GE Capital Retail Bank, an operating unit of the General Electric Company (GE), recently closed the acquisition of the deposit base and online deposits business of MetLife, Inc. (MET). Although the detailed financial terms are yet to be disclosed, the deal is likely to accretive to General Electric earnings in future.
Over the years, GE Capital Retail Bank has offered a plethora of customized credit programs to retailers and consumers. The recent deal will add deposits worth $6.4 million for GE Capital Retail Bank and help offer diverse online saving products to varied customers to consolidate its position as one of the established online banking platforms in the world.
The strategic acquisition would also enable GE Capital Retail Bank to leverage its existing infrastructure and capabilities to seamlessly integrate the online deposit business of MetLife and thereby better serve its existing customers. The acquisition, therefore, is a lateral expansion on GE Capital Retail Bank's part to reinforce itself as the premier financial solutions provider for consumers and businesses.
General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products, the company serves customers in more than 100 countries and employs more than 287,000 people worldwide.
Its segments include Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital, Healthcare Financial Services. With more than 75 years of experience in consumer financing, GE Capital's Retail Finance business is one of the most successful retail lenders in the U.S.
General Electric currently has a Zacks Rank #3 (Hold). We have a long-term Neutral recommendation on the stock.