- Shares of Deutsche Bank fell more than 5% after the German firm said it would take a $US1.8 billion hit from President Donald Trump’s newly enacted tax reform.
- “As a result of the recent enactment of the Tax Cuts and Jobs Act, Deutsche Bank AG expects to recognise an approximate EUR1.5 billion non-cash tax charge in the Group’s consolidated IFRS financial results for the fourth quarter 2017 from a valuation adjustment to its U.S. Deferred Tax Assets (DTA),” it said in a press release. “This adjustment reflects an estimate of the impact of reducing the federal tax rate applicable to Deutsche Bank’s U.S. operations to 21% from 35% previously.”
- Bank of America and Goldman Sachs have also announced writedowns.
- Wall Street is bearish on Deutsche Bank, with an average price target of $US17.54 – 7% below where shares were trading Friday morning, according to Bloomberg data.
- The bank is expected to report an annual profit on February 2.
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