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 March 31, 2001
                                 --------------

                                       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 April 18, 2001,  1,012 shares of common stock with a par value of $1,000 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


<TABLE>
<CAPTION>

                                                                                                          Page
                                                                                                   -------------------
PART I - FINANCIAL INFORMATION
<S>           <C>                                                                                          <C>
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

</TABLE>


<PAGE>


3

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              Condensed Statement of Current and Retained Earnings

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                         Three Months Ended
                                                                 ------------------------------------
                                                                    March 31,           April 1,
 (In millions)                                                         2001               2000
                                                                 -----------------  -----------------
 Revenues
 <S>                                                             <C>                <C>
 Revenue from services..........................................   $     13,655       $     13,448
 Sales of goods ................................................          1,068              2,233
                                                                 -----------------  -----------------
                                                                         14,723             15,681
                                                                 -----------------  -----------------
 Expenses
 Interest.......................................................          2,898              2,570
 Operating and administrative...................................          4,169              4,830
 Cost of goods sold.............................................            961              2,070
 Insurance losses and policyholder and annuity
  benefits .....................................................          3,523              2,930
 Provision for losses on financing receivables..................            483                521
 Depreciation and amortization of buildings and equipment  and
  equipment on operating leases ................................            793                964
 Minority interest in net earnings of consolidated
   affiliates ..................................................             57                 50
                                                                 -----------------  -----------------
                                                                         12,884             13,935
                                                                 -----------------  -----------------
 Earnings
 Earnings before income taxes and cumulative effect of
   changes in accounting principle..............................          1,839              1,746
 Provision for income taxes ....................................           (438)              (536)
                                                                 -----------------  -----------------

 Earnings before cumulative effect of changes in
   accounting principle ........................................          1,401              1,210
 Cumulative effect of changes in accounting
   principle ...................................................           (169)                 -
                                                                 -----------------  -----------------
 Net Earnings ..................................................          1,232              1,210
 Dividends .....................................................           (498)              (441)
 Retained earnings at beginning of period.......................         21,222             17,852
                                                                 -----------------  -----------------

 Retained earnings at end of period.............................   $     21,956       $     18,621
                                                                 =================  =================
</TABLE>












See Notes to Condensed, Consolidated Financial Statements.




<PAGE>


       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                    Condensed Statement of Financial Position
<TABLE>
<CAPTION>

                                                                                     March 31,         December 31,
 (In millions)                                                                         2001                2000
                                                                                 -----------------   -----------------
                                                                                    (Unaudited)
 Assets
 <S>                                                                             <C>                 <C>
 Cash and equivalents ......................................................     $        6,419      $        6,052
 Investment securities .....................................................             91,101              90,330
 Financing receivables:
    Time sales and loans, net of deferred income ...........................             94,409              96,270
    Investment in financing leases, net of deferred income .................             49,968              51,063
                                                                                 -----------------   -----------------
                                                                                        144,377             147,333
    Allowance for losses on financing receivables ..........................             (3,958)             (4,034)
                                                                                 -----------------   -----------------
       Financing receivables - net .........................................            140,419             143,299
 Insurance receivables - net ...............................................             24,641              23,802
 Other receivables - net ...................................................             13,161              13,288
 Inventories ...............................................................                440                 666
 Equipment on operating leases (at cost), less accumulated amortization of
    $8,377 and $7,901 ......................................................             24,130              24,147
 Intangible assets .........................................................             14,364              15,017
 Other assets ..............................................................             55,130              54,035
                                                                                 -----------------   -----------------

         Total assets ......................................................     $      369,805     $       370,636
                                                                                 =================   =================

 Liabilities and share owners' equity
 Short-term borrowings .....................................................     $      123,911     $       123,992
 Long-term borrowings:
    Senior .................................................................             78,513              80,383
    Subordinated ...........................................................                996                 996
 Insurance liabilities, reserves and annuity benefits ......................            104,633             106,150
 Other liabilities .........................................................             25,942              23,887
 Deferred income taxes .....................................................              8,183               8,238
                                                                                 -----------------   -----------------

