RBS 2004 Annual Report Download - page 96

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Operating and financial review
Operating and financial review continued
Cash flow
2004 2003 2002
£m £m £m
Net cash inflow from operating activities 6,307 19,708 13,737
Dividends received from associated undertakings 9 91
Returns on investments and servicing of finance (1,070) (956) (1,103)
Taxation (1,394) (1,454) (1,107)
Capital expenditure and financial investment (1,526) (6,965) (9,185)
Acquisitions and disposals (7,674) (1,571) (281)
Equity and AVS dividends paid (1,235) (2,235) (1,527)
Financing 9,369 4,128 2,711
Increase in cash 2,786 10,664 3,246
2004
The major factors contributing to the net cash inflow of
£6,307 million from operating activities in 2004 were the profit
before tax of £6,917 million, increases in deposits and debt
securities in issue of £70,580 million, increases in short
positions and settlement balances of £8,796 million, partially
offset by increases in treasury and other eligible bills of £1,264
million, increases in securities of £10,367 million and increases
in loans and advances of £72,913 million.
Interest on subordinated liabilities of £613 million and
dividends of £457 million to preference and minority
shareholders were paid during the year.
Net sales of investment securities of £1,232 million and net
purchases of fixed assets of £2,758 million, including
operating lease assets and investment properties, comprised
the net cash inflow from capital expenditure and financial
investment.
The issue of £1,075 million trust preferred securities and £4,624
million subordinated debt, partially offset by the repayment of
£718 million of subordinated debt were the main contributors
to the net cash inflow from financing of £9,369 million.
2003
The major factors contributing to the net cash inflow of £19,708
million from operating activities in 2003 were the profit before
tax of £6,076 million, increases in deposits and debt securities
in issue of £33,935 million, increases in short positions and
settlement balances of £3,202 million and decreases in
treasury and other eligible bills of £6,626 million, partially
offset by the net increase in loans and advances of £23,343
million and increases in securities of £9,871 million.
Interest on subordinated liabilities of £557 million and
dividends of £399 million to preference and minority
shareholders were paid during the year.
Net purchases of investment securities of £3,056 million and
fixed assets of £3,909 million, including operating lease assets
and investment properties, comprised the net cash outflow
from capital expenditure and financial investment.
Equity and Additional Value Shares (‘AVS’) dividends paid
includes the final dividend on the AVS of £1,463 million.
The issue of £883 million trust preferred securities and £3,817
million subordinated debt, partially offset by the redemption of
preference shares of £364 million and repayment of £336
million of subordinated debt were the main contributors to the
net cash inflow from financing of £4,128 million.
2002
The major factors contributing to the net cash inflow of £13,737
million from operating activities in 2002 were the profit before
tax of £4,852 million and an increase in deposits, debt
securities in issue and other liabilities of £40,981 million, which
were partially offset by the increase in loans and advances of
£35,426 million.
Interest on subordinated liabilities of £674 million and dividends
of £429 million to preference and minority shareholders were
paid during the year.
Net purchases of investment securities of £6,629 million and
fixed assets of £2,556 million, including operating lease assets,
comprised the net cash outflow from capital expenditure and
financial investment.
Equity and AVS dividends paid includes the second dividend
on the AVS of £798 million.
The issue of £1,242 million trust preferred securities and
£2,157 million subordinated debt, partially offset by the
redemption of preference shares of £600 million and repayment
of £202 million of subordinated debt were the main contributors
to the net cash inflow from financing of £2,711 million.