GE plans to exit retail finance

|By:, SA News Editor

GE (GE) reportedly intends to spin off the U.S. consumer-lending operations of GE Capital, which earned $2.2B in 2012, via an IPO that could take place early next year.

GE is also considering alternatives such as smaller spin-offs or the sale of the unit, although the latter could prove to be too complicated.

The unit provides credit cards and financing to 55M people at major retailers, including Wal-Mart and Gap's Banana Republic.

A spin-off would be part of GE's strategy of paring back its finance arm and bulking up its industrial businesses.