January 8, 2018 / 2:33 PM / a year ago

Canada's TD Bank to take $400 million hit from tax reforms in first quarter

FILE PHOTO: A Toronto-Dominion Bank (TD) sign is seen outside of a branch in Ottawa, Ontario, Canada on May 26, 2016. REUTERS/Chris Wattie/File Photo

(Reuters) - Canada’s Toronto-Dominion Bank (TD.TO) said on Monday it would take a hit of $400 million in the first quarter related to the remeasurement of certain net deferred tax assets as a result of U.S. President Donald Trump’s tax reforms. [nCNWwYw14a]

The sweeping tax code changes enacted in late December cuts the corporate tax rate to 21 percent from 35 percent and were expected to mean short-term pain but long-term gain for U.S.-based corporations. [nL1N1OT0PN]

Several U.S. big banks, like Goldman Sachs (GS.N), Morgan Stanley (MS.N) and Citigroup (C.N) have said they will take a hit in their fourth-quarter earnings because of the tax reform.

Reporting by Akshara P in Bengaluru; Editing by Martina D'Couto

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