Exhibit 99.03
 
FREEDOM HOLDING CORP.
 
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
(All amounts in thousands of United States dollars, unless otherwise stated)
  
The following Unaudited Pro Forma Condensed Combined Financial Information presents the Unaudited Pro Forma Condensed Combined Statement of Operations and Statements of Other Comprehensive Income based upon the combined historical financial statements of Freedom Holding Corp. (the “Company”), and “Bank Freedom Finance Kazakhstan” JSC, (formerly known as “Bank Kassa Nova” JSC (SB of “ForteBank” JSC)) (the “Bank”) after giving effect to the business combination (the “Transaction”) between the Company and the Bank and adjustments described in the accompanying notes.
 
The Company previously presented the effects of the Transaction in the Condensed Consolidated Balance Sheets included in the Quarterly Report on Form 10-Q of the Company for the quarterly period ended December 31, 2020, filed with the United States Securities and Exchange Commission (the “Commission”) on February 9, 2021 (the “December 31, 2020 10-Q”). Consistent with requirements of Rule 3-01 of Regulation S-X, the Company is not required to include the Unaudited Pro Forma Condensed Combined Balance Sheets of the Bank and the Company.
 
The Unaudited Pro Forma Condensed Combined Statements of Operations and Statements of Other Comprehensive Income for the six months ended September 30, 2020, and the year ended March 31, 2020, combine the historical results and operations of the Bank and the Company giving effect to the Transaction as if it occurred on April 1, 2019.
 
The Unaudited Pro Forma Condensed Combined Financial Information illustrate the estimated effects of the Transaction and should be read in conjunction with the following:
 
The Company’s Condensed Consolidated Financial Statements and accompanying notes related thereto as of and for the nine months ended December 31, 2020, as contained in the December 31, 2020 Form 10-Q;
The Company’s Audited Consolidated Financial Statements and accompanying notes related thereto as of and for the year ended March 31, 2020, as it contained in the Annual Report on Form 10-K it filed with the Commission on July 14, 2020;
The audited consolidated financial statements and accompanying notes related thereto of the Bank as of December 31, 2019, included as Exhibit 99.01 to this Current Report on Form 8-K/A; and
The unaudited interim condensed consolidated financial statements and accompanying notes related thereto of the Bank as of June 30, 2020, are included as Exhibit 99.02 to this Current Report on Form 8-K/A.
 
The following Unaudited Pro Forma Condensed Combined Financial Information reflects the combined results of operations of the Company and the Bank as if the Transaction occurred as of April 1, 2019. The pro forma financial information reflects certain adjustments related to the Transaction, but does not reflect any potential operating efficiencies or cost savings that may result from the Transaction. Accordingly, this pro forma financial information is for illustrative purposes and is not intended to represent the actual results of operations of the combined company that would have been achieved had the Transaction occurred as of April 1, 2019, nor is it intended to indicate the future financial position or results of operations of the Company.
 
Description of the Transaction
 
On August 3, 2020, the Company entered into the Bank Kassa Nova JSC Ordinary Share Purchase and Sale Agreement, dated July 29, 2020, with ForteBank JSC (the “Seller”), pursuant to which the Company agreed to purchase all of the issued and outstanding ordinary shares of the Bank, subject to receipt of certain required governmental approvals and customary closing conditions, including entry into a Preferred Shares Sale and Purchase Agreement of Bank Kassa Nova JSC with the owner of all of the issued and outstanding preferred shares of the Bank and the acquisition by the Company of all of the outstanding subordinated loans of the Bank from the holders thereof.On December 28, 2020, the Company closed the acquisition of the Bank following receipt of approval from the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market and completion of the closing conditions. The Bank is a Kazakhstani-based bank. For accounting purposes, on December 25, 2020, the Company acquired control of the Bank when it completed the acquisition of the outstanding ordinary shares of the Bank. The total purchase price of the Bank Acquisition was $53,097, which the Company paid in cash. The purchase price included consideration paid for the outstanding ordinary shares in the amount of $40,984, consideration paid for the outstanding preferred shares in the amount of $2,478 and consideration paid for outstanding subordinated loans in the amount of $9,635.
 
