37. Net cash inflow from operating activities
| Group | Company | |||||
| 2006 £m |
2005* £m |
2004* £m |
2006 £m |
2005* £m |
2004 £m |
|
| Operating profit before tax | 9,186 | 7,936 | 7,284 | 3,486 | 1,932 | 2,890 |
| Decrease/(increase) in prepayments and accrued income | 322 | 1,064 | (333) | — | 4 | (17) |
| Interest on subordinated liabilities | 1,386 | 1,271 | 681 | 520 | 583 | 318 |
| Increase/(decrease) in accruals and deferred income | 515 | (1,200) | 1,750 | (27) | 8 | (7) |
| Provisions for impairment losses | 1,877 | 1,707 | 1,402 | — | — | — |
| Loans and advances written-off net of recoveries | (1,626) | (1,870) | (1,305) | — | — | — |
| Unwind of discount on impairment losses | (142) | (144) | — | — | — | — |
| Profit on sale of property, plant and equipment | (216) | (91) | (69) | — | — | — |
| (Profit)/loss on sale of subsidiaries and associates | (44) | 80 | (4) | — | — | — |
| Profit on sale of securities | (369) | (667) | (167) | — | — | — |
| Charge for defined benefit pension schemes | 580 | 462 | 397 | — | — | — |
| Cash contribution to defined benefit pension schemes | (536) | (452) | (1,146) | — | — | — |
| Other provisions utilised | (42) | (34) | (47) | — | — | — |
| Depreciation and amortisation | 1,678 | 1,825 | 1,674 | — | — | — |
| Elimination of foreign exchange differences | 4,516 | (3,060) | 1,864 | (22) | (30) | — |
| Other non-cash items | (1,395) | (257) | (1,252) | 45 | (116) | 25 |
| Net cash inflow from trading activities | 15,690 | 6,570 | 10,729 | 4,002 | 2,381 | 3,209 |
| (Increase)/decrease in loans and advances to banks and customers | (44,525) | (36,778) | (72,955) | 346 | (14) | 77 |
| Increase in securities | (16,703) | (28,842) | (11,883) | — | — | — |
| Decrease/(increase) in other assets | 671 | (2,390) | (2,208) | 2 | 5 | 33 |
| (Increase)/decrease in derivative assets | (21,018) | (5,758) | (3,753) | 55 | 50 | 21 |
| Changes in operating assets | (81,575) | (73,768) | (90,799) | 403 | 41 | 131 |
| Increase/(decrease) in deposits by banks and customers | 63,091 | 32,424 | 53,073 | (164) | 832 | 18 |
| Increase in insurance liabilities | 244 | 620 | 866 | — | — | — |
| (Decrease)/increase in debt securities in issue | (4,457) | 24,147 | 19,073 | (803) | 1,328 | (269) |
| Increase/(decrease) in other liabilities | 935 | 571 | 919 | 14 | (55) | (19) |
| Increase/(decrease) in derivative liabilities | 21,674 | 5,161 | 3,808 | 42 | (96) | (9) |
| Increase in settlement balances and short positions | 4,068 | 10,326 | 8,796 | — | — | — |
| Changes in operating liabilities | 85,555 | 73,249 | 86,535 | (911) | 2,009 | (279) |
| Total income taxes paid | (2,229) | (1,911) | (1,366) | 154 | (18) | 36 |
| Net cash inflow from operating activities | 17,441 | 4,140 | 5,099 | 3,648 | 4,413 | 3,097 |
*restated (see Note 48).
© 2007