Barclays 2011 Annual Report Download - page 203

For the year ended 31 December 2011
£m
2010
£m
2009
£m
Continuing operations
Reconciliation of profit before tax to net cash flows from operating activities:
Profit before tax 5,879 6,065 4,585
Adjustment for non-cash items:
Allowance for impairment 5,602 5,672 8,071
Depreciation, amortisation and impairment of property, plant, equipment and intangibles 1,104 1,346 1,196
Other provisions, including pensions 1,787 914 428
Net profit on disposal of investments and property, plant and equipment (1,645) (1,057) (383)
Other non-cash movements 1,345 (5,904) 4,325
Changes in operating assets and liabilities
Net decrease/(increase) in loans and advances to banks and customers 38,340 (63,212) 25,482
Net (decrease)/increase in deposits and debt securities in issue (11,554) 63,711 (49,203)
Net decrease/(increase) in derivative financial instruments 3,730 (1,298) 3,321
Net decrease/(increase) in trading assets 21,360 (17,505) 34,334
Net (decrease)/increase in trading liabilities (26,899) 21,441 (8,222)
Net (increase)/decrease in financial investments (4,255) 11,126 20,459
Net decrease/(increase) in other assets 119 1,366 (465)
Net decrease in other liabilities (4,148) (2,521) (907)
Corporate income tax paid (1,686) (1,458) (1,177)
Net cash from operating activities 29,079 18,686 41,844
Purchase of available for sale investments (67,525) (76,418) (78,420)
Proceeds from sale or redemption of available for sale investments 66,941 71,251 88,559
Purchase of property, plant and equipment (1,454) (1,767) (1,150)
Disposal of discontinued operation, net of cash disposed – – 2,469
Other cash flows associated with investing activities 126 1,307 430
Net cash from investing activities (1,912) (5,627) 11,888
Dividends paid (1,387) (1,307) (633)
Proceeds of borrowings and issuance of subordinated debt 880 2,131 3,549
Repayments of borrowings and redemption of subordinated debt (4,003) (1,211) (4,383)
Net issue of shares and other equity instruments 41 1,535 773
Net (purchase)/disposal of treasury shares (235) (989) 33
Net redemption of shares issued to non-controlling interests (1,257) – –
Net cash from financing activities (5,961) 159 (661)
Effect of exchange rates on cash and cash equivalents (2,933) 3,842 (2,864)
Net cash from discontinued operations – – (376)
Net increase in cash and cash equivalents 18,273 17,060 49,831
Cash and cash equivalents at beginning of year 131,400 114,340 64,509
Cash and cash equivalents at end of year 149,673 131,400 114,340
Cash and cash equivalents comprise:
Cash and balances at central banks 106,894 97,630 81,483
Loans and advances to banks with original maturity less than three months 40,481 31,934 30,461
Available for sale treasury and other eligible bills with original maturity less than three months 2,209 1,667 2,244
Trading portfolio assets with original maturity less than three months 89 169 152
149,673 131,400 114,340
Interest received in 2011 was £28,673m (2010: £28,631m, 2009: £32,437m) and interest paid in 2011 was £20,106m (2010: £20,759m, 2009:
£20,889m).
The Group is required to maintain balances with central banks and other regulatory authorities and these amounted to £2,500m at 31 December 2011
(2010: £2,310m, 2009: £2,470m).
For the purposes of the cash flow statement, cash comprises cash on hand and demand deposits, and cash equivalents comprise highly liquid
investments that are convertible into cash with an insignificant risk of changes in value with original maturities of three months or less. Repurchase and
reverse repurchase agreements are not considered to be part of cash equivalents.
Consolidated financial statements
Consolidated cash flow statement
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 201
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