RBS 2011 Annual Report Download - page 432

430 RBS Group 2011
12 Net cash inflow/(outflow) from operating activities
2011 2010 2009
£m £m £m
Operating loss before tax - continuing operations (34) (4,471) (1,286)
Interest on subordinated liabilities 419 462 537
Decrease in accruals and deferred income (5) (1) (1)
Gain on redemption of own debt — (53) (238)
Write-down of investment in subsidiaries 570 5,124 5,139
Elimination of foreign exchange differences (4) 272 (753)
Other non-cash items —— 21
Net cash inflow from trading activities 946 1,333 3,419
Decrease/(increase) in loans and advances to banks and customers 3,596 (6,300) 4,121
Increase in securities (114) (168) (1,286)
Decrease/(increase) in other assets 5105 (10)
Increase in derivative assets (27) (306) (1)
Changes in operating assets 3,460 (6,669) 2,824
Increase/(decrease) in deposits by banks and customers 328 (78) 11,533
Decrease in debt securities in issue (369) (3,020) (1,828)
Decrease in other liabilities (303) (267) (66)
(Decrease)/increase in derivative liabilities (152) (215) 85
Increase/(decrease) in settlement balances and short positions — 11 (11)
Changes in operating liabilities (496) (3,569) 9,713
Income taxes (paid)/received (95) (133) 409
Net cash inflow/(outflow) from operating activities 3,815 (9,038) 16,365
13 Interest received and paid
2011
£m
2010
£m
2009
£m
Interest received 1,149 1,113 1,140
Interest paid (642) (712) (866)
507 401 274
14 Analysis of changes in financing during the year
Share capital,
share premium, paid-in
equity and merger reserve Subordinated liabilities
2011
£m
2010
£m
2009
£m
2011
£m
2010
£m
2009
£m
At 1 January 41,869 53,359 38,442
8,048 8,762 10,314
Issue of ordinary shares 2 1 — —— —
Redemption of preference shares — 117 (5,000) —— —
Placing and open offer — —5,274 —— —
Issue of B shares — —12,801 —— —
Redemption of paid-in equity — (132) (308) —— —
Cancellation of non-voting deferred shares — (27) — —— —
Issue of subordinated liabilities — — — 940 — —
Repayment of subordinated liabilities — — — (193) (98) (458)
Net cash inflow/(outflow) from financing 2 (41) 12,767 747 (98) (458)
Investment in subsidiaries — —12,300 —— —
Transfer to retained earnings (50) (12,252) (10,150) —— —
Other adjustments including foreign exchange 270 803 — (18) (616) (1,094)
At 31 December 42,091 41,869 53,359 8,777 8,048 8,762
Parent company financial statement and notes continued