RBS 2012 Annual Report Download - page 480

478
Parent company financial statements and notes continued
Cash flow statement for the year ended 31 December 2012
Note
2012
£m
2011
£m
2010
£m
Operating activities
Operating loss before tax (529) (34) (4,471)
Profit on disposal of investment in subsidiaries (157) — —
Adjustments for:
Write-down of investment in subsidiaries 1,785 570 5,124
Interest on subordinated liabilities 486 419 462
Impairment of loans to Group entities 1,409 — —
Gain on redemption of own debt — — (53)
Elimination of foreign exchange differences (194) (4) 272
Other non-cash items (1)(5) (1)
Net cash flows from trading activities 2,799 946 1,333
Changes in operating assets and liabilities (3,725) 2,964 (10,238)
Net cash flows from operating activities before tax (926) 3,910 (8,905)
Income taxes paid (58) (95) (133)
Net cash flows from operating activities 12 (984) 3,815 (9,038)
Investing activities
Investment in subsidiaries (2,900)(4,568) (1,884)
Disposal of subsidiaries 892 — 6
Net cash flows from investing activities (2,008) (4,568) (1,878)
Financing activities
Issue of ordinary shares 120 2 1
Redemption of paid-in equity — — (132)
Issue of subordinated liabilities 2,747 940 —
Redemption of preference shares — — (2,352)
Repayment of subordinated liabilities — (193) (98)
Dividends paid (288) — (124)
Interest on subordinated liabilities (423) (415) (475)
Net cash flows from financing activities 2,156 334 (3,180)
Effects of exchange rate changes on cash and cash equivalents (50)(55) 5
Net decrease in cash and cash equivalents (886) (474) (14,091)
Cash and cash equivalents at 1 January 1,883 2,357 16,448
Cash and cash equivalents at 31 December 15 997 1,883 2,357
The accompanying notes on pages 479 to 486 form an integral part of these financial statements.