By Allison Prang 
 

Morgan Stanley (MS) on Thursday said it expects its fourth-quarter earnings to include a $1.25 billion hit from the recently enacted tax overhaul legislation.

In a regulatory filing, Morgan Stanley said it will post a $1.4 billion tax provision, largely from writing down the value of deferred tax assets, which are past losses and other items that can be used to defray future tax bills.

However, that provision will be partially offset by a $160 million net benefit, primarily from the remeasurement of reserves and related interest from the status of multi-year Internal Revenue Service tax examinations.

Morgan Stanley's announcement follows similar ones from other banks. Goldman Sachs Group Inc. (GS) last week said it would record a $5 billion charge related to the tax overhaul, while Bank of America Corp. (BAC) expects earnings to be hurt by $3 billion, largely from write-downs on deferred tax assets.

Morgan Stanley shares were flat premarket.

 

Write to Allison Prang at allison.prang@wsj.com

 

(END) Dow Jones Newswires

January 05, 2018 07:34 ET (12:34 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
Morgan Stanley (NYSE:MS)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Morgan Stanley Charts.
Morgan Stanley (NYSE:MS)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Morgan Stanley Charts.