Bank of America Corp’s fourth-quarter income nearly halved as it booked a $2.9 billion cost stemming from the new federal tax law.
Other massive U.S banks, which include JPMorgan Chase & Co and Citigroup Inc, have additionally stated fees in their fourth-quarter results because the new regulation requires them to reassess their deferred tax property and pay tax on income kept abroad.
Excluding the tax charge, Bank of America earned $5.3 billion, or 47 cents per share. According to Thomson Reuters I/B/E/S, aside from the tax cost and some other item, the organization earned 48 cents per share in contrast with the common estimate of forty four cents.
Total revenue, net of activity expense, rose about 2 percentage to $20.44 billion as beneficial properties in activity earnings helped offset the tax charge and decrease in fixed-income buying and selling revenue.
Trading revenue was once susceptible for U.S. banks in the fourth quarter compared with a yr previously when traders actively modified positions around the U.S. presidential elections.