CIT is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses.

Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in New York City, CIT is a member of the S&P 500 and Fortune 500.

Corporate Finance provides lending, leasing and other financial and advisory services to small and middle market companies, with a focus on specific industries, including healthcare, energy, communications, media and entertainment.

Trade Finance provides factoring, lending, credit protection, receivables management and other trade finance services to companies that sell into retail channels of distribution.

Transportation Finance provides lending, leasing and advisory services to the transportation industry, principally aerospace and rail.

Vendor Finance provides innovative customer financing and leasing solutions that support global, regional and local manufacturers and distributors in technology, office products, diversified industries, telecommunications and healthcare.

Visit CIT 2008 Annual Report Download Page

Read CIT Annual Report 2008 online, or you can download CIT Annual Report 2008 in PDF format.

Dear Shareholders,
This past year was one of the most challenging periods in our 100-year history. The financial markets underwent major disruptions that tested the resolve and resiliency of every participant, including CIT.

While the nearterm prospects for the economy remain unclear at best, what is clear is that we entered 2009 as a well-capitalized bank holding company with leading market positions and unparalleled industry expertise. During 2008 we took significant steps to position CIT for long-term success and to capitalize on what I believe will be strong opportunities once the business environment improves.

Our top priority in 2008 was diversifying our sources of funding. We secured new funding arrangements with Goldman Sachs and Wells Fargo, refinanced several existing borrowing facilities, issued capital, and grew deposits at CIT Bank. We further focused our underwriting and origination strategies as we continued to support our existing clients. We sold our home lending business, eliminating direct exposure to this asset class, stopped originating new student loans, and cut our common dividend to conserve capital.

One of the most significant events of 2008 was the approval of our application by the Board of Governors of the Federal Reserve to become a bank holding company.

In connection with this application, we improved our capital ratios through the completion of two voluntary exchange offers (equity units and notes) in addition to issuing common equity. This new status, including the conversion of CIT Bank to a Utah state bank, will provide us with an opportunity to broaden our deposit-taking capabilities and stabilize our long-term funding model.

Following our approval to become a bank holding company, we sold $2.3 billion of CIT preferred stock and related warrants to the U.S. Treasury as a participant in the government’s TARP Capital Purchase Program.

I believe that the government’s investment in CIT is in part recognition of the important role we play in financing small businesses and middle market companies. These two sectors are the backbone of the U.S. economy and will undoubtedly lead the way to economic recovery. We stood by our clients during this difficult period, as we have for more than a century spanning 19 business cycles. In part as a result of this steadfastness, our Trade Finance and Transportation Finance segments earned double-digit returns. Our Corporate Finance segment, however, was impacted by weakening economic conditions and rising credit costs, which resulted in the need to increase reserves.

In Vendor Finance, we made progress on our pledge to bring this business back to profitability, and we intend to restore this franchise to acceptable earnings and returns. Looking ahead, we expect 2009 to be very challenging.

We will continue to be prudent in managing our capital, including restricting new business originations. In addition, we are actively seeking approval to participate in the Temporary Liquidity Guarantee Program and have requested a waiver to transfer assets into CIT Bank, which would enable us to deploy deposits. If approved, we will be well positioned to continue serving the small business and middle market clients that form the core of our business.

Our value proposition, Capital Redefined, which brings a unique combination of relationship, intellectual and financial capital to our clients, helped see us through 2008 and will continue to guide us through 2009 and beyond. In tough times, powerful ideas and enduring relationships are more critical than ever. The ingenuity of our employees and the relationships they have built have been — and always will be — our core strengths.

I would like to thank my colleagues for their inspiring dedication and continued hard work; our Board of Directors, which has provided valuable guidance and wisdom during a challenging period; and our shareholders, whose support and confidence in the CIT franchise has enabled us to weather this storm.

Jeffrey M. Peek
Chairman & CEO

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