The document provides guidance on preparing a Monthly Bank Performance Report. The report summarizes key performance metrics of a bank's microfinance product on a monthly basis, including size, quality, and profitability. It consists of product performance data from MIS reports and a statement of income/expenses. The Microfinance Supervisor is responsible for preparing the report using data from various sources to monitor the microfinance unit's performance and determine if expectations are being met.

1. PREPARING THE MONTHLY BANK PERFORMANCE REPORT (Draft)
1. What is the Monthly Bank Performance Report?
The Monthly Bank Performance Report shows the performance of the microfinance
product of the bank on a monthly basis. It shows the size, quality, and profitability of the
bank’s microfinance operations.
2. What is the Importance of the Monthly Bank Performance Report?
The monthly bank performance report enables management to regularly monitor the
performance of the microfinance product and the accomplishments of the microfinance
unit.
Without the kind of information that the report provides, management would have
difficulty knowing whether the bank’s expectations on the performance of the new
product are being met, and consequently deciding on the next steps to take.
3. Format of the Monthly Bank Performance Report
The report consists of two main parts: the product performance data, which shows the
size and quality of the bank’s microfinance operations; and the statement of income and
expenses, which shows whether the bank is making money from its microfinance
operation.
The report also compares the performance of the product during the current month with
that of the previous month.
4. Sources of Information
The data for the product performance data are sourced from the MIS reports.
The data for the statement of income and expenses, on the other hand, are sourced
from the bank’s financial statements.
5. Who Is Responsible for Preparing the Monthly Performance Report?
The Microfinance Supervisor is responsible for preparing the report. The report should be
completed as soon as the branch financial statements have been prepared by the branch
bookkeeper or accountant.
The report should be reviewed by the branch bookkeeper or accountant and by the
branch manager before its submission to head office.
A copy of the report should be submitted to RBAP-MABS for project monitoring purposes.

2. 6. Product Performance Data
6.1 Client Outreach
Performance Data Current Month Previous Month
-Number of Active Borrowers
-Number of New Borrowers
-Number of Repeat Loans
-Loan Portfolio Balance
• Number of Active Borrowers - total number of clients with outstanding loans as of the
reporting date. Information can be derived from the MIS reports.
• Number of New Borrowers - total number of clients borrowing for the first time from the
bank during the month. Includes regular loan clients of the bank that have, for whatever
reason, shifted to borrowing under its microfinance loan facility. Information can be derived
from the MIS reports (i.e. AO Performance Report).
• Number of Repeat Loans – total number of repeat loans granted to existing microfinance
borrowers. Information can be derived from the MIS reports (i.e. AO Performance Report).
• Loan Portfolio Balance – the total balances of all outstanding microfinance loans as of the
reporting date. Only includes the principal amount of the loan. Information can be derived
from the MIS reports.
6.2 Micro Deposits
Performance Data Current Month Previous Month
-Number of Deposit Accounts <P15,000 Outstanding
-Amount of Deposit Accounts < P15,000
• Number of Deposit Accounts < P15,000 Outstanding - total number of all deposit accounts
(including those of non-microfinance clients) with outstanding deposit balances of less than
P15,000, as of the reporting date. Includes all types of deposit accounts (i.e., savings, time,
& current accounts). Data can be obtained from the monthly reports submitted by the bank
to PDIC.
• Amount of Deposit Accounts < P15,000 - total amount of all deposit accounts with balances
below P15,000. Data can be obtained from the monthly reports submitted by the bank to
PDIC.
6.3 Size of the Microfinance Unit
Performance Data Current Month Previous Month
-Number of Microfinance field staff
• Number of Microfinance field staff - total number of Account Officers working full-time in the
microfinance unit. Excludes MFU staff, if any, that are not directly involved in generation and
supervision of microfinance loan accounts, such as the MFU Supervisors and loan
bookkeepers or clerks.

