Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone
The chief executives of Royal Bank and Bank of Montreal are expecting first-quarter writedowns due to U.S. President Donald Trump’s tax changes, but also significant tax savings on future earnings.
RBC CEO Dave McKay told a conference in Toronto Tuesday that he expects a writedown of $ 150 million (U.S.), plus or minus 10 or 15 per cent, in the fiscal first quarter.
However, he said Canada’s biggest bank by market capitalization is expecting an annual tax-positive benefit of $ 150 million to $ 200 million.
Republicans get their tax bill, but ‘class warfare’ looms at midterms
Article Continued Below
RBC hit with online, mobile banking service disruptions day after TD investment platform issues
BMO raises dividend, but quarterly profit slides
BMO CEO Darryl White confirmed during the industry conference the bank’s prior guidance that it would reduce its net deferred tax asset by $ 400 million, but said it also expects a positive economic impact of $ 100 million annually.
Tax changes signed by Trump late last year cut the corporate income tax rate to 21 per cent, from 35 per cent.
RBC and BMO’s comments at an industry conference today comes after Toronto-Dominion bank yesterday said it expects its fiscal first-quarter results will be cut by roughly $ 400 million, but the lower corporate rate is expected to have a “positive” effect on its future earnings.