Consolidated cash flow statement
For the year ended 31 December
In millions of euros 2008 2007
Cash flows from operating activities
Operating profit before taxation 2,852 3,093
Adjusted for:
Non-cash items recognised in profit and loss
Depreciation and amortisation 525 484
Value adjustments 1,189 266
Result on sale of property and equipment (12) (9)
Share of (profit) of associates and result on sale of subsidiaries 84 (698)
Fair value results on investment properties 2 (6)
Fair value results on financial assets and liabilities at fair value through profit and loss 1,155 515
Net result on available-for-sale financial assets 51 (64)
Net change in operating assets:
Due from and to other banks (12,999) (15,330)
Trading financial assets 17,603 7,610
Derivative financial instruments (40,670) (7,097)
Net change in non-trading financial assets at fair value through profit and loss 7,731 3,335
Loans to customers (53,315) (18,044)
Dividends received from associates and financial assets 68 71
Net change in liabilities relating to operating activities:
Derivative financial instruments and other trade liabilities 46,133 4,403
Due to customers 27,604 14,598
Debt securities in issue (6,033) 13,746
Other debts (1,874) (131)
Income tax paid (789) (833)
Other changes 12,948 893
Net cash flow from operating activities 2,253 6,802
Cash flows from investing activities
Acquisition of subsidiaries net of cash and cash equivalents acquired (181) (431)
Disposal of subsidiaries net of cash and cash equivalents 1 18
Acquisition of property and equipment and investment properties (1,638) (559)
Proceeds from sale of property and equipment 893 398
Acquisition of available-for-sale financial assets and held-to-maturity financial assets (16,508) (21,443)
Proceeds from sale and repayment of available-for-sale financial assets and held-to-maturity
financial assets 19,889 15,156
Net cash flow from investing activities 2,456 (6,861)
Cash flows from financing activities
Proceeds from issue of Capital Securities 823 990
Payment on Rabobank Member Certificates, Trust Preferred Securities III to VI and Capital Securities (510) (422)
Repayment of subordinated debt (46) (10)
Net cash flow from financing activities 267 558
Net change in cash and cash equivalents 4,976 499
Cash and cash equivalents at beginning of year 2,129 1,630
Cash and cash equivalents at end of year 7,105 2,129
The cash flows from interest are included in the net cash flow from operating activities
Interest income 27,088 28,831
Interest expense 18,219 21,620
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Rabobank Group Annual Report 2008