US tax law pushes Deutsche into loss for 2017

Germany's biggest lender Deutsche Bank said Friday it would report "a small full-year after-tax loss" for 2017, largely owing to changes in the US tax system passed late last year. "As a result of the recent enactment of the Tax Cuts and Jobs Act, Deutsche Bank expects to recognise an approximate 1.5-billion-euro ($1.8 billion) non-cash tax charge for the fourth quarter," the group said in a statement.
Deutsche therefore "expects to record a small full-year after-tax loss," it added. Although the US tax reform slashes the rate from 35 percent to 21 percent, numerous large firms such as BP and Goldman Sachs have reported that it will inflict short-term pain.
A lower tax rate means that tax breaks Washington offered for companies in financial difficulty will be correspondingly smaller. But looking to the future, Deutsche noted that the changes would reduce its average effective tax rate worldwide to around 30 percent from January 1.