Banking giant Citigroup will pay 7-billion dollars to US authorities to settle an investigation into risky sub-prime mortgages.

Citigroup will pay 4-billion dollars to the Department of Justice and 2-point-5 billion for consumer relief.

Consumer relief includes investment in affordable homes and mortgage relief.

Following the decision, the bank reported a stronger than predicted quarterly profit, and saw its share price rise by 3-point-zero-2 percent to 48-point-42-dollars.