US tax cuts may result in Credit Suisse third-year loss

Credit Suisse (CSGN.S), the largest bank in Switzerland, predicts that the U.S. plan to cut corporate tax rates will result in it losing billions of dollars due to a reduction in deferred tax assets (DTA) and third consecutively Year recorded annual loss.

Credit Suisse estimates that the current drastic downgrade of the corporate tax bill that Congress is currently discussing will cost it 2.1 billion Swiss francs ($ 2.1 billion) while fellow UBS Corp. (UBSG.S) is expected to cut taxes Reduce the deferred tax assets of 3 billion Swiss francs.

U.S. lawmakers are discussing lowering the corporate tax rate from the current 35% to 20%. Republicans want to pass the final bill before Christmas and hand it over to President Trump. If successful, this will be the first major tax reform in the United States in 31 years.

If Trump signs the bill this year, the big Swiss banks will also make a loss this year. The above data suggest that Credit Suisse will make a full-year loss in 2017, reporting a net revenue of SFr1.1 billion for the first nine months of 2017.