US investment bank JPMorgan Chase has revealed that it paid £358 million in tax on bonuses paid in Britain in the last quarter alone. The tax was due after former Chancellor Alistair Darling introduced a one off tax requiring banks to pay a 50 per cent tax on any discretionary bonus payments over £25,000. The tax has netted the Treasury a reported £2.5 billion - five times the amount initially estimated.
Despite the outlay, the banks second quarter results still exceeded expectations, though it is clear from the 7.6 per cent fall in revenue that banks continue to find it relatively difficult in a tough economy. Though net income rose from $2.72 billion from the same quarter in 2009 to $4.8 billion, while fixed income revenue fell considerably. Positive performances were, however, recorded in the retail banking unit, which includes loans and savings accounts, as well as in credit card services.
The credit card services division had made a $672 million loss in the same quarter of 2009, but managed a turnaround of nearly $1 billion with earnings of $343 million in the last quarter.
US Bank Reveals UK Bonus Tax Spend
Financial Services > e-banking > Banking news
US Bank Reveals UK Bonus Tax Spend
Fri, 16 Jul 2010
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