HSBC 2002 Annual Report Download - page 275

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41 Reconciliation of operating profit to net cash flow from operating activities
2002 2001 2000
US$m US$m US$m
Operating profit .......................................................................... 9,035 7,153 9,447
Change in prepayments and accrued income ................................ 355 452 (772)
Change in accruals and deferred income....................................... 190 (2,207) 1,863
Interest on finance leases and similar hire purchase contracts ...... 36 27 26
Interest on subordinated loan capital............................................. 862 1,074 1,216
Depreciation and amortisation ...................................................... 2,044 1,933 1,591
Amortisation of discounts and premiums...................................... (8) (640) (727)
Provisions for bad and doubtful debts........................................... 1,321 2,037 932
Loans written off net of recoveries ............................................... (1,931) (1,893) (1,653)
Provisions for liabilities and charges ........................................... 879 1,229 723
Provisions utilised......................................................................... (1,331) (542) (510)
Amounts written off fixed asset investments ................................ 324 125 36
Net cash inflow from trading activities ..................................... 11,776 8,748 12,172
Change in items in the course of collection from other banks ...... 124 1,009 656
Change in treasury bills and other eligible bills............................ 715 2,200 (826)
Change in loans and advances to banks ........................................ 16,550 19,601 838
Change in loans and advances to customers ................................. (35,332) (16,072) (10,265)
Change in other securities............................................................. 2,543 (20,307) (16,006)
Change in other assets................................................................... (7,055) (1,856) (1,858)
Change in deposits by banks......................................................... (3,505) (8,546) (2,333)
Change in customer accounts........................................................ 31,161 19,799 42,153
Change in items in the course of transmission to other banks ...... 716 (827) (1,576)
Change in debt securities in issue ................................................. 2,935 (1,437) (17,019)
Change in other liabilities ............................................................. (1,580) 9,179 7,004
Elimination of exchange differences*........................................... (2,622) 1,424 2,283
Net cash inflow from operating activities 16,426 12,915 15,223
*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.
42 Changes in financing during the year
Subordinate
d
loan capita
l
Preference
shares*
Ordinary
shares Share premium
US$m US$m US$m US$m
Balance at 1 January 2002 ................................. 15,480 4,291 4,678 3,373
Shares issued in lieu of dividends......................
–
–
45 (45)
Acquisition of subsidiaries 214
–
–
–
Issued during the year ........................................ 4,105
–
18 319
Repaid during the year ....................................... (1,923) (50)
–
–
Net cash inflow from financing ......................... 2,182 (50) 18 319
Exchange and other movements......................... 495 190 –
–
Balance as at 31 December 2002 ..................... 18,371 4,431 4,741 3,647