JPMorgan's Quarterly Tax Pain to Soon Give Way to 2018 Gains

Bank could see earnings balloon by $3.5 billion based on cuts
Trading revenue falls 26%, fueled by drop in fixed-income

Megan Greene, chief economist at Manulife Asset Management, and Bloomberg’s Alison Williams discuss JPMorgan results.(Source: Bloomberg)

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Hugh Son

January 12, 2018 at 12:16 PM UTC

Updated on

January 12, 2018 at 2:58 PM UTC

This article is for subscribers only.

The U.S. tax overhaul cost JPMorgan Chase & Co. $2.4 billion last year. Consider it a down payment on a more profitable future.

The bank said that while it took accounting charges in the fourth quarter tied mostly to levies on foreign earnings required under the new law, its effective tax rate will drop this year to 19 percent from 32 percent. That means that if JPMorgan generates the same pretax profit this year as it did in 2017, earnings will balloon by more than $3.5 billion.