June 30, 2016
Operating Expenses										2017			2016
Operating expenses	$	(295.6	)	$	(311.6	)	$	(309.3	)	$	(607.2	)	$	(639.4	)
Intangible asset amortization		6.2			6.2			6.4			12.4			12.8
Provision for severance and facilities exiting activities		3.4			14.8			9.7			18.2			30.0
Operating expenses exclusive of restructuring costs and intangible assets amortization, and other noteworthy items(4) (Non-GAAP)	$	(286.0	)	$	(290.6	)	$	(293.2	)	$	(576.6	)	$	(596.6	)
Operating expenses (exclusive of restructuring costs and intangible assets amortization) as a % of AEA		(2.26%	)		(2.49%	)		(2.45%	)		(2.37%	)		(2.49%	)
Total Net Revenue (Non-GAAP)	$	474.1		$	495.7		$	534.2		$	969.8		$	1,060.8
Net costs of excess liquidity		14.3			-			-			14.3			-
CTA Charge		-			8.0			-			8.0			-
Gain on sale - UK business		-			-			-			-			(24.0	)
Asset Impairment		-			-			-			-			11.0
Liquidating Europe CTA		-			-			-			-			3.0
Total Net Revenue, excluding noteworthy items (Non-GAAP)	$	488.4		$	503.7		$	534.2		$	992.1		$	1,050.8
Net Efficiency Ratio(5)		60.3%			58.6%			54.9%			59.5%			56.2%
Net Efficiency Ratio excluding noteworthy items(5)		58.6%			57.7%			54.9%			58.1%			56.8%

(1)  Total net revenues are the combination of net finance revenue and other income and is an aggregation of all sources of revenue for the Company. Total net revenues are used by management to monitor business performance.

(2)  Total net operating lease revenues are the combination of rental income on operating leases less depreciation on operating lease equipment and maintenance and other operating lease expenses. Total net operating lease revenues are used by management to monitor portfolio performance.

(3)  Earning assets are utilized in certain revenue and earnings ratios. Earning assets are net of credit balances of factoring clients. This net amount represents the amounts we fund. Because the Average Earning Asset is based on the month end amounts, we adjusted the balance to better reflect the impact of the Commercial Air transaction. The amount reflects the estimated impact on AEA of the timing difference between the receipt of proceeds from the transaction and the completion of the related debt and capital actions.

(4) Operating expenses exclusive of restructuring costs and intangible amortization is a non-GAAP measure used by management to compare period over period expenses. In order to assist in comparability to other quarters, we further adjusted the calculation due to significant items.

(5) Net efficiency ratio is a non-GAAP measurement used by management to measure operating expenses (before restructuring costs and intangible amortization) to the level of total net revenues. In order to assist in comparability to other quarters, we further adjusted the calculation due to significant items.

 28

CIT GROUP INC. AND SUBSIDIARIES

Non-GAAP Disclosures (continued)

(dollars in millions)

Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information.  These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.

Tangible Book Value(6)	June 30, 2017			March 31, 2017			June 30, 2016
Total common shareholders' equity	$	7,026.2		$	10,165.2		$	11,092.8
Less: Goodwill		(625.5	)		(686.1	)		(1,044.1	)
Intangible assets		(125.4	)		(134.3	)		(154.2	)
Tangible book value (Non-GAAP)		6,275.3			9,344.8			9,894.5
Less: Disallowed deferred tax asset		(53.5	)		(140.6	)		(845.8	)
Tangible common equity, excluding noteworthy items(7)	$	6,221.8		$	9,204.2		$	9,048.7
Average tangible common equity, excluding noteworthy items(7) (Non-GAAP)	$	8,280.4		$	9,118.8		$	9,077.4
Net income	$	156.7		$	179.9		$	17.0
Intangible asset amortization, after tax		4.0			4.1			2.9
Non-GAAP income - for ROTCE calculation	$	160.7		$	184.0		$	19.9
Return on average tangible common equity(7)		7.76%			8.08%			0.88%
Non-GAAP income (from next page)	$	129.1		$	163.2		$	189.0
Intangible asset amortization, after tax		4.0			4.1			2.9
Non-GAAP income - for ROTCE calculation	$	133.1		$	167.3		$	191.9
Return on average tangible common equity, after noteworthy items(7)		6.43%			7.34%			8.46%
Income from continuing operations	$	41.2		$	78.2		$	88.0
Intangible asset amortization, after tax		4.0			4.1			2.9
Non-GAAP income from continuing operations - for ROTCE calculation	$	45.2		$	82.3		$	90.9
Non-GAAP income from continuing operations (from next page)	$	125.7		$	109.5		$	94.0
Intangible asset amortization, after tax		4.0			4.1			2.9
Non-GAAP income from continuing operations - for ROTCE calculation	$	129.7		$	113.6		$	96.9
Average tangible common equity(7)	$	8,280.4		$	9,118.8		$	9,077.4
Pro forma estimated capital adjustment related to Commercial Air sale		(1,903.1	)		(2,975.0	)		(2,975.0	)
Average tangible common equity(7) pro forma for estimated capital adjustment	$	6,377.3		$	6,143.8		$	6,102.4
Return on average tangible common equity, proforma for estimated capital adjustment		2.18%			5.36%			5.96%
Return on average tangible common equity, after noteworthy items(8) and proforma for estimated capital adjustment		8.14%			7.40%			6.35%
	Quarters Ended
Effective Tax Rate Reconciliation(8)	June 30, 2017			March 31, 2017			June 30, 2016
(Provision) benefit for income taxes - GAAP	$	31.9		$	(56.2	)	$	(111.2	)
Income tax discrete items		(93.4	)		11.3			3.6
Provision for income taxes, before discrete tax items - Non-GAAP	$	(61.5	)	$	(44.9	)	$	(107.6	)
Income from continuing operations before provision for income taxes - GAAP	$	9.3		$	134.4		$	199.2
Adjustments to pretax income		165.4			1.8			-
Adjusted income from continuing operations before provision for income taxes - Non-GAAP	$	174.7		$	136.2		$	199.2
Effective tax rate - GAAP		-343.0%			41.8%			55.8%
Effective tax rate, before discrete items - Non-GAAP		35.2%			33.0%			54.0%

(6) Tangible book value is a non-GAAP measure, which represents an adjusted common shareholders’ equity balance that has been reduced by goodwill and intangible assets. Tangible book value is used to compute a per common share amount, which is used to evaluate our use of equity.

(7) Return on average tangible common equity is adjusted to remove the impact of intangible amortization, goodwill impairment and the impact from valuation allowance reversals from income from continuing operations, while the average tangible common equity is reduced for disallowed deferred tax assets.  In order to assist in comparability to other quarters, we further adjusted the calculation due to significant items. Return on average tangible common equity is another metric used to evaluate our use of equity and evaluate the performance of our business. These are non-GAAP measures.

(8) The provision for income taxes before discrete items, adjusted income from continuing operations and the respective effective tax rates are non-GAAP measures, which management uses for analytical purposes to understand the Company’s underlying tax rate. 

 29

CIT GROUP INC. AND SUBSIDIARIES

Non-GAAP Disclosures (continued)

(dollars in millions, except per share data)

Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to business trends to investors and, in certain cases, to present financial information as measured by rating agencies and other users of financial information.  These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.

Net income excluding noteworthy items and income from continuing operations excluding noteworthy items are non-GAAP measures used by management. The Company believes that adjusting for these items provides a measure of the underlying performance of the Company and of continuing operations.             

