<PAGE>

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   -----------
                                    FORM 10-Q
                                   -----------

    | X |     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 27, 1997

                                       OR


    |   |   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                        For the transition period from ___ to ___

                           --------------------------
                         Commission file number 0-14804
                           --------------------------

                     GENERAL ELECTRIC CAPITAL SERVICES, INC.
             (Exact name of registrant as specified in its charter)

           DELAWARE                                              06-1109503
 (State or other jurisdiction of                             (I.R.S. Employer
   incorporation or organization)                           Identification No.)

     260 LONG RIDGE ROAD,
    STAMFORD, CONNECTICUT                                           06927
 (Address of principal executive offices)                         (Zip Code)

                                 (203) 357-4000
              (Registrant's telephone number, including area code)

                           --------------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No | |

At October 23, 1997, 101 shares of common stock with a par value of $10,000 were
outstanding.

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b)
OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED  DISCLOSURE
FORMAT. 


<PAGE>


                                TABLE OF CONTENTS




                                                                         PAGE
                                                                      ----------

PART I - FINANCIAL INFORMATION.

Item 1.       Financial Statements .............................           1

Item 2.       Management's Discussion and Analysis of Results of
              Operations .......................................           5

Exhibit 12.   Computation of Ratio of Earnings to Fixed Charges
              and Computation of Ratio of Earnings to Combined
              Fixed Charges and Preferred Stock Dividends ......           8


PART II - OTHER INFORMATION.

Item 6.       Exhibits and Reports on Form 8-K .................           9

Signatures .....................................................          10

Index to Exhibits ..............................................          11








<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS

                                   (Unaudited)


                                    THREE MONTHS ENDED       NINE MONTHS ENDED
                                   --------------------    --------------------
                                  SEPTEMBER   SEPTEMBER   SEPTEMBER   SEPTEMBER
(In millions)                      27, 1997    28, 1996    27, 1997    28, 1996
                                   --------    --------    --------    --------
<S>                                <C>         <C>         <C>         <C>     
EARNED INCOME ..................   $ 10,182    $  8,449    $ 29,043    $ 23,151
                                   --------    --------    --------    --------

EXPENSES
Interest .......................      1,919       1,756       5,564       5,280
Operating and administrative ...      4,022       3,110      10,926       7,661
Insurance losses and
 policyholder and annuity
 benefits ......................      1,980       1,553       6,236       4,713
Provision for losses on
 financing receivables .........        371         254       1,020         695
Depreciation and amortization of
 buildings and equipment and
 equipment on operating leases .        628         559       1,765       1,579
Minority interest in net
 earnings of consolidated
 affiliates ....................         33          38          84         120
                                   --------    --------    --------    --------
                                      8,953       7,270      25,595      20,048
                                   --------    --------    --------    --------

EARNINGS
Earnings before income taxes ...      1,229       1,179       3,448       3,103
Provision for income taxes .....       (291)       (363)       (958)       (954)
                                   --------    --------    --------    --------

NET EARNINGS ...................        938         816       2,490       2,149
Dividends ......................       (374)       (284)       (994)       (748)
Retained earnings at beginning
 of period .....................     12,286      10,387      11,354       9,518
                                   --------    --------    --------    --------
RETAINED EARNINGS AT END OF
 PERIOD ........................   $ 12,850    $ 10,919    $ 12,850    $ 10,919
                                   ========    ========    ========    ========
</TABLE>









See Notes to Condensed, Consolidated Financial Statements.



                                       1
<PAGE>


ITEM 1. FINANCIAL STATEMENTS (Continued).
<TABLE>
<CAPTION>

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                    CONDENSED STATEMENT OF FINANCIAL POSITION


                                                          SEPTEMBER    DECEMBER
(In millions)                                              27, 1997    31, 1996
                                                           --------    --------
                                                         (Unaudited)
<S>                                                        <C>         <C>     
ASSETS
Cash and equivalents ...................................   $  3,341    $  3,234
Investment securities ..................................     66,694      59,872
Financing receivables:
  Time sales and loans, net of deferred income .........     61,320      62,832
  Investment in financing leases, net of deferred income     38,391      39,575
                                                           --------    --------
                                                             99,711     102,407
  Allowance for losses on financing receivables ........     (2,624)     (2,693)
                                                           --------    --------
    Financing receivables - net ........................     97,087      99,714
Other receivables - net ................................     17,027      15,962
Equipment on operating leases (at cost), less
 accumulated amortization of $5,726 and $5,625 .........     18,102      16,134
Intangible assets ......................................      8,777       8,640
Other assets ...........................................     26,745      23,863
                                                           --------    --------
      TOTAL ASSETS .....................................   $237,773    $227,419
                                                           ========    ========


