HSBC 2003 Annual Report Download - page 316

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
314
41 Reconciliation of operating profit to net cash flow from operating activities
2003 2002 20012
US$m US$m US$m
Operating profit .................................................................................................. 12,297 9,035 7,153
Change in prepayments and accrued income ...................................................... (6,825
)
355 452
Change in accruals and deferred income ............................................................ 6,015 190 (2,207
)
Interest on finance leases and similar hire purchase contracts ............................ 38 36 27
Interest on subordinated loan capital .................................................................. 958 862 1,074
Depreciation and amortisation ............................................................................ 2,847 2,044 1,933
Amortisation of discounts and premiums ........................................................... 338 (8
)
(640
)
Provisions for bad and doubtful debts ................................................................ 6,093 1,321 2,037
Loans written off net of recoveries ..................................................................... (6,846
)
(1,931
)
(1,893
)
Provisions for liabilities and charges .................................................................. 759 879 1,229
Provisions utilised .............................................................................................. (781
)
(1,331
)
(542
)
Amounts written off fixed asset investments ...................................................... 66 324 125
Net cash inflow from trading activities .............................................................. 14,959 11,776 8,748
Change in items in the course of collection from other banks ............................ (135
)
124 1,009
Change in treasury bills and other eligible bills .................................................. 650 715 2,200
Change in loans and advances to banks .............................................................. (14,537
)
16,550 19,601
Change in loans and advances to customers ....................................................... (77,614
)
(35,332
)
(16,072
)
Change in other securities .................................................................................. (10,518
)
2,543 (20,395
)
Change in other assets ........................................................................................ (4,302
)
(7,055
)
(1,856
)
Change in deposits by banks .............................................................................. 14,628 (3,505
)
(8,546
)
Change in customer accounts ............................................................................. 76,085 31,161 19,799
Change in items in the course of transmission to other banks ............................ (251
)
716 (827
)
Change in debt securities in issue ....................................................................... 13,976 2,935 (1,437
)
Change in other liabilities .................................................................................. 14,443 (1,580
)
9,179
Elimination of exchange differences1 ................................................................. (4,709
)
(2,622
)
1,424
Net cash inflow from operating activities ........................................................... 22,675 16,426 12,827
1Adjustment to bring changes between opening and closing balance sheet amounts to average rates. This is not done on a line-by-line
basis, as details cannot be determined without unreasonable expense.
2Figures for 2001 have been restated to reflect the adoption of UITF Abstracts 37 ‘Purchases and sales of own shares’, and 38
‘Accounting for ESOP trusts’, details of which are set out in Note 1.