 
FREEDOM HOLDING CORP.
 
PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2020 (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
 
 
 
 
Freedom Holding Corp.
 
 
Freedom Bank KZ IFRS
 
 
IFRS to US GAAP Adjustments
 
 
Notes
 
 
Pro Forma Adjustments
 
 
Notes
 
 
Pro Forma Combined
 
 
 
Note A
 
 
Note B
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:







 
    
 
 
 
    
 
 
 
Fee and commission income
 $97,616 
 $2,246 
 $- 
    
 $- 
    
 $99,862 
Net gain on trading securities
  17,386 
  - 
  - 
    
  - 
    
  17,386 
Interest income
  9,197 
  14,537 
  - 
    
  2,075 
 
(c)
 
  25,809 
Net gain on foreign exchange operations
  2,772 
  1,243 
  - 
    
  - 
    
  4,015 
Net loss on derivatives
  (846)
  (120)
  - 
    
  - 
    
  (966)
 
    
    
    
    
    
    
    
TOTAL REVENUE, NET
  126,125 
  17,906 
  - 
    
  2,075 
    
  146,106 

    
    
    
    
    
    
    
Expense:
    
    
    
    
    
    
    
Interest expense
  8,443 
  7,148 
  - 
    
  5,905 
 
(c), (d)
 
  21,496 
Fee and commission expense
  29,790 
  1,248 
  - 
    
  - 
    
  31,038 
Operating expense
  30,293 
  4,739 
  (17)
 
(a)
 
  (605)
 
(e), (f)
 
  34,410 
Provision for impairment losses
  666 
  1,333 
  (439)
 
(b)
 
  (904)
 
(g)
 
  656 
Other (income)/expense, net
  (95)
  53 
  - 
    
  - 
    
  (42)
 
    
    
    
    
    
    
    
TOTAL EXPENSE
  69,097 
  14,521 
  (456)
    
  4,396 
    
  87,558 
NET INCOME BEFORE INCOME TAX
  57,028 
  3,385 
  456 
    
  (2,321)
    
  58,548 

    
    
    
    
    
    
    
Income tax expense
  (9,189)
  (717)
  - 
    
  464 
 
(h)
 
  (9,442)

    
    
    
    
    
    
    
NET INCOME
 $47,839 
 $2,668 
 $456 
    
 $(1,857)
    
 $49,106 

    
    
    
    
    
    
    
Less: Net income attributable to noncontrolling interest in subsidiary
  296 
  - 
  - 
    
  - 
    
  296 
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
 $47,543 
 $2,668 
 $456 
    
 $(1,857)
    
 $48,810 
 
    
    
    
    
    
    
    
OTHER COMPREHENSIVE LOSS
    
    
    
    
    
    
    
Change in unrealized loss on available-for-sale securities, net of tax effect
 $- 
 $(3)
 $- 
    
 $- 
    
 $(3)
Reclassification adjustment relating to available-for-sale securities disposed of in the period, net of tax effect 
  71 
  - 
  - 
    
  - 
    
  71 
Foreign currency translation adjustments, net of tax effect
  (2,286)
  (2,396)
  - 
    
  - 
    
  (4,682)

    
    
    
    
    
    
    
COMPREHENSIVE INCOME BEFORE NONCONTROLLING INTERESTS
 $45,624 
 $269 
 $808 
    
 $(1,857)
    
 $44,492 

    
    
    
    
    
    
    
Less: Comprehensive income attributable to noncontrolling interest in subsidiary
  296 
  - 
  - 
    
  - 
    
  296 

    
    
    
    
    
    
    
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
 $45,328 
 $269 
 $808 
    
 $(1,857)
    
 $44,196 
BASIC NET INCOME PER COMMON SHARE
 $0.82 
    
    
    
    
    
 $0.84 
DILUTED NET INCOME PER COMMON SHARE
 $0.82 
    
    
    
    
    
 $0.84 
Weighted average number of shares (basic)
  58,358,212 
    
    
    
    
    
  58,358,212 
Weighted average number of shares (diluted)
  58,460,058 
    
    
    
    
    
  58,460,058 

 
FREEDOM HOLDING CORP.
 
PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED MARCH 31, 2020 (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
 
 
 
Freedom Holding Corp.
 
 
Freedom Bank KZ IFRS
 
 
IFRS to US GAAP Adjustments
 
 
Notes
 
 
Pro Forma Adjustments
 
 
Notes
 
 
Pro Forma Combined
 
 
 
Note A
 
 
Note B
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:







 
    
 
 
 
    
 
 
 
Fee and commission income
 $92,668 
 $6,510 
 $- 
    
 $- 
    
 $99,178 
Net gain on trading securities
  14,923 
  - 
  - 
    
  - 
    
  14,923 
Interest income
  12,134 
  35,980 
  - 
    
  (918)
 
(c)
 
  47,196 
Net gain on foreign exchange operations
  2,315 
  1,360 
  - 
    
  - 
    
  3,675 
Net gain/(loss) on derivatives
  (138)
  184 
  - 
    
  - 
    
  46 
 
    
    
    
    
    
    
    
TOTAL REVENUE, NET
  121,902 
  44,034 
  - 
    
  (918)
    
  165,018 

    
    
    
    
    
    
    
Expense:
    
    
    
    
    
    
    
Interest expense
  12,399 
  19,087 
  - 
    
  10,659 
 
(c), (d)
 
  42,145 
Fee and commission expense
  21,936 
  2,851 
  - 
    
  - 
    
  24,787 
Operating expense
  59,990 
  11,315 
  (37)
 
(a)
 
  (1,281)
 
(e), (f)
 
  69,987 
Provision/(recovery) for impairment losses
  (1,164)
  4,248 
  (206)
 
(b)
 
  (3,967)
 
(g)
 
  (1,089)
Other expense/(income), net
  609 
  (141)
  - 
    
  - 
    
  468 
 
    
    
    
    
    
    
    
TOTAL EXPENSE
  93,770 
  37,360 
  (243)
    
  5,411 
    
  136,298 
NET INCOME BEFORE INCOME TAX
  28,132 
  6,674 
  243 
    
  (6,329)
    
  28,720 

    
    
    
    
    
    
    
Income tax expense
  (6,002)
  (1,454)
  - 
    
  1,266 
 
(h)
 
  (6,190)

    
    
    
    
    
    
    
NET INCOME
 $22,130 
 $5,220 
 $243 
    
 $(5,063)
    
 $22,530 

    
    
    
    
    
    
    
Less: Net loss attributable to noncontrolling interest in subsidiary
  (2,707)
  - 
  - 
    
  - 
    
  (2,707)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
 $24,837 
 $5,220 
 $243 
    
 $(5,063)
    
 $25,237 
 
    
    
    
    
    
    
    
OTHER COMPREHENSIVE INCOME/(LOSS)
    
    
    
    
    
    
    
Change in unrealized (loss)/gain on available-for-sale securities, net of tax effect
 $(71)
 $6 
 $- 
    
 $- 
    
 $(65)
Foreign currency translation adjustments, net of tax effect
  (14,851)
  378 
  - 
    
  - 
    
  (14,473)

    
    
    
    
    
    
    
COMPREHENSIVE INCOME BEFORE NONCONTROLLING INTERESTS
 $7,208 
 $5,604 
 $810 
    
 $(5,063)
    
 $7,992 

    
    
    
    
    
    