LIABILITIES AND EQUITY
Short-term borrowings ..................................   $ 82,864    $ 77,945
Long-term borrowings:
  Senior ...............................................     44,876      46,680
  Subordinated .........................................        996         996
Insurance liabilities, reserves and annuity benefits ...     64,702      61,327
Other liabilities ......................................     16,459      15,925
Deferred income taxes ..................................      8,448       7,740
                                                           --------    --------
      Total liabilities ................................    218,345     210,613
                                                           --------    --------
Minority interest in equity of consolidated affiliates .      2,592       2,530
                                                           --------    --------

Capital stock ..........................................         11          11
Additional paid-in capital .............................      2,325       2,316
Retained earnings ......................................     12,850      11,354
Unrealized gains on investment securities ..............      1,851         668
Foreign currency translation adjustments ...............       (201)        (73)
                                                           --------    --------
      Total equity .....................................     16,836      14,276
                                                           --------    --------
      TOTAL LIABILITIES AND EQUITY .....................   $237,773    $227,419
                                                           ========    ========
</TABLE>



See Notes to Condensed, Consolidated Financial Statements.



                                       2
<PAGE>


ITEM 1. FINANCIAL STATEMENTS (Continued).
<TABLE>
<CAPTION>

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                        CONDENSED STATEMENT OF CASH FLOWS

                                   (Unaudited)

                                                             NINE MONTHS ENDED
                                                           --------------------
                                                          SEPTEMBER   SEPTEMBER
(In millions)                                              27, 1997    28, 1996
                                                           --------    --------
<S>                                                        <C>         <C>     
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ...........................................   $  2,490    $  2,149
Adjustments to reconcile net earnings to cash provided
 from operating activities:
  Provision for losses on financing receivables ........      1,020         695
  Depreciation and amortization of buildings and
   equipment and equipment on operating leases .........      1,765       1,579
  Other - net ..........................................        168       1,962
                                                           --------    --------
      Cash provided from operating activities ..........      5,443       6,385
                                                           --------    --------

CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers .........................    (38,386)    (38,262)
Principal collections from customers ...................     36,328      39,080
Investment in assets on financing leases ...............     (9,943)     (9,249)
Principal collections on financing leases ..............     11,559       8,345
Net decrease (increase) in credit card receivables .....      2,335        (950)
Buildings and equipment and equipment on
 operating leases:
    - additions ........................................     (4,641)     (4,075)
    - dispositions .....................................      1,867         683
Payments for principal businesses purchased, net of
 cash acquired .........................................     (1,532)     (2,329)
Purchases of investment securities by insurance
 affiliates and annuity businesses .....................    (13,296)    (11,264)
Dispositions and maturities of investment securities
 by insurance affiliates and annuity businesses ........     12,102      10,454
Other - net ............................................     (4,037)     (3,544)
                                                           --------    --------
      Cash used for investing activities ...............     (7,644)    (11,111)
                                                           --------    --------

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) ..      7,157       7,607
Newly issued debt  - short-term (maturities 91-365 days)      3,240       3,693
                   - long-term senior ..................     12,099      13,553
Proceeds - non-recourse, leveraged lease debt ..........        129         505
Repayments and other reductions:
                   - short-term (maturities 91-365 days)    (18,486)    (17,682)
                   - long-term senior ..................       (861)       (780)
Principal payments - non-recourse, leveraged lease debt        (262)       (227)
Proceeds from sales of investment and annuity contracts       3,532       2,154
Redemption of investment and annuity contracts .........     (3,346)     (1,901)
Dividends paid .........................................       (994)       (748)
Issuance of variable cumulative preferred stock by
 consolidated affiliate ................................        100         125
                                                           --------    --------
      Cash provided from financing activities ..........      2,308       6,299
                                                           --------    --------

INCREASE IN CASH AND EQUIVALENTS .......................        107       1,573
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............      3,234       1,949
                                                           --------    --------
CASH AND EQUIVALENTS AT END OF PERIOD ..................   $  3,341    $  3,522
                                                           ========    ========
</TABLE>

See Notes to Condensed, Consolidated Financial Statements.

