Morgan Stanley (MS) on Thursday said it expects its fourth-quarter earnings to include a $1.25 billion hit from the recently enacted tax overhaul legislation.
In a regulatory filing, Morgan Stanley said it will post a $1.4 billion tax provision, largely from writing down the value of deferred tax assets, which are past losses and other items that can be used to defray future tax bills.
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However, that provision will be partially offset by a $160 million net benefit, primarily from the remeasurement of reserves and related interest from the status of multi-year Internal Revenue Service tax examinations.
Morgan Stanley's announcement follows similar ones from other banks. Goldman Sachs Group Inc. (GS) last week said it would record a $5 billion charge related to the tax overhaul, while Bank of America Corp. (BAC) expects earnings to be hurt by $3 billion, largely from write-downs on deferred tax assets.
Morgan Stanley shares were flat premarket.
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(END) Dow Jones Newswires
January 05, 2018 07:34 ET (12:34 GMT)