	Description	Line Item	Pre-tax Balance			Income Tax(2)			After-tax Balance			Per Share
Quarter Ended June 30, 2017
Net income									$	157		$	0.85
Continuing Operations	Debt redemption costs	Non-interest expense	$	165		$	(65	)	$	100		0.54
	Excess interest costs from Commercial Air proceeds usage	Interest expense	23			(9		)	15			0.08
	Interest on excess cash	Interest income	(9		)	4			(6		)	(0.03		)
	Resolution of legacy tax items	Benefit (provision) for income taxes	-			(19		)	(19		)	(0.11		)
	Deferred tax recognition	Benefit (provision) for income taxes	-			(7		)	(7		)	(0.04		)
	Restructuring Expenses	Operating expenses	3			(1		)	2			0.01
Discontinued Operations	Gain on sale - Commercial Air, net of certain expenses		(135		)	35			(100		)	(0.54		)
	Financial Freedom net settlement items & servicing rights impairment		(20		)	8			(12		)	(0.07		)
Non-GAAP income, excluding noteworthy items(1)									$	129		$	0.70
Income from continuing operations									$	41		$	0.22
Continuing Operations	Debt redemption costs	Non-interest expense	$	165		$	(65	)	100			0.54
	Excess interest costs from Commercial Air proceeds usage	Interest expense	23			(9		)	15			0.08
	Interest on excess cash	Interest income	(9		)	4			(6		)	(0.03		)
	Resolution of legacy tax items	Benefit (provision) for income taxes	-			(19		)	(19		)	(0.11		)
	Deferred tax recognition	Benefit (provision) for income taxes	-			(7		)	(7		)	(0.04		)
	Restructuring Expenses	Operating expenses	3			(1		)	2			0.01
Non-GAAP income from continuing operations, excluding noteworthy items(1)									$	126		$	0.68
Quarter Ended March 31, 2017
Net income									$	180		$	0.88
Continuing Operations	CTA Charge	Other non-interest income	$	8		$	(1	)	7			0.03
	Restructuring Expenses	Operating expenses	15			(5		)	10			0.05
	Entity Restructuring	Benefit (provision) for income taxes	-			14			14			0.07
Discontinued Operations	Suspended Depreciation		(113		)	44			(69		)	(0.34		)
	Secured Debt Paydown		34			-			34			0.17
	Gain on sale - TC CIT joint venture		(14		)	1			(13		)	(0.06		)
Non-GAAP income, excluding noteworthy items(1)									$	163		$	0.80
Income from continuing operations									$	78		$	0.38
Continuing Operations	CTA Charge	Other non-interest income	$	8		$	(1	)	7			0.03
	Restructuring Expenses	Operating expenses	15			(5		)	10			0.05
	Entity Restructuring	Benefit (provision) for income taxes	-			14			14			0.07
Non-GAAP income from continuing operations, excluding noteworthy items(1)									$	109		$	0.54
Quarter Ended June 30, 2016
Net income									$	17		$	0.08
Continuing Operations	Restructuring Expenses	Operating expenses	$	10		$	(4	)	6			0.03
Discontinued Operations	Financial Freedom interest curtailment reserve		230			(67		)	163			0.81
	Business Air goodwill impairment		4			(1		)	3			0.01
Non-GAAP income, excluding noteworthy items(1)									$	189		$	0.93
Income from continuing operations									$	88		$	0.43
	Restructuring Expenses	Operating expenses	$	10		$	(4	)	6			0.03
Non-GAAP income from continuing operations, excluding noteworthy items(1)									$	94		$	0.46

⁽¹⁾ Items may not sum due to rounding.

⁽²⁾ Income tax rates vary depending on the specific item and the entity location in which it is recorded.                

EX-99.2

Exhibit 99.2

Second Quarter 2017 Financial Results July 25, 2017

1 Important Notices | 2Q17 Earnings This presentation contains forward - looking statements within the meaning of applicable federal securities laws that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated . The words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “commence,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or the negative of any of those words or similar expressions is intended to identify forward - looking statements . All statements contained in this press release, other than statements of historical fact, including without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward - looking statements that involve certain risks and uncertainties . While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially . Important factors that could cause our actual results to be materially different from our expectations include, among others, the risk that ( i ) CIT is unsuccessful in implementing its Amended Capital Plan on the timing and terms contemplated, (ii) CIT is unsuccessful in implementing its strategy and business plan, (iii) CIT is unable to react to and address key business and regulatory issues, (iv) CIT is unable to achieve the projected revenue growth from its new business initiatives or the projected expense reductions from efficiency improvements, and (v) CIT becomes subject to liquidity constraints and higher funding costs . We describe these and other risks that could affect our results in Item 1 A, “Risk Factors,” of our latest Annual Report on Form 10 - K for the year ended December 31 , 2016 , which was filed with the Securities and Exchange Commission . Accordingly, you should not place undue reliance on the forward - looking statements contained in this press release . These forward - looking statements speak only as of the date on which the statements were made . CIT undertakes no obligation to update publicly or otherwise revise any forward - looking statements, except where expressly required by law . This presentation is to be used solely as part of CIT management’s continuing investor communications program . This presentation shall not constitute an offer or solicitation in connection with any securities .

2 Executing on Our 2017 Priorities to Simplify, Strengthen and Grow CIT (1) Capital ratios preliminary as of 6/30/17 and based on fully phased - in Basel III estimates. | 2Q17 Earnings 1 Maximize Potential of Core Businesses ▪ Grow revenues – grow core businesses, enhance fee revenue, leverage connectivity among businesses ▪ Optimize Cash / Investment Portfolio Build Out x Announced joint venture with Allstate and sale of NACCO x Grew investment portfolio by $1 Billion 2 Enhance Operational Efficiency ▪ Reduce/manage operating expenses ▪ Invest in and enhance technology x Remain on target to achieve expense reduction target in 2018 ▪ Maintain credit and operating risk discipline/process ▪ Regulatory/Horizontal capital review 5 Maintain Strong Risk Management x Non - accruals 0.88% of loans x Common Equity Tier 1 ratio (1) 14.4% x Received non - objection to capital plan 4 Optimize Capital Structure ▪ Manage, deploy and align capital ▪ Target CET1 ratio of 10 - 11% x Repurchased $3.3 billion of common stock x Issued $325 million of Preferred Stock at 5.8% 3 Reduce Funding Costs ▪ Increase deposits as a percent of total funding ▪ Reduce deposit costs x Reduced unsecured debt by almost $6 billion x Deposits now 78% of total CIT funding x CIT Bank 96% Loan & Lease - to - deposit ratio Progress Strategies

3 Earnings Summary – GAAP Certain balances may not sum due to rounding. (1) Net of depreciation and maintenance and other operating lease expenses. | 2Q17 Earnings 2Q17 change from 1Q17 2Q16 $ % $ % Interest Income 478 456 479 22 4.9% (1) (0.1%) Net Operating Lease Revenues (1) 121 124 147 (4) (2.8%) (27) (18.2%) Interest Expense 209 163 192 46 28.3% 18 9.2% Net Finance Revenue 390 417 434 (27) (6.5%) (45) (10.3%) Other Non-Interest Income 85 79 100 6 7.0% (15) (15.2%) Operating Expenses 296 312 309 (16) (5.1%) (14) (4.4%) Loss on Debt Extinguishment and Deposit Redemption 165 - 2 165 0.0% 162 NM Pre-provision Net Revenue 14 184 223 (170) (92.6%) (209) (93.8%) Provision for Credit Losses 4 50 23 (45) (91.1%) (19) (81.1%) Pre-tax Income from Continuing Operations 9 134 199 (125) (93.1%) (190) (95.3%) Provision (Benefit) for Income Taxes (32) 56 111 (88) (156.8%) (143) (128.7%) Income from Continuing Operations 41 78 88 (37) (47.3%) (47) (53.2%) Income (Loss) from Discontinued Operations, Net of Taxes 8 89 (71) (81) (90.7%) 79 (111.7%) Gain on Sale of Discontinued Operations, Net of Taxes 107 13 - 95 744.1% 107 0.0% Income (Loss) from Discontinued Operations, Net of Taxes 116 102 (71) 14 13.6% 187 (262.7%) Net Income 157 180 17 (23) (12.9%) 140 821.8% Diluted Income per Common Share Income from Continuing Operations $0.22 $0.38 $0.43 (0.16) (41.7%) (0.21) (48.4%) Income (Loss) from Discontinued Operations, Net of Taxes 0.63 0.50 (0.35) 0.13 25.7% 0.98 (279.0%) Diluted Income per Common Share 0.85 0.88 0.08 (0.03) (3.6%) 0.77 914.4% Return on Average Earning Assets Average Earning Assets 50,676 46,639 47,893 4,037 8.7% 2,782 5.8% After Tax Return on Average Earnings Assets - Continuing 0.3% 0.7% 0.7% ($ in millions, except per share data) 2Q17 1Q17 2Q16 (40) bps(40) bps ▪ Net Finance Revenue: reduction primarily impacted by timing of liability management actions ▪ Other Non - Interest Income: increased due to absence of CTA charges in the prior quarter, higher gain on equipment sales in Rail partially offset by lower seasonal factoring commissions ▪ Total Operating Expenses: declined due to lower professional fees and net occupancy expenses offset by advertising and marketing costs and non - recurring tax related expenses ▪ Loss on Debt Extinguishment: related to premium paid to retire $5.8bn of unsecured debt in the quarter ▪ Provision for Credit Losses: declined due to lower loan balances and net credit benefits from changes in portfolio mix in Commercial Banking ▪ Income Tax Provision: benefitted from discrete items ▪ Discontinued Operations: reflects gain on sale of Commercial Air in the current quarter ▪ Net Finance Revenue: primarily impacted by timing of liability management actions as well as decline in net operating lease revenues in Rail ▪ Other Non - Interest Income: declined largely due to lower mark to market gains ▪ Operating Expenses: declined from lower restructuring costs and lower professional fees offset by higher advertising and marketing costs ▪ Provision for Credit Losses: declined due to lower loan balances and net credit benefits from changes in portfolio mix in Commercial Banking ▪ Income Tax Provision: reflects mix of earnings and unfavorable permanent tax items in the year - ago quarter as well as an increase in discrete benefits in current quarter ▪ Discontinued Operations: gain on sale of commercial air in the current quarter and prior year quarter along with a loss from the interest curtailment reserve in Financial Freedom in the year ago quarter Highlights vs. Year - ago Quarter vs. Prior Quarter