                                       3
<PAGE>


ITEM 1. FINANCIAL STATEMENTS (Continued).

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.    The accompanying  condensed quarterly financial  statements  represent the
      adding  together  of  General  Electric  Capital  Services,  Inc.  and all
      majority-owned  and  controlled   affiliates   (collectively  called  "the
      Corporation" or "GECS"). All significant transactions among the parent and
      consolidated  affiliates have been  eliminated.  Certain prior period data
      have been reclassified to conform to the current period presentation.

2.    The condensed,  consolidated quarterly financial statements are unaudited.
      These statements  include all adjustments  (consisting of normal recurring
      accruals)  considered  necessary by management to present a fair statement
      of the results of  operations,  financial  position  and cash  flows.  The
      results reported in these  condensed,  consolidated  financial  statements
      should not be regarded as  necessarily  indicative  of results that may be
      expected for the entire year.

3.    The Corporation has adopted  Statement of Financial  Accounting  Standards
      ("SFAS") No. 125,  Accounting  for  Transfers  and  Servicing of Financial
      Assets and  Extinguishments  of  Liabilities.  Among  other  things,  this
      Statement  distinguishes transfers of financial assets that are sales from
      transfers that are secured borrowings, based on control of the transferred
      assets. SFAS No. 125 applies to all transactions  occurring after December
      31, 1996; thus,  adoption did not have an effect on the financial position
      or results of operations of the Corporation.

4.    The  Corporation  has a  noncontrolling  investment in the common stock of
      Montgomery  Ward  Holding  Corp.  ("MWHC"),   which,   together  with  its
      wholly-owned  subsidiary,  Montgomery Ward & Co., Incorporated ("MWC"), is
      engaged in retail  merchandising and direct response marketing  (conducted
      primarily through Signature Financial/Marketing, Inc. ("Signature"), which
      markets consumer club and insurance products).  On July 7, 1997, MWHC, MWC
      and  certain  of  their  affiliates  (excluding   Signature),   filed  for
      reorganization  under Chapter 11 of the U.S. Bankruptcy Code. As a result,
      loans to MWHC and  affiliates  became  "impaired"  loans,  as  defined  by
      generally accepted accounting  principles,  because,  due to the automatic
      stay in  bankruptcy,  the  Corporation is not receiving  current  interest
      payments  on  its  loans  and, in  management's judgment,  it is therefore
      probable  that the  Corporation will  be  unable  to  collect all  amounts
      due according  to  original  contractual  terms  of  the  loan  agreements
      (refer to Management's Discussion and Analysis  of Results  of Operations,
      Other Matters).




                                       4
<PAGE>
ITEM  2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS.

OVERVIEW

Net  earnings  for the first nine  months of 1997 were  $2,490  million,  a $341
million (16%) increase over the first nine months of 1996.

Earnings  of the  lending,  leasing  and  equipment  management  businesses  are
significantly  influenced by the level of invested assets, the related financing
spreads (the excess of rates earned -- yields -- over rates on  borrowings)  and
the quality of those  assets.  Earnings for these  businesses  were  impacted by
higher losses associated with the Corporation's  equity investment in Montgomery
Ward Holding Corp. ("MWHC") (refer to Other Matters below), as well as increased
residual  losses on  automobiles.  These  impacts were more than offset by gains
recognized  on sales of  assets,  including  $284  million  (net of tax)  from a
transaction which included the reduction of the Corporation's  investment in the
common  stock of Paine  Webber  Group Inc. ("PWG") (discussed  below).  Earnings
growth from the consumer  savings and insurance  operations also  contributed to
the increase in net earnings, principally reflecting the effects of acquisitions
during 1996.

The  Specialty  Insurance  segment,  principally  GE  Global  Insurance  Holding
Corporation,  added to the increase in net earnings  primarily  due to increased
premium and investment  income resulting from  origination  volume and continued
growth  in the  investment  portfolios,  in  addition  to a higher  level of net
realized gains on investment  sales.  These  increases were partially  offset by
increases  in  reserves  for  insurance   losses,   primarily   related  to  the
corresponding increase in premium income.


OPERATING RESULTS

EARNED INCOME from all sources increased $5,892 million (25%) to $29,043 million
for the first nine months of 1997,  compared with $23,151  million for the first
nine months of 1996.