         Total liabilities .................................................            342,178             343,646
                                                                                 -----------------   -----------------

 Minority interest in equity of consolidated affiliates ....................              4,023               3,968
                                                                                 -----------------   -----------------
 Accumulated gains/(losses) - net
   Investment securities ...................................................                920                   4
   Currency translation adjustments ........................................               (751)               (957)
   Derivatives qualifying as hedges ........................................             (1,274)                  -
                                                                                 -----------------   -----------------
 Accumulated non-owner changes in share owners' equity .....................             (1,105)               (953)
 Capital stock .............................................................                 11                  11
 Additional paid-in capital ................................................              2,742               2,742
 Retained earnings .........................................................             21,956              21,222
                                                                                 -----------------   -----------------
         Total share owners' equity ........................................             23,604              23,022
                                                                                 -----------------   -----------------

         Total liabilities and share owners' equity ........................     $      369,805     $       370,636
                                                                                 =================   =================

</TABLE>




See Notes to Condensed, Consolidated Financial Statements.


<PAGE>


       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                        Condensed Statement of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                         Three Months Ended
                                                                                -------------------------------------
                                                                                  March 31,            April 1,
 (In millions)                                                                       2001                2000
                                                                               -----------------   ------------------
 <S>                                                                           <C>                 <C>
 Cash Flows From Operating Activities
 Net earnings ..............................................................   $        1,232      $        1,210
 Adjustments to reconcile net earnings to cash provided from operating
   activities:
      Cumulative effect of changes in accounting principle .................              169                   -
      Provision for losses on financing receivables ........................              483                 521
      Depreciation and amortization of buildings and equipment and equipment
        on operating leases ................................................              793                 942
      Other - net ..........................................................             (233)             (2,532)
                                                                               -----------------   ------------------

         Cash from operating activities ....................................            2,444                 141
                                                                               -----------------   ------------------

 Cash Flows From Investing Activities
 Increase in loans to customers ............................................          (31,505)            (23,373)
 Principal collections from customers - loans ..............................           29,782              22,259
 Investment in equipment for financing leases ..............................           (1,180)             (4,131)
 Principal collections from customers - financing leases ...................            1,540               4,477
 Net change in credit card receivables .....................................            2,458                 394
 Buildings and equipment and equipment on operating leases:
      - additions ..........................................................           (1,829)             (1,825)
      - dispositions .......................................................              824               1,199
 Payments for principal businesses purchased, net of cash acquired .........             (329)                 (3)
 Purchases of securities by insurance and annuity businesses ...............          (12,249)            (11,774)
 Dispositions and maturities of securities by insurance and annuity businesses         11,093              10,032
 Other - net ...............................................................             (989)              2,437
                                                                               -----------------   ------------------

         Cash used for investing activities ................................           (2,384)               (308)
                                                                               -----------------   ------------------

 Cash Flows From Financing Activities
 Net change in borrowings (maturities 90 days or less) .....................           (1,602)             (7,284)
 Newly issued debt  -  short-term (maturities 91-365 days) .................              984               1,287
                     -  long-term (longer than one year) ...................            5,875               7,185
 Proceeds - non-recourse, leveraged lease debt .............................              326                 161
 Repayments and other reductions:
                    -  short-term (maturities 91-365 days) .................             (886)             (3,681)
                    -  long-term (longer than one year) ....................           (3,433)               (444)
 Principal payments - non-recourse, leveraged lease debt ...................             (137)               (101)
 Proceeds from sales of investment contracts ...............................            1,711               1,960
 Cash received upon assumption of Toho Mutual Life Insurance Company
   insurance liabilities ...................................................                -              13,177
 Redemption of investment contracts ........................................           (2,033)             (2,286)
 Dividends paid ............................................................             (498)               (441)
                                                                               -----------------   ------------------
         Cash from financing activities ....................................              307               9,533
                                                                               -----------------   ------------------

 Increase in Cash and Equivalents ..........................................              367               9,366
 Cash and Equivalents at Beginning of Period ...............................            6,052               6,931
                                                                               -----------------   ------------------

 Cash and Equivalents at End of Period .....................................   $        6,419       $      16,297
                                                                               =================   ==================
</TABLE>


See Notes to Condensed, Consolidated Financial Statements.