3. 6.4 Loan Disbursements
Performance Data Current Month Previous Month
-Number of Loans Disbursed During the Month
-Cumulative Number of Borrowers
-Amount of Loans Disbursed During the Month
-Cumulative Amount of Loans Disbursed
• Number of Loans Disbursed During the Month - Total number of loans disbursed during the
month. The data can be obtained from the MIS report (i.e. AO Performance Report). The
total number of loans disbursed should be equal to the sum of the Number of New Borrowers
and Number of Repeat Loans.
• Cumulative Number of Borrowers - Total number of loans disbursed since the start of the
microfinance lending operation. Equal to the sum of the number of new borrowers in the
previous month and that of the current month.
• Amount of Loans Disbursed During the Month - Total amount of loans disbursed during the
month. The data can be obtained from the MIS report (i.e. AO Performance Report).
• Cumulative Amount of Loans Disbursed - Total amount of loans disbursed since the start of
the microfinance lending operation. Equal to the sum of the amount of loans disbursed in the
previous month and that of the current month
6.5 Loan Portfolio Quality
Performance Data Current Month Previous Month
-Loan Amount Overdue
-Loan Amount Overdue (%)
-Number of Accounts With Loan Amount Overdue
-Portfolio At Risk 1 Day or More
-Portfolio At Risk More than 7 Days
-Portfolio At Risk More than 30 Days
-Portfolio At Risk 1 Day or More (%)
-Portfolio At Risk More than 7 Days (%)
-Portfolio At Risk More than 30 Days (%)
• Loan Amount Overdue - Total amount of past due installments (principal amount only). Data
can be obtained from the MIS report (i.e. Portfolio At Risk Report).
• Loan Amount Overdue (%) - Total amount of past due installments (principal amount only)
as a percentage of Loan Portfolio Balance. Data can be obtained from the MIS report (i.e.
Portfolio At Risk Report).
• Number of Accounts with Loan Amount Past Due – Number of loans with at least one past
due installment. Data can be obtained from the MIS report (i.e. Portfolio At Risk Report).
• Portfolio At Risk 1 Day or More - Total balance of all loans with at least one past due
installment. Data can be obtained from the MIS report (i.e. Portfolio At Risk Report).
• Portfolio At Risk More than 7 Days - Total balance of loans with installments that are past
due for more than 7 days. Data can be obtained from the MIS report (i.e. Portfolio At Risk
Report).
• Portfolio At Risk More than 30 days - Total balance of loans with installments that are past
due for more than 30 days. Data can be obtained from the MIS report (i.e. Portfolio At Risk
Report).

4. • PAR Ratio, More than 1 Day - (Portfolio At Risk 1 Day or More)/(Loan Portfolio Balance) x
100
• PAR Ratio, More than 7 Days - (Portfolio At Risk More Than 7 Days)/(Loan Portfolio Balance)
x 100
• PAR Ratio, More than 30 Days - (Portfolio At Risk More Than 30 Days)/(Loan Portfolio
Balance) x 100
7. Income and Expenses
7.1 Financial Income
Statement of Income and Expenses Current Month Previous Month
Financial Income
-Interest Income on Loans
-Service Charge
-Penalty Fee on Loans
Total Financial Income
• Interest Income on Loans - Total interest income earned for the month. Data can be
obtained from the MIS report (i.e. AO Performance Report).
• Service Charge – Total service charges earned for the month. Data can be obtained from the
branch bookkeeper or accountant. If the service charge is deducted from the loan proceeds
(as it usually is), the amount should be equal to the rate (%) times the total amount of loans
disbursed during the month.
• Penalty Fee on Loans – Total penalty fees collected on late installment payments during the
month. Data can be obtained from the branch bookkeeper or accountant.
• Total Financial Income - Sum of Interest Income, Service Fee, and Penalty Fee.
7.2 Total Financial Expenses
Statement of Income and Expenses Current Month Previous Month
Financial Expense
-Interest Expense on Deposits
-Interest Expense on Borrowed Funds
Total Financial Expenses
• Interest Expense on Deposits - Interest expense on deposits incurred for the month.
• Interest Expenses on Borrowed Funds - Interest expenses on borrowings for the month.
• Total Financial Expenses – Sum of the Interest Expense on Deposits and Interest Expense on
Borrowed Funds

