Daily News: October 18, 2013

GE Capital Q3 Earnings Up 13%

GE announced third-quarter 2013 operating earnings of $3.7 billion, or $0.36 per share, down 3% and flat respectively from the third quarter of 2012. GE said net earnings of $3.2 billion, or $0.31 per share, fell 9% and 6% respectively from the year-ago period. Revenues were $35.7 billion for the quarter, down 1% from the year-ago period, driven by lower revenues in GE Capital due to planned asset reductions, and a negative FX impact of $132 million.

Net earnings at GE Capital of $1.895 billion were up from $1.675 billion or 13% a year earlier, driven primarily by positive results from its Real Estate and Consumer businesses. Commercial loan and lease (CLL) earnings of $479 million were down from $563 million or 15% compared to the same quarter in 2012. CLL assets were shown as $170.3 billion, down from $179.5 billion a year earlier.

The company said GE Capital continues to decrease the size of its portfolio, while focusing on its core businesses. ENI (excluding cash and equivalents) was $385 billion at quarter-end. Volume was up 6% for the quarter, with good returns. GE Capital Corporation’s tier 1 common ratio rose 116 basis points to 11.3%, and net interest margin was strong at 5%. During the quarter, GECC paid $2 billion in dividends to the parent.

To read the GE Capital segment results, click here.

To read the entire news release, click here.