JPMorgan Chase & Co., the biggest U.S. bank by assets, reported a 37 percent drop in quarterly profit on Friday due to a $2.4 billion charge related to the new federal tax law.

The lender's net profit fell to $4.23 billion, or $1.07 per share, in the fourth quarter ended Dec. 31, from $6.73 billion, or $1.71 per share, a year earlier.

Excluding the tax law impact and other items, net income was $6.7 billion, or $1.76 per share. 

JPMorgan, the biggest U.S. bank by assets, reported a higher-than-expected quarterly profit as gains in net interest income offset a slowdown in trading revenue.

The bank recorded the $2.4 billion charge to cover a new one-time repatriation tax on income it has kept abroad and to adjust the value of its deferred tax assets and liabilities.

The sweeping changes in the tax law enacted by President Donald Trump are expected to mean short-term pain but long-term gain for large U.S. banks that do business worldwide.

“The enactment of tax reform in the fourth quarter is a significant positive outcome for the country. U.S. companies will be more competitive globally, which will ultimately benefit all Americans,” Chief Executive Officer Jamie Dimon said in a statement.

Net profit, adjusted to exclude the tax charge and other one-time items, was $6.7 billion, or $1.76 per share, for the fourth quarter ended Dec. 31, the bank said.

Analysts had expected earnings of $1.69 per share on average, according to Thomson Reuters I/B/E/S.

Net revenue rose 4.6 percent to $25.45 billion, beating the estimate of $25.15 billion.

Net interest income rose 11 percent to $13.4 billion on higher interest rates and loan growth. Markets revenue, however, fell 22 percent to $4.43 billion.

Net income, reported under generally accepted accounting principles (GAAP) and including the tax charge, declined to $4.23 billion, or $1.07 per share, in the fourth quarter ended Dec. 31, from $6.73 billion, or $1.71 per share, a year earlier.