Barclays to Book GBP1 Billion Charge to 2017 Accounts after U.S. Tax Change
By Ian Walker
Barclays PLC (BARC.LN) said Wednesday it expects to book a 1 billion pound ($1.3 billion) charge to its 2017 accounts following the changes to U.S. tax reform, which will also reduce its Core Equity Tier 1 ratio by 20 basis points.
The bank added that its U.S. deferred tax assets will be GBP1 billion lower due to the new tax.
However, Barclays said the reduction in the statutory U.S. federal rate is expected to positively impact future U.S. after-tax earnings.
The tax law passed by Congress last week and signed by President Trump on Friday includes a reduction of the corporate tax rate to 21% from the current 35% and limits on the deductibility of corporate interest payments, among other provisions that dramatically revamp corporate taxes.
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(END) Dow Jones Newswires
December 27, 2017 04:33 ET (09:33 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.