Mr. Dimon said the bank expects to have roughly $3.6 billion in additional earnings next year as a result of the tax overhaul....
JPMorgan Chase, the largest bank in the United States, reported a big drop in profit on Friday for its third quarter, thanks largely to changes in the tax law and a major loan gone bust - but still expects last month's tax overhaul to bring in beaucoup bucks.
Aside from the tax hit, however, the bank's earnings were about flat from past year.
The bank, helmed by CEO Jamie Dimon, brought in $4.23 billion in profits, or $1.07 a share, last quarter, a 37 percent drop from the year before.
Earnings Per Share, after the charge, came in at an adjusted $1.76 vs. $1.69 expected by experts.
Along with the short-term hit from tax reform, the results also revealed that JP Morgan suffered a mark-to-market loss of over $140m on a margin loan made to a single individual, thought to be Christo Wiese, the billionaire backer of South Africa-based Steinhoff International.
Steinhoff has been embroiled in an accounting scandal that led to the resignation of its CEO early in December.
JP Morgan expects its fiscal year 2018 effective tax rate to be around 19%, given the TCJA´s provision to cut the top rate of USA corporate tax from 35% to 21%, creating a positive tailwind in the quarters ahead.
Charges related to changes in the value of the bank's deferred tax assets and the need to repatriate profits held overseas.
JPM shares rose 1.7 percent on Friday, to $112.67, a new high.
Not every bank, of course, will benefit to the same extent from the tax overhaul.
The bill essentially cut those liabilities.
The bank, however, isn't out of the woods with its many sales scandals, which have haunted the bank since a $185 million settlement with government regulators was unveiled about 15 months ago.