GE Capital

GE Capital
	File:GE Capital.svg
Formerly	General Electric Credit Corp. (Renamed in 1988)
Company type	Subsidiary
Industry	Financial services
Founded	1932
Defunct	March 31, 2024
Fate	Dissolved
Successor	GE Energy Financial Services; Synchrony Financial;
Headquarters	Norwalk, Connecticut, United States
Area served	Worldwide
Key people	Alec Burger (chairman and CEO)
Parent	General Electric
Website	www.gecapital.com

GE Capital functioned as the financial services arm of General Electric. Between 2013 and 2021, its various divisions were divested, including the spin-off of its North American consumer finance segment, which became Synchrony Financial. Eventually, only GE Energy Financial Services remained, later integrated into GE Vernova as part of General Electric's corporate restructuring.

Overview

The Financial Stability Oversight Council classified GE Capital as a "systemically important financial institution" on July 8, 2013, placing it under the regulatory supervision of the Federal Reserve.

By 2014, GE Capital had a workforce exceeding 35,000 employees operating in over 40 nations, managing assets totaling approximately US$499 billion. In 2012, Standard & Poor’s assigned it an AA+ credit rating with a stable outlook.

Subsidiaries under GE Capital conducted business under the GE Money brand.

Restructuring plan

On April 10, 2015, then-CEO Jeffrey R. Immelt revealed a strategy to divest the majority of GE Capital's holdings within a two-year timeframe.

Key transactions included:

Sale of GE Capital Sponsor Finance to the Canada Pension Plan Investment Board and Sumitomo Mitsui Banking Corporation
Transfer of GE Capital Real Estate to The Blackstone Group and Wells Fargo
Disposal of most GE Commercial Lending & Leasing units to Wells Fargo; German and French operations sold to Crédit Mutuel, Australian operations to Sankaty Advisors
Mubadala GE Capital joint venture acquired by MidCap Financial (part of Apollo Management)
Divestiture of GE Capital Rail Services to First Union Rail (a Wells Fargo subsidiary) and the Marmon Group
Online platform of GE Capital Bank sold to Goldman Sachs
GE Healthcare Finance Services transferred to Capital One
Sale of GE Capital Equity to Ardian (company)
GE Capital Transportation Finance acquired by BMO Financial Group
Aircraft-related financing through GE Capital Corporate Finance sold to Global Jet Capital (backed by AE Industrial Partners, Carlyle Group, GSO Capital Partners)
Mexican equipment lending and leasing businesses sold to Linzor Capital Partners
GE Trailer Fleet Services transferred to Element Financial and Arval (BNP Paribas)
Japanese capital finance, fleet service, and vendor finance operations sold to Sumitomo Mitsui Financial Group
U.S. restaurant financing operations sold to First Horizon National Corporation, Wintrust Financial, and Sterling Bancorp; hotel franchise financing transferred to Western Alliance Bancorp
Acquisition of GE Capital Aviation Services (GECAS) by AerCap in 2021
Electric Insurance Company sold to RiverStone International in 2024

Current operations

GE Energy Financial Services provides commercial lending, leasing, and various financial solutions tailored to the commercial aviation and energy sectors, while also supporting the industrial divisions within GE.

Australia

Within Australia, the GE Money brand encompassed GE Consumer Finance and GE Capital Finance, delivering financing for vehicles, boats, personal use, debt consolidation, credit cards, home loans, and insurance products.

In May 2002, GE purchased the Australian Guarantee Corporation (AGC) from Westpac, subsequently rebranding AGC Automotive Finance as GE Automotive Finance (GE Auto) and AGC Creditline as GE CreditLine.

The majority of credit card and loan services were managed by GE Consumer Finance, which collaborated with Coles Group to operate the Coles Group Source MasterCard. Additionally, it managed GE Creditline, GO MasterCard, gem Visa, and Buyer's Edge cards that provided interest-free periods at selected retailers.

GE Finance maintained strategic partnerships with Myer, Australia's largest department store chain. Between 2006 and 2007, Myer engaged GE to issue both the Myer Card and Myer Visa Card. GE also issued the former red ColesMyer card; however, this card was no longer accepted at Myer stores following Myer's separation from the Coles Myer Group.

In 2004, GE Capital Finance acquired the Wizard Home Loans company.

