<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 26, 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 November 6, 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       NINE MONTHS ENDED 
                                                                   --------------------    --------------------
                                                                  SEPTEMBER   SEPTEMBER   SEPTEMBER   SEPTEMBER
                                                                        26,         27,         26,         27,
(In millions)                                                         1998        1997        1998        1997 
                                                                   --------    --------    --------    --------
<S>                                                               <C>         <C>         <C>         <C>      
REVENUES
Revenues from services .........................................   $ 10,210    $  9,000    $ 29,643    $ 25,884
Sales of goods .................................................      1,806       1,182       5,325       3,159
                                                                   --------    --------    --------    --------
                                                                     12,016      10,182      34,968      29,043
                                                                   --------    --------    --------    --------
EXPENSES
Interest .......................................................      2,188       1,919       6,400       5,564
Operating and administrative ...................................      3,311       2,959       9,690       8,125
Cost of goods sold .............................................      1,681       1,063       4,891       2,801
Insurance losses and policyholder and annuity benefits .........      2,239       1,980       6,852       6,236
Provision for losses on financing receivables ..................        306         371       1,047       1,020
Depreciation and amortization of buildings and equipment
 and equipment on operating leases .............................        669         628       1,929       1,765
Minority interest in net earnings of consolidated affiliates ...         38          33         104          84
                                                                   --------    --------    --------    --------
                                                                     10,432       8,953      30,913      25,595
                                                                   --------    --------    --------    --------
EARNINGS
Earnings before income taxes ...................................      1,584       1,229       4,055       3,448
Provision for income taxes .....................................       (502)       (291)     (1,159)       (958)
                                                                   --------    --------    --------    --------

NET EARNINGS ...................................................      1,082         938       2,896       2,490
Dividends ......................................................       (433)       (374)     (1,312)       (994)
Retained earnings at beginning of period .......................     13,886      12,286      12,951      11,354
                                                                   --------    --------    --------    --------
RETAINED EARNINGS AT END OF PERIOD .............................   $ 14,535    $ 12,850    $ 14,535    $ 12,850
                                                                   ========    ========    ========    ========
</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
                                                                                                26,         31,
(In millions)                                                                                 1998        1997 
                                                                                           --------    --------
                                                                                         (Unaudited)
<S>                                                                                       <C>         <C>      
ASSETS
Cash and equivalents ...................................................................   $  5,035    $  4,904
Investment securities ..................................................................     74,702      70,356
Financing receivables:
  Time sales and loans, net of deferred income .........................................     71,552      64,832
  Investment in financing leases, net of deferred income ...............................     45,444      41,769
                                                                                           --------    --------
                                                                                            116,996     106,601
  Allowance for losses on financing receivables ........................................     (3,078)     (2,802)
                                                                                           --------    --------
    Financing receivables - net ........................................................    113,918     103,799
Other receivables - net ................................................................     21,915      18,332
Equipment on operating leases (at cost), less accumulated amortization
 of $6,716 and $6,126 ..................................................................     20,209      18,689
Intangible assets ......................................................................     11,904      10,366
Inventories ............................................................................        729         786
Other assets ...........................................................................     34,633      28,176
                                                                                           --------    --------
      TOTAL ASSETS .....................................................................   $283,045    $255,408
                                                                                           ========    ========

LIABILITIES AND EQUITY
Short-term borrowings ..................................................................   $103,431    $ 95,274
Long-term borrowings:
  Senior ...............................................................................     55,806      44,993
  Subordinated .........................................................................        996         996
Insurance liabilities, reserves and annuity benefits ...................................     71,196      67,270
Other liabilities ......................................................................     19,676      17,557
Deferred income taxes ..................................................................      9,402       8,966
                                                                                           --------    --------
      Total liabilities ................................................................    260,507     235,056
                                                                                           --------    --------
Minority interest in equity of consolidated affiliates .................................      3,398       3,113
                                                                                           --------    --------