    
Less: Comprehensive loss attributable to noncontrolling interest in subsidiary
  (2,707)
  - 
  - 
    
  - 
    
  (2,707)

    
    
    
    
    
    
    
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
 $9,915 
 $5,604 
 $810 
    
 $(5,063)
    
 $10,699 
BASIC NET INCOME PER COMMON SHARE
 $0.38 
    
    
    
    
    
 $0.39 
DILUTED NET INCOME PER COMMON SHARE
 $0.38 
    
    
    
    
    
 $0.39 
Weighted average number of shares (basic)
  58,163,691 
    
    
    
    
    
  58,163,691 
Weighted average number of shares (diluted)
  58,251,588 
    
    
    
    
    
  58,251,588 
 
 
FREEDOM HOLDING CORP.
 
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
 
1. Basis of Presentation
 
The Unaudited Pro Forma Condensed Combined Financial Information set forth herein is based upon the consolidated financial statements of the Company and the Bank. The Unaudited Pro Forma Condensed Combined Financial Information is presented as if the Transaction had been completed on April 1, 2019, with respect to the Unaudited Pro Forma Condensed Combined Statements of Operations and Statements of Other Comprehensive Income for each of the six months ended September 30, 2020 and for the year ended March 31, 2020.
 
The Company’s fiscal year is April 1, 2019 to March 31, 2020, while the Bank’s fiscal year is January 1, 2019 to December 31, 2019, the Unaudited Pro Forma Condensed Combined Statements of Operations and Statements of Other Comprehensive Income represents these periods.  
 
The Unaudited Pro Forma Condensed Combined Statements of Operations and Statements of Other Comprehensive Income for the Company includes actual financial results for the period of April 1, 2020 to September 30, 2020 and actual financial results of the Bank for the period of January 1, 2020 through June 30, 2020.  
 
The Unaudited Pro Forma Condensed Combined Financial Information is presented for informational purposes only and is not necessarily indicative of the combined financial position or results of operations had the Transaction occurred as of the dates indicated, nor is it meant to be indicative of any anticipated combined financial position or future results of operations that the combined company will experience after the completion of the Transaction.
 
We have accounted for the Transaction in this Unaudited Pro Forma Condensed Combined Financial Information using the acquisition method of accounting, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805 “Business Combinations” (“ASC 805”). In accordance with ASC 805, we used our best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. Goodwill as of the acquisition date is measured as the excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired.
 
The Company’s consolidated financial information is prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) as issued by the Financial Accounting Standards Board (“FASB”) and is presented in US Dollars (“USD”). The Bank’s financial information has been historically prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and was historically presented in Kazakhstani tenge (“KZT”) and has been converted for the purpose of this Unaudited Pro Forma Condensed Combined Financial Information to be consistent with the Company’s presentation.
 
Pro forma adjustments reflected in the Unaudited Pro Forma Condensed Combined Statements of Operations and Statements of Other Comprehensive Income are based on items that are factually supportable, directly attributable to the Transaction and expected to have a continuing impact on the combined results. The Unaudited Pro Forma Condensed Combined Financial Information does not reflect the cost of any integration activities, including changes to the Bank’s business focus or benefits from the Transaction, including potential synergies that may be generated in future periods.
 
For the Six Months Ended September 30, 2020
 
Note A: Derived from the Unaudited Condensed Consolidated Statements of Operations and Statements of Other Comprehensive Income of the Company, including subsidiaries, for the six months ended September 30, 2020, as presented in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 filed with the Commission on November 9 ,2020.
 
Note B: Derived from the IFRS Unaudited Condensed Consolidated Statements of Comprehensive Income of the Bank for the six months ended June 30, 2020, included below and translated from KZT to USD. The average exchange rate used to translate KZT to USD for the six months ended June 30, 2020 was 405.83 KZT to 1 USD as set out in the table below. 
 
 
FREEDOM HOLDING CORP.
 
