US banks are dealing with the Tax Bill wanted by Donald Trump.And attention is focused on the quarterly results at the end of 2017. Goldman Sachs and Bank of America, even if penalized by the extraordinary costs of the tax reform, have beaten estimates and expect positive repercussions for the longer term thanks to the lowering of corporate rate from 35% to 21%. The performance of the two US banks was affected by the impact of the Tax Bill despite the positive opening for Wall Street chasing new records above 26.000 points after the positive data on US industrial production which rose by 0,9% in December, over analysts' expectations.
Goldman Sachs, in the fourth quarter of 2017, closed the quarterly data for the first time since 2011. Q4 reported a net loss of $2,1 billion, compared with net income of $2,2 billion for the same period in 2016. The result discounts the accounting for a one-off charge of 4,4 billion related to the tax reform approved before Christmas. Net of this charge, the bank would have reported a positive result of 2,3 billion dollars (+4,5% y/y), corresponding to 5,68 dollars per share (4,91 dollars per share analysts' estimates ). Net revenues decreased 4,9% to $7,8 billion. The Cet1 stood at 14,5 per cent. The stock was affected by the Stock Exchange where it is listed dollars 252,76 (-2,21%) at 18.54 Italian. Investors were also worried by the drop in profits on bonds (-50%).
Bank of America, in the fourth quarter of 2017, recorded a net profit of 2,4 billion dollars, down by 46,7% compared to the same period of 2016. The result was impacted by the recognition of a one-off charge of 2,9 billion linked to the tax reform approved before Christmas. Net of this charge, the bank would have achieved a positive result of 5,3 billion (+17,8% y/y), corresponding to 0,20 dollars per share (0,44 dollars per share according to analysts' estimates). Net revenues increased 2% to $20,4 billion compared to the fourth quarter of 2016. The title shares dollars 31,00 (-0,77%) at 18,54 Italian.
