GE 2005 Annual Report Download - page 19

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(19)
We operate in a highly competitive environment. Our competitors include commercial banks, investment
banks, leasing companies, financing companies associated with manufacturers, and independent finance companies.
Competition related to our lending and leasing operations is based on price, that is interest rates and fees, as well as
deal structure and terms. Profitability is affected not only by broad economic conditions that affect customer credit
quality and the availability and cost of capital, but also by successful management of credit risk, operating risk and
market risks such as interest rate and currency exchange risks. Success requires high quality risk management
systems, customer and industry specific knowledge, diversification, service and distribution channels, strong
collateral and asset management knowledge, deal structuring expertise and the ability to reduce costs through
technology and productivity.
Our headquarters are in Stamford, Connecticut with offices throughout North America, South America,
Europe, Australia and Asia.
Capital Solutions
Capital Solutions offers a broad range of financial services worldwide, and has particular mid-market expertise,
offering loans, leases, inventory finance and other financial services to customers, including manufacturers, dealers
and end-users for a variety of equipment and major capital assets. These assets include retail facilities; vehicles;
corporate aircraft; and equipment used in many industries, including the construction, transportation, technology,
and manufacturing industries.
Real Estate
Real Estate operates globally, both directly and through joint ventures. Our Real Estate business finances, with both
equity and loan structures, the acquisition, refinancing and renovation of office buildings, apartment buildings, retail
facilities, industrial properties, parking facilities and franchise properties. Our typical Real Estate loans are
intermediate term, may be either senior or subordinated, fixed or floating-rate, and are secured by existing income-
producing commercial properties. Our originations of low loan-to-value loans are conducted for term securitization
within one year. We invest in, and provide restructuring financing for, portfolios of mortgage loans, limited
partnerships and tax-exempt bonds.
Consumer Finance
Consumer Finance (12.9%, 11.7% and 11.3% of consolidated revenues in 2005, 2004 and 2003, respectively) offers
credit and deposit products and services to consumers, retailers, brokers and auto dealers in over 50 countries. We
offer a broad range of financial products, including private-label credit cards; bank cards; Dual Cards™; corporate
travel and purchasing cards; personal loans; auto loans; leases and inventory financing; residential mortgages; home
equity loans; debt consolidation loans; current and savings accounts and insurance products related to consumer
finance offerings for customers on a global basis.
In 2005, as part of our continued global expansion, we made a number of acquisitions, the most significant
of which was a 25.5 percent voting stake in Garanti Bank, a full service bank in Turkey.