Donald Trump’s US tax reforms are expected to hit European banks, with Barclays (LON: BARC) expecting a write-down of about £1 billion on its annual post-tax profit.

Barclays warned investors in a statement on Wednesday that the tax reforms would dent the bank’s capital position and reduce the lender’s ability to deduct past losses against future tax bills.

According to the bank, the new reforms will “positively impact” its future post-tax earnings in the United States.

“Due to the uncertain practical and technical application of many of these provisions, it is currently not possible to reliably estimate whether BEAT will apply and if so, how it would impact Barclays,” they added.

Barclays is not the only lender warning against Trump’s new tax reforms. Credit Suisse (NYSEARCA: UGAZ) said earlier this week that it expected the changes to trigger a $2.3 billion write-down of the fourth-quarter results, risking a full-year loss.

Currently, large corporations in the US are able to cut their tax bills significantly. Large financial institutions are able to use previous losses to offset future profits. The new tax cuts from 35 percent to 21 percent will mean institutions will have to reassess the value of their “deferred tax assets”.

Barclays already saw a £628 million pound loss in the first nine months of 2017 following news of its exit from Africa. The £1 billion charge to account for changes made to the US taxing system is expected to push the UK lender further into the red.

“Regulatory approval for the separation of Barclays and Barclays Africa is an important step forward and allows us to move closer to our goal of reducing our shareholding in Barclays Africa to the point where we can achieve regulatory deconsolidation,” said Barclays chief executive Jes Staley following news of the Africa exit.

“It represents a key milestone in the execution of our strategy and the restructuring of Barclays,” he added.