On 24 October 2008, GE Money declared its withdrawal from motor finance operations in Australia and New Zealand. This decision affected associated dealerships that were given a 60-day window to arrange alternative floorplan financing. Furthermore, mortgage offerings outside of those under the Wizard brand were discontinued.

By December 2008, GE Money entered advanced negotiations with National Australia Bank regarding the sale of Wizard; ultimately, the business was purchased by the Commonwealth Bank.

In 2015, GE Capital divested its Australian and New Zealand businesses to a consortium led by Deutsche Bank, KKR, and Värde Partners. The entity was subsequently renamed Latitude Financial Services, with Sean Morrissey appointed as CEO.

Austria

GE Money in Austria (previously known as GE Capital Bank) was formed in 1994 after acquiring and merging Mercurbank and AVABANK. It grew into a dominant player in consumer and auto financing, particularly in retail sales finance. Headquartered in Vienna with branches nationwide, it provided auto loans, personal loans, sales financing, and third-party personal lending services. Its primary clientele included consumers, car dealerships, retailers, and loan brokers.

In January 2009, the Austrian division was sold to the Santander Group, along with GE Money's store card operations in Germany, Finland, and the United Kingdom.

Canada

GE Money Canada offered private label credit card programs alongside MasterCard solutions for consumers and retail industry lending options. It also provided alternative home mortgages and patient financing through its CareCredit unit. This segment was included in the 2014 spinoff that created Synchrony Financial.

Czech Republic

Established in 1997 following the acquisition of Agrobanka as GE Capital Bank, GE Money Bank became a prominent full-service banking institution in the Czech Republic. It adopted the GE Money Bank name in 2000 before conducting an initial public offering in 2016 under the Moneta Money Bank brand. Serving both retail customers and small to medium-sized enterprises (SMEs), it operates an extensive network of branches and ATMs. The headquarters are located in Prague, with its customer service center based in Ostrava.

Denmark

GE Money Bank Denmark, previously known as GE Capital Bank Denmark, provided a range of financial products including credit cards and loans under brand names such as Acceptcard, Morecard, and E-lån. In 2014, GE Capital divested its Scandinavian business to Santander.

France

The origins of GE Money Bank France trace back to GE's 1995 acquisitions of Crédit de l'Est and SOVAC. The unit concentrated on mortgage lending and automotive financing. This division was sold by GE Capital to Cerberus Capital Management in 2016.

Hong Kong

Operating as a Restricted License Bank in Hong Kong, GE Capital specialized in home and auto mortgages along with personal loan products. The Hong Kong operations were eventually sold to Standard Chartered.

Hungary

Founded in 1987 amid Hungary's banking reforms, Budapest Bank became a GE-owned entity in 1995. It offered comprehensive financial services aimed at both consumers and small to medium enterprises. In 2014, GE transferred ownership of Budapest Bank to the MFB.

India

By July 2006, GE maintained over 118 branches primarily across southern India and was among the early BPO operators in Hyderabad. GE Capital exited the Indian housing finance sector by selling to Magma Fincorp, withdrew from the credit card partnership SBI Card with State Bank of India, and in 2012 offloaded its remaining loan portfolio to clix capital.

Italy

In 2008, GE Capital acquired Interbanca from Banco Santander, swapping its operations in Germany, Finland, Austria, and the UK. By May 2015, Interbanca reported net assets surpassing . Subsequently, GE appointed Deutsche Bank to manage the sale of Interbanca, which was purchased by Banca IFIS in 2016 for €160 million, inclusive of inter-company debt repayment obligations to GE.

Ireland

As part of GE Consumer Finance's European segment, GE Money Ireland delivered tailored financing solutions such as leasing, hire purchase agreements, mortgages, and loans to both businesses and individuals throughout the Republic of Ireland. Headquartered in Dublin, it operated via regional sales offices and a network of dealers and partners. In 2012, GE sold its Irish loan portfolio to Pepper Home Loans.

Latvia

GE Money Bank Latvia emerged from the consolidation of BTB bank and the GE Money financial company. Functioning as a universal bank, it provided deposit and lending services to both private clients and corporate entities. The bank was acquired by Otkritie FC Bank in 2011.

Japan

Under the GE Money brand, GE Consumer Finance Co., Ltd commenced operations in Japan in April 2005. The company received distinction as In-House Lawyer of the Year at the 2008 ALB Japan Law Awards. In 2008, this Japanese operation was sold to Shinsei Bank.

