GE Capital Will Look Like a Captive in 2018



In a research report, Zacks Equity noted that the only financial operations that would be retained by General Electric once it has divested itself of most of the financial units under GE Capital over the next 24 months will include the financing verticals like GE Capital Aviation Services, Energy Financial Services and Healthcare Equipment Finance. These units directly relate to the core industrial operations of the company and will thus form an integral part of its corporate activities.

Zacks said the GE Capital businesses that will be retained by the company will account for about $90 billion in ending net investments (ENI), which represent the total capital invested in the financial businesses.

The company has successfully reduced ENI from $538 billion in 2008 to $363 billion at the end of 2014. GE is expected to further reduce ENI by an additional $75 billion with the complete separation of Synchrony Financial by the end of 2015, Zacks reported.

To view the full Zacks Equity Research report, click here.


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