4 Impact of Noteworthy Items from Strategic Initiatives (Non - GAAP) (1) ($ in M, except per share data) EPS based on 183.8 million average diluted shares outstanding, $ impacts are rounded. (1) See appendix page 21 for details on Noteworthy Items included in the results. (2) Excess interest cost and interest income and increased in average earning assets are the result of a timing difference betwee n t he receipt of the proceeds from the Commercial Air sale and the completion of the related debt and capital actions. | 2Q17 Earnings Certain balances may not sum due to rounding Commercial Air ▪ Debt extinguishment costs resulting from reduction in unsecured debt ▪ Gain on the sale of Commercial Air ▪ Excess interest expense, interest income and higher average earning assets related to elevated borrowings and cash balances for the period of time between the closing of the Commercial Air sale and completion of liability management and capital actions Financial Freedom ▪ Net benefit due to a net release of the interest curtailment reserve and a reduction of the FDIC indemnification asset, partially offset by an impairment charge related to the mortgage servicing rights Other Items ▪ Benefit from the resolution of legacy tax items ▪ Benefit from a deferred tax asset recognition related to NACCO ▪ Restructuring charges Highlights ($ in millions, except per share data) Continuing Operations Discontinued Operations Total Reported GAAP Net Income $41 $116 $157 GAAP EPS $0.22 $0.63 $0.85 Noteworthy Items (After-Tax) Commercial Air Sale Debt Extinguishment Costs 100 $100 Gain on Sale (100) ($100) Interest Income (2) (6) ($6) Interest Expense (2) 15 $15 Financial Freedom Net Settlement Items and Servicing Rights Impairment (12) ($12) Other Strategic Initiatives Resolution of Legacy Tax Items (19) ($19) NACCO DTA Recognition (7) ($7) Restructuring Charges 2 $2 Total Noteworthy Items $85 ($112) ($28) Non-GAAP Net Income excluding Noteworthy Items $126 $3 $129 Non-GAAP EPS excluding Noteworthy Items $0.68 $0.02 $0.70 Commercial Air Sale - Balance Sheet Impact Average Earning Assets (2) ($3,686)

5 Earnings Summary Excluding Noteworthy Items (Non - GAAP) Certain balances may not sum due to rounding. (1) Net of depreciation and maintenance and other operating lease expenses. | 2Q17 Earnings ▪ Net Finance Revenue: decline primarily driven by higher interest expense related to reallocation of costs from discontinued operations, offset by purchase accounting and prepayment benefits and higher interest income on loans, interest bearing deposits and investments ▪ Other Non - Interest Income : relatively flat to prior quarter. Higher gains on asset sales in Rail offset by lower factoring commission ▪ Total Operating Expenses: declined due to lower professional fees and net occupancy expenses offset by advertising and marketing costs ▪ Provision for Credit Losses: declined due to lower loan balances and net credit benefits from changes in portfolio mix in Commercial Banking ▪ Income Tax Provision: Normalized ETR of ~35% ▪ Net Finance Revenue : primarily impacted by decline in net operating lease revenues in rail ▪ Other Non - Interest Income: declined largely due to lower mark to market gains ▪ Operating Expenses: declined from lower professional fees offset by higher advertising and marketing costs ▪ Provision for Credit Losses : declined due to lower loan balances and net credit benefits from changes in portfolio mix in Commercial Banking ▪ Income Tax Provision: reflects mix of earnings and unfavorable permanent tax items in the year - ago quarter Highlights vs. Year - ago Quarter vs. Prior Quarter 2Q17 change from 1Q17 2Q16 $ % $ % Interest Income 469 456 479 13 2.9% (10) (2.0%) Net Operating Lease Revenues (1) 121 124 147 (4) (2.8%) (27) (18.2%) Interest Expense 186 163 192 23 13.9% (6) (3.0%) Net Finance Revenue 404 417 434 (13) (3.1%) (31) (7.0%) Other Non-Interest Income 85 87 100 (3) (2.9%) (15) (15.2%) Operating Expenses 292 297 299 (4) (1.5%) (7) (2.4%) Loss on Debt Extinguishment and Deposit Redemption - - 2 - - (2) (100.0%) Pre-provision Net Revenue 196 207 233 (11) (5.2%) (36) (15.6%) Provision for Credit Losses 4 50 23 (45) (91.1%) (19) (81.1%) Pre-tax Income from Continuing Operations 192 157 209 34 21.9% (17) (8.3%) Provision for Income Taxes 66 48 115 18 37.1% (49) (42.6%) Income from Continuing Operations 126 109 94 17 15.1% 32 33.8% Income (Loss) from Discontinued Operations, Net of Taxes 3 54 95 (51) (93.7%) (92) (96.4%) Gain on Sale of Discontinued Operations, Net of Taxes - - - - - - - Income from Discontinued Operations, Net of Taxes 3 54 95 (51) (93.7%) (92) (96.4%) Net Income 129 163 189 (34) (20.7%) (60) (31.7%) Diluted income per common share Income from Continuing Operations $0.68 $0.54 $0.46 0.15 27.4% 0.22 47.2% Income from Discontinued Operations, Net of Taxes 0.02 0.25 0.47 (0.24) (92.7%) (0.45) (96.1%) Diluted Income per Common Share 0.70 0.79 0.93 (0.09) (11.6%) (0.23) (24.8%) Return on Average Earning Assets Average Earning Assets 46,990 46,639 47,893 351 0.8% (904) (1.9%) After Tax Return on Average Earnings Assets - Continuing 1.1% 0.9% 0.8% 30 bps ($ in millions, except per share data) 2Q17 1Q17 2Q16 20 bps

6 Net Finance Margin (NFM) – Continuing Operations (Excluding Noteworthy Items) ($ in millions) $434.4 $418.3 $420.7 $416.6 | 2Q17 Earnings 361.1 347.8 346.9 360.5 342.9 73.3 70.5 73.8 56.1 60.9 3.63% 3.51% 3.58% 3.57% 3.44% 2Q16 3Q16 4Q16 1Q17 2Q17 Net Finance Revenue (less PAA) PAA NFM Net Finance Revenue & Net Finance Margin Net finance revenue decreased by $13 million ▪ Driven by changes in the allocation of interest expense from discontinued operations related to the Commercial Air sale, and a decline in gross yields earned in Rail, partially offset by higher purchase accounting accretion and prepayment benefits and higher interest income on loans, interest bearing deposits and investments ▪ See next page for changes in Net Finance Margin Net finance revenue decreased $31 million ▪ Driven by lower gross yields in Rail and lower purchase accounting accretion and prepayment benefits, partially offset by higher interest income on interest bearing deposits and investments ▪ See next page for changes in Net Finance Margin Highlights vs. Year - ago Quarter vs. Prior Quarter $403.8 2Q17 change from ($ in milions, except yield data) 1Q17 2Q16 Average Balance Yield Average Balance Yield Average Balance Yield Yield Yield Interest Bearing Deposits and Investments 10,841 1.6% 10,105 1.7% 9,715 1.3% (20) bps 30 bps Loans 28,274 6.1% 28,705 5.9% 30,636 6.0% 30 bps 10 bps Operating Leases (net) 7,595 6.4% 7,501 6.6% 7,166 8.2% (30) bps (190) bps Indemnification Assets 280 (13.9%) 328 (9.5%) 376 (9.1%) (440) bps (470) bps Earning Assets 46,990 4.7% 46,639 5.0% 47,893 5.2% (20) bps (50) bps Deposits 30,223 1.3% 30,953 1.2% 31,644 1.3% 10 bps (10) bps Borrowings 10,703 4.3% 14,815 1.9% 15,849 2.3% 240 bps 200 bps Interest-bearing Liabilities 40,925 2.0% 45,768 1.4% 47,493 1.6% 60 bps 40 bps 2Q17 1Q17 2Q16 Certain balances may not sum due to rounding (1) See appendix page 21 for details on Noteworthy Items.