<PAGE>


       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              Notes to Condensed, Consolidated Financial Statements
                                   (Unaudited)

1. The  accompanying  condensed  quarterly  financial  statements  represent the
consolidation 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 Financial  Accounting  Standards Board ("FASB") issued, then subsequently
amended,   Statement  of  Financial   Accounting  Standards  ("SFAS")  No.  133,
Accounting  for  Derivative  Instruments  and Hedging  Activities,  which became
effective  for the  Corporation  on  January 1, 2001.  Under  SFAS No.  133,  as
amended, all derivative  instruments  (including certain derivative  instruments
embedded in other  contracts)  are recognized in the balance sheet at their fair
values and changes in fair value are recognized immediately in earnings,  unless
the  derivatives  qualify  as hedges  of  future  cash  flows.  For  derivatives
qualifying as hedges of future cash flows,  the effective  portion of changes in
fair value is recorded  temporarily in equity, then recognized in earnings along
with the related effects of the hedged items. Any ineffective portion of a hedge
is reported in earnings as it occurs.

The nature of the Corporation's  business  activities  necessarily  involves the
management of various  financial and market  risks,  including  those related to
changes in interest rates, equity prices, currency exchange rates, and commodity
prices. As discussed more fully in notes 1, 10 and 20 of the 2000 Form 10-K, the
Corporation  uses  derivative  financial  instruments  to mitigate or  eliminate
certain of those risks.  The January 1, 2001 accounting  change  described above
affected only the pattern and timing of non-cash accounting recognition.

At January 1, 2001,  the  Corporation's  financial  statements  were adjusted to
record a cumulative effect of adopting this accounting change, as follows:


(In millions)                                Earnings    Equity
                                             -------    -------

Adjustment to fair value of derivatives(a)   $   (77)   $(1,374)
Income tax effects .......................        28        525
                                             -------    -------
Total ....................................   $   (49)   $  (849)
                                             =======    =======

(a) For earnings effect, amount shown is net of adjustment to hedged item.

A reconciliation  of current period changes,  net of applicable income taxes, in
the separate component of share owners' equity labeled  "derivatives  qualifying
as hedges" follows.

(In millions)

Transition adjustment as of January 1, 2001   $  (849)
Current period declines in fair value - net      (396)
Reclassifications to earnings - net .......       (29)
                                              -------
Balance at March 31, 2001 .................   $(1,274)
                                              =======

Additional disclosures required by SFAS No. 133, as amended, are provided in the
following paragraphs.

Hedges of Future Cash Flows

The ineffective  portion of changes in fair values of hedge positions,  reported
in first quarter earnings, amounted to $(2) million, before income taxes, and is
recorded  in revenue  from  services.  There were no amounts  excluded  from the
measure of  effectiveness  in the first  quarter  related to the hedge of future
cash flows.

<PAGE>

Of the $(849)  million  transition  adjustment  recorded in equity at January 1,
2001, $25 million,  net of income taxes, was reclassified to earnings during the
first quarter of 2001. The $(1,274) million recorded in equity at March 31, 2001
is expected to be reclassified to future  earnings,  contemporaneously  with and
primarily  offsetting changes in interest expense on floating-rate  instruments.
Of this amount $(375)  million,  net of income taxes,  would be  reclassified to
earnings over the 12 month period ending March 31, 2002. The actual amounts that
will be reclassified to earnings over the next twelve months will vary from this
amount as a result of changes in market conditions. No amounts were reclassified
to earnings during the first quarter in connection with forecasted  transactions
that were no longer considered probable of occurring.

At  March  31,  2001,  the term of  derivative  instruments  hedging  forecasted
transactions,  except those related to payment of variable  interest on existing
financial instruments, was zero.

