JP Morgan Chase shares were up by 0.5% in pre-market trading on Friday after the banking name reported fourth-quarter earnings and revenue ahead of analysts´ forecasts.
The firm reported fourth-quarter earnings of $4.2bn, a 37% fall on the prior period due principally to a one-off hit of $2.4bn from the Tax Cuts and Jobs Act (TCJA).
Excluding the impact of the TCJA, net income would have been $6.7bn, a decline of just 1% on the same period of 2016.
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 US corporate tax from 35% to 21%, creating a positive tailwind in the quarters ahead.
Quaterly net revenue rose 5% to $25.5bn.
“The enactment of tax reform in the fourth quarter is a significant positive outcome for the country. US companies will be more competitive globally, which will ultimately benefit all Americans. The cumulative effect of retained and reinvested capital in the US will help grow the economy, ultimately growing jobs and wages. We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments,” said Jamie Dimon, chairman and chief executive.