Consolidated accounts Barclays PLC

Consolidated cash flow statement

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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)
20,743  15,034  13,118 
Available for sale treasury and other eligible bills  43,072  51,703  53,497 
Less: non-cash and amounts with original maturity greater than three months  (41,688) (50,684) (53,281)
1,384  1,019  216 
Trading portfolio assets  193,691  177,867  155,723 
Less: non-cash and amounts with original maturity greater than three months  (188,556) (170,329) (152,183)
5,135  7,538  3,540 
Other  14  16  25 
33,077  30,952  20,805 

In 2005 the opening cash and cash equivalents balance was adjusted to reflect the adoption of IAS 32 and IAS 39.

The accompanying notes form an integral part of the Consolidated accounts.

Interest received in 2007 was £49,441m (2006: £38,544m, 2005: £32,124m) and interest paid in 2007 was £37,821m (2006: £29,372m, 2005: £23,319m).

The Group is required to maintain balances with central banks and other regulatory authorities and these amounted to £1,037m at 31st December 2007 (2006: £1,262m).