Unrealized gains on investment securities ..............................................      2,375       2,135
Foreign currency translation adjustments ...............................................       (261)       (185)
                                                                                           --------    --------
Accumulated non-owner changes in equity ................................................      2,114       1,950
Capital stock ..........................................................................         11          11
Additional paid-in capital .............................................................      2,480       2,327
Retained earnings ......................................................................     14,535      12,951
                                                                                           --------    --------
      Total equity .....................................................................     19,140      17,239
                                                                                           --------    --------
      TOTAL LIABILITIES AND EQUITY .....................................................   $283,045    $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)

                                                                                             NINE MONTHS ENDED 
                                                                                           --------------------
                                                                                          SEPTEMBER   SEPTEMBER
                                                                                                26,         27,
(In millions)                                                                                 1998        1997 
                                                                                           --------    --------
<S>                                                                                       <C>         <C>      
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ...........................................................................   $  2,896    $  2,490
Adjustments to reconcile net earnings to cash provided from operating activities:
  Provision for losses on financing receivables ........................................      1,047       1,020
  Depreciation and amortization of buildings and equipment and equipment on
   operating leases ....................................................................      1,929       1,765
  Other - net ..........................................................................      2,126         168
                                                                                           --------    --------
    Cash provided from operating activities ............................................      7,998       5,443
                                                                                           --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers .........................................................    (48,120)    (38,386)
Principal collections from customers ...................................................     43,711      36,328
Investment in assets on financing leases ...............................................    (13,886)     (9,943)
Principal collections on financing leases ..............................................     11,878      11,559
Net decrease in credit card receivables ................................................      3,307       2,335
Buildings and equipment and equipment on operating leases:
    -  additions .......................................................................     (4,050)     (4,641)
    -  dispositions ....................................................................      2,031       1,867
Payments for principal businesses purchased, net of cash acquired ......................     (8,444)     (1,532)
Purchases of investment securities by insurance affiliates and annuity businesses ......    (16,437)    (13,296)
Dispositions and maturities of investment securities by insurance affiliates and
 annuity businesses ....................................................................     13,263      12,102
Other - net ............................................................................     (5,220)     (4,037)
                                                                                           --------    --------
    Cash used for investing activities .................................................    (21,967)     (7,644)
                                                                                           --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) ..................................      7,050       7,157
Newly issued debt  - short-term (maturities 91-365 days) ...............................      4,126       3,240
                   - long-term senior ..................................................     26,159      12,099
Proceeds - non-recourse, leveraged lease debt ..........................................        971         129
Repayments and other reductions:
                   - short-term (maturities 91-365 days) ...............................    (17,992)    (18,486)
                   - long-term senior ..................................................     (4,298)       (861)
Principal payments - non-recourse, leveraged lease debt ................................       (333)       (262)
Proceeds from sales of investment and annuity contracts ................................      3,464       3,532
Redemption of investment and annuity contracts .........................................     (3,905)     (3,346)
Dividends paid .........................................................................     (1,312)       (994)
Issuance of variable cumulative preferred stock by consolidated affiliate ..............        170         100
                                                                                           --------    --------
    Cash provided from financing activities ............................................     14,100       2,308
                                                                                           --------    --------
INCREASE IN CASH AND EQUIVALENTS .......................................................        131         107
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............................................      4,904       3,234
                                                                                           --------    --------
CASH AND EQUIVALENTS AT END OF PERIOD ..................................................   $  5,035    $  3,341
                                                                                           ========    ========
</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 
                                                           --------------------
                                                          SEPTEMBER   SEPTEMBER
                                                                26,         27,
(In millions)                                                 1998        1997 
                                                           --------    --------
<S>                                                        <C>         <C>     
Net earnings ...........................................   $  1,082    $    938
Unrealized gains (losses) on investment securities - net       (184)        826
Foreign currency translation adjustments ...............        (39)        (40)
                                                           --------    --------
Total ..................................................   $    859    $  1,724
                                                           ========    ========


