A 55% jump in earnings from global lending and
leasing has helped GE Capital to a surge in operating profit for
the third quarter.
The consumer lending and commercial leasing
division of GE Capital (GECLL) made a $688m (€493m) profit for the
period to 30 September 2011, up from $443m for the same period last
year.
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GE Capital, the finance division of US-based
global giant General Electric (GE), reported a $1.47bn profit for
the quarter, up from $818m for the same period in 2010.
Earnings after tax in the specialist aircraft
finance sector, GE Capital Aviation Services (GECAS), were up 32%
to $208m.
Jeff Immelt, GE chairman and chief executive,
said the company has had a strong quarter despite a volatile
environment.
GE Capital does not provide a geographical
breakdown of its financial report. However, during a web broadcast
on the release of the results, Keith Sherin, GE vice chairman and
chief financial office, said GE Capital’s net income in Europe was
$123m. He also said new business volume, which was $43bn globally
over the quarter, had been ‘flat’ in Europe.
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By GlobalDataSherin also added GECLL globally had seen
$10.6bn in new business for the quarter which was an increase of
31% year-on-year.
Immelt said GE Capital’s margins remained
strong at 5.4% year-to-date and added the business continued to
strengthen its capital ratios and liquidity during the quarter.
“We continue to successfully navigate a
volatile global economy,” he said. “Our investment in research and
development and global expansion is paying off with robust organic
growth. Our liquidity is strong. GE Capital is safe and secure,
with increasing competitive advantage.
Profit for GE as a whole was $4.7bn for the
quarter, a 15% year-on-year increase.
grant.collinson@vrlfinancialnews.com