Netherlands

GE Artesia Bank operated as part of GE Capital’s Commercial Finance division in the Netherlands, catering to high-net-worth individuals and corporate clients. Services included capital finance solutions, long-term financing options, leasing arrangements, and international trade finance. The bank ceased operations in 2015.

New Zealand

In 2002, GE Finance acquired Australian Guarantee Corporation’s New Zealand finance arm, launching the AGC Creditline Card (later renamed GEM Visa Card) targeting retail financing. In 2006, GE Money New Zealand expanded by acquiring Pacific Retail Finance (PRF), the nation’s largest personal consumer finance provider, along with mortgage portfolios from Superbank, a lender affiliated with supermarkets.

On 24 October 2008, citing the credit crunch impact, GE Money withdrew from New Zealand’s vehicle finance sector resulting in approximately 80 job cuts. By mid-December that year, it also discontinued home loan offerings through Wizard Home Loans while seeking potential buyers.

In 2015, GE Capital divested its Australian and New Zealand businesses to a consortium led by Deutsche Bank, Kohlberg Kravis Roberts, and Värde Partners.

Norway

GE Money Bank Norge, a division of the Swedish entity GE Capital AB, ranked as one of Norway's top consumer finance institutions, serving more than 300,000 customers and managing loans totaling NOK 5 billion, making it the second largest after DnB NOR.

It was the second financial institution in Norway to introduce US-style credit cards without annual fees and with a grace period, following Bankia Bank ASA. After launching the GE MasterCard in June 2001, the number of such cards in circulation exceeded 100,000 within a year and a half. Prior to this innovation, Norwegian banks only offered cards that either charged annual fees or lacked interest-free intervals.

In 2014, GE Capital divested its operations across Scandinavia to Santander.

Philippines

Aiming to strengthen its presence in Southeast Asia, GE Money acquired a controlling interest in Keppel Bank Philippines—previously known as Banco Monte De Piedad, the nation’s first savings bank—finalizing the deal on December 20, 2005 following regulatory clearance. The institution was rebranded as GE Money Bank Philippines (GE Bank) and operated 31 branches nationwide before its acquisition by BDO Unibank in 2009.

Poland

The Polish entity GE Money Bank S.A. was mainly based in Gdańsk until December 31, 2009. BPH SA (Bank Przemysłowo-Handlowy), a Polish financial firm employing approximately 10,000 staff, was 89% owned by GE Money Bank (with UniCredit previously holding the largest stake). On December 31, 2009, Bank BPH merged with GE Money Bank Polska. Post-merger, GE Capital’s Polish headquarters operated across Warsaw, Kraków, and Gdańsk. By October 2014, General Electric was contemplating divesting the bank. In November 2016, GE finalized the spin-off and integration of Bank BPH's Core Bank into Alior Bank while retaining the legal entity of Bank BPH along with its mortgage portfolio.

Romania

In Romania, GE Capital managed two subsidiaries: GE Money, specializing in personal finance and leasing services; and GE Garanti Bank, a joint venture with Turkey’s Garanti Bank International headquartered in Bucharest. These Romanian operations were sold to Garanti Bank in 2010.

Russia

GE Money Bank Russia, headquartered in Moscow, was sold to Sovcombank in 2013.

Sweden

The Swedish branch, GE Capital Bank AB, operating under the name GE Money Bank from Stockholm, was included in GE Capital’s Scandinavian portfolio sold to Santander in 2014.

Switzerland

As Switzerland’s leading provider of small consumer loans, GE Money Bank partnered with Migros in 2006 to offer credit card services through Migros outlets. The bank later rebranded as Cembra Money Bank and went public via an IPO in 2013.

United Kingdom

In the United Kingdom, GE Money offered mortgages and secured loans through First National—a business acquired from Abbey National—distributing products via intermediaries. On September 25, 2008, the UK Financial Services Authority imposed a £1.1 million fine on GE Money Home Lending due to system deficiencies that resulted in overcharging borrowers. Earlier that year on March 29, GE Capital Bank’s store card and managed credit card operations were sold to the Santander Group. In 2015, GE disposed of its UK mortgage loan portfolio to Kensington Mortgage (owned by Blackstone and TPG) alongside funds managed by Blackstone, TPG, and CarVal Investors. Following this sale, the company discontinued issuing new loans.

