HSBC 2001 Annual Report Download - page 236

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
234
41 Reconciliation of operating profit to net cash flow from operating activities
2001 2000 1999
US$m US$m US$m
Operating profit .......................................................................... 7,153 9,447 7,409
Change in prepayments and accrued income ................................ 452 (772) 359
Change in accruals and deferred income ...................................... (2,207) 1,863 249
Interest on finance leases and similar hire purchase contracts...... 27 26 26
Interest on subordinated loan capital ............................................ 1,074 1,216 826
Depreciation and amortisation ...................................................... 1,933 1,591 999
Amortisation of discounts and premiums ..................................... (640) (727) (112)
Provisions for bad and doubtful debts........................................... 2,037 932 2,073
Loans written off net of recoveries ............................................... (1,893) (1,653) (1,021)
Provisions for liabilities and charges ........................................... 1,229 723 765
Provisions utilised......................................................................... (542) (510) (478)
Amounts written off fixed asset investments ................................ 125 36 28
Net cash inflow from trading activities ..................................... 8,748 12,172 11,123
Change in items in the course of collection from other banks ...... 1,009 656 304
Change in treasury bills and other eligible bills............................ 2,200 (826) (2,007)
Change in loans and advances to banks ........................................ 19,601 838 (5,832)
Change in loans and advances to customers ................................. (16,072) (10,265) 1,126
Change in other securities............................................................. (20,307) (16,006) 11,293
Change in other assets................................................................... (1,856) (1,858) 7,669
Change in deposits by banks......................................................... (8,546) (2,333) (4,700)
Change in customer accounts........................................................ 19,799 42,153 10,269
Change in items in the course of transmission to other banks ...... (827) (1,576) 559
Change in debt securities in issue ................................................. (1,437) (17,019) (2,324)
Change in other liabilities* ........................................................... 9,179 7,004 (4,618)
Elimination of exchange differences†.......................................... 1,424 2,283 (1,318)
Net cash inflow from operating activities 12,915 15,223 21,544
*The change in other liabilities excludes the creditor of US$9,733 million at 31 December 1999 in respect of the acquisitions of the
former Republic and Safra Republic businesses, as this was a non-operating item. The settlement of this creditor was in January
2000 and is recorded under ‘Acquisitions and disposals’ in the Consolidated Cash Flow Statement.
†Adjustment to bring changes between opening and closing balance sheet amounts to average rates. This is not done on a line-by-line
basis, as it cannot be determined without unreasonable expense.