Last week, GE revealed profits of £1.8bn, down by 47 per cent on 2008’s figures. Global financial arm GE Capital saw pro-fits fall by 80 per cent to £361m.
In a conference call last week, GE vice-chairman and chief financial officer Keith Sherin said the UK GE Money Home Lending arm made a loss of £93.8m in Q2 2009 following a loss of £44.2m in Q1. Sherin blamed costs of £177m, up from Q1 2009 costs of £132.6m. He says: “The UK book is the one out of the global mortgages that remains under pressure for us.”
GE says within its global mortgage book, it has seen a growth in 30-day-plus delinquencies, of which the UK mortgage book “drives most of the changes”.
The group estimates that its global mortgage book incurred a loss of £302.7m in Q2.