United States

Prior to June 2, 2014, GE Capital Bank encompassed both retail and commercial banking divisions. Established in 1988 and headquartered in Draper, Utah, GE Capital Retail Bank specialized in consumer sales financing—offering products such as private label credit cards, installment loans, and bankcards—alongside other consumer financial services. These offerings were distributed through a network of dealers, retailers, associations, contractors, manufacturers, healthcare providers, and service organizations. Originally known as GE Money Bank, the institution was renamed GE Capital Retail Bank in October 2011 and functioned as a subsidiary under General Electric Capital Corporation.

In 2011, GE Capital Retail Bank purchased MetLife Bank from MetLife. Following the reorganization on June 2, 2014, the bank was rebranded as Synchrony Bank. After this restructuring, GE Capital concentrated exclusively on its foundational commercial and industrial banking operations within the United States, delivering a variety of commercial finance solutions supported by deposit accounts. Its clientele spanned numerous sectors including automotive, consumer electronics, healthcare, home furnishings, HVAC systems, luxury items, marine industries, recreational vehicles, sporting goods, and water treatment. GE Capital Bank held FDIC insurance and was ultimately sold to Goldman Sachs in 2016.

Between 2004 and 2007, GE Capital owned WMC Mortgage and briefly controlled Kidder, Peabody & Company from 1986 until its sale to PaineWebber in 1994.

During the early 1990s broadcasting expansion, GE Capital acquired Pegasus Broadcasting—which operated TV stations WJBF-TV, WAPA-TV, and KSCH-TV—in 1990; secured CBS affiliate WCSC-TV in 1991; and later that year added Austin radio stations KMOW-AM and KEYI-FM. The company progressively divested from broadcasting: Austin radio stations were sold to Mercury Broadcasting in 1991; WJBF-TV transferred to Spartan Communications in 1992; WCSC-TV sold to Jefferson-Pilot Communications in 1993; KSCH-TV transferred to Wing Fat's Channel 58 Inc. in 1994; and ultimately WAPA-TV was sold to LIN Television Corporation in 1999.

Legal issues

In April 1997, a class action lawsuit was initiated against General Electric Capital Corp representing customers who had filed for bankruptcy. The suit accused GE Capital of engaging in unfair debt collection practices and resulted in a $100 million settlement benefiting over 100,000 class members across 50 states. Plaintiffs claimed the company sought reaffirmation agreements from bankrupt individuals to repay credit card debts but neglected to inform bankruptcy courts as legally mandated. These agreements bound debtors to continue payments despite bankruptcy discharging their credit card obligations. Under the settlement terms, GE Capital committed to reimbursing all credit card payments made under these agreements between January 1, 1993, and June 30, 1997—including interest—and to amend any adverse credit bureau reports related to these accounts.

In June 2014, Synchrony Bank (formerly GE Capital Retail Bank) resolved claims brought by the federal Consumer Financial Protection Bureau and the United States Department of Justice concerning unlawful credit card practices. The bank consented to pay $225 million in compensation to Spanish-speaking consumers affected by discriminatory treatment and misleading marketing tactics, along with an additional $3.5 million civil penalty directed to the CFPB’s Civil Penalty Fund for deceptive credit card advertising.

Divestiture

On March 13, 2014, GE Capital revealed its intention to separate its North American consumer finance segment by launching Synchrony Financial through an initial public offering (IPO). By July 31, 2014, Synchrony Financial successfully raised $2.9 billion during the IPO as GE divested 125 million shares, representing 15% ownership in the company.

Subsequently, on April 10, 2015, GE declared its strategy to divest the majority of GE Capital’s commercial and consumer units within a two-year timeframe. The focus would shift toward leasing operations that directly support its manufacturing divisions. As part of this plan, GE agreed to transfer most of its real estate business to Wells Fargo and Blackstone for $26.5 billion. Jeff Immelt, GE’s Chairman and CEO at the time, characterized this move as "a significant transformation for GE," targeting industrial businesses to generate over 90% of earnings by 2018, compared to 58% in 2014. The contribution of GE Capital to total revenue was projected to decline to 10% by 2018 from 46% in 2001. This announcement caused GE’s stock price to surge nearly 11%, reaching levels not observed since the financial crisis. The restructuring affected a global enterprise operating across 175 countries with approximately 305,000 employees.

In June 2015, the Canada Pension Plan Investment Board committed to purchasing GE Capital’s private equity lending portfolio for $12 billion.

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