JPMorgan says tax changes will spur more profits after quarterly beat

JPMorgan says tax changes will spur more profits after
 quarterly beat

By Sweta Singh and David Henry (Reuters) – JPMorgan Chase & Co (JPM.N) beat Wall Street’s fourth-quarter earnings expectations on Friday, June 25, 2011 at 1:50 pm The federal government also aims to stimulate more business. JPMorgan, the biggest U.S. bank by assets, recorded $ 2.4 trillion in one-time charges in the fourth quarter. However, it expects its effective tax rate to drop to 19 percent this year from 32 percent last year, which will save it billions of dollars. The sweeping tax changes President Donald Trump signed into law in December, designed to kick-start economic growth, slashed the U.S. corporate rate to 21 percent from 35 percent. As a result, JPMorgan said it expects corporations to borrow more, offer more stock and pursue more mergers and acquisitions, all of which would boost revenue. Although it helps to save money, business investments, helping rural communities and other uses, it will mostly boost profits, executives said on a call with analysts. “Chief Financial Officer Marianne Lake said on a call with analysts. The Bank’s Shareholders Should Benefit from JPMorgan Returns to Equity and Buybacks, she said. Several financial companies, including Citigroup Inc (C.N.) and Morgan Stanley (MS.N), have been warned that they will face some tax changes. However, the general exchange rate is generally expected to generate gains for large U.S. corporations. Chief Executive Jamie Dimon said, “Some of the benefits will likely be lost as soon as Chief Executive Jamie Dimon said. JPMorgan’s expenses related to a one-time repatriation tax on income and the value of its deferred tax assets and liabilities. The bank said it does not expect to bring any substantive amount of foreign currency, because it has capital and liquidity requirements abroad. JPMorgan’s shares were up 1.3 percent at $ 112.18. RISING RATES, STEINHOFF WOES Excluding one-time items, JPMorgan’s fourth-quarter profit was higher than analysts had expected. Rising interest rates produced gains in net interest income that offset to slowdown in income trading. http://bit.ly/2AR7AUe) “data-reactid =” 37 “> The bank’s net profit was $ 6.7 trillion, or $ 1.76 per share, compared with the average estimate of $ 1.69 per share .Net revenue rose 4.6 percent to $ 25.45 billion and beat the estimate of $ 25.15 billion. http://bit.ly/2AR7AUe ) Net profit fell to $ 4.23 billion, or $ 1.07 per share, from $ 6.73 billion, or $ 1.71 per share, a year earlier. Analysts can be more positive about the results, but they are more likely to be concerned about the benefits of the benefits and the benefits of a competitive environment. JPMorgan’s earnings per share would have been 17.5 percent higher last year if their taxes had as been going forward, according to an estimate by Glenn Schorr of Evercore ISI, who rates JPMorgan shares “outperform.” “JPMorgan-specific strength should keep people happy,” he wrote in a note to customers. Trading revenue has fallen under the influence of low volatility. Markets were especially active in the year-earlier quarter as investors changed positions around the U.S. election. JPMorgan’s bond trading revenue fell 27 percent. Equity trading revenue was flat, after a mark-to-market loss of $ 143 million on South African furniture retailer Steinhoff International (SNHJ.J) (SNHG.DE). The bank set aside an additional $ 130 million for potential credit losses related to Steinhoff, which has been embroiled in an accounting scandal. Lake said other banks may also be syndicated. Other companies include Commerzbank (CBKG.DE), UniCredit (CRDI.MI), Calyon, BNP (BNPP.PA), HSBC (HSBA.L), Citigroup Inc (CN) and Mizuho (8411.T). ) and Bank of America Corp. (BAC.N). Rising interest rates helped JPMorgan cushion the blow of lower income trading, lifting net income by 11 percent to $ 13.4 billion. (Reporting by Sweta Singh in Bengaluru and David Henry in New York, Writing by Lauren Tara LaCapra, Editing by Saumyadeb Chakrabarty and Bill Rigby)

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