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
 
 
 
KZT to USD Translation:
 
 
Freedom Bank KZ
 
 
Exchange Rate
 
 
Freedom Bank KZ
 
 
 
Thousands of KZT
 
 
405.83
 
 
USD 
 
Revenue:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
Fee and commission income
  911,619 
 
 
 
 $2,246 
Interest income
  5,899,439 
 
 
 
  14,537 
Net gain on foreign exchange operations
  504,545 
 
 
 
  1,243 
Net loss on derivatives
  (48,881)
 
 
 
  (120)
 
    

    
TOTAL REVENUE, NET
  7,266,722 

  17,906 

    

    
Expense:
    

    
Interest expense
  2,900,765 

  7,148 
Fee and commission expense
  506,533 

  1,248 
Operating expense
  1,923,214 

  4,739 
Provision for impairment losses
  541,096 

  1,333 
Other expense, net
  21,587 

  53 
 
    

    
TOTAL EXPENSE
  5,893,195 

  14,521 
NET INCOME BEFORE INCOME TAX
  1,373,527 

  3,385 

    

    
Income tax expense
  (291,179)
    
  (717)

    
    
    
NET INCOME
  1,082,348 
    
 $2,668 
 
 
Unaudited Pro Forma Condensed Combined Statement of Operations and Statements of Other Comprehensive Income
 
For the Year Ended March 31, 2020 
 
Note A: Derived from the Audited Condensed Consolidated Statement of Operations and Statements of Other Comprehensive Income of the Company, including its subsidiaries, for the year ended March 31, 2020 as presented in the Annual Report on Form 10-K of the Company for the fiscal year ended March 31, 2020, filed with the Commission on July 14, 2020.
 
Note B: Derived from the IFRS Unaudited Consolidated Statement of Comprehensive Income of the Bank for the year ended December 31, 2019, included below and translated from KZT to USD. The average exchange rate used to translate KZT to USD for the year ended December 31, 2019 was 383.60 KZT to 1 USD as set out in the table below. 
 
KZT to USD Translation
 
 
Freedom Bank KZ
 
 
Exchange Rate
 
 
Freedom Bank KZ
 
 
 
Thousands of KZT
 
 
383.60
 
 
USD 
 
Revenue:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
Fee and commission income
  2,497,395 
 
 
 
 $6,510 
Interest income
  13,802,072 

  35,980 
Net gain on foreign exchange operations
  521,506 

  1,360 
Net gain on derivatives
  70,612 

  184 
 
    

    
TOTAL REVENUE, NET
  16,891,585 

  44,034 

    

    
Expense:
    

    
Interest expense
  7,321,798 

  19,087 
Fee and commission expense
  1,093,527 
    
  2,851 
Operating expense
  4,340,419 
    
  11,315 
Provision for impairment losses
  1,629,260 
    
  4,248 
Other income, net
  (54,157)
    
  (141)
 
    
    
    
TOTAL EXPENSE
  14,330,847 
    
  37,360 
NET INCOME BEFORE INCOME TAX
  2,560,738 
    
  6,674 

    
    
    
Income tax expense
  (557,942)
    
  (1,454)

    
    
    
NET INCOME
  2,002,796 
    
 $5,220 
 
 
FREEDOM HOLDING CORP.
 
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
 
 
2. Consideration paid
 
The Unaudited Pro Forma Condensed Combined Financial Information includes various assumptions, including those related to the preliminary purchase price allocation of the assets acquired and liabilities assumed of the Bank based on management’s best estimates of fair value. The final purchase price allocation may vary based on final appraisals, valuations and analyses of the fair value of the acquired assets and assumed liabilities. Accordingly, the pro forma adjustments are preliminary and have been made solely for illustrative purposes. The following table shows the preliminary allocation of the purchase price for the Bank to the acquired identifiable assets, liabilities assumed and goodwill:
 
 
 
