Barclays plc - Annual Report 2008 - Financial statements - The Group

Consolidated cash flow statement
For the year ended 31st December
2008 2007 2006
£m £m £m
Reconciliation of profit before tax to net cash flows from operating activities:
Profit before tax 6,077 7,076 7,136
Adjustment for non-cash items:
Allowance for impairment 5,419 2,795 2,154
Depreciation, amortisation and impairment of property, plant, equipment and intangibles 951 669 612
Other provisions, including pensions 804 753 558
Net profit from associates and joint ventures (14) (42) (46)
Net profit on disposal of investments and property, plant and equipment (371) (862) (778)
Net profit from disposal of associates and joint ventures – (26) (263)
Net profit from disposal of subsidiaries (327) (2) (60)
Net gains on acquisitions (2,406) – –
Other non-cash movements 796 (1,133) 1,702
Changes in operating assets and liabilities:
Net increase in loans and advances to banks and customers (58,431) (77,987) (27,385)
Net increase in deposits and debt securities in issue 77,743 90,589 46,944
Net (increase)/decrease in derivative financial instruments (17,529) (2,144) 1,196
Net decrease/(increase) in trading portfolio assets 26,919 (18,227) (18,323)
Net (decrease)/increase in trading liabilities (5,928) (6,472) 310
Net decrease/(increase) in financial investments 5,229 (4,379) 1,538
Net (increase)/decrease in other assets (3,008) 1,299 (1,527)
Net decrease in other liabilities (477) (1,071) (1,580)
Tax paid (1,731) (1,583) (2,141)
Net cash from operating activities 33,716 (10,747) 10,047
Purchase of available for sale financial investments (57,756) (26,899) (47,086)
Proceeds from sale or redemption of available for sale financial investments 51,429 38,423 46,069
Purchase of intangible assets (687) (263) (212)
Purchase of property, plant and equipment (1,720) (1,241) (654)
Proceeds from sale of property, plant and equipment 799 617 786
Acquisitions of subsidiaries, net of cash acquired (961) (270) (248)
Disposal of subsidiaries, net of cash disposed 238 383 (15)
Increase in investment in subsidiaries (157) (668) (432)
Decrease in investment in subsidiaries 19 57 44
Acquisition of associates and joint ventures (96) (220) (162)
Disposal of associates and joint ventures 137 145 739
Other cash flows associated with investing activities – – 17
Net cash from investing activities (8,755) 10,064 (1,154)
Dividends paid (3,047) (2,559) (2,215)
Proceeds of borrowings and issuance of debt securities 5,763 4,625 2,493
Repayments of borrowings and redemption of debt securities (1,207) (683) (366)
Net issue of shares and other equity instruments 9,493 2,494 179
Repurchase of shares and other equity instruments (173) (1,802) –
Net disposal/(purchase) of treasury shares 87 (48) (31)
Net issue of shares to minority interests 1,356 1,331 632
Net cash from financing activities 12,272 3,358 692
Effect of exchange rates on cash and cash equivalents (5,801) (550) 562
Net increase in cash and cash equivalents 31,432 2,125 10,147
Cash and cash equivalents at beginning of year 33,077 30,952 20,805
Cash and cash equivalents at end of year 64,509 33,077 30,952
Cash and cash equivalents comprise:
Cash and balances at central banks 30,019 5,801 7,345
Loans and advances to banks 47,707 40,120 30,926
Less: non-cash amounts and amounts with original maturity greater than three months (15,428) (19,377) (15,892)
32,279 20,743 15,034
Available for sale treasury and other eligible bills 64,976 43,072 51,703
Less: non-cash and amounts with original maturity greater than three months (62,876) (41,688) (50,684)
2,100 1,384 1,019
Trading portfolio assets 185,637 193,691 177,867
Less: non-cash and amounts with original maturity greater than three months (185,526) (188,556) (170,329)
111 5,135 7,538
Other – 14 16
64,509 33,077 30,952
3
Financial statements
Interest received in 2008 was £41,017m (2007: £49,441m, 2006: £38,544m) and interest paid in 2008 was £38,975m (2007: £37,821m, 2006: £29,372m).
The Group is required to maintain balances with central banks and other regulatory authorities and these amounted to £1,050m at 31st December 2008
(2007: £1,037m).
Barclays PLC Annual Report 2008 207