Hedges of Recognized  Assets,  Liabilities and Firm  Commitments

The ineffective  portion of changes in fair values of hedge positions,  reported
in first quarter earnings,  amounted to $3 million, before income taxes. Amounts
excluded  from the  measure of  effectiveness  (related  to time value on option
contracts),  also  reported in first quarter  earnings,  amounted to $6 million,
before income taxes. These amounts are reported in revenue from services.

Hedges of Net Investments in Foreign Subsidiaries

Of the $(751)  million  reported in the separate  component of equity related to
currency  translation  adjustments,  $64  million,  net  of  income  taxes,  was
attributable  to  derivative   instruments   designated  and  effective  as  net
investment   hedges.   In  addition,   amounts  excluded  from  the  measure  of
effectiveness  on these net  investment  hedges of $68  million,  before  income
taxes, are reflected in interest expense.

Derivatives  Not  Designated  as Hedges

Derivatives  not  designated  as  hedges   primarily   consist  of  options  and
instruments  containing  option  features  that behave based on limits  ("caps,"
"floors," or "collars").  These  instruments are used to hedge risks  associated
with interest rate and equity movements in certain  investments as well as risks
in certain  business  activities,  such as mortgage  servicing.  Although  these
instruments  are effective as hedges from an economic  perspective,  they do not
qualify for hedge accounting under SFAS No. 133, as amended.

4. In  November  2000,  the  Emerging  Issues  Task Force of the FASB  reached a
consensus on impairment  accounting  for retained  beneficial  interests  ("EITF
99-20").  Under this consensus,  impairment on certain  beneficial  interests in
securitized  assets must be recognized  when (1) the asset's fair value is below
its carrying value, and (2) it is probable that there has been an adverse change
in estimated  cash flows.  Previously,  impairment on such assets was recognized
when the asset's  carrying value exceeded  estimated cash flows  discounted at a
risk free rate of return.  The effect of adopting EITF 99-20 at January 1, 2001,
was a one-time reduction of net earnings of $120 million, net of income taxes of
$64 million. This accounting change did not involve cash, and management expects
that it will have no more than a modest effect on future results.

5. A summary of increases/(decreases) in share owners' equity that do not result
directly from transactions with share owners',  net of income taxes, is provided
below.

<TABLE>
<CAPTION>

                                                                                        Three Months Ended
                                                                                  ------------------------------------
                                                                                    March 31,           April 1,
(In millions)                                                                          2001               2000
                                                                                 -----------------   -----------------
 <S>                                                                             <C>                  <C>
 Net earnings ..............................................................     $        1,232       $       1,210
 Investment securities .....................................................                916                 (69)
 Currency translation adjustments ..........................................                206                (110)
 Derivatives qualifying as hedges ..........................................               (425)                  -
 Cumulative effect on share owners' equity of adopting FAS 133 .............               (849)                  -
                                                                                 -----------------   -----------------
   Total ...................................................................      $       1,080       $       1,031
                                                                                 =================   =================
</TABLE>


6. Revenues and net earnings of the Corporation,  by operating segment,  for the
three months ended March 31, 2001 and April 1, 2000 can be found in the table on
page 7 of this report.



<PAGE>



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

Overview

The Corporation's net earnings before cumulative effect of changes in accounting
principle (discussed in notes 3 and 4 to the condensed,  consolidated  financial
statements)  for the first  three  months of 2001 were  $1,401  million,  a $191
million  (16%)  increase  over the  first  three  months  of 2000.  The  results
reflected the globalization and diversity of the Corporation's businesses,  with
strong double-digit increases in the Consumer Services, Equipment Management and
Specialty Insurance segments.

Operating Results

Total  revenues  decreased  $958 million  (6%) to $14,723  million for the first
three months of 2001,  compared with $15,681  million for the first three months
of 2000. This decrease primarily resulted from the deconsolidation of Montgomery
Wards, LLC ("Wards"), volume declines in the information technology products and
services businesses,  and reduced asset gains at GE Equity,  offset by growth in
origination volume in the Consumer Services,  Specialty Insurance and Mid-Market
Financing segments.