7 Net Finance Margin Trends – Continuing Operations (Excluding Noteworthy Items) | 2Q17 Earnings Net Finance Margin Walk 1Q17 to 2Q17 Net Finance Margin Walk 2Q16 to 2Q17 3.57% 3.44% 2bps 6bps (3bps) (18bps) 1Q17 Loan & Investment Portfolio Yields/Mix Purchase Accounting & Prepayment Benefits Net Operating Lease Revenue Borrowing Costs 2Q17 3.63% 3.44% 8bps (9bps) (20bps) 3 bps (1bp) 2Q16 Loan & Investment Portfolio Yields/Mix Purchase Accounting & Prepayment Benefits Net Operating Lease Revenue Deposit Costs Borrowing Costs 2Q17

8 25.6 28.9 26.8 28.9 28.2 24.1 28.8 25.7 26.1 23.1 23.3 12.5 10.5 8.5 14.0 26.8 8.4 40.4 23.6 19.3 2Q16 3Q16 4Q16 1Q17 2Q17 Fee Revenues Factoring Commissions Gains on Sales of Leasing Equipment All Other Income Other Non - Interest Income – Continuing Operations (Excluding Noteworthy Items) (1) ($ in millions) | 2Q17 Earnings All Other Income Other non - interest income was essentially flat ▪ Factoring commissions declined $3 million, reflecting lower volume in our Commercial Services division ▪ Gains on sales increased by $10 million, primarily due to larger gains on sales of Rail equipment Other non - interest income decreased by $15 million ▪ Primarily due to lower mark to market gains ▪ Fee income increased slightly, primarily due to higher capital markets fees. ▪ Factoring commissions decreased slightly, as growth in factoring volume in Commercial Services was offset by lower pricing Highlights vs. Year - ago Quarter vs. Prior Quarter $99.8 $78.6 $103.4 $87.1 $84.6 2Q17 change from 1Q17 2Q16 $ % $ % Fee Revenues 28 29 26 (1) (2.4%) 3 10.2% Factoring Commissions 23 26 24 (3) (11.5%) (1) (4.1%) Gain on Sales of Leasing Equipment 14 9 23 6 64.7% (9) (39.9%) Gains on Loan and Portfolio Sales 7 5 8 3 54.2% (0) (3.9%) Gains (Losses) on Investments 5 4 6 1 14.6% (2) (25.4%) Gain on OREO Sales 2 1 3 1 76.9% (1) (32.4%) Net Gains (Losses) on Derivatives and Foreign Currency Exchange (2) (3) 11 2 (45.5%) (13) (116.8%) Impairment on Assets Held for Sale (2) (2) (13) (0) 11.8% 11 (85.2%) Other Revenues 9 18 12 (10) (53.3%) (3) (25.2%) Total Other Non-Interest Income 85 87 100 (3) (2.9%) (15) (15.2%) ($ in millions) 2Q17 1Q17 2Q16 Certain balances may not sum due to rounding (1) See appendix page 21 for details on Noteworthy Items.

9 146.8 147.6 133.4 143.3 145.4 31.0 32.4 40.0 32.7 33.9 37.0 42.9 58.6 39.8 31.6 78.4 71.2 72.0 74.8 75.1 2Q16 3Q16 4Q16 1Q17 2Q17 Compensation and Benefits Technology Professional Fees All Other Operating Expenses (1) – Continuing Operations (Excluding Noteworthy Items) (2) Certain balances may not sum due to rounding. (1) Operating Expenses exclude restructuring charges and amortization of intangibles. (2) See appendix page 21 for details on Noteworthy Items. (3) Total operating expenses exclusive of restructuring charges and amortization of intangibles divided by total revenue (Ne t f inance margin and other non - interest income). . | 2Q17 Earnings (2) Net Efficiency Ratio (3) 55% 59% 58% 58% 59% Operating expenses decreased 2% ▪ Driven primarily by lower net occupancy expenses and professional fees related to CCAR and our strategic initiatives ▪ Partially offset by higher advertising and marketing costs, primarily in Consumer Banking. ▪ The current quarter also included a $5 million non - recurring charge related to our European Rail business and a $3 million non - restructuring severance charge. Operating expenses decreased $7 million or 2%, reflecting: ▪ Lower employee costs from our operating expense reduction initiative and lower professional fees ▪ Partially offset by higher advertising and higher marketing costs Highlights vs. Year - ago Quarter vs. Prior Quarter 2Q17 change from 1Q17 2Q16 $ % $ % Compensation and Benefits 145 143 147 2 1% (1) (1%) Technology 34 33 31 1 4% 3 9% Professional Fees 32 40 37 (8) 0% (5) 0% Advertising and Marketing 10 5 4 5 93% 6 136% Net Occupancy Expense 15 20 17 (5) (24%) (2) (11%) Insurance 25 26 29 (1) (3%) (4) (13%) Other 25 24 28 1 3% (4) (13%) Total Operating Expenses (1) 286 291 293 (5) (2%) (7) (2%) ($ in millions) 2Q17 1Q17 2Q16 All Other Operating Expense $293.2 $294.1 $290.6 $304.0 $286.0

10 Consolidated Average Balance Sheet | 2Q17 Earnings (2) 4% 15% 6% Average Funding Mix Secured Borrowings Deposits 75% FHLB Advances (1) Net of credit balances of factoring clients of $1,567 in 2Q17, $1,501 in 1Q17 and $1,265 in 2Q16. (2) Excludes Corporate and Non - Strategic Portfolio Assets. Unsecured Borrowings Average Earning Assets increased from elevated cash balances for the period between the closing of the Commercial Air sale and the related liability management and capital actions Excluding this noteworthy item, average earning assets increased 0.8% to $47 million as noted at the bottom of the schedule ▪ 80% of loans and leases are Commercial ▪ 1.5% reduction in average loans reflecting strong origination volumes offset by higher prepayments in Commercial Banking and continued portfolio run off of the legacy consumer mortgages in Consumer Banking ▪ 1.3% increase in operating leases ▪ Unsecured borrowings decreased by $4.0 billion due to liability management actions ▪ Less than 20% of liabilities now funded in the wholesale markets Excluding noteworthy items, Average Earning Assets declined 1.9% ▪ 7.7% reduction in average loans reflecting portfolio repositioning in Commercial Finance and run off of legacy portfolios in Consumer Banking ▪ 6% increase in average operating leases ▪ Unsecured borrowings decreased $4.0 billion due to liability management actions Highlights vs. Year - ago Quarter vs. Prior Quarter 2Q17 change from 1Q17 2Q16 $ % $ % Interest Bearing Deposits and Investments 14,527 10,105 9,715 4,422 43.8% 4,812 49.5% Total Commercial Loans (1) 21,836 22,114 23,765 (278) (1.3%) (1,929) (8.1%) Total Consumer Loans 6,438 6,591 6,871 (153) (2.3%) (433) (6.3%) Total Loans 28,274 28,705 30,636 (431) (1.5%) (2,363) (7.7%) Total Operating Leases 7,595 7,501 7,166 94 1.3% 429 6.0% Total Loans and Leases 35,869 36,206 37,803 (337) (0.9%) (1,934) (5.1%) Indemnification Assets 280 328 376 (48) (14.6%) (96) (25.6%) Total Earning Assets 50,676 46,639 47,893 4,037 8.7% 2,782 5.8% Total Non-Earning Assets 2,332 2,669 4,794 (337) (12.6%) (2,462) (51.4%) Discontinued Assets 1,108 12,970 12,948 (11,862) (91.5%) (11,840) (91.4%) Total Assets 54,116 62,278 65,635 (8,162) (13.1%) (11,519) (17.6%) Total Deposits 31,634 32,340 32,753 (706) (2.2%) (1,119) (3.4%) Secured Borrowings 4,123 4,228 5,266 (105) (2.5%) (1,144) (21.7%) Senior Unsecured/Other Borrowings 6,580 10,587 10,582 (4,007) (37.9%) (4,003) (37.8%) Total Borrowed Funds and Deposits 42,337 47,155 48,602 (4,819) (10.2%) (6,265) (12.9%) Other Liabilities 1,609 1,779 1,627 (170) (9.5%) (17) (1.1%) Discontinued Liabilities 905 3,224 4,254 (2,319) (71.9%) (3,349) (78.7%) Total Liabilities 44,851 52,158 54,482 (7,307) (14.0%) (9,631) (17.7%) Total Stockholders' Equity 9,265 10,120 11,153 (855) (8.4%) (1,888) (16.9%) Total Liabilities and Equity 54,116 62,278 65,635 (8,162) (13.1%) (11,519) (17.6%) Balance Sheet Excluding Noteworthy Items Interest Bearing Deposits and Investments 10,841 10,105 9,715 735.80 7.3% 1,125.80 11.6% Total Earnings Assets 46,990 46,639 47,893 350.90 0.8% (903.60) (1.9%) Total Assets 50,430 62,278 65,635 (11,848) (19%) (15,205) (23%) ($ in millions) 2Q17 1Q17 2Q16 17% 21% 27% 16% 13% 6% Average Loans and Leases (2) Other Consumer Legacy Consumer Mortgages Rail Business Capital Commercial Finance Real Estate Finance Consumer Commercial Wholesale Deposits and FHLB Advances

11 Commercial Banking and Consumer Banking Average Loans (1) and Leases 11.5 11.0 10.6 10.1 9.8 6.9 7.1 7.2 7.2 7.3 5.5 5.5 5.5 5.6 5.6 5.6 5.8 6.0 6.1 6.2 2Q16 3Q16 4Q16 1Q17 2Q17 Commercial Finance Rail Real Estate Finance Business Capital $29.4 $29.5 $ 29.1 $29.2 ($ in billions) | 2Q17 Earnings Commercial Banking 5.3 5.1 5.0 4.8 4.6 1.9 2.0 2.2 2.2 2.2 2Q16 3Q16 4Q16 1Q17 2Q17 Legacy Consumer Mortgage Other Consumer $ 7.2 $7.1 $7.2 $7.0 $6.8 Commercial Banking ▪ Average loans and leases relatively flat resulting from a decline in Commercial Finance average loans driven by higher prepayments offset by growth in Rail and Business Capital divisions Consumer Banking ▪ Average loans declined 3% driven by the continued run off of loans in the Legacy Consumer Mortgage portfolio Commercial Banking ▪ Average loans and leases down 2% driven resulting by portfolio repositioning in Commercial Finance offset by growth in all other divisions Consumer Banking ▪ Average loans declined 5.5% driven by the continued run off of loans in the Legacy Consumer Mortgage portfolio Highlights vs. Year - ago Quarter vs. Prior Quarter Consumer Banking $28.9 Certain balances may not sum due to rounding (1) Net of credit balances of factoring clients.

