J.P. Morgan Chase (NYSE: JPM) on Friday reported earnings that topped Wall Street's expectations after accounting for charges related to the tax bill signed recently by President Donald Trump.
The bank revealed it took a $2.4-billion charge on the quarter due to the Tax Cuts and Jobs Act.
Earnings Per Share, after the charge, came in at an adjusted $1.76 vs. $1.69 expected by experts. Revenues were $25.45 billion vs. the expected $25.15 billion.
Despite the one-time charges, CEO Jamie Dimon praised the bill.
"The enactment of tax reform in the fourth quarter is a significant positive outcome for the country. U. S. companies will be more competitive globally, which will ultimately benefit all Americans.
"The cumulative effect of retained and reinvested capital in the U.S. will help grow the economy, ultimately growing jobs and wages."
The company returned $6.7 billion in capital to shareholders during the fourth quarter with $4.7 billion in net stock buybacks.
Its shares rallied through year-end after the bank reported a better-than-expected third-quarter report in October.
Analysts expect the financial sector to benefit from the Republican tax overhaul, which President Donald Trump signed into law last month. The plan lowered the corporate tax rate to 21% from 35%.
KBW Research estimated J.P. Morgan's 2018 effective tax rate will decline to 22% from 35% due to the tax plan.
J.P. Morgan is one of the largest financial services companies in the world with assets of $2.6 trillion. Its shares nosed ahead 11 cents to $110.95 early Friday.
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