5. Estimation Procedure
7.2.1 If the Microfinance Loan Portfolio Is Funded Solely From Deposits
(1) Calculate the combined interest on deposits using the formula shown in the following
table:
Account
Average
Monthly
Balance (A)
Percent of Total
Deposits (B)
Deposit
Interest Rate
(C)
Weighted
Cost of Funds
(D= B x C)
Reserve
Requirement
(E)
Cost of
Funds
(D/1-E)
Savings 6,000,000 60.0% 4.0% 2.40% 3.0% 2.47%
Time 3,000,000 30.0% 10.0% 3.00% 3.0% 3.09%
Demand 1,000,000 10.0% 0% 0% 11.0% 0
Total 10,000,000 100.0% 5.40% 5.56%
The Average Monthly Balance can be computed by adding up all the month-end deposit
balances in the last 12 months, and then dividing the amount by 12, as shown in the
following table. This can be updated every month by inserting the balances of the current
month and deleting those of the first month in the table.
Month Savings Deposit Time Deposit Demand Deposit
October 31, 2001 5,000,000 2,500,000 500,000
November 30, 2001 6,000,000 3,000,000 1,100,000
December 31, 2001 6,500,000 2,000,000 1,000,000
January 31, 2002 7,000,000 4,000,000 800,000
February 28, 2002 6,000,000 2,000,000 1,300,000
March 31, 2002 5,000,000 3,500,000 500,000
April 30, 2002 6,000,000 3,500,000 1,700,000
May 31, 2002 6,500,000 3,000,000 1,400,000
June 30, 2002 7,000,000 3,500,000 1,200,000
July 31, 2002 6,000,000 3,000,000 800,000
August 31, 2002 6,000,000 3,500,000 700,000
September 30, 2002 5,000,000 2,500,000 1,000,000
Total 72,000,000 36,000,000 12,000,000
Average 6,000,000 3,000,000 1,000,000
(2) Compute the cost of funds of the microfinance loan portfolio by using the formula in the
following table:
Microfinance Loan Portfolio, Previous Month (A) 650,000
Microfinance Loan Portfolio, Current Month (B) 900,000
Average Loan Portfolio (C) = (A+B)/2 775,000
Interest on Deposits, per annum (D) 5.56%
Interest on Deposits, per month (E) = (D/12) 0.4633%
Interest Expense on Deposits, Current Month (C x E) 3,591

6. 7.2.2 If the Microfinance Loan Portfolio Is Funded Solely From Borrowings
If the microfinance loan portfolio is funded by only one source (e.g. PCFC), the interest
expense on borrowed funds can be computed as follows:
Microfinance Loan Portfolio, Previous Month (A) 650,000
Microfinance Loan Portfolio, Current Month (B) 900,000
Average Loan Portfolio (C) = (A+B)/2 775,000
Interest on PCFC Funds, per annum (D) 13.00%
Interest on PCFC Funds, per month (E) = (D/12) 1.0833%
Interest Expense on Borrowed Funds, Current Month (C x E) 8,396
If the microfinance loan portfolio is funded by several sources (e.g. PCFC, BSP, LBP), the
interest expense on borrowed funds can be computed as follows:
(1) Compute the average cost of borrowed funds:
Source of Borrowed Funds Average Amount
Outstanding
(A)
% of Total
Borrowings
(B)
Interest Rate
(C)
Weighted
Cost of Borrowed
Funds
(B x C)
PCFC 200,000 57.14% 13.0% 7.43%
BSP 100,000 28.57% 9.0% 2.57%
LBP 50,000 14.29% 12.0% 1.71%
Total 350,000 100.00 11.71%
The Average Amount Outstanding is computed by adding the previous month’s balance
with the current month’s balance and, then, dividing the total by 2,as shown in the table
below.
Source of Borrowed Funds
Previous Month
Balance
(A)
Current Month
Balance
(B)
Average
Amount Outstanding
(A+B)/2
PCFC 300,000 100,000 200,000
BSP 150,000 50,000 100,000
LBP 75,000 25,000 50,000
Total 525,000 175,000 350,000
(2) Compute the interest expense on borrowed funds.
Microfinance Loan Portfolio, Previous Month (A) 650,000
Microfinance Loan Portfolio, Current Month (B) 900,000
Average Loan Portfolio (C) = (A+B)/2 775,000
Interest on Borrowed Funds, per annum (D) 11.71%
Interest on PCFC Funds, per month (E) = (D/12) 0.9758%
Interest Expense on Borrowed Funds, Current Month (C x E) 7,562

