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image: Bloomberg News

Tax cuts were supposed to juice the economy, but banks aren’t seeing it

Is the tax revamp signed into law in December helping banks?

One quarter in, earnings results show that it’s complicated.

On Friday, JPMorgan Chase JPM, -2.71% said its quarterly profit jumped by more than one-third to an all-time high, helped along by hundreds of billions in tax savings. The banks all saw their tax rates slashed—Wells Fargo’s went from about 30% a year ago to 18.8% this quarter, it said in its release.

That helped Wells WFC, -3.43% JPMorgan, and Citigroup C, -1.55% all report earnings for the quarter that beat analyst expectations.

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