IBM Corp’s IBM Credit Corp in Stamford, Connecticut was a black spot in the 1995 results, with net profit down 8% at $230.5m. Total assets at December 31 were $11,400m, compared with $9,700m at year-end 1994. The return on average equity slumped to 20.9% in 1995, compared with 24.1% in 1994. Things look a lot better if you add in the gains on the litigation against Comdisco Inc in 1995 and 1994, and the sale of IBM Mutual Funds in 1994: on that basis, earnings increased by 6% to $242.9m. Financing for end-users soared 62% to $4,500m – all those new CMOS mainframes, and working capital financing for distribution channels came to $10,300m, a 36% increase compared with the figure for 1994.