                                                             NINE MONTHS ENDED 
                                                           --------------------
                                                          SEPTEMBER   SEPTEMBER
                                                                26,         27,
                                                              1998        1997 
                                                           --------    --------
Net earnings ...........................................   $  2,896    $  2,490
Unrealized gains on investment securities - net ........        240       1,183
Foreign currency translation adjustments ...............        (76)       (128)
                                                           --------    --------
Total ..................................................   $  3,060    $  3,545
                                                           ========    ========
</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 nine  months of 1998 were  $2,896  million,  a $406
million (16%) increase over the first nine months of 1997. The results reflected
the globalization and diversity of the Corporation's  businesses and were led by
double-digit  increases in Specialized Financing,  Consumer Services,  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.  The increase in net earnings for these  businesses
principally  resulted from a higher average level of invested assets.  Financing
spreads were  essentially  the same in both periods,  reflecting  slightly lower
yields offset by lower borrowing rates.  Earnings for these businesses were also
impacted by lower losses associated with the Corporation's  equity investment in
Montgomery  Ward Holding Corp.  ("MWHC").  This impact was offset by lower gains
recognized on sales of assets,  primarily no counterpart to the 1997 transaction
that included the reduction of the Corporation's  investment in the common stock
of Paine Webber Group Inc.  ("PWG").

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 other insurance businesses also contributed to the increase.


OPERATING RESULTS

TOTAL  REVENUES  from all  sources  increased  $5,925  million  (20%) to $34,968
million for the first nine months of 1998, compared with $29,043 million for the
first nine months of 1997.

Revenues from the equipment management,  consumer services, mid-market financing
and specialized  financing  businesses  increased  $5,153 million (23%) 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
MWHC.  This  impact was  offset by lower  gains  recognized  on sales of assets,
primarily no counterpart to the 1997  transaction that included the reduction of
the Corporation's investment in the common stock of PWG.

Revenues of the  Specialty  Insurance  segment  increased  $932 million (14%) to
$7,647  million for the first nine months of 1998  compared  with the first nine
months 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  nine  months of 1998 was $6,400  million,  15%
higher  than for the first  nine  months of 1997.  The  increase  reflected  the
effects of higher  average  borrowings  used to finance asset  growth,  slightly
offset by the effects of lower average  interest rates.  The composite  interest
rate on the Corporation's borrowings for the first nine months of 1998 was 5.99%
compared with 6.05% in the first nine months of 1997.

OPERATING AND  ADMINISTRATIVE  EXPENSES  were $9,690  million for the first nine
months of 1998, a 19% increase over the first nine months of 1997.  The increase
primarily  reflected costs  associated  with businesses and portfolios  acquired
over the past year and higher investment levels.

                                       6
<PAGE>

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

INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased $616 million to
$6,852  million for the first nine months of 1998,  compared with the first nine
months  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.

PROVISION FOR LOSSES ON FINANCING  RECEIVABLES  increased to $1,047  million for
the first nine months of 1998 from  $1,020  million for the first nine months 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  $164 million to $1,929  million for the first nine
months of 1998 compared  with $1,765  million for the first nine months of 1997.
The  increase  was  principally  the  result of higher  levels of  equipment  on
operating leases, primarily reflecting acquisition growth.

PROVISION FOR INCOME TAXES was $1,159  million for the first nine months of 1998
(an effective tax rate of 28.6%),  compared with $958 million for the first nine
months of 1997 (an effective tax rate of 27.8%). The higher provision for income
taxes primarily reflected increased pre-tax earnings subject to statutory rates.


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 $117.0 billion at September 26, 1998,  from $106.6 billion
at  the  end  of  1997,  primarily  reflecting  acquisition  growth  and  higher
origination volume, partially offset by securitizations of receivables and other
decreases  in the  credit  card  portfolios.  Related  allowances  for losses at
September 26, 1998,  aggregated $3.1 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 $48.4 billion at September 26, 1998, an increase of
$0.3 billion from the end of 1997.  Nonearning  receivables were $1.1 billion at
September 26, 1998, 2.3% 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 $1,052  million for the first
nine  months of 1998,  compared  with $912  million for the first nine months 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 $68.6 billion at September 26, 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 $282 million at September 26, 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 September 26, 1998,  was $754 million,  a decrease of $41
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   September   26,   1998


                                       7
<PAGE>

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

were  approximately  $119 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  $3.4
billion at September 26, 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 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 September 26, 1998, up from $9.0 billion at the end of 1997.

