The sum of net activity income, non-interest income, and securities gains, minus provision for mortgage losses and non-interest prices equals income earlier than tax.
It is the amount of money left after all expenses are subtracted from revenues. Because agencies pay tax at different quotes relying on where they are located, EBT is a more true reflection of profitability than salary after tax (EAT).
Simply put, pre-tax capacity that premiums are deducted before taxes are calculated and deducted; after-tax capability that premiums are deducted after taxes is calculated and deducted.
Learn more about income before tax here:
