Annual REPORT

ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2015 2014
31 NOTES TO THE STATEMENT OF CASH FLOWS Sh’000 Sh’000
(a)
Reconciliation of profit before taxation to cash
used in operations
Profit before taxation 2,957,128 2,665,060
Adjustments for:
Depreciation of property and equipment 556,230 371,932
Amortisation of intangible assets 96,286 90,277
Amortisation of leasehold land 4,611 4,610
Loss on disposal of equipment 44,398 27,375
Loss/(gain) on revaluation of investment property 15,000 (24,400)
Accrued interest on borrowings 180,412 77,718
Working capital changes
Changes in working capital items:
Cash ratio balance (765,776) (711,329)
Loans and advances to customers (17,928,406) (9,982,116)
Other assets (345,038) (517,016)
Customer deposits 15,574,379 12,553,893
Other liabilities 92,022 (255,442)
Government securities (1,638,602) (1,254,722)
Corporate bonds and commercial paper (313,496) (666,418)
_________ _________
Cash (used in)/generated from operations (1,470,852) 2,379,422
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(b)
Analysis of the balances of cash and cash equivalents
as shown in the statement of financial position and notes
Cash in hand (note 13) 2,779,634 2,297,220
Balances with the Central Bank of Kenya (note13) 127,290 740,999
Balances with other banking institutions 4,892,358 7,378,051
Balances due to other banking institutions (131,643) (209,291)
_________ _________
7,667,639 10,206,979
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For the purpose of the statement of cash flows, cash and cash equivalents comprise balances with less than three months’ maturity from
the date of acquisition, including cash in hand, deposits held at call with banks and other short term highly liquid investments with original
maturities of three months or below, less advances from banks repayable within three months from the dates of the advances.
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