Notes to the Financial Statements
for the year ended 31 December 2004
47 Reconciliation Of Operating Profit To Net Operating Cash Flows
| Rm | ||
| Year to 31 December 2004 |
Year to 31 December 2003 |
|
| Profit from insurance and asset management activities before tax and non-operating items | 8,578 |
8,521 |
| Depreciation and amortisation of intangible assets | 802 |
1,025 |
| Unrealised investment gains | (413) |
(1,988) |
| Profits relating to long term business | (6,018) |
(6,681) |
| Investment return in the life business | 2,025 |
2,260 |
| Cash received from long term business | 3,964 |
3,223 |
| Increase/(decrease) in provisions for other risks and charges | 437 |
(358) |
| Increase in insurance technical provisions net of reinsurance | 283 |
222 |
| Other (including amounts reinvested in long term business operations) | 1,581 |
5,088 |
| Net cash inflow from insurance operating activities | 11,239 |
11,312 |
| Profit from banking activities before tax and non-operating items | 920 |
(1,778) |
| Provision for bad and doubtful debts | 1,640 |
3,960 |
| Depreciation and goodwill amortisation and impairment | 1,498 |
2,951 |
| Decrease in accrued income, prepayments and other trading adjustments | 1,298 |
3,422 |
| Net cash flow from banking trading activities | 5,356 |
8,555 |
| Net decrease in collections/transmissions | (189) |
(210) |
| Net increase in loans and advances to banks and customers | (10,135) |
(12,305) |
| Net increase in deposits by banks and customer accounts | 1,345 |
21,425 |
| Net (decrease)/increase in debt securities in issue | 11,350 |
(25,698) |
| Net increase in other operating assets | (9,297) |
(1,663) |
| Net decrease/(increase) in other operating liabilities | (3,293) |
1,509 |
| Net cash outflow from banking operating activities | (4,863) |
(8,387) |
| Rm | ||
| 47(a) Analysis of cash flows | Year to 31 December 2004 |
Year to 31 December 2003 |
| Returns on investment and servicing of finance | ||
| Net interest paid | (260) |
(370) |
| Dividends paid to minority interests | (944) |
(1,173) |
| Bank charges and other finance costs | (130) |
(37) |
| Net cash outflow from returns on investments and servicing of finance | (1,334) |
(1,580) |
| Tax | ||
| United Kingdom corporation tax | 118 |
- |
| Overseas tax | (3,575) |
(2,149) |
| Total tax paid | (3,457) |
(2,149) |
| Capital expenditure and financial investment | ||
| Net disposal of banking investment securities | 838 |
3,903 |
| Net purchase of tangible fixed assets | (861) |
(1,099) |
| Net cash (outflow)/inflow from capital expenditure and financial investment | (23) |
2,804 |
| Acquisitions and disposals | ||
| Acquisition of interests in subsidiary undertakings and revenue share payments | (1,298) |
(827) |
| Disposal of interests in subsidiary and associate undertakings | 932 |
2,803 |
| Net cash movement on acquisition and disposals of subsidiaries | - |
(951) |
| Net cash (outflow)/inflow from acquisitions and disposals | (366) |
1,025 |
| Financing | ||
| Issue of ordinary share capital | 177 |
506 |
| Issue of ordinary share capital of subsidiary undertakings to minority interests | 2,560 |
173 |
| Net increase/(decrease) in amounts due to credit institutions | 1,227 |
(4,507) |
| Net increase/(decrease) in subordinated liabilities | (566) |
544 |
| Repayment of convertible unsecured debt | (52) |
(175) |
| Non-equity preference shares and preferred securities issued - net of issue costs | - |
6,310 |
| Net cash inflow from financing | 3,346 |
2,851 |
| Rm | ||
| 47(b) Movement in portfolio investments, net of financing | Year to 31 December 2004 |
Year to 31 December 2003 |
| Cash flow (excluding long term business): | ||
| Net cash inflow for the year | (1,852) |
445 |
| Portfolio investments | 6,442 |
7,605 |
| Movement arising from cash flow | 4,590 |
8,050 |
| Movement in long term business | 1,133 |
99 |
| Changes in market values and exchange rates | 439 |
2,652 |
| Total movement in portfolio investments, net of financing | 6,162 |
10,801 |
| Portfolio investments, net of financing at beginning of year | 288,008 |
277,207 |
| Portfolio investments, net of financing at end of year | 294,170 |
288,008 |
| Rm | |||||
| 47(c) Movement in insurance and other cash, investments and financing | At start of year |
Cash flow |
Changes in long term business |
Changes to market value, currencies and other |
At end of year |
| Movement in cash and insurance portfolio investments | |||||
| Cash in hand and at bank | 8,296 |
(1,852) |
(496) |
(481) |
5,467 |
| Land and buildings | 8,081 |
106 |
201 |
(2) |
8,386 |
| Other financial investments | 271,631 |
6,336 |
1,428 |
922 |
280,317 |
288,008 |
4,590 |
1,133 |
439 |
294,170 |
|
| Movement in financing | |||||
| Share capital | 4,584 |
24 |
- |
(421) |
4,187 |
| Share premium and merger reserve | 9,203 |
153 |
- |
(851) |
8,805 |
| Subordinated liabilities | 179 |
(179) |
- |
- |
- |
| Amounts owed to credit institutions | 4,501 |
1,227 |
- |
(663) |
5,065 |
| Convertible loan stock | 4,261 |
- |
- |
(659) |
3,602 |
| Preferred securities (including undistributed profits) | 4,906 |
- |
- |
(655) |
4,251 |
27,634 |
1,225 |
- |
(3,249) |
25,610 |
| Rm | ||||
| 47(d) Movement in banking cash and changes in financing during the period | At start of year |
Cash flow |
Changes to market value, currencies and other |
At end of year |
| Cash and balances at central banks | 12,235 |
(2,180) |
- |
10,055 |
| Movement in financing | ||||
| Subordinated liabilities | 7,745 |
(387) |
- |
7,358 |
| Convertible loan stock | 119 |
(52) |
- |
67 |
| Non-equity preference shares (including undistributed profits) | 2,912 |
- |
(25) |
2,887 |
10,776 |
(439) |
(25) |
10,312 |
