GE finance and insurance, part of General Electric’s finance arm which is selling down most of its assets worldwide, recorded a 10% fall in profit last year, reflecting a decline in finance income and rising costs.
Most of the businesses of GE Capital are being sold as part of a strategy to shed some US$200 billion in finance assets, and focus on industrial manufacturing, such as as jet engines and power turbines according to BusinessDesk.
“GE Capital is currently selling all of its lending and leasing operations in NZ,” says GE Capital Australia and New Zealand communications and public affairs director Anthony Spargo.
“GE will remain in NZ to focus on its industrial businesses, similar to the global strategy,” he says.
Spargo declined to make further comment to BusinessDesk on the sales process or the 2014 financial performance of its local GE finance and insurance unit.
In March, a consortium of Varde Partners, KKR and Deutsche Bank agreed to buy GE Capital Australia and New Zealand’s consumer lending business, including sales of finance, credit card, personal loans, and general insurance for AUD $8.2 billion.
That included GE Money, GE CreditLine, the GEM Visa card and the Countdown OneCard Visa credit card.
In April, GE said it would create “a simpler, more valuable company” by reducing the size of its finance businesses.
In June, GE announced an agreement to sell its Australian, New Zealand, U.S and Mexican fleet businesses to Element Financial Corporation for US$6.9 billion.
Excluded from the transactions is GE Capital’s fleet business in Japan.
In New Zealand and Australia, the Custom Fleet brand operates under the GE Capital fleet and equipment finance umbrella.
Element Financial Corporation is a North American fleet management and equipment finance company. GE Capital sold its Canadian fleet business to Element in 2013.
The Australian and New Zealand transaction is expected to close in the fourth quarter of 2015, subject to regulator approvals says GE.
