The global financing company has
highlighted EMEA for growth. Claire Hack
reports.
Go deeper with GlobalData
GE
Capital has appointed Elmar Lukas as managing director for its
equipment financing business in EMEA, as the company repositions
globally and looks to focus on areas where it is a recognised
leader.
Lukas, former commercial leader for GE Capital’s
leasing business in Germany, will be responsible for the equipment
financing portfolio and for leasing strategy across the
region.
Isabel
Fernandez, chief commercial officer for GE Capital in EMEA, said:
“GE Capital has a long history in equipment finance and leasing. It
is a core market for us and one where we are investing for our
customers.
“The
appointment, combined with our investment in technology, and our
pan-European expertise, will help our customers as they return to
growth mode.”
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By GlobalDataLukas’
new position, reporting to Fernandez, was created specifically to
support expansion in equipment leasing across Europe, and will be
followed by new hires to cover risk, marketing and
pricing.
“I plan
to leverage our pan-European coverage to add more value to our
partners and customers,” Lukas said. “We will also leverage the
existing organisation to drive growth, and revisit segments and
industries in which we see potential.”
Profits up 44%
The
appointment came as GE Capital revenue dropped 6%, and after-tax
profit rose 44% to $2.3bn (€1.7bn) in the year-on-year to
end-September.
In
Europe this year, the company acquired Royal Bank of Scotland’s
factoring businesses in France and Germany, and in America it
bought Citi Retail Partner Cards sales finance portfolios for
$1.6bn. GE Capital profits were up 518% to $871m in the three
months to end-September compared to the same period a year
earlier.
Commenting on the results, Jeff Immelt, CEO and
chairman of parent company General Electric (GE), said: “Higher
core income and lower losses indicate business has turned the
corner and our efforts over the past 18 months to strengthen the
franchise are paying off.
“GE
Capital is well positioned with respect to Basel III capital
requirements and we expect earnings growth in our financial
services business to continue.”
GE
Capital’s commercial lending and leasing division, one of five
units within the financing business, achieved growth in profit of
62% to $987m in the nine months to end-September.
Energy
financial services, whose activities include leasing, also
increased profit, by 85% to $334m for the period. GE Capital’s
strong profits were cited as helping to offset earnings declines in
other parts of GE, including a fall of 13% at its technology
infrastructure business.
Lukas was formerly aircraft leader
for GE Capital in EMEA, and helped to grow the corporate aircraft
leasing portfolio fivefold in five years. Before joining GE, he
worked in the leasing in Germany, and holds an MBA from the
University of Hamburg.
