Combined consolidated cash flow statement

 
For the year to 31 March
£’000
Notes 2011 2010
Operating profit adjusted for non-cash items 42 854 779 787 257
Taxation paid   (61 496) (56 257)
Increase in operating assets 42 (4 137 456) (3 336 695)
Increase in operating liabilities 42 2 689 207 4 115 640
Net cash (outflow)/inflow from operating activities   (654 966) 1 509 945
Cash inflow/(outflow) on acquisition of group operations 29 57 044 (1 662)
Cash flow on disposal of group operations 29 80 161
Cash flow on net disposal/(acquisition) of associates   1 179 (483)
Cash flow on acquisition of operating leased assets   (226 097)
Cash flow on acquisition and disposal of property, equipment and intangible assets   (36 762) (17 223)
Net cash outflow from investing activities   (124 475) (19 368)
Dividends paid to ordinary shareholders   (123 630) (91 946)
Dividends paid to other equity holders   (43 375) (44 438)
Proceeds on issue of shares, net of related costs   141 814 112 388
Proceeds on issue of perpetual preference shares   16 138
Proceeds on (acquisition)/issue of treasury shares, net of related costs   (45 461) 40 974
Proceeds on issue of other equity instruments*   1 493 3 547
Proceeds from subordinated debt raised   634 617 24 404
Repayment of subordinated debt   (438 246) (172 723)
Net cash inflow/(outflow) from financing activities   143 350 (127 794)
       
Effects of exchange rates on cash and cash equivalents   101 032 274 915
       
Net (decrease)/increase in cash and cash equivalents   (535 059) 1 637 698
Cash and cash equivalents at the beginning of the year   3 922 047 2 284 349
Cash and cash equivalents at the end of the year   3 386 988 3 922 047
Cash and cash equivalents is defined as including:    
Cash and balances at central banks   1 769 078 2 338 234
On demand loans and advances to banks   1 081 927 1 002 696
Cash equivalent advances to customers   535 983 581 117
Cash and cash equivalents at the end of the year   3 386 988 3 922 047
* Includes equity instruments issued by subsidiaries.
Cash and cash equivalents is defined as including: cash and balances at central banks, on demand loans and advances to banks and cash equivalent advances to customers (all of which have a maturity profile of less than three months).