7. 7.2.3 If the Microfinance Loan Portfolio Is Funded From Both Deposits and
Borrowings
(1) Compute the Average Cost of Funds, as follows:
Account Average
Monthly
Balance (A)
Percent of Total
Funds (B)
Interest Rate
(C)
Weighted
Cost of Funds
(D= B x C)
Reserve
Requirement
(E)
Cost of
Funds
(D/1-E)
Deposits
Savings 6,000,000 46.15% 4.0% 1.85% 3.0% 1.90%
Time 3,000,000 23.08% 10.0% 2.31% 3.0% 2.38%
Demand 1,000,000 7.69% 0% 0% 11.0% 0%
Loans
PCFC 1,000,000 7.69% 13.0% 0.01% 0.01%
BSP 1,000,000 7.69% 9.0% 0.69% 0.69%
LBP 1,000,000 7.69% 12.0% 0.92% 0.92%
Total 13,000,000 100.0% 6.77% 6.90%
(2) Compute the interest expense on deposits and borrowed funds.
Microfinance Loan Portfolio, Previous Month (A) 650,000
Microfinance Loan Portfolio, Current Month (B) 900,000
Average Loan Portfolio (C) = (A+B)/2 775,000
Interest on Deposits & Borrowed Funds, per annum (D) 6.90%
Interest on Deposits & Borrowed Funds, per month (E) = (D/12) 0.575%
Interest Expense on Borrowed Funds, Current Month (C x E) 4,456
7.3 Gross Financial Margin
Statement of Income and Expenses Current Month Previous Month
Total Financial Income
Financial Expense
-Interest Expense on Deposits
-Interest Expense on Borrowed Funds
Total Financial Expenses
Gross Financial Margin
• Gross Financial Margin – the difference of Total Financial Income and Total Financial
Expenses. Also called spread, which is the difference of the loan interest rate and the cost of
funds expressed as percentage (%) of the loan portfolio.

8. 7.4 Loan Loss Provision
Statement of Income and Expenses Current Month Previous Month
Total Financial Income
Financial Expense
-Interest Expense on Deposits
-Interest Expense on Borrowed Funds
Total Financial Expenses
Gross Financial Margin
Loan-Loss Provision
• Loan-Loss Provision - the amount allocated for increasing the loan-loss reserve to an
adequate level for covering expected losses from loan defaults. The loan-loss provision is an
expense item, while the loan-loss reserve is found in the balance sheet.
The amount to be allocated for loan-loss provision is based on the aging of portfolio at risk as
shown in the MIS report (Portfolio At Risk Report). An example of the computation of the
loan-loss provision is shown below.
Portfolio At Risk
Total Outstanding
Balance
(A)
Loan-Loss
Reserve (%)
(B)
Required Loan-
Loss Reserve
(C = A x B)
Loan-Loss
Reserve, Previous
Month (D)
Surplus/
(Deficit)
(D – C)
Current Loans 865,000 2.0% 17,300
1-7 days 20,000 5.0% 1,000
8-14 days 5,000 10.0% 500
15-30 days 4,000 25.0% 1,000
31-60 days 3,000 50.0% 1,500
61-90 days 2,000 75.0% 1,500
Over 90 days 1,000 100.0% 1,000
Total 900,000 23,800 20,000 -3,800
The Total Outstanding Balance of delinquent loans classified by ages can be found in the Portfolio At Risk Report.
Loan-Loss Reserve (%) is the percentage of the loan portfolio that the bank expects would not be recovered and
which would need to be eventually written-off. The specific allocations for each age category will depend on the
bank’s experience in recovering delinquent loans.
Required Loan-Loss Reserve is the amount that should be provided to cover for losses if bad loans are written off.
Reserve, Previous Month can be found in the previous month’s bank performance report.
The table above shows that the required loan-loss reserve for the current month should not
be less than P23,800. The loan-loss reserve as of the previous month’s report, however, is
only P20,000, which means that the loan-loss reserve should be increased by P3,800. In
order to increase the loan-loss reserve to P23,800, a loan-loss provision of P3,800 should be
provided during the current month.

