US BANKING SECTOR
Citigroup to profit least in corporate tax rate cut
Stock analysts have worked through broad tax proposals by Republicans and president-elect Donald Trump and estimate that a new tax law could increase Citigroup earnings per share only half as much as some rivals
Citigroup stands to get a smaller profit boost than other big US banks from lower corporate tax rates expected from the new government in Washington. A number of bank stock analysts have worked through broad tax proposals by Republicans and president-elect Donald Trump and estimate that a new tax law could increase Citigroup earnings per share only half as much as some rivals. At the same time, Citigroup may have to slash $4bn or more of the value of an unusually large income tax asset that the bank holds as a result of losses it suffered during the financial crisis of 2007-09. "If the US cuts corporate tax rates, they will still benefit, just benefit less," said Barclays analyst Jason Goldberg. The differences between Citigroup and its competitors highlight how corporations have different interests in the details of a new tax law, such as how foreign income is treated and how bank business customers might be favoured less than individuals. The blueprint for tax reform put forward b...
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