GE Capital holds an $80 billion portfolio of assets like office and apartment buildings, as well as loans secured by commercial property. Mike Neal, chief executive of GE Capital and a GE vice chairman, on Friday said the firm aims to cut that portfolio to $40 billion and to shift its composition more toward loans and away from ownership stakes.You can watch or listen to Mike Neal's entire presentation at the Sanford C. Bernstein Strategic Decisions Conference 2010 here. The PowerPoint slides are attached below:
While he didn't give an exact time frame for the goal, the comments further clarified GE Capital's plans for a troubled business. The market value of commercial buildings the company owns has fallen by nearly 40%, or $7 billion, since 2008 GE estimates. The company also has lost more than $1.6 billion since 2008 in its commercial real-estate debt portfolio, which includes loans to others to buy or develop properties.
Ge Webcast Presentation 06042010