The chief executives of Royal Bank and Bank of Montreal are expecting first-quarter writedowns due to U.S. President Donald Trump’s tax changes, but also significant tax savings on future earnings.

RBC CEO Dave McKay told a conference in Toronto Tuesday that he expects a writedown of US$150 million, plus or minus 10 or 15%, in the fiscal first quarter.

Read: Tax changes to look for in budget 2018

However, he says Canada’s biggest bank by market capitalization is expecting an annual tax-positive benefit of US$150 million to US$200 million.

BMO CEO Darryl White confirmed during the industry conference the bank’s prior guidance that it would reduce its net deferred tax asset by US$400 million, but says it also expects a positive economic impact of $100 million annually.

Tax changes signed by Trump late last year cut the corporate income tax rate to 21%, from 35%.

Read: CRA makes one change for Q1 2018 interest rates

RBC’s and BMO’s comments at an industry conference Tuesday come after Toronto-Dominion bank said Monday it expects its fiscal first-quarter results will be cut by roughly US$400 million, but the lower corporate rate is expected to have a “positive” effect on its future earnings.

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