Statement of Cash Flows
For the year ended 30 June 2005
| Group 2005 $M |
Group 2004 $M |
|
|---|---|---|
| Cash flows from operating activities | ||
| Interest received | 16,205 | 13,101 |
| Dividends received | 3 | 6 |
| Interest paid | (10,198) | (7,543) |
| Other operating income received | 4,649 | 3,410 |
| Expenses paid | (5,714) | (5,529) |
| Income taxes paid | (985) | (1,366) |
| Net decrease/(increase) in trading securities | 318 | (4,324) |
| Life insurance: | ||
| Investment income | 1,572 | 841 |
| Premiums received1 | 3,183 | 3,562 |
| Policy payments1 | (4,664) | (4,529) |
| Net cash provided by/(used in) operating activities | 4,369 | (2,371) |
| Cash flows from investing activities | ||
| Payments for shares in controlled entities, other companies and management rights | (82) | — |
| Proceeds from disposal of controlled entities | — | 63 |
| Proceeds from disposal of entities and businesses | 173 | — |
| Disposal of shares in other companies | — | 114 |
| Net movement in investment securities: | ||
| Purchases | (22,608) | (25,587) |
| Proceeds from sale | 392 | 697 |
| Proceeds at or close to maturity | 22,799 | 24,407 |
| (Lodgement)/withdrawal of deposits with regulatory authorities | (7) | (15) |
| Net increase in loans, advances and other receivables | (28,447) | (29,328) |
| Net amounts paid to controlled entities | — | — |
| Proceeds from sale of property, plant and equipment | 30 | 69 |
| Purchase of property, plant and equipment | (286) | (536) |
| Net decrease/(increase) in receivables due from other financial institutions not at call | 933 | 292 |
| Net decrease/(increase) in securities purchased under agreements to resell | 991 | (1,023) |
| Net decrease/(increase) in other assets | 1,056 | (1,461) |
| Life insurance: | ||
| Purchases of investment securities | (14,165) | (20,286) |
| Proceeds from sale/maturity of investment securities | 15,281 | 21,500 |
| Net cash (used in) investing activities | (23,940) | (31,094) |
| Cash flows from financing activities | ||
| Buy back of shares | — | (532) |
| Proceeds from issue of shares (net of costs) | 66 | 505 |
| Proceeds from issue of preference shares to outside equity interests | 323 | — |
| Proceeds from issue of other equity instruments (net of costs) | — | 1,573 |
| Net increase in deposits and other borrowings | 6,332 | 21,997 |
| Net movement in debt issues | 14,579 | 13,413 |
| Dividends paid (excluding DRP) | (2,083) | (1,774) |
| Net movements in other liabilities | (330) | (242) |
| Net increase/(decrease) in payables due to other financial institutions not at call | 449 | (929) |
| Net increase/(decrease) in securities sold under agreements to repurchase | (1,480) | 206 |
| Issue of loan capital | 1,233 | 985 |
| Redemptions of loan capital | (1,392) | (317) |
| Other | (37) | (2) |
| Net cash provided by financing activities | 17,660 | 34,883 |
| Net increase/(decrease) in cash and cash equivalents | 1,911 | 1,418 |
| Cash and cash equivalents at beginning of period | 2,846 | 1,428 |
| Cash and cash equivalents at end of period | 935 | 2,846 |
1 These were gross premiums and policy payments before splitting between policyholder liabilities and revenue and expense.
For further information, refer to the full Annual Report – 2005 Financial Statements. The cash flow statement highlights the net growth from Investing Activities of $23.9 billion including lending assets of $28.4 billion, financed by deposits growth of $6.3 billion and debt issues of $14.6 billion. Operating activities generated $4.4 billion in cash for the year. It should be noted that the Bank does not use this accounting Statement of Cash Flows in the internal management of its liquidity positions.
Return to top of page