Annual Report 2012

Consolidated statement of cash flowsFor the year ended 31 December 2012(Expressed in millions of RMB, unless otherwise stated)Cash flows from operating activitiesNote 2012 2011Profit before tax 251,439 219,107Adjustments for:– Impairment losses 13 40,041 35,783– Depreciation and amortisation 12 13,889 12,497– Unwinding of discount (1,612) (1,413)– Revaluation loss on financial instruments at fair value through profit or loss 661 1,396– Share of profit less losses of associates and jointly controlled entities (28) (24)– Dividend income 9 (239) (158)– Unrealised foreign exchange loss 322 3,013– Interest expense on subordinated bonds issued 5,734 3,561– Net gain on disposal of investment securities 10 (3,536) (1,756)– Net gain on disposal of fixed assets and other long-term assets (67) (489)306,604 271,517Changes in operating assets:Net increase in deposits with central banks and with banks and non-bank financial institutions (212,062) (479,504)Net increase in placements with banks and non-bank financial institutions (6,186) (39,399)Net increase in loans and advances to customers (1,028,588) (849,238)Net increase in financial assets held under resale agreements (116,642) (18,952)Increase in other operating assets (37,491) (35,472)(1,400,969) (1,422,565)Changes in operating liabilities:Net increase in borrowings from central banks 4,090 530Net increase in placements from banks and non-bank financial institutions 42,278 14,509Net increase in deposits from customers and from banks and non-bank financial institutions 1,373,562 1,212,274Net (decrease)/increase in financial assets sold under repurchase agreements (8,101) 5,540Net increase in certificates of deposit issued 53,554 36,447Income tax paid (56,946) (41,897)Increase in other operating liabilities 54,741 48,6591,463,178 1,276,062Net cash from operating activities 368,813 125,014The notes on pages 99 to 208 form part of these financial statements.China Construction Bank Corporation annual report 201297