The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Competing with US banks just got harder

Tax changes are likely to boost their performance far beyond US domestic markets.

If the 2017 results announced by the big US banks since the start of the year are anything to go by, 2018 could be shaping up to be a bumper year – certainly in comparison to the most recent quarters. 

Banks often throw in the kitchen sink when times are tough, hoping to bury unpleasantness, like a 20% drop in M&A wallet or plummeting fixed income revenues, under some doubtless necessary but perhaps over-cautious provision, the excess of which can be written back in the future when the dust has settled and when a fillip might really be needed.

This time they didn’t even have to do it themselves.

They were hit by big one-off charges from the US tax reforms announced in December and, sure enough, they didn’t seem too bothered. 

It is easy to see why. Those charges are merely the most immediate piece of a reform that will see them all benefit from substantially lower effective tax rates in the future. 

And contrary to the supposed intentions of the reforms, even some of those one-off charges have rewarded them. 

As JPMorgan helpfully reminded us, deemed repatriation of overseas earnings is just that – deemed.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree