NEW YORK (TheStreet) --Citigroup Inc. (C) announced on Monday that it reached a $7 billion settlement with the Justice Department in regards to an investigation into Citigroup's subprime mortgage investment sales, the Los Angeles Times reports.
Citigroup agreed to pay $4.5 billion in fines and $2.5 billion in consumer relief, the Times added.
Additionally, Citigroup released its 2014 second quarter earnings results which showed a decline in profit to $181 million, or 3 cents per diluted share, versus $4.2 billion, or $1.34 per diluted share reported for the same period last year.
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Taking away the legal charge and accounting adjustments, Citigroup's earnings per share for the most recent quarter were $1.24.
Analysts polled by Thompson Reuters expected earnings of $1.05 per share.
Revenue was $19.3 billion, compared to $20.5 billion for the 2013 second quarter. Analysts were expecting revenue of $18.93 billion.
Shares of Citigroup are higher by 3.66% to $48.72 in mid-morning trading on Monday.
Separately, TheStreet Ratings team rates CITIGROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CITIGROUP INC (C) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."