– After shares in JP Morgan (NYSE:JPM) initially reacted to the downside, falling more than 1% in pre-market trade Friday, investors seemed to accept the fact that the hit to income was a result of the recent tax reform and shares managed to once again turn higher.

The bank reported that net income for the last three months of 2017 was $4.2 billion with earnings per share (EPS) of $1.07, while consensus was looking for earnings of $1.69 a share.

However, the largest financial services firm by assets noted that, excluding significant items, fourth quarter income would have been $6.7 billion, or $1.76 per share.

Under the heading for significant items, JP Morgan highlighted that it took a charge of $2.4 billion, or $0.69 per share, due to the recent tax overhaul.

Meanwhile, the company’s revenue came in at $24.2 billion, compared to the forecast of $25.18 billion.

Chairman and chief executive Jamie Dimon commented that 2017 was a record year for JP Morgan as the bank added clients and customers and delivered a “record EPS”.

“The enactment of tax reform in the fourth quarter is a significant positive outcome for the country,” Dimon stated.

“U.S. companies will be more competitive globally, which will ultimately benefit all Americans,” he explained.

“The cumulative effect of retained and reinvested capital in the U.S. will help grow the economy, ultimately growing jobs and wages,” he added.

“We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments,” Dimon concluded.

Prior to the report, JP Morgan shares had been trading mostly flat, barely in positive territory. The initial reaction to the report saw shares drop more than 1%. However, at 7:15AM ET (12:15GMT), shares once again changed direction and gained 0.44% to $111.32.