CONSOLIDATED CASH FLOW STATEMENT
| For the year ended 31 December 2018 | |||
|---|---|---|---|
| Note | 2018 HK$ million |
2017 HK$ million |
|
| Cash flows from operating activities | |||
| Profit before taxation | 93,969 | 82,783 | |
| Adjustments for: | |||
| – Depreciation and amortisation | 12(b) | 15,091 | 14,171 |
| – Impairment losses | 10 | N/A | 78,925 |
| – Expected credit losses | 8 | 69,059 | N/A |
| – Other impairment losses | 9 | 6511 | N/A |
| – Net valuation gain on investment properties | 36 | (954) | (58) |
| – Net valuation gain on investments | 7,301 | (3,746) | |
| – Share of profits of associates and joint ventures, net of tax | (10,700) | (13,453) | |
| – Interest expenses on debts instruments issued | 5(a) | 26,667 | 22,113 |
| – Finance income | 11 | (2,729) | (1,412) |
| – Finance costs | 11 | 12,294 | 11,497 |
| – Net gain on available-for-sale financial assets | N/A | (5,127) | |
| – Net gain on investments in financial assets | (12,729) | N/A | |
| – Net gain on disposal of subsidiaries, associates and joint ventures | (3,212) | (9,011) | |
| 200,568 | 176,682 | ||
| Changes in working capital | |||
| Decrease in deposits with central banks, banks and non-bank financial institutions | 82,995 | 8,201 | |
| Decrease in placements with banks and non-bank financial institutions | 50,873 | 12,561 | |
| Decrease in financial assets at fair value through profit or loss | N/A | 18,149 | |
| Increase in trade and other receivables | (8,477) | (11,368) | |
| Decrease in amounts due from customers for contract work | N/A | 129 | |
| Increase in contract assets | (7,542) | N/A | |
| Increase in inventories | (2,398) | (9,775) | |
| Decrease in financial assets held under resale agreements | 51,232 | 136,684 | |
| Increase in loans and advances to customers and other parties | (535,417) | (422,202) | |
| Decrease in investments classified as receivables | N/A | 581,091 | |
| Decrease in investments in financial assets | 14,854 | N/A | |
| Decrease/(increase) in other assets | 19,073 | (38,751) | |
| Decrease in deposits from banks and non-bank financial institutions | (23,664) | (210,828) | |
| Increase/(decrease) in placements from banks and non-bank financial institutions | 39,950 | (7,788) | |
| Increase in financial liabilities at fair value through profit or loss | 1,134 | - | |
| Increase in trade and other payables | 7,220 | 21,709 | |
| Increase in amounts due to customers for contract work | N/A | 442 | |
| Increase in contract liabilities | 4,470 | N/A | |
| (Decrease)/increase in financial assets sold under repurchase agreements | (15,523) | 16,326 | |
| Increase/(decrease) in deposits from customers | 246,834 | (231,665) | |
| Increase in borrowing from central banks | 52,248 | 62,290 | |
| (Decrease)/increase in other liabilities | (8,996) | 22,269 | |
| Increase in employee benefits payables | 2,276 | 2,137 | |
| (Decrease)/increase in provisions | (732) | 1,806 | |
| Cash generated from operating activities | 170,978 | 128,099 | |
| Income tax paid | (19,079) | (20,966) | |
| Net cash generated from operating activities | 151,899 | 107,133 | |
Consolidated Cash Flow Statement
For the year ended 31 December 2018
| For the year ended 31 December | |||
|---|---|---|---|
| Note | 2018 HK$ million |
2017 HK$ million |
|
| Cash flows from investing activities | |||
| Proceeds from disposal and redemption of financial investments | 1,691,875 | 1,214,792 | |
| Proceeds from disposal of fixed assets, intangible assets and other assets | 2,901 | 1,281 | |
| Proceeds from disposal of associates and joint ventures | 3,679 | 1,991 | |
| Net cash received from disposal of subsidiaries | 55(b) | 2,734 | 864 |
| Dividends received from equity investments, associates and joint ventures | 4,989 | 4,277 | |
| Payments for purchase of financial investments | (1,845,989) | (1,374,211) | |
| Payments for additions of fixed assets, intangible assets and other assets | (16,421) | (21,723) | |
| Net cash payment for acquisition of subsidiaries | (7,266) | (6,084) | |
| Net cash payment for acquisition of associates and joint ventures | (14,193) | (7,788) | |
| Net cash used in investing activities | (177,691) | (186,601) | |
| Cash flows from financing activities | |||
| Capital injection received from non-controlling interests | 606 | 420 | |
| Transaction with non-controlling interests | 56 | 2,977 | 9,020 |
| Proceeds from new bank and other loans | 55(c) | 121,703 | 104,354 |
| Repayment of bank and other loans and debt instruments issued | 55(c) | (1,088,334) | (1,024,877) |
| Proceeds from new debt instruments issued | 55(c) | 1,108,072 | 1,013,629 |
| Issue of other equity instruments by subsidiaries | 55(d) | 3,957 | 1,330 |
| Interest paid on bank and other loans and debt instruments issued | 55(c) | (38,103) | (31,797) |
| Dividends paid to non-controlling interests | (9,065) | (8,165) | |
| Dividends paid to ordinary shareholders of the Company | 16 | (11,637) | (9,891) |
| Redemption of other equity instruments by subsidiaries | 55(d) | (2,689) | – |
| Redemption of perpetual capital securities | (7,800) | – | |
| Distribution paid to holders of perpetual capital securities | (673) | (673) | |
| Net cash generated from financing activities | 79,014 | 53,350 | |
| Net increase/(decrease) in cash and cash equivalents | 53,222 | (26,118) | |
| Cash and cash equivalents at 1 January Effect of exchange changes | 491,363 (21,777) |
494,179 23,302 |
|
| Cash and cash equivalents at 31 December | 55(a) | 522,808 | 491,363 |
The notes form part of these consolidated financial statements.
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Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements