Cash flow statements
for the year ended 31 December 2007
| Group | Company | |||||||
|---|---|---|---|---|---|---|---|---|
| Note | 2007 £m |
2006 £m |
2005 £m |
2007 £m |
2006 £m |
2005 £m |
||
| Operating activities | ||||||||
| Operating profit before tax | 9,900 | 9,186 | 7,936 | 2,372 | 3,486 | 1,932 | ||
| Adjustments for: | ||||||||
| Depreciation and amortisation | 1,970 | 1,678 | 1,825 | – | – | – | ||
| Interest on subordinated liabilities | 1,542 | 1,386 | 1,271 | 470 | 520 | 583 | ||
| Charge for defined benefit pension schemes | 489 | 580 | 462 | – | – | – | ||
| Cash contribution to defined benefit pension schemes | (599) | (536) | (452) | – | – | – | ||
| Elimination of foreign exchange differences | (10,282) | 4,516 | (3,060) | (58) | (22) | (30) | ||
| Other non-cash items | (3,235) | (1,120) | (1,412) | 1 | 18 | (104) | ||
| Net cash (outflow)/inflow from trading activities | (215) | 15,690 | 6,570 | 2,785 | 4,002 | 2,381 | ||
| Changes in operating assets and liabilities | 28,261 | 3,980 | (519) | 15,562 | (508) | 2,050 | ||
| Net cash flows from operating activities before tax | 28,046 | 19,670 | 6,051 | 18,347 | 3,494 | 4,431 | ||
| Income taxes (paid)/received | (2,442) | (2,229) | (1,911) | 6 | 154 | (18) | ||
| Net cash flows from operating activities | 34 | 25,604 | 17,441 | 4,140 | 18,353 | 3,648 | 4,413 | |
| Investing activities | ||||||||
| Sale and maturity of securities | 63,007 | 27,126 | 39,472 | – | – | – | ||
| Purchase of securities | (61,020) | (19,126) | (39,196) | – | – | – | ||
| Investment in subsidiaries | – | – | – | (18,510) | (1,097) | (2,961) | ||
| Disposal of subsidiaries | – | – | – | 6 | – | – | ||
| Sale of property, plant and equipment | 5,786 | 2,990 | 2,220 | – | – | – | ||
| Purchase of property, plant and equipment | (5,080) | (4,282) | (4,812) | – | – | – | ||
| Discontinued activities | (334) | – | – | – | – | – | ||
| Net investment in business interests and intangible assets | 35 | 13,640 | (63) | (296) | – | – | – | |
| Loans to subsidiaries | – | – | – | – | – | (337) | ||
| Repayments from subsidiaries | – | – | – | 469 | 547 | 1,183 | ||
| Net cash flows from investing activities | 15,999 | 6,645 | (2,612) | (18,035) | (550) | (2,115) | ||
| Financing activities | ||||||||
| Issue of ordinary shares | 77 | 104 | 163 | 77 | 104 | 163 | ||
| Issue of other equity interests | 3,600 | 671 | 1,649 | 3,600 | 671 | 1,649 | ||
| Issue of paid up equity | 1,073 | – | – | 1,073 | – | – | ||
| Issue of subordinated liabilities | 1,018 | 3,027 | 1,234 | – | 399 | 337 | ||
| Proceeds of minority interests issued | 31,095 | 1,354 | 1,264 | – | – | – | ||
| Redemption of minority interests | (545) | (81) | (121) | – | – | – | ||
| Repurchase of ordinary shares | – | (991) | – | – | (991) | – | ||
| Shares purchased by employee trusts | (65) | (254) | – | – | – | – | ||
| Shares issued under employee share schemes | 79 | 108 | – | – | 7 | – | ||
| Repayment of subordinated liabilities | (1,708) | (1,318) | (1,553) | (469) | (547) | (1,183) | ||
| Dividends paid | (3,411) | (2,727) | (2,007) | (3,290) | (2,661) | (1,912) | ||
| Interest on subordinated liabilities | (1,522) | (1,409) | (1,332) | (455) | (497) | (577) | ||
| Net cash flows from financing activities | 29,691 | (1,516) | (703) | 536 | (3,515) | (1,523) | ||
| Effects of exchange rate changes on cash and cash equivalents | 6,010 | (3,468) | 1,703 | 62 | (52) | 42 | ||
| Net increase/(decrease) in cash and cash equivalents | 77,304 | 19,102 | 2,528 | 916 | (469) | 817 | ||
| Cash and cash equivalents 1 January | 71,651 | 52,549 | 50,021 | 657 | 1,126 | 309 | ||
| Cash and cash equivalents 31 December | 148,955 | 71,651 | 52,549 | 1,573 | 657 | 1,126 | ||
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