Earned  income from the  equipment  management,  consumer  services,  mid-market
financing,  and specialized  financing businesses increased $4,665 million (27%)
over the comparable  prior-year  period. A significant  portion of this increase
was the  contribution  provided by the  computer  equipment  businesses  and the
consumer  savings and insurance  businesses  acquired  during 1996. The increase
also  reflected a higher average level of invested  assets,  resulting from both
origination volume and acquisitions of portfolios and businesses.  Earned income
was also  impacted by higher losses  associated  with the  Corporation's  equity
investment in MWHC, as well as increased  residual losses on automobiles.  These
impacts were offset by gains  recognized on  securitizations  and other sales of
assets,  including a  transaction,  the net effect of which was the reduction of
the Corporation's investment in the common stock of PWG from 21.5 million shares
to 15.5  million  shares.  The gain on the PWG  transaction  included the direct
result of the transaction as well as the valuation of securities received by the
Corporation.

Earned income of the Specialty Insurance segment increased $862 million (15%) to
$6,722  million for the first nine months of 1997  compared  with the first nine
months  of  1996.  The  increase  primarily   reflected  increased  premium  and
investment income resulting from origination  volume and continued growth in the
investment portfolios, in  addition  to a higher  level of net realized gains on
investment  sales.

INTEREST EXPENSE for the first nine months of 1997 was $5,564 million, 5% higher
than for the first nine months of 1996.  The increase  reflected  the effects of
higher average borrowings used to finance asset growth, offset by the effects of
lower average interest rates. The composite  interest rate on the  Corporation's
borrowings  for the first nine months of 1997 was 6.05%  compared  with 6.26% in
the first nine months of 1996.

OPERATING AND  ADMINISTRATIVE  EXPENSES were $10,926  million for the first nine
months of 1997, a 43% increase over the first nine months of 1996.  The increase
primarily reflected the inclusion of costs of sales and services of the computer
equipment businesses acquired in the third quarter of 1996. The remainder of the
increase  primarily  resulted from other costs  associated  with  businesses and
portfolios acquired over the past year and higher investment levels.

INSURANCE LOSSES AND  POLICYHOLDER AND ANNUITY BENEFITS  increased 32% to $6,236
million for the first nine months of 1997,  compared with $4,713 million for the
first nine months of 1996. The increase primarily reflected the consumer savings
and insurance businesses acquired in 1996 and growth in origination volume.

                                       5
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
         OPERATIONS (Continued).

PROVISION FOR LOSSES ON FINANCING  RECEIVABLES  increased to $1,020  million for
the first nine  months of 1997 from $695  million  for the first nine  months of
1996. These  provisions  principally  related to  private-label  and bank credit
cards in the Consumer Services segment which are discussed below under Portfolio
Quality. The increase  principally  reflected higher average receivable balances
as well as increased  delinquencies in the consumer  portfolio,  consistent with
industry experience.

DEPRECIATION  AND  AMORTIZATION  OF BUILDINGS  AND  EQUIPMENT  AND  EQUIPMENT ON
OPERATING  LEASES  increased  $186 million (12%) to $1,765 million for the first
nine months of 1997  compared  with $1,579  million for the first nine months of
1996. The increase was  principally  the result of higher levels of equipment on
operating  leases,  primarily  reflecting  a shift  in auto  lease  volume  from
financing  leases  to  operating  leases  as  well  as  origination  volume  and
acquisition growth.

PROVISION  FOR INCOME  TAXES was $958  million for the first nine months of 1997
(an effective tax rate of 27.8%),  compared with $954 million for the first nine
months of 1996 (an  effective tax rate of 30.7%).  The lower  effective tax rate
primarily reflected increased  non-taxable income and decreased taxes on foreign
earnings.

PORTFOLIO QUALITY

THE PORTFOLIO OF FINANCING RECEIVABLES,  before allowance for losses,  decreased
to $99.7 billion at September  27, 1997 from $102.4  billion at the end of 1996,
principally as a result of  securitizations of consumer  receivables.  Financing
receivables are the financing  segment's largest asset and its primary source of
revenues.  Related allowances for losses at September 27, 1997,  aggregated $2.6
billion  (2.63% of  receivables  - the same as at the end of 1996)  and are,  in
management's  judgment,  appropriate given the risk profile of the portfolio.  A
discussion  about the quality of certain  elements of the portfolio of financing
receivables follows. "Nonearning" receivables are those that are 90 days or more
delinquent and "reduced  earning"  receivables are commercial  receivables whose
terms have been restructured to a below-market yield. Refer to Other Matters for
a discussion of receivables  related to MWHC and affiliates.  The nonearning and
reduced earning  receivable  balances and the write-off  amounts discussed below
exclude amounts related to MWHC and affiliates.

