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.
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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)