The calculation method of the balance of loan loss reserve deducted before tax at the end of last year is: the balance of loan assets allowed to withdraw loan loss reserve at the end of this year × 1%- the balance of loan loss reserve deducted before tax at the end of last year. According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Relevant Policies for Pre-tax Deduction of Enterprise Income Tax on Loan Loss Reserve of Financial Enterprises: "The calculation formula of loan loss reserve allowed for pre-tax deduction of financial enterprises in that year is: loan loss reserve allowed for pre-tax deduction in that year = loan asset balance allowed for withdrawal × 1%- loan loss reserve balance deducted before tax at the end of last year. Therefore, the calculation method of the balance of loan loss reserve deducted before tax at the end of last year is: the balance of loan assets allowed to withdraw loan loss reserve at the end of this year × 1%- the balance of loan loss reserve deducted before tax at the end of last year.