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Citigroup CFO Sees $20 Billion Charge If Senate Tax Bill Enacted

Dakin Campbell
The U.S. Capitol stands at sunrise in Washington, D.C., U.S., on Thursday, Nov. 30, 2017. Senate Republicans are looking to approve their tax-overhaul legislation as soon as Thursday night -- but wrangling continues over whether to include a trigger for tax increases if economic growth doesn\'t meet revenue targets. Photographer: Bloomberg/Bloomberg

Citigroup Inc. expects to take a noncash charge to earnings of about $20 billion if the U.S. Senate’s version of the tax reform bill is enacted, Chief Financial Officer John Gerspach said.

The hit to profit would in part stem from the bank writing down its deferred tax assets in the period the bill is signed, Gerspach said Wednesday at an investor conference. While analysts had expected a large writedown for Citigroup, estimates had previously been around $12 billion. JPMorgan Chase & Co. said Tuesday it expects a charge of as much as $2 billion.

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