GE Capital has reported a reduction in global
revenue coinciding with an upturn in profit for the nine months to
end September 2010.
Profit after tax rose 44 percent to $2.3bn in
the first three quarters of the year, compared to $1.6bn for the
same period in 2009.
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The performance reflects a repositioning of
the company last year to become smaller and to continue focusing on
the asset classes and markets where it is a recognised leader.
Profit growth accelerated, up 518 percent to
$871m (€630m), in the three months to end September.
Jeff Immelt, CEO and chairman of parent
company GE, said of GE Capital’s result: “Higher core income and
lower losses indicate that business has turned the corner and our
efforts over the past 18 months to strengthen the franchise are
paying off.”
These efforts included the acquisition of
$1.6bn in sales finance portfolios from Citi Retail Partner Cards,
announced on 6 October. The European business was strengthened by
the acquisition of Royal Bank of Scotland’s factoring operations in
France and Germany, in May and March respectively.
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By GlobalDataCommercial lending and leasing, one of five
divisions within GE Capital, achieved growth in profit of 62
percent to $987m in the nine months ended 30 September, compared to
$611 million a year earlier.
Energy Financial Services, whose activities
include leasing, also increased profit, by 85 percent to $334
million 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 percent at its Technology Infrastructure business for
the nine-month period.
GE Capital has claimed to be well positioned
with respect to Basel III capital requirements.