CONSUMER  RECEIVABLES,  primarily  credit card and personal loans and auto loans
and leases, were $43.4 billion at September 27, 1997, a decrease of $2.8 billion
from the end of 1996.  Nonearning  receivables  increased  to $1,010  million at
September  27,  1997,  from $926 million at December  31,  1996.  Write-offs  of
consumer  receivables  increased  to $912  million  for the first nine months of
1997,  compared  with $622  million  for the  first  nine  months of 1996.  This
increase  was  primarily  attributable  to higher  average  receivable  balances
resulting  from  a  combination  of  origination   volume  and  acquisitions  of
businesses  and  portfolios  as well as higher  delinquencies,  consistent  with
overall industry experience.

COMMERCIAL  REAL ESTATE LOANS  classified  as financing  receivables  were $11.8
billion at September 27, 1997,  compared  with $12.1  billion at year-end  1996.
Nonearning  and  reduced  earning  receivables  increased  to  $198  million  at
September  27,  1997,  from $158 million at December  31,  1996.  Write-offs  of
commercial real estate loans were $21 million for the first nine months of 1997,
compared  with $33 million for the first nine months of 1996.  At September  27,
1997, the commercial real estate portfolio also included,  in other assets, $1.5
billion of assets acquired for resale from various financial  institutions ($1.6
billion  at  year-end  1996) and $2.4  billion  of  investments  in real  estate
ventures ($2.5 billion at year-end 1996).

OTHER FINANCING RECEIVABLES, totaling $44.5 billion at September 27, 1997 ($44.1
billion at December 31, 1996), consisted of a diverse commercial, industrial and
equipment  loan and lease  portfolio.  Related  nonearning  and  reduced-earning
receivables were $219 million at September 27, 1997,  compared with $313 million
at year-end 1996.

The Corporation held loans and leases to commercial  airlines  amounting to $8.4
billion at September 27, 1997, up from $8.2 billion at the end of 1996.



                                       6
<PAGE>


ITEM  2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
         OPERATIONS (Continued).


OTHER MATTERS

The  Corporation  has  a  noncontrolling  investment  in  the  common  stock  of
Montgomery Ward Holding Corp.  ("MWHC"),  which,  together with its wholly-owned
subsidiary,  Montgomery Ward & Co.  Incorporated  ("MWC"),  is engaged in retail
merchandising  and  direct  response  marketing   (conducted  primarily  through
Signature Financial/Marketing,  Inc. ("Signature"),  which markets consumer club
and  insurance  products).  On July 7,  1997,  MWHC,  MWC and  certain  of their
affiliates  filed for  reorganization  under  Chapter 11 of the U.S.  Bankruptcy
Code.

MWHC reported losses from  operations  during the first nine months of 1997, and
the Corporation's share of such losses was $582 million before income taxes. The
Corporation  recorded its share of losses by reducing its  investments  in MWHC,
resulting  in the writing off of its  investments  in MWHC common and  preferred
stock.  In  addition  to those  stock  investments,  the  Corporation  has other
investments,  primarily inventory financing,  that resulted from ordinary course
of business transactions with MWHC and its affiliates.  Such investments,  after
reduction for the Corporation's share of losses as discussed above,  amounted to
approximately  $833 million at September 27, 1997.  No impairment  writedown was
considered  necessary for these remaining  investments as of September 27, 1997,
although the Corporation has suspended income  recognition on these investments.
Management continues to monitor these investments carefully for recoverability.

Subsequent to the MWHC bankruptcy  filing,  the  Corporation  announced a $1,000
million Debtor-In-Possession financing commitment ("the commitment"), subject to
certain  conditions,  to MWHC for the purchase of  inventory  and to cover other
costs.   The   Corporation   has  syndicated  a  majority  of  the   commitment.
Approximately  $71  million  of the  commitment,  which  has  an  administrative
priority in bankruptcy, was utilized as of September 27, 1997.