12 Average Funding Mix ($ in billions) | 2Q17 Earnings 67% 68% 69% 69% 75% 6% 6% 5% 5% 6% 22% 22% 22% 22% 16% 4% 4% 4% 4% 4% 2Q16 3Q16 4Q16 1Q17 2Q17 Deposits FHLB Advances Unsecured Borrowings Secured Borrowings ▪ Average deposits now 75% of total average funding ▪ Wholesale funding is now less than 20% of total funding ▪ Next scheduled unsecured debt maturity in 2019 Highlights $47.2 $48.6 $47.2 $48.1 $42.3 2Q17 change from ($ in millions) 1Q17 2Q16 Average Balance % Average Balance % Average Balance % Balance Balance Deposits 31,634 74.7% 32,340 68.6% 32,753 67.4% (706) (1,119) FHLB Advances 2,407 5.7% 2,411 5.1% 3,143 6.5% (4) (736) Secured Borrowings 1,716 4.1% 1,818 3.9% 2,123 4.4% (101) (407) Unsecured Borrowings 6,580 15.5% 10,587 22.5% 10,582 21.8% (4,007) (4,003) Total Borrowed Funds and Deposits 42,337 100.0% 47,155 100.0% 48,602 100.0% (4,819) (6,265) 2Q17 1Q17 2Q16

13 Average Deposit Mix and Cost of Funds | 2Q16 Earnings Deposit by Type Deposit by Channel 18.4 18.1 17.3 16.5 15.8 5.7 6.1 6.5 6.8 6.6 4.6 4.4 4.3 4.5 4.9 3.0 3.1 3.1 3.2 2.9 1.1 1.2 1.3 1.4 1.4 1.21% 1.21% 1.19% 1.16% 1.20% 2Q16 3Q16 4Q16 1Q17 2Q17 Time Deposits Money Market/Sweeps Savings Interest Checking Non-Interest Checking and Other Deposit Cost of Funds ▪ Average deposit costs increased four basis points mainly due to deposit mix primarily driven by the reduction of higher beta commercial deposits that were repricing higher ▪ Shifting from time deposits to non - maturity deposits ▪ Decline in Commercial deposits driven by reduction in higher beta clients deposits ▪ Average deposit costs decreased one basis point ▪ 10% decline in higher cost Brokered deposits ▪ Shifting from time deposits to non - maturity deposits Highlights vs. Year - ago Quarter vs. Prior Quarter ($ in billions) 12.3 12.3 12.3 12.1 12.0 10.8 10.6 10.4 10.4 10.7 6.0 6.0 6.1 5.7 5.4 3.7 4.0 3.6 4.1 3.5 1.21% 1.21% 1.19% 1.16% 1.20% 2Q16 3Q16 4Q16 1Q17 2Q17 Branch Online Brokered Commercial Deposit Cost of Funds $32.8 $32.9 $32.4 $32.3 $31.6 $32.8 $32.9 $32.4 $32.3 $31.6

14 Asset Quality Trends – Continuing Operations ($ in millions) 264.6 283.3 278.6 258.8 256.8 0.45% 0.28% 0.32% 0.37% 0.38% 2Q16 3Q16 4Q16 1Q17 2Q17 Non-accrual Loans Net Charge-offs % 376.9 397.2 408.4 423.9 397.7 1.64% 1.74% 1.81% 1.85% 1.78% 2Q16 3Q16 4Q16 1Q17 2Q17 Allowance for Loan Losses (ALLL) ALLL % to Loans Non - accrual Loans & Net Charge - offs Allowance for Loan Losses - Commercial Non - accrual Loans % of Loans 0.9% 1.0% 0.9% 0.9% 0.9% | 2Q17 Earnings Provision for credit losses declined $46 million ▪ Below provision is below the normalized run rate ▪ Reduction is principally from lower loan balances and net credit benefits from changes in portfolio mix in Commercial Banking ▪ Net charge - offs were essentially flat ▪ Non - accrual loans as a % of loans essentially flat Net charge offs declined primarily due to lower charge - offs in the energy portfolio in Commercial Banking ▪ Increase in the allowance for loan losses reflects reserve build resulting from purchase accounting accretion on loans acquired from OneWest ▪ Non - accrual loans decreased and remained consistent as a percent of total loans Highlights vs. Year - ago Quarter vs. Prior Quarter

15 Exposure to Retail – Potentially Impacted by E - Commerce ($ in millions) ▪ Potential for certain retailers to be impacted (1) by competition from E - Commerce and changes in buying patterns • Potentially impacted retail segments include apparel, department stores, electronics, etc. ▪ ~$930 million in exposure to potentially impacted Retail segments (2) • 71% of retail exposure is related to Commercial Real Estate • Less than $75 million of Commercial Real Estate exposure is to malls ▪ Commercial Services (factoring) exposure to retailers of $2.9 billion • Limited to short - term trade receivables (60 - 90 days) and lines are discretionary | 2Q16 Earnings (1) Unaffected retail includes Gas and Auto, Food Places, and other retail. (2) Data as of May 31, 2017. (3) Commercial services exposure includes $980 million in unfunded Deferred Payment Account (DPA) balances. The % of Total Loans and Leases is based on the total loans and leases adjusted for the additional $980 million. Division Outstanding % of Total Loans and Leases Commentary ▪ Loans and leases are predominately with institutional sponsors and secured by high quality properties ▪ Less than $75 million of Commercial Real Estate exposure is to Malls Commercial Finance $274.0 0.8% ▪ Loans and leases secured via receivables, inventory, and fixed assets Exposure % of Total Loans and Leases and DPA Commentary ▪ Limited to short-term trade receivables (60-90 days) and lines are discretionary ▪ Customer base is diversified among large and small retailers 1.8% Real Estate Finance $657.2 Potentially Impacted Divisions Commercial Services 7.8%$2,877.1 Commercial Services (3)

16 14.0% 14.3% 14.6% 15.1% 16.2% 13.4% 13.6% 13.8% 14.3% 14.4% 13.8% 14.2% 13.9% 14.7% 12.1% 2Q16 3Q16 4Q16 1Q17 2Q17 Total Capital Ratio CET1 Ratio Tier 1 Leverage Ratio Strong Capital Position 0.99x 0.97x 0.98x 0.97x 0.96x 1.51x 1.50x 1.50x 1.50x 1.20x 2Q16 3Q16 4Q16 1Q17 2Q17 Bank Consolidated Loans and Leases - to - Deposit Ratio Risk Based Capital Ratios (1) (1) Capital ratios preliminary as of 6/30/17 and based on fully phased - in Basel III estimates. | 2Q17 Earnings CET1 capital ratio increased slightly ▪ Decline from capital returns net of retained earnings, was offset by a decline in risk - weighted assets (RWA), primarily from the Commercial Air sale, and to a lesser extent from the reduction of other earnings assets Total Capital ratio increased from the items noted above CET1 capital ratio increased approximately 100 bps ▪ Decline from capital returns net of retained earnings, was offset by a decline in risk - weighted assets (RWA), primarily from the Commercial Air sale, and to a lesser extent from the reduction of other earnings assets ▪ The reduction from the disallowed deferred tax asset increased common equity tier 1 by approximately $800 million Total Capital ratio increased by 220 bps Highlights vs. Year - ago Quarter vs. Prior Quarter

17 Key Performance Metrics – Continuing Operations (1 ) See appendix page 21 for details on Noteworthy Items included. (2) Average earning assets (AEA) components include interest earning cash, investments, securities and indemnification assets, lo ans and operating lease equipment, less the credit balances of factoring clients. (3) As a percentage of average earnings assets. (4) Operating expenses exclusive of restructuring costs and intangible assets amortization. (5) Total operating expenses exclusive of restructuring charges and amortization of intangibles divided by total revenue (ne t f inance revenue and other income). (6) Capital ratios preliminary as of 6/30/17 and based on fully phased - in Basel III estimates. (7) Return on average tangible common equity for continuing operations adjusted to remove the impact of intangible amortization, goo dwill impairment and the impact from valuation allowance from income from continuing operations, while the average tangible common equity is reduced for disallowed deferred tax assets and, in 1Q17 and 2Q16, ~$3 billion of capital r edu ction associated with the Commercial Air sale. (8) Currently intend to achieve towards the end of 2018, subject to regulatory approval of assumed capital actions. | 2Q17 Earnings ($ in millions) 2Q17 1Q17 2Q16 2Q17 1Q17 2Q16 2018 Target AEA (2) 50,676 46,639 47,893 46,990 46,639 47,893 - Net Finance Margin (3) 3.1% 3.6% 3.6% 3.4% 3.6% 3.6% 3.0-3.5% Credit Provision (3) 0.0% 0.4% 0.2% 0.0% 0.4% 0.2% 0.25-0.50% Other Non-Interest Income (3) 0.7% 0.7% 0.8% 0.7% 0.7% 0.8% 0.6-0.75% Operating Expenses (3)(4) 2.3% 2.5% 2.4% 2.4% 2.5% 2.4% 1.9-2.2% Net Efficiency Ratio (5) 60.3% 58.6% 54.9% 58.6% 57.7% 54.9% Low 50s Tax Rate NM 41.8% 55.8% 35.2% 33.0% 54.0% <40% CET1 Ratio (6) 14.4% 14.3% 13.4% 14.4% 14.3% 13.4% 10-11% (8) Adjusted ROATCE (7) 2.84% 5.36% 5.96% 8.14% 7.40% 6.35% 10% (8) As Reported Excluding Noteworthy Items (1)

