Consolidated cash flow statement
Consolidated cash flows from operating activities for the year ended 31 December 2017
| For the year ended 31 December 2017 | Notes | 2017 £ million |
2016 1 £ million |
|---|---|---|---|
| Profit for the year | 1,902 | 1,265 | |
| Realised and unrealised (gains) on financial investments and investment properties | (25,024) | (53,262) | |
| Investment income | (9,953) | (9,390) | |
| Interest expense | 220 | 198 | |
| Tax expense | 377 | 602 | |
| Other adjustments | 154 | (45) | |
| Net (increase)/decrease in operational assets | |||
| Investments held for trading or designated as fair value through profit or loss | 11,794 | (11,210) | |
| Investments designated as available-for-sale | 277 | 246 | |
| Other assets | (2,344) | (2,658) | |
| Net (increase)/decrease in operational liabilities | |||
| Insurance contracts | (3,989) | 12,910 | |
| Investment contracts | (10,798) | 39,747 | |
| Vale of in-force non-participating contracts | 206 | (22) | |
| Other liabilities | 20,444 | 16,791 | |
| Net increase in held for sale liabilities | 12,139 | - | |
| Cash used in operations | (4,595) | (4,828) | |
| Interest paid | (221) | (198) | |
| Interest received | 4,528 | 4,863 | |
| Tax paid 2 | (497) | (424) | |
| Dividends received | 5,196 | 4,676 | |
| Net cash flows from operating activities | 4,411 | 4,089 | |
| Cash flows from investing activities | |||
| Net acquisition of plant, equipment, intangibles and other assets | (230) | (45) | |
| Acquisitions 3 | 3.01 | (63) | - |
| Disposal of subsidiaries 4 | 3.02 | 286 | (272) |
| Investment in joint ventures and associates | (7) | (63) | |
| Net cash flows used in investing activities | (14) | (380) | |
| Cash flows from financing activities | |||
| Dividend distributions to ordinary equity holders of the company during the year | 3.08 | (872) | (830) |
| Issue of ordinary share capital | 7 | 5 | |
| Purchase of employee scheme shares (net) | 10 | - | |
| Proceeds from borrowings | 1,232 | 219 | |
| Repayment of borrowings | (600) | (342) | |
| Movement in non-controlling interests | (262) | - | |
| Net cash flows used in financing activities | (485) | (948) | |
| Net increase in cash and cash equivalents | 3,912 | 2,761 | |
| Exchange (losses)/gains on cash and cash equivalents | (19) | 182 | |
| Cash and cash equivalents at 1 January (before reallocation of held for sale cash) | 15,348 | 12,544 | |
| Total cash and cash equivalents | 19,241 | 15,487 | |
| Total cash and cash equivalents classified as held for sale | 3.03 | (322) | (139) |
| Total cash and cash equivalents at 31 December | 18,919 | 15,348 | |
Further information in relation to the cash flows of the discontinued operations can be found in Note 30 of the group annual report & accounts |