The  Corporation  also  provides  financing to customers of MWHC and  affiliates
through  the  Corporation's  wholly-owned  affiliates,  Montgomery  Ward  Credit
Corporation and Monogram Credit Card Bank of Georgia.  These receivables,  which
represent revolving credit card transactions directly with customers of MWHC and
affiliates,  aggregated  approximately  $4,294  million at  September  27, 1997,
including $1,718 million that have been sold with recourse by the  Corporation's
affiliates.  The obligations of customers with respect to these  receivables are
not affected by the Chapter 11 bankruptcy filing.

MWHC and its  affiliates,  under new management in 1997,  are  continuing  their
restructuring   efforts  as  well  as  developing  a  plan  of   reorganization.
Restructuring  plans  are  likely to  include  the  implementation  of a revised
merchandising  strategy  and the closing  and/or  upgrading  of selected  retail
stores.  Signature is not included in the Chapter 11 bankruptcy  filing, and the
possibility of sale of Signature will continue to be evaluated.



                                       7
<PAGE>


                                                                      EXHIBIT 12
<TABLE>
<CAPTION>

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                       AND
           COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
                          AND PREFERRED STOCK DIVIDENDS


                      NINE MONTHS ENDED SEPTEMBER 27, 1997

                                   (Unaudited)

                                                                      RATIO OF 
                                                                      EARNINGS 
                                                                         TO    
                                                                      COMBINED 
                                                                        FIXED  
                                                           RATIO OF    CHARGES 
                                                           EARNINGS      AND   
                                                              TO      PREFERRED
                                                             FIXED      STOCK  
(Dollar amounts in millions)                                CHARGES   DIVIDENDS
                                                           --------    --------
<S>                                                        <C>         <C>     
Net earnings ...........................................   $  2,490    $  2,490
Provision for income taxes .............................        958         958
Minority interest in net earnings of consolidated
 affiliates ............................................         84          84
                                                           --------    --------
Earnings before provision for income taxes and
 minority interest .....................................      3,532       3,532
                                                           --------    --------

Fixed charges:
  Interest .............................................      5,645       5,645
  One-third of rentals .................................        173         173
                                                           --------    --------
Total fixed charges ....................................      5,818       5,818
                                                           --------    --------

Less interest capitalized, net of amortization .........         38          38
                                                           --------    --------
Earnings before provision for income taxes and minority
 interest, plus fixed charges ..........................   $  9,312    $  9,312
                                                           ========    ========

Ratio of earnings to fixed charges .....................       1.60            
                                                           ========            

Preferred stock dividend requirements ..................               $    -- 
Ratio of earnings before provision for income taxes to
 net earnings ..........................................                   1.38
Preferred stock dividend factor on pre-tax basis .......                    --
Fixed charges ..........................................                  5,818
                                                                       --------
Total fixed charges and preferred stock dividend
 requirements ..........................................               $  5,818
                                                                       ========
Ratio of earnings to combined fixed charges and
 preferred stock dividends .............................                   1.60
                                                                       ========
</TABLE>


For purposes of computing the ratios,  fixed charges  consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.



                                       8
<PAGE>


                           PART II--OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

     a.  EXHIBITS.

         Exhibit 12.  Computation  of  ratio of earnings  to  fixed  charges and
                      computation of ratio of earnings to combined fixed charges
                      and  preferred stock dividends.

         Exhibit 27.  Financial Data Schedule (filed electronically only).


     b.  REPORTS ON FORM 8-K.

         None.




                                       9
<PAGE>


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                  GENERAL ELECTRIC CAPITAL SERVICES, INC.
                                  ---------------------------------------
                                               (Registrant)



Date:  October 24, 1997       By:           /s/ J.A. Parke
                                  ---------------------------------------
                                                J.A. Parke,
                                        Senior Vice President, Finance
                                         (Principal Financial Officer)


Date:  October 24, 1997       By:           /s/ J.C. Amble
                                  ---------------------------------------
                                                J.C. Amble,
                                        Vice President and Controller
                                        (Principal Accounting Officer)




                                       10
<PAGE>



       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                                INDEX TO EXHIBITS

     EXHIBIT NO.                                                          PAGE 
    -------------                                                        ------



         12        Computation of ratio of earnings to fixed charges
                   and computation of ratio of earnings to combined
                   fixed charges and preferred stock dividends .......      8  

         27        Financial Data Schedule (filed electronically only)         



                                       11