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NEW YORK — General Electric Co. is selling its Central American lending subsidiary, BAC Credomatic GECF Inc., to the Colombian bank Grupo Aval for $1.9 billion.
The deal comes as GE looks to shrink GE Capital, its lending unit. The division has struggled over the past two years as loans on its books went bad during the credit crisis.
BAC Credomatic operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Mexico. GE says the bank has $5.1 billion in loan assets and $5.5 billion in deposits.
"This is a good deal for GE, and furthers our objective of reducing the overall size of GE Capital," Dmitri Stockton, CEO of GE Capital Global Banking, says.
GE shares slipped 25 cents to $14.95 in morning trading amid broader market losses.
