In a strategy shift, Citigroup Inc plans to spend more to expand its existing businesses, even as it eyes "significant" opportunities to grow by acquisition, its chief operating officer said on Thursday.
Robert Willumstad said the world's No 1 financial services company plans "sizeable investments in organic growth" whose benefits will be more evident in the second half of 2004.
"It's a change in how we're doing business," Willumstad said in a presentation monitored by Webcast. "None of this is a relaxation on (our) attention to detail on expenses." Willumstad did not specify where the increased spending might take place.
The 58-year-old Willumstad became Citigroup's COO on October 1 last year, the same day Charles Prince, 54, became chief executive.
Former CEO Sanford "Sandy" Weill, who remains Citigroup's chairman, is renowned for his cost-cutting focus. Prince and Willumstad have since 1986 worked with Weill, who that year took over Baltimore-based consumer finance company Commercial Credit Co, ultimately transforming it into Citigroup.
Citigroup on Tuesday said fourth-quarter profit nearly doubled from a year earlier to $4.76 billion, or 91 cents per share, on revenue of $20.2 billion. Expenses fell 6 percent to $10 billion, but rose 4 percent from the third quarter.
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