(Reuters) - Concerns about the health of General Electric Co’s huge finance arm have weighed on GE shares this week, driving down the stock to its lowest level since 1991.
Analysts and investors have wrestled with the question of whether the finance arm — which a few years ago represented one-half of GE’s profits — is adequately prepared for a surge in defaults by increasingly unemployed consumers and tottering mid-sized businesses.
Below are a few facts about GE Capital:
* Services include commercial loans, operating leases, fleet management, financial programs, home loans, insurance, credit cards, personal loans.
* Segments include Aviation Financial Services, Commercial Finance, Energy Financial Services and GE Money.
* GE Capital Finance reported $573 billion in assets at the end of the fourth quarter.
* In January, the unit increased estimates of credit losses to $10 billion from $9 billion. It reported reserves of $5.3 billion.
* Reported earnings of $8.6 billion in 2008, estimated 2009 earnings of about $5 billion.
* GE has said it plans to reposition GE Capital as a well-funded, smaller finance company that would be positioned to grow in 2010 and beyond.
* After a first-quarter $9.5 billion capital contribution, GE will have injected $15 billion of capital into the unit over the last 6 months.
* Company said if GE Capital requires additional equity, it has a number of options without seeking external capital.
* GE said Wednesday GE Capital’s ratio of tangible common equity to assets is 5.3%, at the high end of the range of large commercial banks.
* GE Chief Executive Jeffrey Immelt says company “taking a close look at nonstrategic assets” such as equipment services, most of GE’s consumer mortgage books.