Citigroup reported earnings today â€” coincidentally the same day the Justice Department announced a $7 billion settlement with the bank over crisis-era mortgage securities. Its quarterly earnings fell 96 percent to $181 million and its return on equity was a mere 0.2 percent â€” mostly due to the aforementioned fines. However, the numbers are nonetheless stronger than expected, largely because of a strong quarter in its fixed income business.
Reuters has an interactive graphic showing Citiâ€™s performance versus other big banks. Below is a still â€” the interactive is here.
Here are the details from Reuters on the specifics of the earnings report:
The settlement with the Justice Department was more than twice what many analysts had expected earlier this year, but it was less than the $12 billion sought by the government in negotiations with the bank.
Including a charge of $3.8 billion related to the settlement, Citi’s second-quarter earnings fell 96 percent to $181 million.
But adjusted net income, which excludes the settlement charge and some changes to the value of the bank’s debt, amounted to $3.93 billion, or $1.24 per share, compared with $3.89 billion, or $1.25 per share a year earlier.