<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 June 27, 1998

                                       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 July 30,  1998,  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 .........................            6

Exhibit 12.   Computation of Ratio of Earnings to Fixed
              Charges and Computation of Ratio of Earnings to
              Combined Fixed Charges and Preferred Stock
              Dividends .....................................            9


PART II - OTHER INFORMATION.

Item 6.       Exhibits and Reports on Form 8-K ..............           10

Signatures ..................................................           11

Index to Exhibits ...........................................           12





<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       SIX MONTHS ENDED  
                                                                   --------------------    --------------------
                                                                   JUNE 27,    JUNE 28,    JUNE 27,    JUNE 28,
(In millions)                                                         1998        1997        1998        1997 
                                                                   --------    --------    --------    --------
<S>                                                               <C>         <C>         <C>         <C>      
REVENUES
Revenues from services .........................................   $  9,908    $  8,256    $ 19,433    $ 16,884
Sales of goods .................................................      1,893       1,061       3,519       1,977
                                                                   --------    --------    --------    --------
                                                                     11,801       9,317      22,952      18,861
                                                                   --------    --------    --------    --------
EXPENSES
Interest .......................................................      2,187       1,862       4,212       3,645
Operating and administrative ...................................      3,221       2,450       6,379       5,166
Cost of goods sold .............................................      1,728         930       3,210       1,738
Insurance losses and policyholder and annuity benefits .........      2,400       2,012       4,613       4,256
Provision for losses on financing receivables ..................        409         337         741         649
Depreciation and amortization of buildings
 and equipment and equipment on operating leases ...............        604         567       1,260       1,137
Minority interest in net earnings of consolidated affiliates ...         33          21          66          51
                                                                   --------    --------    --------    --------
                                                                     10,582       8,179      20,481      16,642
                                                                   --------    --------    --------    --------
EARNINGS
Earnings before income taxes ...................................      1,219       1,138       2,471       2,219
Provision for income taxes .....................................       (286)       (340)       (657)       (667)
                                                                   --------    --------    --------    --------

NET EARNINGS ...................................................        933         798       1,814       1,552
Dividends ......................................................       (376)       (320)       (879)       (620)
Retained earnings at beginning of period .......................     13,329      11,808      12,951      11,354
                                                                   --------    --------    --------    --------
RETAINED EARNINGS AT END OF PERIOD .............................   $ 13,886    $ 12,286    $ 13,886    $ 12,286
                                                                   ========    ========    ========    ========
</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

                                                                                           JUNE 27, DECEMBER 31,
(In millions)                                                                                 1998        1997 
                                                                                           --------    --------
                                                                                         (Unaudited)
<S>                                                                                       <C>         <C>      
ASSETS
Cash and equivalents ...................................................................   $  3,023    $  4,904
Investment securities ..................................................................     73,858      70,356
Financing receivables:
  Time sales and loans, net of deferred income .........................................     65,977      64,832
  Investment in financing leases, net of deferred income ...............................     43,641      41,769
                                                                                           --------    --------
                                                                                            109,618     106,601
  Allowance for losses on financing receivables ........................................     (2,884)     (2,802)
                                                                                           --------    --------
    Financing receivables - net ........................................................    106,734     103,799
Other receivables - net ................................................................     21,244      18,332
Equipment on operating leases (at cost), less accumulated amortization
 of $6,368 and $6,126 ..................................................................     19,783      18,689
Intangible assets ......................................................................     11,096      10,366
Inventories ............................................................................        764         786
Other assets ...........................................................................     32,702      28,176
                                                                                           --------    --------
      TOTAL ASSETS .....................................................................   $269,204    $255,408
                                                                                           ========    ========
LIABILITIES AND EQUITY
Short-term borrowings ..................................................................   $101,786    $ 95,274
Long-term borrowings:
  Senior ...............................................................................     47,129      44,993
  Subordinated .........................................................................        996         996
Insurance liabilities, reserves and annuity benefits ...................................     69,849      67,270
Other liabilities ......................................................................     17,947      17,557
Deferred income taxes ..................................................................      9,411       8,966
                                                                                           --------    --------
      Total liabilities ................................................................    247,118     235,056
                                                                                           --------    --------

