By STEVE ROTHWELL
Citigroup (C) 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.
Mortgage Settlement Hits Citigroup 2Q Earnings
More from The Associated Press
•Revealed: How Much Drug Companies Pay Your Doctor
•Bill Gates Keeps Top Spot as Richest American
•Market Wrap: U.S. Stocks Decline, Following Drops Overseas