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Capital One Financial cuts stock repurchase program to US$1.00bn as result of US tax cut

The financial services company said the anticipated cut in the carrying value of certain tax assets and additional tax expenses is expected to result in a US$1.9bn charge against net income
Tax cuts
Capital One expects to maintain its quarterly dividend of 40 US cents a share

Capital One Financial Corp. (NYSE:COF) has cut its stock repurchase program to US$1.00bn from US$1.85bn, as a result of the tax cut signed by President Donald Trump last week.

The financial services company said it resubmitted its 2017 Comprehensive Capital Analysis and Review plan to the Federal Reserve Board to address certain "weaknesses" identified in the capital planning process.

The company said the reduced buy-back program was a result of the anticipated cut in the carrying value of certain tax assets and additional tax expenses, which it expects to result in a US$1.9bn charge against net income.

Capital One said the Tax Act also eliminates the ability to carry-back net operating losses against prior period taxable income.

The company expects to maintain its quarterly dividend of 40 US cents a share.

In afternoon trading in New York, Capital One shares were 0.9% lower at US$99.57.

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