CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2019
|
|
For the year ended 31 December |
|
---|---|---|---|
|
Note |
2019 HK$ million |
2018 HK$ million |
Cash flows from operating activities |
|
|
|
Profit before taxation |
|
96,015 |
93,969 |
Adjustments for: |
|
|
|
- Depreciation and amortisation |
21,806 |
15,091 |
|
- Expected credit losses |
88,722 |
69,059 |
|
- Impairment losses |
7,024 |
6,511 |
|
- Net valuation loss/(gain) on investment properties |
756 |
(954) |
|
- Net valuation (gain)/loss on investments |
|
(831) |
7,301 |
- Share of profits of associates and joint ventures, net of tax |
|
(13,557) |
(10,700) |
- Interest expenses on debts instruments issued |
24,574 |
26,667 |
|
- Finance income |
(2,264) |
(2,729) |
|
- Finance costs |
12,703 |
12,294 |
|
- Net gain on investments in financial assets |
|
(10,475) |
(12,729) |
- Net gain on disposal of subsidiaries, associates and joint ventures |
|
(3,751) |
(3,212) |
|
|
220,722 |
200,568 |
Changes in working capital |
|
|
|
(Increase)/decrease in deposits with central banks banks and non-bank financial institutions |
|
(32,147) |
82,995 |
(Increase)/decrease in placements with banks and non-bank financial institutions |
|
(20,380) |
50,873 |
Increase in trade and other receivables |
|
(56,899) |
(8,477) |
Increase in contract assets |
|
(436) |
(7,542) |
Decrease/(increase) in inventories |
|
7,333 |
(2,398) |
Decrease in financial assets held under resale agreements |
|
1,523 |
51,232 |
Increase in loans and advances to customers and other parties |
|
(510,536) |
(535,417) |
Decrease in investments in financial assets held for trading purposes |
|
24,368 |
14,854 |
(Increase)/decrease in other assets |
|
(27,372) |
19,073 |
Increase/(decrease) in deposits from banks and non-bank financial institutions |
198,096 |
(23,664) |
|
(Decrease)/increase in placements from banks and non-bank financial institutions |
(19,791) |
39,950 |
|
(Decrease)/increase in financial liabilities at fair value through profit or loss |
(276) |
1,134 |
|
(Decrease)/increase in trade and other payables |
(18,933) |
7,220 |
|
Increase in contract liabilities |
2,959 |
4,470 |
|
Decrease in financial assets sold under repurchase agreements |
(7,928) |
(15,523) |
|
Increase in deposits from customers |
471,209 |
246,834 |
|
(Decrease)/increase in borrowing from central banks |
(51,726) |
52,248 |
|
Increase/(decrease) in other liabilities |
1,047 |
(8,996) |
|
Increase in employee benefits payables |
1,419 |
2,276 |
|
Increase/(decrease) in provisions |
1,442 |
(732) |
|
Cash generated from operating activities |
183,694 |
170,978 |
|
Income tax paid |
(23,612) |
(19,079) |
|
Net cash generated from operating activities |
160,082 |
151,899 |
|
Cash flows from investing activities |
|||
Proceeds from disposal and redemption of financial investments |
2,239,189 |
1,691,875 |
|
Proceeds from disposal of fixed assets, intangible assets and other assets |
1,689 |
2,901 |
|
Proceeds from disposal of associates and joint ventures |
1,348 |
3,679 |
|
Net cash received from disposal of subsidiaries |
1,082 |
2,734 |
|
Dividends received from equity investments, associates and joint ventures |
6,613 |
4,989 |
|
Payments for purchase of financial investments |
(2,519,759) |
(1,845,989) |
|
Payments for additions of fixed assets, intangible assets and other assets |
(19,626) |
(16,421) |
|
Net cash payment for acquisition of subsidiaries |
(981) |
(7,266) |
|
Net cash payment for acquisition of associates and joint ventures |
(6,066) |
(14,193) |
|
Net cash used in investing activities |
(296,511) |
(177,691) |
|
Cash flows from financing activities |
|||
Capital injection received from non-controlling interests |
679 |
606 |
|
Transaction with non-controlling interests |
494 |
2,977 |
|
Proceeds from new bank and other loans |
127,134 |
121,703 |
|
Repayment of bank and other loans and debt instruments issued |
(685,251) |
(1,088,334) |
|
Proceeds from new debt instruments issued |
661,283 |
1,108,072 |
|
Issue of other equity instruments by subsidiaries |
46,701 |
3,957 |
|
Principal and interest elements of lease payment |
(6,673) |
N/A |
|
Interest paid on bank and other loans and debt instruments issued |
(37,043) |
(38,103) |
|
Dividends paid to non-controlling interests |
(8,369) |
(9,065) |
|
Dividends paid to ordinary shareholders of the Company |
(12,799) |
(11,637) |
|
Redemption of other equity instruments by subsidiaries |
(2,076) |
(2,689) |
|
Redemption of perpetual capital securities |
- |
(7,800) |
|
Distribution paid to holders of perpetual capital securities |
- |
(673) |
|
Net cash generated from financing activities |
84,080 |
79,014 |
|
Net (decrease)/increase in cash and cash equivalents |
(52,349) |
53,222 |
|
Cash and cash equivalents at 1 January |
522,808 |
491,363 |
|
Effect of exchange changes |
(7,421) |
(21,777) |
|
Cash and cash equivalents at 31 December |
463,038 |
522,808 |
The notes form part of these consolidated financial statements.