Minority interest in equity of consolidated affiliates .................................      3,372       3,113
                                                                                           --------    --------

Unrealized gains on investment securities ..............................................      2,559       2,135
Foreign currency translation adjustments ...............................................       (222)       (185)
                                                                                           --------    --------
Accumulated non-owner changes in equity ................................................      2,337       1,950
Capital stock ..........................................................................         11          11
Additional paid-in capital .............................................................      2,480       2,327
Retained earnings ......................................................................     13,886      12,951
                                                                                           --------    --------
      Total equity .....................................................................     18,714      17,239
                                                                                           --------    --------
      TOTAL LIABILITIES AND EQUITY .....................................................   $269,204    $255,408
                                                                                           ========    ========
</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)

                                                                                             SIX MONTHS ENDED  
                                                                                           --------------------
                                                                                           JUNE 27,    JUNE 28,
(In millions)                                                                                 1998        1997 
                                                                                           --------    --------
<S>                                                                                       <C>         <C>      
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ...........................................................................   $  1,814    $  1,552
Adjustments to reconcile net earnings to cash provided from operating activities:
  Provision for losses on financing receivables ........................................        741         649
  Depreciation and amortization of buildings and equipment and 
   equipment on operating leases .......................................................      1,260       1,137
  Other - net ..........................................................................      1,074       1,418
                                                                                           --------    --------
    Cash provided from operating activities ............................................      4,889       4,756
                                                                                           --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers .........................................................    (30,376)    (21,757)
Principal collections from customers ...................................................     28,864      20,571
Investment in assets on financing leases ...............................................     (8,867)     (7,407)
Principal collections on financing leases ..............................................      7,121       7,382
Net decrease (increase) in credit card receivables .....................................       (484)      1,700
Buildings and equipment and equipment on operating leases:
                   - additions .........................................................     (3,951)     (2,929)
                   - dispositions ......................................................      2,959       1,119
Payments for principal businesses purchased, net of cash acquired ......................       (993)       (581)
Purchases of investment securities by insurance affiliates and annuity businesses ......    (12,010)     (9,469)
Dispositions and maturities of investment securities by insurance affiliates
 and annuity businesses ................................................................      9,335       8,055
Other - net ............................................................................     (3,351)     (2,364)
                                                                                           --------    --------
    Cash used for investing activities .................................................    (11,753)     (5,680)
                                                                                           --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) ..................................      5,294       6,203
Newly issued debt  - short-term (maturities 91-365 days) ...............................      2,891       2,098
                   - long-term senior ..................................................     14,362       7,039
Proceeds - non-recourse, leveraged lease debt ..........................................        535        --
Repayments and other reductions:
                   - short-term (maturities 91-365 days) ...............................    (13,142)    (13,456)
                   - long-term senior ..................................................     (3,610)       (495)
Principal payments - non-recourse, leveraged lease debt ................................       (247)       (186)
Proceeds from sales of investment and annuity contracts ................................      2,154       2,028
Redemption of investment and annuity contracts .........................................     (2,445)     (2,010)
Dividends paid .........................................................................       (879)       (620)
Issuance of variable cumulative preferred stock by consolidated affiliate ..............         70         100
                                                                                           --------    --------
    Cash provided from financing activities ............................................      4,983         701
                                                                                           --------    --------

DECREASE IN CASH AND EQUIVALENTS .......................................................     (1,881)       (223)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............................................      4,904       3,234
                                                                                           --------    --------
CASH AND EQUIVALENTS AT END OF PERIOD ..................................................   $  3,023    $  3,011
                                                                                           ========    ========
</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.        Statement  of  Financial  Accounting   Standards   ("SFAS")  No.  130,
          Reporting  Comprehensive  Income,  was adopted as of  January 1, 1998.
          This Statement requires  reporting  of changes in share owner's equity
          that  do  not  result  directly from  transactions  with share owners.
          An analysis of these changes follows:

