Molly Ayala
General Electric Capital Corporation (GECC) was the financial services division of General Electric. It provided credit services to businesses and merchants in the US and was a multi-product commercial finance bank. GE Capital Retail Bank, a subsidiary of GECC, offered retail banking and credit services to consumers in the US and internationally. The company served various industries, including automotive, consumer electronics, healthcare, luxury goods, and travel. GECC's various units were sold off between 2013 and 2021, and it suffered significant losses during the 2008 Great Recession.
| Characteristics | Values |
|---|---|
| Type of company | Financial services division of General Electric |
| Date of founding | 1892 |
| Founder | Thomas Edison |
| Former name | Edison General Electric Company |
| Former subsidiaries | GE Capital Retail Bank, GE Capital Corporate Finance, GE Capital Bank, GE Capital Aviation Services, GE Energy Financial Services, GE Credit Union, GE Plastics, GE Transportation, GE Appliances, GE Capital Rail Services (Europe), GE Digital, GE Power, GE Power Conversion, GE Security, GE Ventures, GE Technology Infrastructure, Thomson-Houston Electric Company |
| Current subsidiaries | GE Energy Services, GE Aerospace, GE Vernova, GE Healthcare |
| Former operations | Broadcasting, radio and television stations |
| Current operations | Aviation, renewable energy, healthcare |
| Number of employees (2014) | 35,000+ |
| Number of countries of operation (2014) | 40+ |
| Total assets (2014) | US$499 billion |
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What You'll Learn
GE Capital Retail Bank
In 2011, GE Capital Retail Bank acquired MetLife Bank from MetLife. On June 2, 2014, GE Capital Retail Bank changed its name to Synchrony Bank, resolving outstanding inquiries related to the omission of delinquent cardholders with Puerto Rico addresses or Spanish-preferred indicators on their accounts. The bank's priority is treating customers fairly, and it has been recognised for its responsible business conduct by regulatory bodies.
Before the name change, GE Capital Bank was composed of both retail and commercial banks. The retail bank provided services to consumers, while the commercial bank, GE Commercial Finance, offered banking services to high-net-worth individuals and corporates. This division of GE Capital was based in the Netherlands and provided various financial services, including capital finance, long-term finance, leasing, and finance for international trade transactions. It closed in 2015.
GE Capital had a presence in several countries, including Austria, the Czech Republic, Denmark, France, Germany, Finland, and the United Kingdom. The company's operations included providing credit card and loan programs, as well as lending options for retailers and consumers. For example, GE Money Canada offered private label credit card and MasterCard card programs, while GE Money Bank Denmark provided credit cards, loans, and other financial solutions under brand names such as Acceptcard and Morecard. In 2009, Santander Group acquired GE's operations in Austria, Germany, Finland, and the UK.
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GE Capital's subsidiaries
GE Capital, the financial services division of General Electric, had several subsidiaries, many of which operated under the GE Money brand. These included:
GE Artesia Bank
GE Artesia Bank was a part of GE Capital's subsidiary GE Commercial Finance. It offered banking services to high-net-worth individuals and corporates in the Netherlands. The bank provided capital finance, long-term finance, leasing, and finance for specific international trade transactions. GE Artesia Bank was closed in 2015.
GE Money Bank Norge
GE Money Bank Norge was a division of the Stockholm-based Swedish subsidiary GE Capital AB. It was a leading provider of consumer finance products in Norway, with more than 300,000 clients and total lending of NOK 5 billion. The bank offered US-style credit cards with zero annual or monthly fees and an interest-free grace period.
GE Capital Bank AB
The Swedish subsidiary GE Capital Bank AB was based in Stockholm and traded as GE Money Bank. It was the largest provider of small consumer credits in Switzerland. In 2006, the company partnered with Migros to offer credit card contracts through the retailer. The bank is now known as Cembra Money Bank and went public through an initial public offering (IPO) in 2013.
GE Money (New Zealand)
In 2006, GE Money New Zealand purchased Pacific Retail Finance (PRF), the country's largest personal consumer finance company, as well as the mortgage assets of Superbank, a supermarket-based banking system. However, in 2008, GE Money announced its withdrawal from the New Zealand vehicle finance market.
GE Capital Retail Bank
GE Capital Retail Bank, formerly known as GE Money Bank, operated as a subsidiary of General Electric Capital Corporation. It provided retail banking and credit services to consumers in the United States and internationally. The company offered a range of products, including private label credit cards, dual cards, flex loans, and financial services.
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GE Capital's financial services
GE Capital was the financial services division of General Electric. It was designated a "systemically important financial institution" in 2013, making it subject to oversight by the Federal Reserve. GE Capital had a large global presence, with over 35,000 employees worldwide, operating in more than 40 countries, and total assets of US$499 billion in 2014.
One notable division of GE Capital was GE Energy Financial Services, which provided commercial lending and leasing, as well as financial services for commercial aviation, energy, and support for GE's industrial business units. This division was eventually transferred to GE Vernova when General Electric was broken up.