Purchase price allocation
 
 
 
As of December 25, 2020
 
Assets:
 
 
 
Cash and cash equivalents
 $129,185 
Trading securities
  50,684 
Brokerage and other receivables
  2,601 
Fixed assets
  10,987 
Intangible assets
  2,769 
Right-of-use asset
  338 
Loans issued
  1,023 
Other assets
  2,360 
Total assets
 $199,947 
 
    
Liabilities:
    
Customer liabilities
 $117,195 
Current income tax liability
  415 
Trade payables
  104 
Securities repurchase agreement obligation
  28,500 
Lease liability
  338 
Other liabilities
  827 
Deferred income tax liabilities
  1,399 
Total liabilities
 $148,778 
 
    
Net Assets Acquired
 $51,169 
 
    
Goodwill
  1,928 
 
    
Consideration paid for common shares
  40,984 
Consideration paid for preferred shares
  2,478 
Consideration paid for subordinated loans
  9,635 
Total purchase price
 $53,097 
 
The table above shows the purchase price allocation as of December 25, 2020.
 
3. Detailed Notes – IFRS to GAAP Adjustments
 
 
(a)
These adjustments are related to the change in accounting for fixed assets. Under IFRS, the Bank uses the revaluation method of accounting for its fixed assets. Under US GAAP, all fixed assets are accounted for using the historical cost model, which stipulates that non-current assets are initially recognized at cost and are subsequently carried at cost less accumulated depreciation and cumulative impairment losses. Reverse of this revaluation directly affects depreciation expenses.
 
 
(b)
To adjust amounts of credit losses estimated under IFRS 9 to conform to US GAAP.
 
 
FREEDOM HOLDING CORP.
 
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
 
 
4. Detailed Notes – Pro Forma Adjustments
 
The pro forma adjustments are based on our preliminary estimates and assumptions and are subject to change. The following adjustments have been reflected in the Unaudited Pro Forma Condensed Combined Financial Information:
 
 
(c)
As a condition to closing the Transaction, the Seller was required to purchase the Bank’s loan portfolio, with the exception of the outstanding debt on customer’s credit cards, loans collateralized by cash, and several other immaterial obligations of the Bank, prior to the date of the Transaction. The Bank used the proceeds from the sale of its loan portfolio to purchase of trading securities. Also, the Bank purchased trading securities through direct repo, as well as used proceeds from released cash reserves for deposits. These adjustments reflect the continuing effect of the Transaction on the interest income and interest expense of the Bank.
 
 
(d)
Prior to the completion of the Transaction, the Bank held customer deposits and had outstanding subordinated loans and preferred shares of the Bank. As a condition to closing the Transaction and the Company’s decision to discontinue most of the Bank’s commercial lending activities, together with loan portfolio, the Bank transferred a significant portion of its customers’ deposits to the Seller and the Company purchased the outstanding subordinated loans and preferred shares of the Bank. These adjustments reflect the continuing effect of the Transaction on the interest expense of the Bank.
 
 
(e)
As a condition to closing the Transaction, the Seller was required to purchase certain buildings which were reflected on the balance sheet of the Bank. These adjustments reflects the continuing effect on depreciation expense in the amount of $16 and $34, for six months ended September 30, 2020, and 12 months ended March 31, 2020, respectively.
 
 
(f)
The sale of a majority of the loan portfolio of the Bank resulted in a decrease in lending-related employees of the Bank and a corresponding decrease in payroll. This adjustment reflects the continuing effect on payroll expenses, in the amount of $589 and $1,247, for six months ended September 30, 2020, and 12 months ended March 31, 2020, respectively.
 
 
(g)
The sale of a majority of the loan portfolio of the Bank resulted in a decrease in Provision for impairment losses of the Bank. These adjustments represent the continuing effect on Provision for impairment losses of the Bank.
 
 
(h)
This adjustment represents the tax effect on above stated adjustments.