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By
Reuters
Published
Aug 3, 2009
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GE and Wal-Mart renew private-label credit-card deal

By
Reuters
Published
Aug 3, 2009

BOSTON (Reuters) - General Electric Co (GE.N) said on Friday 31 July it had renewed its agreement to provide Wal-Mart Stores Inc's (WMT.N) private-label credit cards for the next six years, in a move the biggest U.S. conglomerate said signaled its commitment to the credit card business.



Last year GE had tried to sell the $30 billion credit card operation, but eventually pulled the unit off the block in the face of the worst credit crisis the world had seen in decades.

"It shows the commitment that the company has to the business," said Margaret Keane, who heads GE Capital's private label credit card arm. "Our performance has been positive, even though it's been a tough economic time. We're running efficiently and profitably."

GE's card business made $252 million in the first half of 2009.

GE Capital has handled the world's largest retailer's credit card business for the last decade. It also provides store brand cards for U.S. retailers JC Penney Co (JCP.N), Lowe's Cos (LOW.N) and Gap Inc (GPS.N).

(Reporting by Scott Malone; Editing by Phil Berlowitz)

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