Five of the nation's largest banks — Goldman Sachs, JPMorgan Chase & Co., Wells Fargo, Citigroup and Bank of America — brought in more than $2.5 billion in benefits under new federal tax law, The Wall Street Journal reports.
Here are four things to know about this first wave of tax savings.
1. While reflecting only 10 percent of big banks' combined income, tax-related earnings played a significant role in boosting big banks' first-quarter profits year over year. Goldman saw first-quarter profits climb 26 percent from the same period a year prior, which included a tax lift of about $232 million.
2. Further analysis of the banks' first-quarter results by WSJ revealed when omitting Wells Fargo's tax benefit from its earnings, the bank would have seen its year-over-year profit decline in the first quarter.
3. Earnings growth for JPMorgan Chase and Co. would have been cut from 35 percent to 28 percent if its results didn't include the tax benefits, while Goldman's earnings growth would have decreased by a least 25 percent.
4. "Still, the new data suggests investors may have to look below the surface of companies' announced results to get a true sense of how their operations are performing," according to WSJ.
More articles on business:
Microsoft, Facebook among 30+ tech giants to sign Cybersecurity Tech Accord
T-Mobile fined $40M for faking ring tones to cover up failed calls
Starbucks will close 8k stores for an afternoon for racial bias training