RBS 2012 Annual Report Download - page 487

RBS GROUP 2012
485
12 Net cash (outflow)/inflow from operating activities
2012 2011 2010
£m £m £m
Operating loss before tax - continuing operations (529) (34) (4,471)
Interest on subordinated liabilities 486 419 462
Decrease in accruals and deferred income — (5) (1)
Impairment of loans to Group entities 1,409 — —
Gain on redemption of own debt — — (53)
Profit on disposal of investment in subsidiaries (157) — —
Write-down of investment in subsidiaries 1,785 570 5,124
Elimination of foreign exchange differences (194) (4) 272
Other non-cash items (1)— —
Net cash inflow from trading activities 2,799 946 1,333
(Increase)/decrease in loans and advances to banks and customers (4,737) 3,596 (6,300)
Decrease/(increase) in securities 46 (114) (168)
Decrease in other assets 4 5 105
Decrease/(increase) in derivative assets 991 (27) (306)
Changes in operating assets (3,696) 3,460 (6,669)
(Decrease)/increase in deposits by banks and customers (585) 328 (78)
Increase/(decrease) in debt securities in issue 937 (369) (3,020)
Decrease in other liabilities (309) (303) (267)
Decrease in derivative liabilities (72)(152)(215)
Increase in settlement balances and short positions — — 11
Changes in operating liabilities (29) (496) (3,569)
Income taxes paid (58) (95) (133)
Net cash (outflow)/inflow from operating activities (984) 3,815 (9,038)
13 Interest received and paid
2012
£m
2011
£m
2010
£m
Interest received 1,143 1,149 1,113
Interest paid (723) (642)(712)
420 507 401
14 Analysis of changes in financing during the year
Share capital,
share premium, paid-in
equity and merger reserve Subordinated liabilities
2012
£m
2011
£m
2010
£m
2012
£m
2011
£m
2010
£m
At 1 January 42,091 41,869 53,359
8,777 8,048 8,762
Issue of ordinary shares 120 2 1 — — —
Redemption of preference shares — — 117 — — —
Redemption of paid-in equity — — (132) — — —
Cancellation of non-voting deferred shares — — (27) — — —
Issue of subordinated liabilities — — — 2,747 940 —
Repayment of subordinated liabilities — — — — (193) (98)
Net cash inflow/(outflow) from financing 120 2 (41) 2,747 747 (98)
Transfer to retained earnings — (50)(12,252) — — —
Share capital sub-division and consolidation (8,933) — — — — —
Ordinary shares issued in respect of employee share schemes 437 270 803 — — —
Other adjustments including foreign exchange — — — (219) (18) (616)
At 31 December 33,715 42,091 41,869 11,305 8,777 8,048