| For the year ended 31st December | |||||||||||||||||||||||||||
| 2007 | 2006 | 2005 | |||||||||||||||||||||||||
| £m | £m | £m | |||||||||||||||||||||||||
| Reconciliation of profit before tax to net cash flows from operating activities: | |||||||||||||||||||||||||||
| Profit before tax | 7,076 | 7,136 | 5,280 | ||||||||||||||||||||||||
| Adjustment for non-cash items: | |||||||||||||||||||||||||||
| Allowance for impairment | 2,795 | 2,154 | 1,571 | ||||||||||||||||||||||||
| Depreciation, amortisation and impairment of property, plant, equipment and intangibles | 669 | 612 | 450 | ||||||||||||||||||||||||
| Other provisions, including pensions | 753 | 558 | 654 | ||||||||||||||||||||||||
| Net profit from associates and joint ventures | (42) | (46) | (45) | ||||||||||||||||||||||||
| Net profit on disposal of investments and property, plant and equipment | (862) | (778) | (530) | ||||||||||||||||||||||||
| Net profit from disposal of associates and joint ventures | (26) | (263) | – | ||||||||||||||||||||||||
| Net profit from disposal of subsidiaries | (2) | (60) | – | ||||||||||||||||||||||||
| Other non-cash movements | (1,133) | 1,702 | 1,475 | ||||||||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||||||
| Net increase in loans and advances to banks and customers | (77,987) | (27,385) | (63,177) | ||||||||||||||||||||||||
| Net increase in deposits and debt securities in issue | 90,589 | 46,944 | 67,012 | ||||||||||||||||||||||||
| Net (increase)/decrease in derivative financial instruments | (2,144) | 1,196 | 841 | ||||||||||||||||||||||||
| Net increase in trading portfolio assets | (18,227) | (18,323) | (42,589) | ||||||||||||||||||||||||
| Net (decrease)/increase in trading liabilities | (6,472) | 310 | 9,888 | ||||||||||||||||||||||||
| Net (increase)/decrease in financial investments | (4,379) | 1,538 | 27,129 | ||||||||||||||||||||||||
| Net (increase)/decrease in other assets | 1,299 | (1,527) | (410) | ||||||||||||||||||||||||
| Net decrease in other liabilities | (1,071) | (1,580) | (2,818) | ||||||||||||||||||||||||
| Tax paid | (1,583) | (2,141) | (1,082) | ||||||||||||||||||||||||
| Net cash (used in)/from operating activities | (10,747) | 10,047 | 3,649 | ||||||||||||||||||||||||
| Purchase of available for sale investments | (26,899) | (47,086) | (53,483) | ||||||||||||||||||||||||
| Proceeds from sale or redemption of available for sale investments | 38,423 | 46,069 | 51,111 | ||||||||||||||||||||||||
| Purchase of intangible assets | (263) | (212) | (91) | ||||||||||||||||||||||||
| Purchase of property, plant and equipment | (1,241) | (654) | (588) | ||||||||||||||||||||||||
| Proceeds from sale of property, plant and equipment | 617 | 786 | 98 | ||||||||||||||||||||||||
| Acquisitions of subsidiaries, net of cash acquired | (270) | (248) | (2,115) | ||||||||||||||||||||||||
| Disposal of subsidiaries, net of cash disposed | 383 | (15) | – | ||||||||||||||||||||||||
| Increase in investment in subsidiaries | (668) | (432) | (160) | ||||||||||||||||||||||||
| Decrease in investment in subsidiaries | 57 | 44 | 49 | ||||||||||||||||||||||||
| Acquisition of associates and joint ventures | (220) | (162) | (176) | ||||||||||||||||||||||||
| Disposal of associates and joint ventures | 145 | 739 | 40 | ||||||||||||||||||||||||
| Other cash flows associated with investing activities | – | 17 | 23 | ||||||||||||||||||||||||
| Net cash from/(used in) investing activities | 10,064 | (1,154) | (5,292) | ||||||||||||||||||||||||
| Dividends paid | (2,559) | (2,215) | (1,894) | ||||||||||||||||||||||||
| Proceeds of borrowings and issuance of debt securities | 4,625 | 2,493 | 1,179 | ||||||||||||||||||||||||
| Repayments of borrowings and redemption of debt securities | (683) | (366) | (464) | ||||||||||||||||||||||||
| Issue of shares and other equity instruments | 2,494 | 179 | 135 | ||||||||||||||||||||||||
| Repurchase of shares and other equity instruments | (1,802) | – | – | ||||||||||||||||||||||||
| Net purchase of treasury shares | (48) | (31) | (140) | ||||||||||||||||||||||||
| Net issue of shares to minority interests | 1,331 | 632 | 2,267 | ||||||||||||||||||||||||
| Net cash from financing activities | 3,358 | 692 | 1,083 | ||||||||||||||||||||||||
| Exchange (loss)/gain on foreign currency cash and cash equivalents | (550) | 562 | (237) | ||||||||||||||||||||||||
| Net increase/(decrease) in cash and cash equivalents | 2,125 | 10,147 | (797) | ||||||||||||||||||||||||
| Cash and cash equivalents at beginning of year | 30,952 | 20,805 | 21,602 | ||||||||||||||||||||||||
| Cash and cash equivalents at end of year | 33,077 | 30,952 | 20,805 | ||||||||||||||||||||||||
| Cash and cash equivalents comprise: | |||||||||||||||||||||||||||
| Cash and balances at central banks | 5,801 | 7,345 | 3,906 | ||||||||||||||||||||||||
| Loans and advances to banks | 40,120 | 30,926 | 31,105 | ||||||||||||||||||||||||
| Less: amounts with original maturity greater than three months | (19,377) | (15,892) | (17,987) | ||||||||||||||||||||||||