Interest  expense on  borrowings  for the first three  months of 2001 was $2,898
million,  13%  higher  than for the first  three  months of 2000.  The  increase
reflected  higher  interest rates and higher average  borrowings used to finance
asset  growth.   The  average  composite  interest  rate  on  the  Corporation's
borrowings  for the first three months of 2001 was 5.87%  compared with 5.57% in
the first three months of 2000.

Operating and  administrative  expenses were $4,169  million for the first three
months of 2001, a 14% decrease over the first three months of 2000. The decrease
primarily  reflected  productivity  gains in the Consumer Services and Equipment
Management segments and the deconsolidation of Wards.

Cost of goods sold is associated with activities of the  Corporation's  computer
equipment distribution business and former retail operations. This cost amounted
to $961 million for the first three months of 2001, compared with $2,070 million
for the first  three  months  of 2000.  The  decrease  primarily  reflected  the
deconsolidation of Wards and volume declines at IT Solutions.

Insurance losses and policyholder and annuity benefits increased $593 million to
$3,523 million for the first three months of 2001, compared with the first three
months of 2000.  The  increase  primarily  reflected  the  effects  of growth in
premium volume throughout the period and business acquisitions.

Provision  for losses on  financing  receivables  was $483 million for the first
three  months of 2001  compared  with $521 million for the first three months of
2000.  This provision  principally  related to credit cards,  personal loans and
auto loans and leases in the  Consumer  Services  segment,  which are  discussed
below under Portfolio Quality.

Depreciation  and  amortization  of buildings  and  equipment  and  equipment on
operating  leases  decreased to $793 million for the first three months of 2001,
compared with $964 million for the first three months of 2000.  The decrease was
principally the result of the  deconsolidation of Wards and improvement in asset
write-downs.

Provision  for income  taxes was $438 million for the first three months of 2001
(an effective tax rate of 23.8%), compared with $536 million for the first three
months of 2000 (an  effective tax rate of 30.7%).  The lower  effective tax rate
primarily reflected increased low taxed earnings from international operations.




<PAGE>


Operating Segments

Revenues  and net earnings  before  cumulative  effect of changes in  accounting
principle of the Corporation,  by operating segment,  for the three months ended
March 31, 2001 and April 1, 2000 are summarized and discussed below.

<TABLE>
<CAPTION>

                                                                 Three Months Ended
                                                         -----------------------------------
                                                           March 31,          April 1,
 (In millions)                                                2001              2000
                                                         ----------------  -----------------
 Revenues
 <S>                                                       <C>               <C>
 Consumer Services ...................................     $      5,909      $      5,511
 Equipment Management ................................            3,098             3,733
 Mid-Market Financing ................................            1,440             1,256
 Specialized Financing ...............................            1,343             1,716
 Specialty Insurance .................................            2,888             2,602
 All other ...........................................               45               863
                                                         ----------------  -----------------
   Total revenues ....................................     $     14,723      $     15,681
                                                         ================  =================

 Net Earnings before accounting changes
 Consumer Services ...................................     $        600      $        284
 Equipment Management ................................              260               151
 Mid-Market Financing ................................              157               152
 Specialized Financing ...............................              229               598
 Specialty Insurance .................................              248               198
 All other ...........................................              (93)             (173)
                                                         ----------------  -----------------
   Total net earnings ................................     $      1,401      $      1,210
                                                         ================  =================
</TABLE>


Consumer Services revenues  increased 7% and net earnings increased 111% for the
first three months of 2001  compared  with the first three  months of 2000.  The
increase in revenues was led by a combination of  acquisition  and volume growth
in the consumer  savings and  insurance  business and volume  growth in the U.S.
consumer  credit card  business.  The increase in net earnings was led by volume
growth  in  the  U.S.  consumer  credit  card  and  non-U.S.   consumer  finance
businesses,  reduced residual losses in the U.S. auto finance  business,  volume
and acquisition  growth in the consumer  savings and insurance  business and the
divestiture of the Mortgage Services business.

