The U.S.-based global investment banking firms Goldman Sachs and Bank of America announced their 2017 financial results on Wednesday.
Goldman Sachs saw its revenue decline to $7.83 billion by 4.5 percent in the fourth quarter of 2017 from $8.2 billion the same period in the previous year.
While the firm had a net income of $2.35 billion in the fourth quarter of 2016, it had a net loss of $2.14 billion in the final quarter of last year.
'The estimated impact of Tax Legislation was an increase in income tax expense of $4.4 billion,' the bank said in a statement.
The U.S. President Donald Trump administration's tax reform law is expected to boost the net income and revenue of the American companies in the long-run.
However, a lower tax rate means the value of U.S. companies' deferred tax assets will decrease. Since the new tax code makes those deferred tax assets less valuable, the U.S. firms can make a one-time charge for them in their financial statements.
Bank of America had a net income of $4.7 billion in the last quarter of 2016, but this fell to $2.4 billion in the fourth quarter of 2017.
The net income of $2.4 billion also includes a charge of $2.9 billion due to the new tax law. Excluding the administration's Tax Act, the firm's net income in the fourth quarter of 2017 would be $5.3 billion, the bank said.
After the release of financial results, Bank of America saw its stock price fell to as low as $30.34 per share on Wednesday around 1500 GMT with a 2.9 percent loss.
Goldman Sachs shares declined to $248.84 around the same time with a daily loss of 3.7 percent.
By Ovunc Kutlu in New York
Anadolu Agency
ovunc.kutlu@aa.com.tr