Citi, the US banking and wealth management giant, is poised to sell NikkoCiti Trust and Banking Corporation, its trust bank in Japan, as part of a global move to raise badly needed funds through asset disposals and restructuring measures, according to the Financial Times.

The US bank, which is expected to start receiving bids for its trust bank business this week, could raise an estimated Y40 billion (through the sale.

Citi faces pressure to cut costs and bolster its finances in the wake of the credit crunch. The bank has issued preference shares to the US government for much needed capital.

NikkoCiti Trust and Banking is a relatively small business, with just over Y6,000 billion in trust accounts and 136 employees. In the six months to September, NikkoCiti Trust suffered a 69 per cent drop in net profits to Y152 million on ordinary income of Y1.66 billion.

Citi acquired 50 per cent of the former Nikko Trust and Banking Corporation from Nikko Securities in 2001.

Earlier this year, Citi acquired Nikko Cordial, Japan’s third largest broker. At the time, Citigroup expressed strong interest in expanding in Japan, saying it would double the number of retail bank outlets to about 60 over the next few years and triple its corporate banking business.