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
       
  1. Following a review of certain short dated instruments held by the group, certain assets have been reclassified from Cash and cash equivalents to Financial investments as their tenure is greater than 3 months. These amounts totalled £10,369m at 2016. There is a net nil impact on the Consolidated Income Statement. The reclassification has resulted in an adjustment to the Investments held for trading or designated as fair value through profit or loss in the Consolidated Cash Flow Statement of (£1,847m) at 2016.
  2. Tax comprises UK corporation tax paid of £290m (2016: £249m), overseas corporate taxes of £12m (2016: £16m), and withholding tax of £195m (2016: £159m).
  3. Net cash flows from acquisitions includes cash paid of £64m (2016: £nil) less cash and cash equivalents received of £1m (2016: £nil).
  4. Net cash flows from disposals includes cash received of £286m (2016: £144m) less cash and cash equivalents disposed of £nil (2016: £416m).

Further information in relation to the cash flows of the discontinued operations can be found in Note 30 of the group annual report & accounts

     

 

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