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One group getting a bit of a boost as banks announce their fourth-quarter earnings: Charities.
JP Morgan, Wells Fargo and PNC all indicated they had boosted charitable contributions in the fourth quarter.
The banks didn't go into why, but making the contributions in 2017 rather than waiting until 2018 benefits them under the new tax law. Since the corporate tax rate is declining from 35% to 21%, making the contributions in 2017 gets them out of more taxes than would be the case than if they had waited till the new rate kicked in.
UPDATE: Marianne Lake, JPMorgan's chief financial officer, said on the bank's conference call that JPMorgan had made contributions to its foundation in 2017 "in part in anticipation of tax reform."
JPMorgan said it made higher contributions to its charitable foundation in the fourth quarter, and Wells Fargo said it increased its charitable donations by $103 million compared to the third quarter. PNC said last month - the same day President Trump signed the tax-overhaul bill into law - that it would contribute $200 million to its foundation, which supports early-childhood education.
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Source : https://www.wsj.com/livecoverage/jpmorgan-wells-fargo-4q17-earnings