Citigroup Inc, the world's largest financial services company, said it remains committed to asset management, rejecting a published report it might dispose of that business, among other options, according to a memo dated Friday and obtained by Reuters. "We are committed to the Asset Management business, which we believe is an important part of our long-term strategy for Citigroup," said Robert Willumstad, Citigroup's chief operating officer, in a memo to asset management employees. "Any rumours to the contrary are untrue."
The New York Times earlier on Friday said Citigroup Chief Executive Charles Prince and senior bank executives have had detailed talks about possibly revamping the asset management business, selling it or spinning it off. The newspaper cited unnamed executives who have been party to those talks, which it said are continuing and might lead to no action.
Citigroup's asset management business contributed $258 million, or 2.2 percent, to the company's $11.7 billion overall profit from January to September. Total assets under management rose 1 percent from a year earlier to $500.7 billion.
Since Prince became chief executive in October 2003, Citigroup, which has $1.44 trillion of assets, has disposed of some of its businesses. Last week it agreed to sell its truck leasing unit to General Electric Co's GE Commercial Finance unit for $4.4 billion.
Prince has said Citigroup will focus on expanding its major businesses, which range from its retail bank to credit cards to investment banking, and conduct a "garage sale" on lesser businesses it considers unnecessary.
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