July 14, 2014 / 12:15 PM / 3 years ago

Citi profit hit by charge related to shoddy mortgage securities

July 14 (Reuters) - Citigroup Inc reported a 96 percent drop in quarterly earnings after taking a charge of $3.8 billion related to a $7 billion settlement with the U.S. Department of Justice over the sale of shoddy mortgage-based securities.

The settlement figure, announced early on Monday, was more than twice what many analysts expected earlier this year but less than the $12 billion sought by the government in negotiations with the bank.

The bank's second-quarter adjusted net income, which excludes the settlement charge and some changes to the value of the bank's debt, was $3.93 billion, or $1.24 per share, compared with $3.89 billion, or $1.25 per share a year earlier.

But total net income under Generally Accepted Accounting Principles, which includes legal expenses, fell to $181 million, or 3 cents per share, from $4.18 billion, or $1.34 per share, a year earlier. (Reporting by Tanya Agrawal and David Henry; Editing by Ted Kerr)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below