Cash flow statements
for the year ended 31 December 2006
| Group | Company | ||||||
| Note | 2006 £m |
2005* £m |
2004* £m |
2006 £m |
2005* £m |
2004 £m |
|
| Operating activities | |||||||
| Operating profit before tax | 9,186 | 7,936 | 7,284 | 3,486 | 1,932 | 2,890 | |
| Adjustments for: | |||||||
| Depreciation and amortisation | 1,678 | 1,825 | 1,674 | — | — | — | |
| Interest on subordinated liabilities | 1,386 | 1,271 | 681 | 520 | 583 | 318 | |
| Charge for defined benefit pension schemes | 580 | 462 | 397 | — | — | — | |
| Cash contribution to defined benefit pension schemes | (536) | (452) | (1,146) | — | — | — | |
| Elimination of foreign exchange differences | 4,516 | (3,060) | 1,864 | (22) | (30) | — | |
| Other non-cash items | (1,120) | (1,412) | (25) | 18 | (104) | 1 | |
| Net cash inflow from trading activities | 15,690 | 6,570 | 10,729 | 4,002 | 2,381 | 3,209 | |
| Changes in operating assets and liabilities | 3,980 | (519) | (4,264) | (508) | 2,050 | (148) | |
| Net cash flows from operating activities before tax | 19,670 | 6,051 | 6,465 | 3,494 | 4,431 | 3,061 | |
| Income taxes (paid)/received | (2,229) | (1,911) | (1,366) | 154 | (18) | 36 | |
| Net cash flows from operating activities | 37 | 17,441 | 4,140 | 5,099 | 3,648 | 4,413 | 3,097 |
| Investing activities | |||||||
| Sale and maturity of securities | 27,126 | 39,472 | 43,022 | — | — | — | |
| Purchase of securities | (19,126) | (39,196) | (41,790) | — | — | — | |
| Investment in subsidiaries | — | — | — | (1,097) | (2,961) | (6,342) | |
| Sale of property, plant and equipment | 2,990 | 2,220 | 1,921 | — | — | — | |
| Purchase of property, plant and equipment | (4,282) | (4,812) | (4,583) | — | — | — | |
| Net investment in business interests and intangible assets | 38 | (63) | (296) | (7,968) | — | — | — |
| Loans to subsidiaries | — | — | — | — | (337) | (350) | |
| Repayments from subsidiaries | — | — | — | 547 | 1,183 | 40 | |
| Net cash flows from investing activities | 6,645 | (2,612) | (9,398) | (550) | (2,115) | (6,652) | |
| Financing activities | |||||||
| Issue of ordinary shares | 104 | 163 | 2,845 | 104 | 163 | 2,845 | |
| Issue of equity preference shares | 671 | 1,649 | 1,358 | 671 | 1,649 | 1,358 | |
| Issue of subordinated liabilities | 3,027 | 1,234 | 4,624 | 399 | 337 | 1,424 | |
| Proceeds of minority interests issued | 1,354 | 1,264 | 1,260 | — | — | — | |
| Redemption of minority interests | (81) | (121) | (2) | — | — | — | |
| Repurchase of ordinary shares | (991) | — | — | (991) | — | — | |
| Shares purchased by employee trusts | (254) | — | — | — | — | — | |
| Shares issued under employee share schemes | 108 | — | — | 7 | — | — | |
| Repayment of subordinated liabilities | (1,318) | (1,553) | (718) | (547) | (1,183) | (40) | |
| Dividends paid | (2,727) | (2,007) | (1,635) | (2,661) | (1,912) | (1,488) | |
| Interest on subordinated liabilities | (1,409) | (1,332) | (613) | (497) | (577) | (318) | |
| Net cash flows from financing activities | (1,516) | (703) | 7,119 | (3,515) | (1,523) | 3,781 | |
| Effects of exchange rate changes on cash and cash equivalents | (3,468) | 1,703 | (920) | (52) | 42 | — | |
| Net increase in cash and cash equivalents | 19,102 | 2,528 | 1,900 | (469) | 817 | 226 | |
| Cash and cash equivalents 1 January | 52,549 | 50,021 | 48,121 | 1,126 | 309 | 83 | |
| Cash and cash equivalents 31 December | 71,651 | 52,549 | 50,021 | 657 | 1,126 | 309 | |
*restated (see Note 48)
© 2007