Synchrony Financial: life after GE wealth separation
Margaret has been around for a year, because your company’s synchronized finances have been spinning off GE Capital, and all the news about GE’s separation from GE has had an impact on your business.
The good news is that this is part of Jeff Immelt’s strategy, which has always wanted to reduce the size of GE’s capital. We were the first step in our IPO, and last July was the first step in getting financial services beyond GE.
So if you listen to Jeff and we’re an important part of what they’re trying to achieve for the company as a whole, and you still have 85% of GE’s capital right, what happens next? So the steps are simple. We are applying to the Federal Reserve.
The Fed will conduct infrastructure reviews to ensure that we are able to operate independently, and once we do, you will have the opportunity to trade your GE shares synchronously to get the stock, and if that happens, we are a completely independent company from GE.
Many people think that synchronized financial performance is an independent company. This is a test case of how GE Capital will do it, and how synchronization will be done independently when it is done alone. So far, we have three strong quarters, so we are satisfied with the overall performance of the business.
We reported better-than-expected revenue of $552 million in the first quarter, we focused on separating and building infrastructure, and we focused more on growth.
I think we have to achieve these growth figures to be a successful company. You’re an amazing company with $12 billion in out-of-the-box revenue. Your stock has risen more than 30% since the IPO.
What is the next step for growth? What can you tell us? I think we’ll think about girls and two key areas. The first is organic growth. We still have the greatest opportunity to achieve organic growth, and our cards and retailers are getting more and more penetrating, which is probably the greatest opportunity we still have.
But another opportunity is growing and winning new partnerships, and we look at this in two ways, winning existing deals from competitors, but also being a startup, and some of our better plans today are startup plans.