18 Key Performance Metrics – Continuing Operations (1) See appendix page 21 for details on Noteworthy Items included. (2) Average earning assets (AEA) components include interest earning cash, investments, securities and indemnification assets, lo ans and operating lease equipment, less the credit balances of factoring clients. (3) As a percentage of average earnings assets. (4) Operating expenses exclusive of restructuring costs and intangible assets amortization. (5) Total operating expenses exclusive of restructuring charges and amortization of intangibles divided by total revenue (net fi nance revenue and other non - interest income). (6) Capital ratios preliminary as of 6/30/17 and based on fully phased - in Basel III estimates. | 2Q17 Earnings Excluding Noteworthy Items(1) 2Q17 AEA (2) 50,676 46,990 ▪ Expect AEA to be flat, as low single digit growth in our core businesses will be offset by run-off in legacy portfolios - Net Finance Margin (3) 3.1% 3.4% ▪ Expect to trend toward the middle to upper end of the range, as purchase accouting accretion run-off and Rail headwinds are partially offset by the benefits from the investment securities portoflio build out 3.0-3.5% Credit Provision (3) 0.0% 0.0% ▪ Expect to be within the targeted range 0.25-0.50% Other Non-Interest Income (3) 0.7% 0.7% ▪ Expect to be within the targeted range 0.6-0.75% Operating Expenses (3)(4) 2.3% 2.4% 1.9-2.2% Net Efficiency Ratio (5) 60.3% 58.6% Low 50s Tax Rate NM 35.2% ▪ Expect to be in the mid 30% range excluding discrete items <40% CET1 Ratio (6) 14.4% 14.4% ▪ Currently intend to achieve upper end of our target range toward the end of 2018, subject to regulatory approval of assumed capital actions 10-11% Adjusted ROATCE 2.84% 8.14% ▪ Currently intend to achieve toward the end of 2018, subject to regulatory approval of assumed capital actions 10% ($ in millions) 2Q17 2018 Target Expect ongoing improvement to be offset by investment expenditures 2H17 Outlook Commentary ▪

19 | 2Q17 Earnings 2017 Focus  Maximize potential of our businesses by growing core businesses, enhancing fee revenue, leveraging connectivity among businesses and growing investment portfolio  Enhance operational efficiency by making progress towards our expense targets while investing in and enhancing technology  Reduce funding costs and grow deposits with greater efficiency  Continue to optimize our capital by efficiently managing, deploying and aligning capital  Maintain strong capital and risk management processes Executing on Our Priorities to Simplify, Strengthen and Grow CIT Operating trends remain stable although loan growth was impacted by portfolio repositioning and elevated prepayments Significant progress made on company transformation and strategic plan

20 APPENDIX | 2Q17 Earnings

21 Noteworthy Items | 2Q17 Earnings (1) Per share data based on 183.8 million, 203.3 million, 202.1 million, 202.8 million and 202.3 million for 2Q17, 1Q17, 4Q1 6, 3Q16, and 2Q16 respectively; $ impacts are rounded. (2) Excess interest cost and interest income and increase in average earning assets are the result of a timing difference bet wee n the receipt of the proceeds from the Commercial Air sale and the completion of the related debt and capital actions. Segment Item Line Item Pre-Tax After-Tax Per Share (1) Balance Sheet Continuing Operations Corporate Restructuring Expenses Operating Expenses ($10) ($6) ($0.03) Financial Freedom Interest Curtailment Reserve ($230) ($163) ($0.81) Business Air Goodwill Impairment ($4) ($3) ($0.01) Corporate China Valuation Allowance Tax Provision - ($16) ($0.08) Consumer Banking Gain related to IndyMac venture Other Income $5 $3 $0.01 Corporate Restructuring Expenses Operating Expenses ($2) ($1) ($0.01) Reverse Mortgage Servicing Rights Impairment ($19) ($12) ($0.06) Business Air Impairment ($18) ($11) ($0.05) Corporate TRS Termination Charge Other Income ($243) ($146) ($0.72) Consumer Banking Consumer Goodwill Impairment Goodwill Impairment ($319) ($319) ($1.58) Commercial Banking Commercial Services Goodwill Impairment Goodwill Impairment ($35) ($28) ($0.14) NSP Canadian Assertion Change Tax Provision - ($54) ($0.27) NSP Canada Portfolio Sale Gain Other Income $22 $16 $0.08 Consumer Banking Legacy OneWest Bank Matters Operating Expenses ($27) ($17) ($0.08) Corporate Restructuring Expenses Operating Expenses ($4) ($3) ($0.01) Commercial Air Tax Provision - ($847) ($4.19) Commercial Air Suspended Depreciation $106 $66 $0.33 Financial Freedom Reserve ($27) ($16) ($0.08) Business Air Impairment ($7) ($4) ($0.02) Corporate Entity Restructuring Tax Provision - ($14) ($0.07) Corporate Restructuring Expenses Operating Expenses ($15) ($10) ($0.05) NSP Currency Translation Adjustments Other Income ($8) ($7) ($0.03) Commercial Air Suspended Depreciation $113 $69 $0.34 Commercial Air Secured Debt Expenses ($39) ($34) ($0.17) TC-CIT Joint Venture Gain $14 $13 $0.06 Corporate Debt Extinguishment Costs Debt Extinguishment Costs ($165) ($100) ($0.54) Corporate Excess Interest Cost(2) Interest Expense ($23) ($15) ($0.08) Corporate Interest Income(2) Interest Income $9 $6 $0.03 Corporate Commercial Air Asset Adjustment(2) Average Earning Assets ($3,686) Corporate Resolution of Legacy Tax Items Tax Provision - $19 $0.11 Corporate NACCO DTA Recognition Tax Provision $0 $7 ($0.04) Corporate Restructuring Charges Operating Expenses ($3) ($2) ($0.01) Commercial Air Gain on Sale $135 $100 $0.54 Financial Freedom Net Settlement Items and Servicing Rights Impairment $20 $12 $0.07 ($ in millions, except for per share data) Discontinued Operations 2Q17 Discontinued Operations Continuing Operations Discontinued Operations Continuing Operations 4Q16 Continuing Operations Discontinued Operations 1Q17 Continuing Operations Discontinued Operations 2Q16 3Q16

22 Commercial Banking Certain balances may not sum due to rounding. (1) Net of depreciation and maintenance and other operating lease expenses. | 2Q17 Earnings ▪ Net Finance Revenue: Decreased slightly as declines in Rail and Business Capital were offset by increases in Commercial Finance and Real Estate Finance ▪ Average Earning Assets: flat with a slight decrease due to Commercial Finance loan balances ▪ Other Non - interest Income: increased $3 million driven by higher gains on sale of rail equipment partially offset by lower factoring commissions ▪ Total Operating Expenses: decreased $2 million due to lower employee compensation expenses ▪ Provision for Credit Losses: decreased due to credit benefits related to portfolio mix. In addition, the prior quarter included a specific reserve on a single account in the factoring business within Business Capital which was charged off in the current quarter ▪ Net Finance Revenue: decreased due to lower purchase accounting accretion and lower net rental income in Rail ▪ Average Earning Assets : decreased 2% driven by portfolio repositioning and prepayments in Commercial Finance partially offset by increases in the other divisions ▪ Other Non - interest Income: increased $7 million driven by higher capital markets fees income and a valuation adjustment on rail assets held for sale in the prior year ▪ Total Operating Expenses: decreased $12 million related to employee costs reductions ▪ Provision for Credit Losses: In addition to the factors noted above, provision also decreased as a result of lower provisions in Energy and Maritime Highlights vs. Year - ago Quarter vs. Prior Quarter 2Q17 change from 1Q17 2Q16 $ % $ % Interest Income 317 308 323 9 3.0% (7) (2.1%) Net Operating Lease Revenues(1) 121 124 143 (4) (2.8%) (23) (15.9%) Interest Expense 128 120 130 8 6.7% (3) (1.9%) Net Finance Revenue 309 312 336 (2) (0.8%) (27) (8.1%) Other Non-Interest Income 75 72 68 3 3.5% 7 10.0% Provision for Credit Losses - 49 22 (49) (100.0%) (22) (100.0%) Operating Expenses 177 179 188 (2) (1.2%) (12) (6.1%) Pre-Tax Income from Continuing Operations 208 156 194 52 33.0% 13 6.9% Key Metrics Average Earning Assets 29,159 29,305 29,901 (146) (0.5%) (742) (2.5%) Net Finance Margin 4.2% 4.3% 4.5% Net Efficiency Ratio 45.6% 46.2% 46.1% PTI-ROAEA 2.8% 2.1% 2.6% (50) bps 20 bps (70) bps 80 bps ($ in millions) 2Q17 1Q17 2Q16 (10) bps (30) bps

