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GE’s Immelt: GE Capital to Build on Strengths of Middle Market Lending & Leasing

March 12, 2012, 07:30 AM
Filed Under: Industry News

In his annual letter to shareowners, Jeff Immelt, Chief Executive Office of GE said, “GE Capital has strengthened its balance sheet immensely,” adding, “Our Capital team has executed on every commitment it made during the financial crisis. We have reduced leverage, improved liquidity and shed assets, while growing at high margins.”

Mr. Immelt also said, “Financial services have been deeply out of favor with investors. Nonetheless, there are large segments where GE Capital will lead and build upon GE’s strengths. These include mid-market lending and leasing, financing in GE domains and a few other specialty finance segments. Here, we have a clear advantage over banks and can grow profitably.”

“We expect GE Capital to resume paying a dividend this year to GE. Ultimately, the size of GE Capital depends on several factors: returns, competitive advantage, dividend capability and regulatory burdens. In the near term, GE Capital should see sustained earnings growth with good margins and lower risk,” added Immelt.

To read the full Letter to Shareowners, click here.

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