News » Money
Jul 14, 12:57 PM EDT

Citigroup second-quarter drops to $181 million after mortgage settlement

AP Photo
AP Photo/Mark Lennihan
US Video

Latest News
Regulators take over small bank in Georgia; brings US bank failures to 13 in 2014

Bank of America's income falls, takes $4 billion of litigation costs; Settles with AIG

BRICS bank: 5 emerging economic powers to announce alternatives to IMF, World Bank

Buy AP Photo Reprints

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.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.