<TABLE>
<CAPTION>

                                                            THREE MONTHS ENDED
                                                           --------------------
                                                           JUNE 27,    JUNE 28,
(Dollars in millions)                                         1998        1997 
                                                           --------    --------
<S>                                                        <C>         <C>     
Net earnings ...........................................   $    933    $    798
Unrealized gains on investment securities - net ........        163         845
Foreign currency translation adjustments ...............          5          14
                                                           --------    --------
Total ..................................................   $  1,101    $  1,657
                                                           ========    ========


                                                             SIX MONTHS ENDED
                                                           --------------------
                                                           JUNE 27,    JUNE 28,
                                                              1998        1997 
                                                           --------    --------
Net earnings ...........................................   $  1,814    $  1,552
Unrealized gains on investment securities - net ........        424         357
Foreign currency translation adjustments ...............        (37)        (88)
                                                           --------    --------
Total ..................................................   $  2,201    $  1,821
                                                           ========    ========
</TABLE>

                                       4
<PAGE>

ITEM 1. FINANCIAL STATEMENTS (Continued).

4.        In June 1998, the Financial Accounting Standards Board issued SFAS No.
          133, Accounting for Derivative Instruments and Hedging Activities (the
          "Statement").   The   Statement   requires  that, upon adoption,   all
          derivative   instruments  (including  certain  derivative  instruments
          embedded in other  contracts)  be  recognized  in the balance sheet at
          fair  value,  and that  changes  in such fair values be recognized  in
          earnings  unless  specific  hedging  criteria are met. Changes in  the
          values of derivatives that meet these hedging criteria will ultimately
          offset  related  earnings effects  of  the  hedged  items;  effects of
          certain changes  in fair  value are  recorded  in other  comprehensive
          income pending recognition in earnings. The Corporation will not adopt
          the  Statement until required to do so on January 1, 2000.



                                       5
<PAGE>

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

OVERVIEW

Net  earnings  for the first half of 1998 were $1,814  million,  a $262  million
(17%)  increase  over  the  first  half  of  1997.  The  results  reflected  the
globalization  and  diversity of the  Corporation's  businesses  and were led by
double-digit  increases  in  Specialized  Financing,   Specialty  Insurance  and
Mid-Market Financing activities.

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.  Net  earnings  for these  businesses  increased,
primarily from a higher average level of invested  assets and a lower  effective
tax rate.  These  increases  were  offset  in part by  decreased  earnings  from
Consumer Services activities, attributable to the U.S. private-label credit card
and automobile  financing  businesses.  Financing  spreads were essentially flat
compared with the prior year, reflecting slightly higher yields offset by higher
borrowing rates.

Within  the  Specialty   Insurance   segment,   GE  Global   Insurance   Holding
Corporation's  net earnings  increased over the prior year reflecting  growth in
origination volume,  including fee income generated from investment-related life
reinsurance  products  and  financial  reinsurance   transactions,   and  higher
investment  income resulting from continued growth in the investment  portfolios
and a higher level of gains on investment  securities.  Improved earnings in the
mortgage insurance business,  the result of improved market conditions,  as well
as increases in the other insurance businesses also contributed to the increase.

OPERATING RESULTS

TOTAL  REVENUES  from all  sources  increased  $4,091  million  (22%) to $22,952
million for the first half of 1998,  compared with $18,861 million for the first
half of 1997.