Equipment  Management revenues decreased 17% for the first three months of 2001,
compared with the corresponding  period in 2000, primarily as a result of volume
declines  in  the  information  technology  products  and  services  businesses,
partially  offset by revenues  associated with a contract  cancellation  fee and
volume growth in the  satellite  service  business  (see  discussion of proposed
divestiture that follows),  and volume growth in the aviation services business.
Net earnings increased 72% for the first three months of 2001, compared with the
corresponding period in 2000, primarily  attributable to a contract cancellation
fee and volume growth at the satellite service business,  asset gains and volume
growth in the  aviation  services  business,  and  improved  performance  in the
information technology products and services businesses.

Mid-Market  Financing  revenues  grew 15% in the  first  three  months  of 2001,
compared  with the  corresponding  period in 2000,  principally  reflecting  the
combination of origination  growth and asset gains. Net earnings increased 3% in
the first three months of 2001, compared with the corresponding  period in 2000,
primarily from increased  asset growth from  originations,  partially  offset by
reduced asset gains.

Specialized  Financing revenues decreased 22%, while net earnings decreased 62%,
in the first three months of 2001  compared with the first three months of 2000.
The  decrease in revenues and net  earnings  principally  reflects the impact of
reduced asset gains on equity investments at GE Equity,  partially offset by the
combination  of asset gains and  origination  growth at Commercial  Real Estate,
Commercial Finance and the Structured Finance Group.

Specialty  Insurance  revenues  grew  11% in the  first  three  months  of 2001,
compared with the corresponding period in 2000, as a result of increased premium
income  associated with origination  volume.  Net earnings  increased 25% in the
first three  months of 2001,  compared  with the  corresponding  period in 2000,
primarily  reflecting  the effects of prior year losses on investment  portfolio
restructuring,  discounting  certain  reinsurance  reserves to reflect timing of
future  payment,  and increased  premium income,  partially  offset by decreased
current year investment gains.

All Other decline in revenues and decrease in net loss were primarily the result
of the deconsolidation of Wards.

<PAGE>

Portfolio Quality

Financing  receivables  are the  financing  businesses'  largest asset and their
primary  source of revenues.  The  portfolio of  financing  receivables,  before
allowance for losses, decreased to $144.4 billion at March 31, 2001, from $147.3
billion at the end of 2000,  primarily  reflecting the effects of securitization
and foreign currency translation on Japanese and European financing receivables,
partially  offset by  acquisition  growth and  higher  origination  volume.  The
related  allowance  for losses at March 31, 2001  amounted to $4.0 billion ($4.0
billion  at the end of  2000)  and  represents  management's  best  estimate  of
probable  losses  inherent in 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.

Consumer  financing  receivables,  primarily  credit card and personal loans and
auto loans and leases,  were $44.8 billion at March 31, 2001, a decrease of $4.0
billion from year-end 2000.  Nonearning  consumer  receivables at March 31, 2001
were $1.2 billion, about 2.7% of outstandings, compared with $1.1 billion, about
2.3% of outstandings  at December 31, 2000. The increase is primarily  driven by
seasoning of newer  portfolios and increases in delinquencies in the liquidating
Wards  credit  card  portfolio   consistent  with   Management's   expectations.
Write-offs of consumer  receivables remained at $0.4 billion for the first three
months of 2001 compared with $0.4 billion for the first three months of 2000.

Other  financing  receivables,  which  totaled  $99.6  billion at March 31, 2001
($98.5  billion  at  December  31,  2000),  consisted  of a diverse  commercial,
industrial  and  equipment  loan and lease  portfolio.  Related  nonearning  and
reduced-earning  receivables  were $1.3 billion at March 31, 2001, about 1.3% of
outstandings, compared with $0.9 billion, about 1.0% of outstandings at year-end
2000.  The  increase  is  primarily  driven by several  large  bankruptcies  and
restructurings.

