IBM Credit Corp, Stamford, Connecticut reported net profits for 1994 of $250.6m, up 13.8%, but profits would have been down for the year at $214.6m, compared with $220.2m in 1993 but for the one-time gains resulting from the sale of IBM Credit Investment Management Corp. to a Fleet Financial Group subsidiary in the second quarter, and from the company’s litigation settlement with Comdisco Inc in the third quarter. Total assets at December 31 fell to $9,700m compared with $10,000m at year-end 1993, but the return on average equity improved to 24.1% – 20.0% without the special factors, from 19.1% in 1993. During 1994, IBM Credit originated financing for $10,400m of equipment, software and services for IBM customers and distribution channels, up 12% on the 1993 figure. Capital equipment financing – mainly mainframe leasing to customers – decreased by 16% to $2,800m – but the business of propping up the dealers by financing their inventories of IBM and other kit jumped 30% to $7,600m.