Revenues from the equipment management,  consumer services, mid-market financing
and specialized  financing  businesses  increased  $3,162 million (22%) over the
comparable  prior-year period. A significant  portion of the increase arose from
sales of goods by the computer  equipment  distribution  businesses,  reflecting
both  acquisition and core growth.  The increase also reflected a higher average
level of invested assets,  resulting principally from acquisitions of portfolios
and  businesses,  as well as increased  premiums  related to the  acquisition of
consumer savings and insurance  businesses in 1997 and 1998.  Revenues were also
impacted by lower losses associated with the Corporation's  equity investment in
Montgomery  Ward Holding Corp.  This impact was largely offset by no counterpart
to a 1997  gain  recognized  on the  sale of an  investment  in the  stock  of a
publicly traded company.  Revenues of the Specialty  Insurance segment increased
$562 million  (12%) to $5,106  million for the first half of 1998  compared with
the first half of 1997. The increase  primarily  reflected growth in origination
volume and higher  investment  income  resulting  from  continued  growth in the
investment portfolios and a higher level of gains on investment securities.

INTEREST EXPENSE for the first half of 1998 was $4,212 million,  16% higher than
for the first half of 1997. The increase reflected the effects of higher average
borrowings  used to finance  asset  growth  combined  with the effects of higher
average  interest  rates.  The  composite  interest  rate  on the  Corporation's
borrowings for the first half of 1998 was 6.13% compared with 6.00% in the first
half of 1997.

OPERATING AND ADMINISTRATIVE  EXPENSES were $6,379 million for the first half of
1998,  a 23%  increase  over the  first  half of 1997.  The  increase  primarily
reflected costs associated with businesses and portfolios acquired over the past
year and higher investment levels.

INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased $357 million to
$4,613 million for the first half of 1998, compared with the first half of 1997.
The increase  primarily  reflected the  acquisitions of the consumer savings and
insurance businesses and higher origination volume, partially offset by improved
market conditions in the mortgage insurance business.

                                       6
<PAGE>

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

PROVISION FOR LOSSES ON FINANCING  RECEIVABLES increased to $741 million for the
first  half of  1998  from  $649  million  for the  first  half of  1997.  These
provisions  principally  related to  private-label  and bank credit cards in the
Consumer Services segment that are discussed below under Portfolio Quality.

DEPRECIATION  AND  AMORTIZATION  OF BUILDINGS  AND  EQUIPMENT  AND  EQUIPMENT ON
OPERATING  LEASES  increased  $123 million (11%) to $1,260 million for the first
half of 1998  compared  with  $1,137  million  for the first  half of 1997.  The
increase was  principally  the result of higher levels of equipment on operating
leases, primarily reflecting acquisition growth and higher aircraft volume.

PROVISION  FOR  INCOME  TAXES was $657  million  for the first  half of 1998 (an
effective  tax rate of 26.6%),  compared with $667 million for the first half of
1997 (an effective tax rate of 30.1%).  The lower provision for income taxes and
the decrease in the 1998  effective  tax rate  resulted  primarily  from certain
tax-advantaged  transactions,  increased  tax credits and  decreases in taxes on
non-U.S. income.

PORTFOLIO QUALITY

FINANCING  RECEIVABLES are the financing segment's largest asset and its primary
source of revenues. The portfolio of financing receivables, before allowance for
losses, increased to $109.6 billion at June 27, 1998, from $106.6 billion at the
end of 1997,  primarily  reflecting  acquisition  growth and higher  origination
volume,  partially  offset by seasonal  decreases in the credit card portfolios.
Related  allowances for losses at June 27, 1998,  aggregated $2.9 billion (2.63%
of receivables - the same as at the end of 1997) and, in management's  judgment,
are 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 (or for
which  collection  has  otherwise   become  doubtful)  and  "reduced-   earning"
receivables are commercial  receivables  whose terms have been restructured to a
below-market   yield.   The   following   discussion  of  the   nonearning   and
reduced-earning  receivable  balances and  write-off  amounts  excludes  amounts
related to Montgomery  Ward Holding Corp. and  affiliates,  which are separately
discussed below.