23 Commercial Banking Divisional Performance 11,543 11,085 10,647 10,217 9,858 5.39% 5.35% 5.54% 5.16% 5.61% 3.99% 3.92% 4.15% 3.83% 4.09% 2Q16 3Q16 4Q16 1Q17 2Q17 AEA Gross Yield Net Finance Margin Commercial Finance | 2Q17 Earnings 7,037 7,164 7,287 7,320 7,393 13.16% 12.38% 12.22% 11.98% 11.70% 5.34% 4.33% 4.29% 4.47% 4.20% 2Q16 3Q16 4Q16 1Q17 2Q17 AEA Gross Yield Net Finance Margin Rail 2Q17 change from 1Q17 2Q16 $ % $ % Loans and Leases(1) 9,773 10,133 11,457 (360) (3.6%) (1,684) (14.7%) AEA 9,858 10,217 11,543 (359) (3.5%) (1,685) (14.6%) Net Finance Revenue 101 98 115 3 3.2% (14) (12.3%) Gross Yield 5.6% 5.2% 5.4% Net Finance Margin 4.1% 3.8% 4.0% 30 bps 10 bps Key Metrics ($ in millions) 2Q17 1Q17 2Q16 50 bps 20 bps 2Q17 change from 1Q17 2Q16 $ % $ % Loans and Leases(1) 7,293 7,228 6,939 65 0.9% 354 5.1% AEA 7,393 7,320 7,037 73 1.0% 357 5.1% Net Finance Revenue 78 82 94 (4) (5.1%) (16) (17.4%) Gross Yield 11.7% 12.0% 13.2% Net Finance Margin 4.2% 4.5% 5.3% (30) bps (150) bps (30) bps (110) bps Key Metrics ($ in millions) 2Q17 1Q17 2Q16 (1) Loans and Leases are an average for the period and are net of credit balance of factoring clients and net of depreciation and ma intenance.

24 Commercial Banking Divisional Performance 5,461 5,507 5,502 5,565 5,646 5.17% 5.13% 5.24% 4.90% 5.34% 3.79% 3.74% 3.80% 3.46% 3.71% 2Q16 3Q16 4Q16 1Q17 2Q17 AEA Gross Yield Net Finance Margin Real Estate Finance | 2Q17 Earnings 5,861 6,021 6,070 6,202 6,261 8.38% 8.54% 8.71% 9.01% 8.80% 5.16% 5.07% 5.22% 5.41% 5.02% 2Q16 3Q16 4Q16 1Q17 2Q17 AEA Gross Yield Net Finance Margin Business Capital 2Q17 change from 1Q17 2Q16 $ % $ % Loans and Leases(1) 5,646 5,565 5,461 81 1.4% 185 3.4% AEA 5,646 5,565 5,461 81 1.4% 185 3.4% Net Finance Revenue 52 48 52 4 8.5% 1 1.2% Gross Yield 5.3% 4.9% 5.2% Net Finance Margin 3.7% 3.5% 3.8% 40 bps 20 bps 20 bps (10) bps Key Metrics ($ in millions) 2Q17 1Q17 2Q16 2Q17 change from 1Q17 2Q16 $ % $ % Loans and Leases(1) 6,220 6,126 5,628 93 1.5% 592 10.5% AEA 6,261 6,202 5,861 59 0.9% 400 6.8% Net Finance Revenue 79 84 76 (5) (6.4%) 3 3.8% Gross Yield 8.8% 9.0% 8.4% Net Finance Margin 5.0% 5.4% 5.2% (20) bps 40 bps (40) bps (10) bps Key Metrics ($ in millions) 2Q17 1Q17 2Q16 (1) Loans and Leases are an average for the period and are net of credit balance of factoring clients and net of depreciation and ma intenance.

25 Consumer Banking Certain balances may not sum due to rounding. | 2Q17 Earnings ▪ Net Finance Revenue: increased due to the benefit in interest expense received from the other segments for the value of excess deposits ▪ Average Earning Assets: decreased slightly due to run - off in the Legacy Consumer Mortgage portfolio, offset in part by new business volume ▪ Other Non - Interest Income: decreased as a result of the prior inclusion of FDIC Receivable valuation adjustments ▪ Total Operating Expenses: flat as increases in advertising and marketing expenses was offset by declines in other operating expenses ▪ Provision for Credit Losses: increased due to modest credit deterioration related to non - performing residential mortgages ▪ Net Finance Revenue: increased due to the benefit in interest expense received from the other segments for the value of excess deposits ▪ Average Earning Assets: decreased as a result of run - off in the Legacy Consumer Mortgage portfolio ▪ Other Non - Interest Income: decreased as a result of the prior inclusion of FDIC Receivable valuation adjustments. ▪ Total Operating Expenses: increased due to increased advertising and marketing expenses ▪ Provision for Credit Losses: increased due to modest credit deterioration related to non - performing residential mortgages Highlights vs. Year - ago Quarter vs. Prior Quarter 2Q17 change from 1Q17 2Q16 $ % $ % Interest Income 102 100 104 2 1.6% (2) (1.8%) Interest Expense (10) (7) 5 (3) 47.7% (14) (300.0%) Net Finance Revenue 111 107 99 5 4.4% 13 12.7% Other Non-Interest Income 6 8 12 (2) (27.8%) (6) (51.3%) Provision for Credit Losses 5 1 1 4 820.0% 4 318.2% Operating Expenses 96 96 86 1 0.6% 10 11.9% Pre-Tax Income from Continuing Operations 16 18 23 (2) (12.0%) (7) (30.9%) Key Metrics Average Earning Assets 7,093 7,292 7,568 (199) (2.7%) (476) (6.3%) Net Finance Margin 6.3% 5.8% 5.2% Net Efficiency Ratio 78.3% 79.5% 73.7% PTI-ROAEA 0.9% 1.0% 1.2% (120) bps 460 bps (10) bps (30) bps ($ in millions) 2Q17 1Q17 2Q16 40 bps 110 bps

26 Consumer Banking Divisional Performance 5,647 5,481 5,304 5,126 4,925 6.10% 6.35% 6.56% 6.34% 6.68% 4.36% 4.66% 4.82% 4.67% 4.77% 2Q16 3Q16 4Q16 1Q17 2Q17 AEA Gross Yield Net Finance Margin Legacy Consumer Mortgage | 2Q17 Earnings 1,921 2,035 2,154 2,166 2,168 3.62% 3.54% 3.70% 3.46% 3.56% 7.72% 7.92% 8.66% 8.61% 9.69% 2Q16 3Q16 4Q16 1Q17 2Q17 AEA Gross Yield Net Finance Margin Other Consumer Banking (2) (1) Loans and Leases are an average for the period and are net of credit balance of factoring clients and net of depreciation an d maintenance. (2) Other Consumer Banking offers mortgage lending, deposits and private banking services. 2Q17 change from 1Q17 2Q16 $ % $ % Loans and Leases(1) 2,168 2,166 1,920 2 0.1% 248 12.9% AEA 2,168 2,166 1,921 2 0.1% 247 12.9% Net Finance Revenue 53 47 37 6 12.7% 15 41.5% Gross Yield 3.6% 3.5% 3.6% Net Finance Margin 9.7% 8.6% 7.7% 10 bps (10) bps 110 bps 200 bps Key Metrics ($ in millions) 2Q17 1Q17 2Q16 2Q17 change from 1Q17 2Q16 $ % $ % Loans and Leases(1) 4,645 4,798 5,271 (153) (3.2%) (627) (11.9%) AEA 4,925 5,126 5,647 (201) (3.9%) (723) (12.8%) Net Finance Revenue 59 60 62 (1) (2.0%) (3) (4.7%) Gross Yield 6.7% 6.3% 6.1% Net Finance Margin 4.8% 4.7% 4.4% 40 bps 60 bps 10 bps Key Metrics ($ in millions) 2Q17 1Q17 2Q16 30 bps

27 Commercial Air Sale – Financial Impact | 2Q17 Earnings Oct. 6 th Presentation Continuing Discontinued Total Continuing Discontinued Total Premium - $405 $405 - $625 $625 $600 Other Settlement Items - ($214) ($214) - ($204) ($204) ($200) Gain on Sale (Pre-Tax) Total - $191 $191 - $421 $421 $400 Debt Extinguishment and Transaction Costs (Pre-Tax) ($165) ($56) ($221) ($408) ($103) ($511) ($550) Negative Carry from Proceeds ($14) - ($14) ($14) - ($14) - GAAP Taxes $71 ($35) $36 $168 ($972) ($804) ($1,100) Net P&L Impact ($109) $100 ($9) ($255) ($654) ($909) ($1,250) Goodwill and Intangible Assets - - - - $135 $135 $150 Total Impact to TBV Before Capital Actions ($109) $100 ($9) ($255) ($519) ($774) ($1,100) ($ in millions) Total Transaction (4Q'16-2Q'17)2Q17

