RBS 2007 Annual Report Download - page 204

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Financial statements
RBS Group • Annual Report and Accounts 2007
202
Notes on the accounts continued
34 Net cash inflow from operating activities
Group Company
2007 2006 2005 2007 2006 2005
£m £m £m £m £m £m
Operating profit before tax 9,900 9,186 7,936 2,372 3,486 1,932
(Increase)/decrease in prepayments and accrued income (662) 322 1,064 (1) —4
Interest on subordinated liabilities 1,542 1,386 1,271 470 520 583
(Decrease)/increase in accruals and deferred income (818) 515 (1,200) —(27) 8
Provisions for impairment losses 2,128 1,877 1,707 ———
Loans and advances written-off net of recoveries (1,781) (1,626) (1,870) ———
Unwind of discount on impairment losses (166) (142) (144) ———
Profit on sale of property, plant and equipment (741) (216) (91) ———
(Profit)/loss on sale of subsidiaries and associates (67) (44) 80 ———
Profit on sale of securities (544) (369) (667) ———
Charge for defined benefit pension schemes 489 580 462 ———
Cash contribution to defined benefit pension schemes (599) (536) (452) ———
Other provisions utilised (211) (42) (34) ———
Depreciation and amortisation 1,970 1,678 1,825 ———
Elimination of foreign exchange differences (10,282) 4,516 (3,060) (58) (22) (30)
Other non-cash items (373) (1,395) (257) 245 (116)
Net cash (outflow)/inflow from trading activities (215) 15,690 6,570 2,785 4,002 2,381
(Increase)/decrease in loans and advances to banks and customers (90,829) (44,525) (36,778) (8) 346 (14)
Increase in securities (26,167) (16,703) (28,842) ———
(Increase)/decrease in other assets (384) 671 (2,390) —25
(Increase)/decrease in derivative assets (134,356) (21,018) (5,758) (173) 55 50
Changes in operating assets (251,736) (81,575) (73,768) (181) 403 41
Increase/(decrease) in deposits by banks and customers 81,645 63,091 32,424 4,677 (164) 832
Increase in insurance liabilities 2,706 244 620 ———
Increase/(decrease) in debt securities in issue 59,735 (4,457) 24,147 10,936 (803) 1,328
(Decrease)/increase in other liabilities (1,036) 935 571 (7) 14 (55)
Increase/(decrease) in derivative liabilities 128,874 21,674 5,161 137 42 (96)
Increase in settlement balances and short positions 8,073 4,068 10,326 ———
Changes in operating liabilities 279,997 85,555 73,249 15,743 (911) 2,009
Total income taxes (paid)/received (2,442) (2,229) (1,911) 6154 (18)
Net cash inflow from operating activities 25,604 17,441 4,140 18,353 3,648 4,413