OTHER MATTERS

YEAR 2000

The inability of business  processes to continue to function correctly after the
beginning of the Year 2000 could have serious  adverse  effects on companies and
entities throughout the world. The Corporation has undertaken a global effort to
identify and mitigate Year 2000 issues in its information systems,  products and
services, facilities and suppliers as well as to assess the extent to which Year
2000 issues will impact its customers.  Each business has a Year 2000 leader who
oversees a multi-functional  remediation project team responsible for applying a
Six Sigma quality approach in four phases:  (1)  define/measure  -- identify and
inventory  possible  sources of Year 2000 issues;  (2) analyze -- determine  the
nature and extent of Year 2000 issues and develop project plans to address those
issues;  (3)  improve -- execute  project  plans and  perform a majority  of the
testing; and (4) control -- complete testing,  continue monitoring readiness and
complete necessary  contingency plans. The progress of this program is monitored
at each business,  and company-wide reviews with senior management are conducted
monthly.  Management  plans to have  completed  the  first  three  phases of the
program for a  substantial  majority of  mission-critical  systems by the end of
1998 and to have  nearly  all  significant  information  systems,  products  and
services,  facilities  and  suppliers  in the  control  phase of the  program by
mid-1999.

The  scope  of the  global  Year  2000  effort  encompasses  many  thousands  of
applications  and computer  programs;  products  and  services;  facilities  and
facilities-related equipment; suppliers; and, customers. Business operations are
also dependent on the Year 2000 readiness of  infrastructure  suppliers in areas
such as utility,  communications,  transportation  and other  services.  In this
environment,  there  will  likely be  instances  of  failure  that  could  cause
disruptions  in business  processes or that could affect  customers'  ability to
repay amounts owed to the Corporation. The likelihood and effects of failures in
infrastructure  systems and in the supply  chain cannot be  estimated.  However,
with respect to operations under its direct control, management does not expect,
in view of its Year 2000 program  efforts and the  diversity of its  businesses,
suppliers  and  customers,  that  occurrences  of Year 2000 failures will have a
material  adverse  effect on the  financial  position,  results of operations or
liquidity of the Corporation.

Total Year 2000 remediation  expenditures are expected to be approximately  $240
million,  of  which  two-thirds  is  expected  to be  spent  by the end of 1998.
Substantially  all of the  remainder  is expected  to be spent in 1999.  Most of
these costs are not likely to be  incremental  costs,  but rather will represent
the redeployment of existing resources.

The activities  involved in the Year 2000 effort  necessarily  involve estimates
and projections of activities and resources that will be required in the future.
These estimates and projections could change as work progresses.


                                       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

                      NINE MONTHS ENDED SEPTEMBER 26, 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 ...........................................................................   $  2,896    $  2,896
Provision for income taxes .............................................................      1,159       1,159
Minority interest in net earnings of consolidated affiliates ...........................        104         104
                                                                                           --------    --------
Earnings before provision for income taxes and minority interest .......................      4,159       4,159
                                                                                           --------    --------
Fixed charges:
  Interest .............................................................................      6,539       6,539
  One-third of rentals .................................................................        209         209
                                                                                           --------    --------
Total fixed charges ....................................................................      6,748       6,748
                                                                                           --------    --------

Less interest capitalized, net of amortization .........................................         65          65
                                                                                           --------    --------
Earnings before provision for income taxes and minority interest, plus fixed charges ...   $ 10,842    $ 10,842
                                                                                           ========    ========

Ratio of earnings to fixed charges .....................................................       1.61
                                                                                           ========

Preferred stock dividend requirements ..................................................               $   --  
Ratio of earnings before provision for income taxes to net earnings ....................                   1.40
Preferred stock dividend factor on pre-tax basis .......................................                   --  
Fixed charges ..........................................................................                  6,748
                                                                                                       --------
Total fixed charges and preferred stock dividend requirements ..........................               $  6,748
                                                                                                       ========

Ratio of earnings to combined fixed charges and preferred stock dividends ..............                   1.61
                                                                                                       ========
</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.




                                       10
<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: November 10, 1998             By:         /s/ J.A. Parke
                                         ----------------------------------
                                                    J.A. Parke,
                                           Senior Vice President, Finance
                                            (Principal Financial Officer)


Date: November 10, 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)



                                       12