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American Express Credit to post $603M loss for 2017 due to tax reform

American Express Credit Corp. expects to report a net loss of $603 million for full year 2017, compared to net income of $197 million for 2016.

Results reflect an increase in tax provision due to U.S. tax reforms, American Express said in a regulatory filing. Additionally, the company will post provisions for losses of $244 million for 2017, compared to $151 million for 2016, and a ratio of earnings to fixed charges of 1.50 in 2017, compared to 1.62 in 2016.

Two provisions of the newly passed Tax Cuts and Jobs Act drove a 2017 charge of $858 million which impacted the company's fourth quarter 2017. In addition, the reduction of the federal tax rate required the company to remeasure its U.S. deferred tax assets and liabilities to 21% from 35%.