Changes in Accounting Principle

On January 1, 2001, the Corporation  adopted  Statement of Financial  Accounting
Standards  ("SFAS") No. 133,  Accounting for Derivative  Instruments and Hedging
Activities,  and  Emerging  Issues  Task  Force  consensus  99-20 on  impairment
accounting for retained  beneficial  interests.  See further discussion of these
changes in Notes 3 and 4 to the condensed,  consolidated  financial  statements.
Upon adoption of SFAS 133, the Corporation reclassified investment securities of
$222 million from available-for-sale to trading, resulting in a reclassification
of  unrealized  gains  of $76  million  from  accumulated  gains  on  investment
securities to earnings.

Proposed Divestiture

On March 28, 2001, the  Corporation  announced that it will sell the stock of GE
American  Communications  Inc.  ("Americom") and other assets and liabilities in
exchange for a combination of cash and stock. As of March 28, 2001, the deal had
a value of approximately $5 billion,  which would result in an after-tax gain of
approximately $1 billion.  It is expected that the satellite services operations
of both  Americom and SES ASTRA ("the buyer") will be combined in a newly formed
holding  company in which GECS will hold an economic  interest of  approximately
25%,  providing  GECS  with  significant  influence  over  the  investee.   This
transaction is expected to close before  year-end 2001, and is conditioned  upon
acceptance by the buyer's shareholders and certain regulatory approvals.

Forward Looking Statements

This document includes certain  "forward-looking  statements" within the meaning
of the Private  Securities  Litigation  Reform Act of 1995. These statements are
based on management's  current  expectations  and are subject to uncertainty and
changes  in  circumstances.  Actual  results  may differ  materially  from these
expectations due to changes in global economic, business, competitive market and
regulatory factors.








<PAGE>

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<CAPTION>




                                                                                                         EXHIBIT 12



       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

                        Three months Ended March 31, 2001
                                   (Unaudited)

                                                                                                         Ratio of
                                                                                                       Earnings to
                                                                                                      Combined Fixed
                                                                                                       Charges and
                                                                                     Ratio of        Preferred Stock
                                                                                    Earnings to         Dividends
 (Dollar Amounts In millions)                                                      Fixed Charges
                                                                                 -----------------   -----------------
 <S>                                                                             <C>                  <C>
 Net earnings ................................................................     $       1,232       $       1,232
 Provision for income taxes ..................................................               438                 438
 Minority interest in net earnings of consolidated affiliates ................                57                  57
                                                                                 -----------------   -----------------

 Earnings before provision for income taxes and minority interest ............             1,727               1,727
 Fixed charges:
    Interest .................................................................             2,947               2,947
    One-third of rentals .....................................................                78                  78
                                                                                 -----------------   -----------------

 Total fixed charges .........................................................             3,025               3,025
 Less interest capitalized, net of amortization ..............................               (29)                (29)
                                                                                 -----------------   -----------------

 Earnings before provision for income taxes and minority interest, plus fixed
    charges ..................................................................   $         4,723     $         4,723
                                                                                 =================   =================

 Ratio of earnings to fixed charges ..........................................              1.56
                                                                                 =================

 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 ...............................................................                                 3,025
                                                                                                     -----------------

 Total fixed charges and preferred stock dividend requirements ...............                         $       3,025
                                                                                                     =================

 Ratio of earnings to combined fixed charges and preferred stock dividends ...                                  1.56
                                                                                                     =================
</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.



<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.


     b.  Reports on Form 8-K.

         None.



<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)

<TABLE>
<CAPTION>

<S>       <C>                                     <C>
Date:     April 18, 2001                          By:                        /s/ J.A. Parke
                                                      --------------------------------------------------------------
                                                                              J.A. Parke,
                                                          Executive Vice President and Chief Financial Officer
                                                                      (Principal Financial Officer)



Date:     April 18, 2001                          By:                        /s/ J.C. Amble
                                                      --------------------------------------------------------------
                                                                              J.C. Amble,
                                                                      Vice President and Controller
                                                                     (Principal Accounting Officer)


</TABLE>