Citigroup (NYSE: C - News) will on Friday identify as much as $400bn in non-core assets that could be sold as part of plans to reduce costs and restore profit growth to double-digit rates, according to people close to the situation.

At a long-awaited meeting with Wall Street analysts, Vikram Pandit, Citi's chief executive, also plans to confirm his pledge, first disclosed in the Financial Times, to cut Citi's cost base of over $60bn by about 20 per cent.

Despite his desire to prune Citi's balance sheet aggressively, Mr Pandit will use the meeting to rebuff calls for a break-up of the company, say sources familiar with his thinking. They say he will defend Citi's "universal banking model" combining consumer and wholesale banking.

Mr Pandit is likely to say that about 20 per cent of Citi's $2,000bn-plus balance sheet consists of "legacy" assets - entire businesses or trading positions outside its core businesses in commercial, consumer and investment banking.

The sale of the assets is likely to take years, and some of the non-core holdings may never be sold, according to people close to the situation. Nevertheless, Mr Pandit's decision to classify such a large portion of the balance sheet as non-core highlights his determination to root out underperforming businesses.

Under Mr Pandit, who took over in December after the departure of Chuck Prince and other top executives, Citi has sold several peripheral units, including its leasing business and its Diners Club charge card network. It has been reported to be looking at the sale of Primerica, a seller of life insurance and investments.

Analysts have speculated that Citi could sell its retail banking operations in Germany and Brazil, as well as some businesses and equity stakes in Asia.

Citi declined to comment on the analysts' meeting. People close to the situation said the plans to be announced by Mr Pandit had not been finalised and could change.

Citi has been hit hard by the credit crunch, recording two consecutive quarterly losses and raising more than $40bn from investors after suffering billions of dollars in writedowns and credit provisions. Its shares have fallen nearly 55 per cent in 12 months.

Mr Pandit is thought likely to announce up to $15bn in reductions in Citi's operating expense budget, which stood at $61.5bn at the end of last year.

Cuts are expected to come from a radical overhaul of the company's sprawling information technology systems as well as from job losses.

The cost cuts are aimed at restoring Citi to profitability. People close to the situation said Mr Pandit could be expected to tell analysts that the company's underlying earnings should return to an annual growth rate of up to 10 per cent over the next few years.