Mortgage settlement hits Citigroup net income

AP Markets WriterJuly 14, 2014 

Earns Citigroup

FILE - This Oct. 16, 2012 file photo shows the Citibank building in New York. Citigroup on Monday, July 14, 2014 said that its net income dropped in the second quarter after it took a $3.8 billion charge to settle claims over its risky subprime mortgage business.

MARK LENNIHAN, FILE — AP Photo

Citigroup said Monday that its net income dropped in the second quarter after it took a $3.8 billion charge to settle claims over its risky subprime mortgage business.

The charge pushed down its net income to $181 million from $4.18 billion a year earlier.

On a per-share basis, net income was 3 cents, compared with $1.34 in the second-quarter a year earlier.

Excluding the charges and an accounting loss, the bank's second-quarter profit rose 1 percent to $3.93 billion, or $1.24 a share. That beat the $1.06 a share predicted by analysts polled by FactSet.

Revenue was $19.4 billion, excluding the accounting loss, compared with $20 billion a year earlier.

The bank's stock rose $1.71, or 3.6 percent, to $48.72 or midday trading Monday.

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