CONSUMER  FINANCING  RECEIVABLES,  primarily  credit card and personal loans and
auto loans and leases,  were $48.6 billion at June 27, 1998, an increase of $0.5
billion from the end of 1997.  Nonearning  receivables were $1.1 billion at June
27, 1998,  2.2% of total  consumer  financing  receivables,  compared  with $1.0
billion, 2.2% of total consumer receivables, at December 31, 1997. Write-offs of
consumer  receivables  increased  to $714  million  for the first  half of 1998,
compared  with  $607  million  for the first  half of 1997.  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 the effects of higher  delinquencies  at the end of 1997,  consistent
with overall industry experience.

OTHER  FINANCING  RECEIVABLES,  totaling  $61.0  billion at June 27, 1998 ($58.5
billion at December 31, 1997), consisted of a diverse commercial, industrial and
equipment  loan and lease  portfolio.  Related  nonearning  and  reduced-earning
receivables  were $358 million at June 27, 1998,  compared  with $353 million at
year-end 1997.

As discussed in the Corporation's  Annual Report on Form 10-K for the year ended
December  31, 1997,  Montgomery  Ward  Holding  Corp.  (MWHC) filed a bankruptcy
petition for  reorganization in 1997. The Corporation's  recorded  investment in
MWHC and  affiliates  at June 27,  1998,  was $777  million,  a decrease  of $18
million from the end of 1997,  and consisted  primarily of inventory  financing.
Income  recognition  had  been  suspended  on  these   pre-bankruptcy   petition
investments.  Subsequent to the petition,  the Corporation  committed to provide
MWHC up to $1.0 billion in  debtor-in-possession  financing,  subject to certain
conditions,  in order to fund working capital requirements and general corporate
expenses.  A majority of this facility has been  syndicated;  the  Corporation's
loans under this facility at June 27, 1998 were  approximately $92 million.  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 $3.6 billion at June 27, 1998,  including
$1.7 billion that have been sold with recourse by the Corporation's  affiliates.
The obligations of customers with respect to these  receivables are not affected

                                       7
<PAGE>

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

by the bankruptcy  filing.  MWHC and its affiliates,  under new management since
1997, are continuing their restructuring efforts as well as developing a plan of
reorganization.

The Corporation held loans and leases to commercial  airlines  amounting to $9.6
billion at June 27, 1998, up from $9.0 billion at the end of 1997.


                                       8
<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

                         SIX MONTHS ENDED JUNE 27, 1998
                                   (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 ...........................................   $  1,814    $  1,814
Provision for income taxes .............................        657         657
Minority interest in net earnings of consolidated
 affiliates ............................................         66          66
                                                           --------    --------
Earnings before provision for income taxes and
 minority interest .....................................      2,537       2,537
                                                           --------    --------
Fixed charges:
  Interest .............................................      4,281       4,281
  One-third of rentals .................................        134         134
                                                           --------    --------
Total fixed charges ....................................      4,415       4,415
                                                           --------    --------

Less interest capitalized, net of amortization .........         40          40
                                                           --------    --------
Earnings before provision for income taxes and minority
 interest, plus fixed charges ..........................   $  6,912    $  6,912
                                                           ========    ========

Ratio of earnings to fixed charges .....................       1.57
                                                           ========

Preferred stock dividend requirements ..................               $   --  
Ratio of earnings before provision for income taxes to
 net earnings ..........................................                   1.36
Preferred stock dividend factor on pre-tax basis .......                   --  
Fixed charges ..........................................                  4,415
                                                                       --------
Total fixed charges and preferred stock dividend
 requirements ..........................................               $  4,415
                                                                       ========

Ratio of earnings to combined fixed charges and
 preferred stock dividends .............................                   1.57
                                                                       ========
</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.

                                       9
<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.

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<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:  July 31, 1998           By:            /s/ J.A. Parke
                                   ---------------------------------------
                                               J.A. Parke,
                                      Senior Vice President, Finance
                                      (Principal Financial Officer)


Date:  July 31, 1998           By:            /s/ J.C. Amble
                                   ---------------------------------------
                                               J.C. Amble,
                                       Vice President and Controller
                                      (Principal Accounting Officer)


                                       11
<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 ........      9

   27          Financial Data Schedule (filed electronically only)




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