9. 7.5 Net Financial Margin
Statement of Income and Expenses Current Month Previous Month
Total Financial Income
Financial Expense
-Interest Expense on Deposits
-Interest Expense on Borrowed Funds
Total Financial Expenses
Gross Financial Margin
Loan-Loss Provision
Net Financial Margin
• Net Financial Margin – the difference of the Gross Financial Margin and the Loan-Loss
Provision
7.6 Direct Operating Expenses
Statement of Income and Expenses Current Month Previous Month
Direct Operating Expenses
-Microfinance staff salaries & benefits
-Gross Receipts Tax
-Depreciation – MFU Equipment
-Transportation expense
-Supplies
-Communication
-Training & Professional fees
-Other direct expenses
Total Direct Expenses
Direct Operating Expenses , also called incremental expenses, are those expenses that can be
directly attributable to the microfinance product. These are expenses that the bank will not have
incurred without its microfinance operation. Examples of these are shown in the table above.
Microfinance staff salaries and benefits – the basic salary and allowances received by full-time microfinance staff. Those
of other staff working part-time in the microfinance unit (e.g part-time microfinance supervisor) are excluded here.
Gross Receipts Tax - computed as 5% of the total financial income
Depreciation-MFU Equipment - the depreciation expense for equipment used exclusively by the microfinance unit. The
depreciation period and method should be based on the accounting policy of the bank.
Transportation expense - expenses incurred by the microfinance staff for motorcycle gas and oil, or for transportation
fares in public utility vehicles. Includes expenses for lodging and meals while on travel, in cases where these are provided
Supplies - expenses for stationeries, loan forms and documents, and other office supplies used by the microfinance unit
Communications - expenses incurred for phone calls, fax and mails
Training & Professional Fees – expenses for training and technical assistance provided to the microfinance unit by training
organizations and other microfinance service providers such as the RBAP-MABS
Other Direct Expenses - other expenses incurred by the microfinance unit such as representation expenses, membership
fees in microfinance networks, meetings, and special events.

10. There are expenses that are relatively easy to directly attribute to the microfinance unit.
Examples of these are the salaries and benefits of the microfinance staff, gross receipts tax,
depreciation of equipments used exclusively by the microfinance unit (e.g. motorcycle,
calculators, office furniture, computer, professional fees, training expenses).
Some expenses, however, may be difficult to directly attribute to the microfinance unit without
separate bookkeeping. These would include expenses for communications, supplies, and repair
and maintenance of equipment, and meals and snacks during meetings.
If an expense is not separately tracked, but is relatively easy to determine, the expense can be
estimated. For example, transportation expenses incurred by the microfinance staff would be
easy to estimate if the staff are given fixed transportation allowance. Office supplies may be
estimated based on the number of loan applications processed and accounts collected daily or
weekly by the microfinance unit. Communications may also be estimated based on the average
phone calls made, and fax messages and mails sent by the microfinance unit.
However, if an expense is difficult to attribute exclusively to the microfinance unit, it would be
best to classify this as an indirect expense and to do cost allocation. The method for allocating
indirect expenses to an operating unit or product of the bank is discussed in the section on
indirect expenses.
Computing for the Depreciation Expenses
The depreciation expense for equipment exclusively used by the microfinance unit may be
estimated as shown in the following table. As previously stated, the depreciation period or
economic life should be based on the bank’s accounting policies.
Item No. of Units
(A)
Cost Per Unit
(B)
Total Cost
(C = A x B)
Economic Life
(No. of Months)
(D)
Monthly
Depreciation
Expense
(C/D)
Motorcycle 2 70,000 140,000 60 2,333.33
Computer 1 25,000 25,000 36 694.44
Printer 1 15,000 15,000 36 416.67
Typewriter 1 12,000 12,000 60 200.00
Calculators 4 500 2,000 36 55.56
Office furniture 4 2,000 8,000 60 133.33
Steel Cabinet 1 1,500 1,500 60 25.00
Total 203,500 3,858.33
7.7 Indirect Operating Expense
Statement of Income and Expenses Current Month Previous Month
Indirect Operating Expenses
-Salaries & Benefits – Other Bank Employees
-Rent
-Light & Water
-Communications
-Depreciation – Other Bank Assets
-Other Indirect Expenses
Total Direct Expenses

