Despite the Costco debacle, Citigroup is still making money, because its’ income is increasing.
Citi reported $14.67 billion in net income on September 30, 2016; which was a slight increase over 2015. The bank reported a net income of $14.25 billion in September 2015. Unfortunately the net income has fallen since the Costco deal – it was $15.31 billion in June 2016.
This makes Citi something of a value investment because it can afford to lose a lot of money. Citigroup will survive the Costco troubles, because it can take the hit.Read more