Between 2013 and 2021, GE Capital underwent a significant transformation, selling off many of its units and subsidiaries. For instance, Mubadala GE Capital was sold to MidCap Financial, GE Capital Rail Services was acquired by Wells Fargo, and GE Capital Bank was purchased by Goldman Sachs. GE Capital Aviation Services (GECAS), a significant player in the industry, was sold to AerCap in 2021. Despite these sales, GE Capital remained a significant player in the financial industry, with its stock price, company news, executives, board members, and contact information available on platforms like Bloomberg Markets.
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GE Capital's sales and acquisitions
GE Capital, the financing division of General Electric Co., has a history of acquisitions and sales dating back to the 1990s. The company's largest acquisition was in 2004 when it acquired Delta Fluid Products Ltd. for $12 million. Over the years, GE Capital has expanded its global presence through acquisitions and established itself in various countries.
In Europe, GE Capital founded GE Money in Austria in 1994 by merging Mercurbank and AVABANK. GE Money became a leading consumer and auto finance business in Austria, offering a range of financial services. In 1995, GE acquired Crédit de l'Est and SOVAC in France, creating GE Money Bank France, which provided real-estate mortgages and auto loans. GE Capital also had a presence in the Czech Republic with GE Money Bank (formerly GE Capital Bank), established in 1997 through the acquisition of Agrobanka. In 2001, GE Capital introduced the GE MasterCard in Norway, offering US-style credit cards with no annual or monthly fees and a grace period.
GE Capital also expanded its business in Asia. In 2005, GE Money acquired a majority stake in Keppel Bank Philippines, which had been the Philippines' first savings bank. Additionally, GE Money Canada provided financial services, including private label credit cards, MasterCard programs, and lending options for retailers.
However, starting in the 2010s, GE Capital began to sell off some of its operations. In 2012, it sold its Indian housing finance business to Magma Fincorp and exited a credit card joint venture with the State Bank of India. In 2014, GE Capital sold its Scandinavian operations to Santander, including its businesses in Germany, Finland, Austria, and the UK. That same year, it also sold Budapest Bank in Hungary to MFB. In 2015, GE Capital's largest disclosed sale occurred when it sold Latitude Group Holdings to Värde Partners for $8.2 billion. In 2016, GE Capital continued its divestment by selling GE Money Bank France to Cerberus Capital Management and its Hong Kong operations to Standard Chartered.
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GE Capital's aviation technology
GE Capital Aviation Services (GECAS) was an Irish-American commercial aviation financing and leasing company. GECAS was the largest commercial airline leasing and financing company in the world by the number of aircraft. The company offered a range of aviation finance services, including aircraft and engine leasing, aircraft lending, asset management, and aircraft consulting. GECAS purchased aircraft from manufacturers such as Airbus and Boeing and leased them to airlines, typically for about eight years, on dry lease contracts.
GECAS had a fleet of over 1,970 aircraft, operated by 270 clients in over 75 countries. The company had two global headquarters in Shannon, Ireland, and Norwalk, Connecticut, with 575 employees and 26 offices worldwide. GECAS previously had a policy of exclusively selecting GE engines for 99% of its airliners, with only a few Boeing 757s with Pratt & Whitney or Rolls-Royce turbofans. However, to diversify assets and reduce risk, the company leased the first Airbus A350 XWB operated by Qatar Airways. GECAS also leased the Pratt & Whitney-powered Bombardier Q400 and ATR 72.
In 2006, GECAS expanded its service portfolio by acquiring The Memphis Group, adding airframe parts. The company also owned a minority stake in Oxford Aviation Academy and, in 2010, acquired AviaSolutions, further expanding its aviation consulting services. GECAS continued to grow its leasing portfolio by acquiring the Irish-based Milestone Aviation Group in 2015, adding helicopters and rotary aircraft. In 2016, GECAS was recognised as the "World's Top Lessor" by AirFinance Journal and Airline Economics magazines.
In 2018, GE hired Goldman Sachs to review GECAS' strategy, as its portfolio value had declined since 2012. This evaluation led to the sale of GECAS to AerCap in 2021. The acquisition positioned AerCap as the worldwide leader in aircraft leasing, with a combined portfolio of over 2,000 aircraft, 900 engines, and 300 helicopters. The transaction simplified GE's focus on its core industrial businesses and significantly reduced GE Capital's assets, generating proceeds to de-risk and de-lever.
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Frequently asked questions
General Electric Capital Corporation, or GE Capital, was the financial services division of General Electric.
GE Capital provided credit services to businesses and merchants in the US and internationally. It also offered retail banking and financial services to consumers.
GE Capital suffered significant losses during the 2008 Great Recession, which forced the company to sell off most of its financial operations. By 2016, only one division of the company remained, GE Energy Financial Services, which was transferred to GE Vernova when General Electric split into three distinct companies in 2024.
