Consolidated Cash Flow Statement
For the year ended 31 December 2014| Note | 2014 HK$ million |
2013 HK$ million (Restated) |
|
| Cash flows from operating activities | |||
| Profit before taxation | 77,800 | 91,400 | |
| Adjustments for: | |||
| - Depreciation and amortisation | 10(b) | 9,977 | 8,951 |
| - Impairment losses | 8 | 55,020 | 17,679 |
| - Net valuation gain on investment properties | 33(a) | (2,332) | (2,095) |
| - Net valuation gain on investments | (535) | - | |
| - Share of profits of associates and joint ventures, net of tax | (7,714) | (6,632) | |
| - Interest expenses on debts instruments issued | 5(a) | 5,825 | 2,949 |
| - Finance income | 9 | (2,250) | (1,990) |
| - Finance costs | 9 | 11,054 | 9,487 |
| - Net loss on disposal of available-for-sale financial assets | 57 | 2 | |
| - Net gain on disposal of subsidiaries, associates and joint ventures | (2,556) | (2,659) | |
| 144,346 | 117,092 | ||
| Changes in working capital | |||
| Increase in balances and deposits with banks and | |||
| non-bank financial institutions | (5,196) | (104,586) | |
| Decrease in placements with banks and non-bank financial institutions | 90,962 | 9,029 | |
| (lncrease)/decrease in financial assets at fair value through profit | |||
| or loss and derivative financial assets | (27,791) | 6,971 | |
| Increase in trade and other receivables | (32,627) | (889) | |
| Decrease in amounts due from customers for contract work | 296 | 53 | |
| Decrease in inventories | 2,068 | 1,064 | |
| Decrease/(increase) in financial assets held under resale agreements | 191,182 | (273,493) | |
| Increase in loans and advances to customers and other parties | (300,177) | (361,391) | |
| Increase in investments classified as receivables | (452,794) | (305,452) | |
| Increase in other assets | (38,802) | (10,814) | |
| Increase in deposits from banks and non-bank financial institutions | 168,642 | 238,526 | |
| (Decrease)/increase in placements from banks and non-bank | |||
| financial institutions | (28,047) | 30,591 | |
| Increase in financial liabilities at fair value through profit or loss | |||
| and derivative financial liabilities | 724 | - | |
| (Decrease)/increase in trade and other payables | (8,397) | 15,554 | |
| Increase in amounts due to customers for contract work | 2,641 | 2,732 | |
| lncrease/(decrease) in financial assets sold under repurchase agreements | 42,477 | (4,699) | |
| Increase in deposits from customers | 249,318 | 514,725 | |
| Increase in borrowing from central bank | 63,167 | - | |
| Increase in other liabilities | 9,923 | 1,518 | |
| Increase in employee benefits payables | 2,525 | 368 | |
| Increase in provisions | 270 | 266 | |
| Cash generated from/(used in) operations | 74,710 | (122,835) | |
| Income tax paid | (15,773) | (23,988) | |
| Net cash generated from/(used in) operating activities | 58,937 | (146,823) | |
| Cash flows from investing activities | |||
| Proceeds from disposal and redemption of investments | 561,530 | 654,253 | |
| Proceeds from disposal of fixed assets, intangible assets and other assets | 665 | 572 | |
| Proceeds from disposal of subsidiaries, associates and joint ventures | 5,021 | 4,238 | |
| Dividends received from equity investments, associates and | |||
| joint ventures | 5,715 | 3,214 | |
| Payments for purchase of investments | (653,689) | (680,757) | |
| Payments for additions of fixed assets, intangible assets and other assets | (24,217) | (26,328) | |
| Net cash payment for acquisition of subsidiaries, associates and | |||
| joint ventures | (2,702) | (6,685) | |
| Net cash payment for disposal of subsidiaries | (246) | (1,619) | |
| Acquisition of non-controlling interests | (2,542) | (11,263) | |
| Interest received | 2,874 | 1,046 | |
| Net cash used in investing activities | (107,591) | (63,329) | |
| Cash flows from financing activities | |||
| Capital injection received from the controlling shareholder | 21,455 | - | |
| Capital injection received from non-controlling interests | 418 | 1,483 | |
| Proceeds received from placing of shares | 53,274 | - | |
| Net cash payment for acquisition of subsidiaries, | |||
| associates, and joint ventures | (53,357) | - | |
| Proceeds from new bank and other loans | 134,981 | 156,607 | |
| Repayment of bank and other loans and debt instruments issued | (180,174) | (138,163) | |
| Proceeds from new debt instruments issued | 129,766 | 51,569 | |
| Proceeds from other equity instruments issued | 2,303 | - | |
| Interest paid on bank and other loans and debt instruments issued | (19,286) | (19,039) | |
| Dividends paid to non-controlling interests | (5,987) | (4,472) | |
| Other net cash outflow relating to other financing activities | - | (3,213) | |
| Dividends paid to ordinary shareholders of the Company | (22,741) | (620) | |
| Distribution paid to holders of perpetual capital securities | (1,134) | (796) | |
| Net cash generated from financing activities | 59,518 | 43,356 | |
| Net increase/(decrease) in cash and cash equivalents | 10,864 | (166,796) | |
| Cash and cash equivalents at 1 January | 337,894 | 494,104 | |
| Effect of exchange rate changes | (867) | 10,586 | |
| Cash and cash equivalents at 31 December | 52 | 347,891 | 337,894 |