Financial Statements
Consolidated Statement of Cash Flows
for the year ended December 31, 2011
| 2011 AED’000 | 2010 AED’000 | 2011 US$’000 | ||||
| OPERATING ACTIVITIES | ||||||
| Net profit before taxation and non-controlling interests | 3,081,332 | 399,847 | 838,914 | |||
| Adjustments for: | ||||||
| Depreciation on property and equipment (Note 14) | 149,348 | 101,775 | 40,661 | |||
| Amortisation of intangible assets (Note 15) | 31,527 | 7,020 | 8,583 | |||
| Dividend income | (8,879) | (9,400) | (2,417) | |||
| Decrease in fair value of investment properties (Note 12) | 11,900 | 116,412 | 3,240 | |||
| Allowance for doubtful loans and advances (Note 39.6) | 2,303,106 | 3,143,047 | 627,037 | |||
| Recovery of allowance for doubtful loans and advances (Note 39.6) | (220,746) | (283,469) | (60,100) | |||
| Discount unwind (Note 39.6) | (177,216) | – | (48,248) | |||
| Impairment allowance on credit default swaps (Note 30) | 204,438 | 178,317 | 55,660 | |||
| Impairment allowance on investment securities (Note 30) | 53,590 | 249,176 | 14,590 | |||
| Impairment allowance on property and equipment, net (Note 30) | 57,440 | – | 15,638 | |||
| Net (gain)/loss from sale of investment securities (Note 29(a)) | (36,334) | 4,444 | (9,892) | |||
| Imputed interest on mandatory convertible securities | (29,131) | (79,918) | (7,931) | |||
| Share of profit of associates (Note 11) | (158,658) | (336,294) | (43,196) | |||
| Gain on sale of associate (Note 11) | (1,314,315) | – | (357,831) | |||
| Loss on disposal of subsidiary | – | 992 | – | |||
| Ineffective portion of hedges (Note 9) | 5,673 | 511 | 1,545 | |||
| Board of Directors’ remuneration | 5,584 | – | 1,520 | |||
| Employees’ incentive plan benefit expense (Note 24) | 32,882 | 23,846 | 8,952 | |||
| Operating profit before changes in operating assets and liabilities | 3,991,541 | 3,516,306 | 1,086,725 | |||
| Due from Central Banks | (750,000) | – | (204,193) | |||
| (Decrease)/increase in due from banks | 453,360 | (4,293,390) | 123,430 | |||
| (Decrease)/increase in net trading derivative financial instruments | 76,493 | (20,481) | 20,826 | |||
| Increase in loans and advances | (3,888,011) | (9,015,356) | (1,058,538) | |||
| Decrease/(increase) in other assets | 453,947 | (913,920) | 123,590 | |||
| Increase in due to banks | (2,034,819) | (92,267) | (553,994) | |||
| Increase in deposits from customers | 3,962,029 | 19,619,196 | 1,078,690 | |||
| (Decrease)/increase in other liabilities | (886,812) | 137,490 | (241,440) | |||
| Cash from operations | 1,377,728 | 8,937,578 | 375,096 | |||
| Board of Directors’ remuneration paid | (5,250) | – | (1,429) | |||
| Net cash from operations | 1,372,478 | 8,937,578 | 373,667 | |||
| INVESTING ACTIVITIES | ||||||
| Disposal of associate (Note 11) | 7,111,817 | – | 1,936,242 | |||
| Dividend received from associate | 36,697 | 133,701 | 9,991 | |||
| Disposal of subsidiary | – | 55,148 | – | |||
| Dividend received from investment securities | 8,879 | 9,400 | 2,417 | |||
| Trading securities purchased | (15,755) | – | (4,289) | |||
| Gain on sale of investments | 36,334 | – | 9,892 | |||
| Purchase of available for sale investment securities | (7,504,405) | (6,259,523) | (2,043,127) | |||
| Net proceeds from disposal of available for sale investment securities | 622,487 | 2,481,098 | 169,476 | |||
| Net consideration paid on acquisition of business | – | (168,900) | – | |||
| Purchase of property and equipment | (100,985) | (167,520) | (27,494) | |||
| Sale of property and equipment | – | 4,617 | – | |||
| Additions to investment properties | (119,620) | (73,583) | (32,567) | |||
| Net cash from/(used in) investing activities | 75,449 | (3,985,562) | 20,541 | |||
| FINANCING ACTIVITIES | ||||||
| Dividends paid to non-controlling interests | (22,290) | (66,562) | (6,069) | |||
| Net proceeds/(payment) from short, medium and long term borrowings | 1,497,179 | (7,289,093) | 407,618 | |||
| Capital notes coupons paid | (236,667) | (243,333) | (64,434) | |||
| Disposal of non-controlling interests | – | (3,578) | – | |||
| Employees’ incentive plan shares related payment | (100,800) | (47,085) | (27,444) | |||
| Net cash from/(used in) financing activities | 1,137,422 | (7,649,651) | 309,671 | |||
| Increase/(decrease) in cash and cash equivalents | 2,585,349 | (2,697,635) | 703,879 | |||
| Cash and cash equivalents at the beginning of the year | 16,676,284 | 19,373,919 | 4,540,235 | |||
| Cash and cash equivalents at the end of the year (Note 33) | 19,261,633 | 16,676,284 | 5,244,114 |