Citigroup Chief Executive Officer Vikram Pandit, scrambling to slash Citi’s costs and get past credit market problems, also intends to reaffirm his promise to cut annual expenses at the largest US bank by roughly 20 per cent, sources told Reuters on Thursday. Meanwhile Citigroup declined to comment.

The sources requested anonymity because the plan had not yet been announced.

The sales could amount to nearly 20 per cent of Citi’s current assets, and according to the Financial Times, which first reported the story on Thursday, would take place over several years.

Although Citi has said previously that it plans to shed assets to improve its capital position, the magnitude of the potential sales struck some analysts as worrisome.

Since late last year, Citi has recorded more than $45 billion of writedowns and credit losses, raised more than $40 billion of new capital including $2 billion of preferred shares this week, and slashed its dividend 41 per cent.
Investors are impatient for improvement at Citi, whose share price has fallen more than 55 per cent over the last year. Mr Pandit has faced demands from investors that he slash costs, shed poorly performing businesses and even split up the bank.

Consumer finance

Mr Pandit and other executives are expected to also fend off calls for a break-up on Friday when the company offers a four-hour presentation to investors and analysts. They are also expected to outline the bank’s focus on cash management, wealth management and cards as key businesses for the future, one of the sources said.

 The Wall Street Journal this week reported Citi may sell Primerica, a consumer sales network for life insurance and investments.

 The bank has announced 13,200 job cuts in 2008, though analysts say tens of thousands of further cuts may be needed. The bank ended March with 3,69,000 employees.