Vikram Pandit, Citigroup (NYSE: C - News) 's chief executive, on Wednesday sought to reassure investors and employees that the US financial services group is financially sound amid concerns that mounting subprime-related losses could force it to raise more funds.

The move came after an analyst report forecasting large losses in the first quarter and comments from the head of Dubai's sovereign wealth funds sent Citigroup shares to their lowest point in over nine years on Monday.

In an internal memo, Mr Pandit quashed speculation that the $30bn raised by Citigroup from outside investors over the past few months would not be enough to withstand further trouble in its loans and mortgage businesses.

"Citi is financially sound - we are well capitalized and extremely focused on the strength of our balance sheet," said the memo sent to Citigroup's 370,000-plus employees after a conference call between Mr Pandit senior managers.

Citigroup shares rebounded from the lows hit on Monday. They closed slightly higher at $22.15 but remained below the book value of $22.74 per share reported by the company at the end of last year.

The memo offered a glimpse of the strategy Mr Pandit has been developing since taking the helm in December following the departure of his predecessor Chuck Prince. Mr Pandit said Citi's would sell some "peripheral businesses" to bolster its capital base.

Citigroup has been selling or closing bank branches in US cities where it has a small presence. On Wednesday, it announced the sale of eight branches in Texas to Happy State Bank, a local lender.

Mr Pandit's memo said there were "ongoing concerns" about Citigroup's leverage loans and mortgage portfolio - two of the areas identified by analysts as the likely source of further write-downs.

Citigroup has already reorganised its mortgage business, merging previously separate units into one division headed by Bill Beckmann, president of Citi Mortgage.

Mr Pandit also listed Citigroup's more successful businesses, in a further sign that he is unlikely to take radical action to break-up the financial conglomerate. According to the memo, the company's "dynamic and thriving" businesses include its credit cards unit, the wealth management division and the retail bank in the US and emerging markets.