28 Impact on DTA from Commercial Air Sale Deferred Tax Asset/(Liability) Balance as of 12/31/2016 10 - K ($ in B) 12/31/2016 10 - K Pro Forma ($ in billions) Gross Balance Valuation Allowance Net Balance Transaction Adjustments Pro Forma Net Balance U.S. Federal NOLs $2.1 $2.1 ($1.4) $0.7 State NOLs 0.4 (0.2) 0.2 (0.1) 0.1 Non - U.S. NOLs 0.1 (0.1) 0.0 0.0 Other Deferred Tax Assets 0.9 0.9 0.0 0.9 Gross Deferred Tax Assets $3.5 ($0.3) $3.2 ($1.4) $1.7 ( – ) Deferred Tax Liabilities from Operating Leases (1.8) (1.8) 0.3 (1.5) ( – ) Non - US unremitted earnings (1.0) (1.0) 1.0 ( – ) Other Deferred Tax Liabilities (0.4) (0.4) 0.1 (0.3) Total Deferred Tax Liability (3.2) (3.2) 1.4 (1.8) Net Deferred Tax Asset/(Liability) $0.2 ($0.3) ($0.1) ($0.0) ($0.1) DTA Disallowed From Regulatory Capital $0.2 $0.1 ▪ CIT had $6.0 billion of U.S. Federal NOLs contributing $2.1 billion of gross deferred tax assets on 12/31/2016 • $1.3 billion of the NOL remains subject to the 382 limitation (~$.5 billion DTA) ▪ The sale of CIT Commercial Air utilized ~$4.0 billion of unrestricted NOL • CIT paid minimal cash taxes after utilization of available tax credits ▪ Pro forma for the sale, CIT will have a small net deferred tax liability and minimal deferred tax asset disallowed from regulatory capital Amounts may not sum due to rounding.

29 Petroleum and gas 46% Rail 18% Agriculture 14% Cement and Building Products 6% Petrochemicals 6% Coal and Utilities 3% Chemicals (non petrochemical) 3% Other 2% Steel and Metals 1% Locomotives, 0.3% Covered Hopper - Other, 32% Covered Hopper - O&G Related, 8% Tank Cars - Other, 14% Tank Cars - O&G Related, 13% Mill/Coil Gondolas, 10% Coal, 9% Boxcars, 7% Flatcars, 4% Other, 3% Locomotives, 0.3% Total Cars: ~117k Diversified North American Rail Fleet Operating Leases by Industry Fleet by Type Diversified fleet serving a broad range of customers and industries ▪ Approximately 500 clients ▪ ~76% shippers and ~24% railroads ▪ Strong credit profile (~50% investment grade) ▪ Young, well maintained equipment (avg. age: 12 yrs.) Utilization and lease rate trends off peak levels across portfolio ▪ Tank cars: ~15,000 for the transportation of crude ▪ Sand cars: ~9,000 supporting crude and natural gas drilling ▪ Coal cars: ~11,000 for the transportation of coal Portfolio management strategies ▪ Shorten lease terms while lease rates are weaker ▪ Bank funding on new deliveries ▪ Selective disposal of non - performing assets ▪ Divert cars from crude oil to alternative services (e.g. to ethanol and other refined products, etc.) Total Net Investment:~$6.3B Commentary O&G = Oil and Gas | 2Q17 Earnings Includes Operating Leases only

30 Exposure to Energy – Oil & Gas Loans ($ in billions) ($ in millions) Outstanding Line Utilization Criticized Commentary Exploration & Production $223 55% 30% ▪ Geographically diversified across the major producing basins ▪ Oil 35%/Gas 65%; Non - accruals of 25% of which 75% current Midstream $221 66% 14% ▪ Long - lived infrastructure that store and transport essential commodity products Energy Services $177 73% 60% ▪ Geographically diversified across the major producing basins ▪ Almost all loans are asset based Total Loans: $29.0 Energy: ~$0.6 (2% of Total Loans) Consumer Banking $6.7 Midstream $0.2 Energy Services $0.2 Exploration & Production $0.2 ▪ $620 million or 2% of total loans ▪ Reserve 3.4% ▪ Carry Value of 91% reflects purchase accounting discount on loans acquired from OneWest ▪ ~32% of loans are Criticized ▪ 63% Line Utilization ▪ Non - accruals of ~$65 million – ~66% current ▪ Less than 5% are Leveraged Loans ▪ Majority of portfolio is secured by: - Traditional reserve - based lending assets - Working capital assets - Long - lived fixed assets ($ in millions) | 2Q16 Earnings Commercial Banking $22.3

31 Non - GAAP Disclosures (1) | 2Q17 Earnings (1) Reconciliations of non - GAAP measurements to GAAP measurements that are included in our quarterly earnings release are not repeat ed in this presentation. (2) Operating expenses exclusive of restructuring costs and intangible amortization is a non - GAAP measure used by management to comp are period over period expenses. (3) Net efficiency ratio is a non - GAAP measurement used by management to measure operating expenses (before restructuring costs and intangible amortization) to the level of total net revenues. Quarter Ended Quarter Ended Quarter Ended June 30, March 31, June 30, Adjusted Other Non-Interest Income 2017 2017 2016 Other Non-Interest Income 85 79 100 CTA - (8) - Adjusted Other Non-Interest Income 85 87 100 Adjusted Other Non-Interest Income as a % of AEA 0.67% 0.75% 0.83% Adjusted Other Non-Interest Income as a % of Adjusted AEA 0.72% 0.75% 0.83% Quarter Ended Quarter Ended Quarter Ended June 30, March 31, June 30, Adjusted Operating Expenses 2017 2017 2016 Operating expenses (296) (312) (309) Intangible asset amortization 6 6 6 Provision for severance and facilities exiting activities 3 15 10 Operating expenses exclusive of restructuring costs and intangible assets amortization(2) (286) (291) (293) Adjusted operating expenses (exclusive of restructuring costs and intangible assets amortization) as a % of AEA 2.26% 2.49% 2.45% Adjusted operating expenses (exclusive of restructuring costs and intangible assets amortization) as a % of Adjusted AEA 2.43% 2.49% 2.45% Quarter Ended Quarter Ended Quarter Ended June 30, March 31, June 30, Adjusted Net Efficiency Ratio(3) 2017 2017 2016 Net Finance Revenue 404 417 434 Adjusted Other Income 85 87 100 Total net revenues 488 504 534 Adjusted operating expenses exclusive of restructuring costs and intangible assets amortization(2) (286) (291) (293) Adjusted Net Efficiency Ratio 58.6% 57.7% 54.9%

32 Non - GAAP Disclosures (1) | 2Q17 Earnings Certain balances may not sum due to rounding Capital numbers for current quarter are preliminary (1) Selective reconciliations of non - GAAP measurements to GAAP measurements are included in our quarterly earnings release and n ot repeated in this presentation. Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended June 30, March 31, December 31, September 30, June 30, 2017 2017 2016 2016 2016 Income from Continuing Operations 41 78 (426) 94 88 A Less: Restructuring Expenses 2 10 3 1 6 Debt Extinguishment Costs 100 - - - - Excess Interest Cost 15 - - - - Interest Income (6) - - - - Resolution of Legacy Tax Items (19) - - - - NACCO DTA Recognition (7) - - - - Currency Translation Adjustment - 7 - - - China Valuation Allowance - - - 16 - Gain Related to Indymac Venture - - - (3) - Consumer Goodwill Impairment - - 319 - - Commercial Services Goodwill Impairment - - 28 - - TRS Termination Charge - - 146 - - Canada Assertion Change - - 54 - - Canada Portfolio Sale Gain - - (16) - - OneWest Bank Legacy Matters - - 17 - - Entity Restructuring - 14 - - - Total Noteworthy Adjustments 85 31 551 14 6 Plus: Intangible asset amortization (net of tax) 4 4 5 5 3 B Adjusted Income from Continuing Operations, for ROTCE Calculation 130 113 130 113 97 C Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended June 30, March 31, December 31, September 30, June 30, Tangible Common Equity 2017 2017 2016 2016 2016 Average Tangible Common Equity 8,378 9,296 9,886 9,984 9,939 Less: Disallowed DTA - Average (97) (177) (665) (831) (862) Adjusted Tangible Common Equity 8,280 9,119 9,221 9,153 9,077 Less: Capital Adjustment Related to Commercial Air Sale 1,903 2,975 2,975 2,975 2,975 Adjusted TCE for Capital Reduction 6,377 6,144 6,246 6,178 6,102 D ROATCE Adjusted Pro-Forma for estimated Capital Adjustment 2.84% 5.36% NM 6.38% 5.96% A + B / D ROATCE Adjusted for Noteworthy Items and Pro-Forma Capital Adjustment 8.14% 7.40% 8.37% 7.30% 6.35% C / D

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