11. Indirect Operating Expenses are those expenses that are shared by various units or products of
the bank. Examples of these are shown in the table above.
Salaries & Benefits – Other Bank Employees - these are the salaries and allowances of other bank employees that are
also involved in the microfinance operations of the bank. These will include the manager, the microfinance supervisor (if
handling other responsibilities), cashier, tellers, deposit solicitors (if also involved in the collection of loan payments),
bookkeepers, and even the utility and security personnel.
However, the salaries and allowances of other loan officers who are not, in any way, involved in the microfinance
operation or the product should be excluded (e.g. staff involved in processing regular loans).
If the bank has two microfinance loan products (individual and group loans), the salaries and allowances of the group
loan staff should also be excluded – that is, if the income and expense report being prepared is for the individual loan
product of the bank.
Rent, Light & Water, Communications, Depreciation and Other Indirect Expenses - just like the compensation of other
bank personnel, these expenditures are incurred by the bank whether or not it goes into microfinance. The term “Other
Indirect Expenses” refer to other expense items found in the bank’s income and expense statement.
Before determining how much of the indirect expenses should be attributed to the microfinance
product, two items found in the bank’s income and expense statement (i.e. employee
compensation and depreciation) should be adjusted to eliminate a double-counting of the
microfinance staff’s compensation and equipment depreciation, both of which are classified as
direct expense items.
Adjusting the Salaries & Benefits of Other Bank Employees
Total Monthly Employee Compensation 100,000
Less: Total compensation of MF staff 20,000
Less: Total compensation of other loans staff 25,000
Equals: Salaries & Benefits – Other Employees 55,000
Adjusting the Depreciation Expense for Other Bank Assets
Total Monthly Depreciation Expense 10,000.00
Less: Depreciation expense for MFU equipment 3,853.33
Equals: Depreciation – Other Bank Assets 6,146.66
Note that the adjusted amounts shown in the tables are only the base figures from which the
estimates of the microfinance product’s share of the bank’s operating expenses will be derived.

12. Cost Allocation Methods
Cost allocation is a method for assigning share or indirect costs to individual operating units or
products.
There are several ways to allocate indirect expenses. Among the most common are as follows:
Allocation Basis Application
Staff time (Average amount of time spent on the microfinance product per day)/( No. of office
hours per day)
Number of Staff (No. of microfinance staff)/(Total number of employees)
Number of Transactions (Average number of microfinance-related transactions per day)/ (Average number of all
transactions per day)
Number of Accounts (Total number of outstanding microfinance loan accounts)/(Total number of
outstanding loan accounts)
Portfolio Volume (Amount of the microfinance loan portfolio)/(Amount of the entire loan portfolio)
Office space (Area occupied by the microfinance unit)/(Total office space )
Equal (Cost)/(Number of products or operating units)
A bank may use any one or any combination of the various allocation bases shown in the table to
estimate the costs to be allocated to the microfinance product. There are other more complex
(and more expensive) cost allocation methods. However, for start-up microfinance operations,
the important thing is that the system chosen should be able to help management in analyzing
product costs, while being simple and inexpensive.
For purposes of the MABS project and to allow comparison of the profitability of the
microfinance operation of MABS participating banks, it is recommended that
participating banks use Number of Accounts as the allocation basis.
Using Number of Accounts as the allocation basis has two advantages: it is easy to use (i.e. the
information needed can easily be generated), and that the estimation of the product costs is
likely to be more conservative.
Estimating the Indirect Expenses to be Allocated to the Microfinance Product
An example of estimating the share of the microfinance product using the Number of Accounts as
the cost-allocation basis is shown in the table below. Assume that there are 150 outstanding
microfinance loans and a total of 2,000 outstanding loans in the branch.
(1) Compute the ratio to be used in cost allocation
Number of outstanding microfinance loans x 100 = 150 x 100 = 7.5%
Total number of outstanding loans 2,000
(2) Compute the share of the microfinance product in the indirect expenses.
Assume that the amounts indicated for each expense item below are lifted from the
branch income and expense statement. Also assume that the amounts for the salaries &

13. benefits of other bank employees and that of the depreciation for other bank assets have
already been adjusted.
Item Amount
(A)
Cost Allocation Ratio
(B)
Cost Allocated to the
Microfinance Product
(A x B)
Salaries & benefits – Other Bank Employees 55,000 7.5% 41,250
Rent 15,000 7.5% 11,250
Light & water 2,000 7.5% 1,500
Communications 1,000 7.5% 750
Depreciation – Other Bank Assets 6,147 7.5% 4,610
Other Indirect Expenses 26,382 7.5% 19,786
Total 105,529 79,147
7.8 Net Income Before Tax
7.9 Cumulative Net Income/(Loss) Before Tax