CAPÍTULO III: ANÁLISIS E INTERPRETACIÓN DE RESULTADOS
Anexo 3: Árbol de Problemas
Restated1 Year ended Year ended 31 December 2014 31 December 2013 Notes £m £m
Interest income 2 901 1,101 Interest expense 3 (400) (686)
Net interest income 501 415
Fee and commission income 4 114 118
Fee and commission expense 4 (108) (112)
Net trading income 5 -
-Other operating income 6 5 1
Total operating income 512 422
Operating expenses 7 (287) (270)
Operating profit before impairment charges on financial assets 225 152
Impairment charges on financial assets 9 (61) (125)
Operating profit 164 27
Share of profit after tax of joint venture 10 35 34
Profit before taxation 199 61
Taxation (charge) / credit 11 (27) 4 Profit for the year 172 65
Attributable to owners of the Parent 172 65
Profit for the year 172 65
Consolidated statement of other comprehensive income for the year ended 31 December 2014
Restated1 Year ended Year ended 31 December 2014 31 December 2013 Notes £m £m
Profit for the year 172 65
Other comprehensive income, net of tax:
Net change in cash flow hedge reserve (net of tax)2 26
-Net change in available for sale reserve (net of tax)3 6 (4)
Total items that may be reclassified to profit or loss in subsequent periods 32 (4)
Net actuarial gain on defined benefit schemes4 26 - 1
Total items that will not be reclassified to profit or loss in subsequent periods - 1
Other comprehensive income for the year, net of tax 32 (3)
Total comprehensive income for the year, net of tax 204 62
Total comprehensive income attributable to owners of the Parent5 204 62
Total comprehensive income for the year, net of tax 204 62
1As outlined in the Group accounting policies and in note 37, comparative periods have been restated to reflect the impact of the adoption of IFRIC 21 ‘Levies’.
Restated1 Restated1
as at as at
31 December 2014 31 December 2013 1 January 2013
Notes £m £m £m
Assets
Cash and cash equivalents 12 2,964 4,125 6,380
Items in the course of collection from other banks 276 182 193
Derivative financial instruments 13 59 11 10
Loans and advances to banks 14 6,312 12,824 27,090
Available for sale financial assets 15 991 482 341
Loans and advances to customers 16 18,301 17,928 18,018
Interest in joint venture 18 60 55 54
Intangible assets 19 39 46 52
Property, plant and equipment 20 5 -
-Current tax assets 4 4 1
Other assets 21 92 110 133
Deferred tax assets 27 105 128 74
Retirement benefit asset 26 1 -
-Total assets 29,209 35,895 52,346
Equity and liabilities
Deposits from banks 22 5,234 11,660 25,742
Customer accounts 23 20,180 20,857 23,275
Items in the course of transmission to other banks 221 94 173
Derivative financial instruments 13 64 11 9
Other liabilities 24 1,074 1,058 1,100
Provisions 25 9 9 11
Retirement benefit obligation 26 - - 2
Current tax liability 2 - 11
Subordinated liabilities 28 658 658 658
Total liabilities 27,442 34,347 50,981
Equity
Share capital 30 1,151 1,151 1,116
Retained earnings 186 14 (52)
Other reserves 430 383 301
Total equity attributable to owners of the Parent 1,767 1,548 1,365
Total equity and liabilities 29,209 35,895 52,346
The financial statements on pages 77 to 148 were approved by the Board on 5 March 2015 and were signed on its behalf by:
1As outlined in the Group accounting policies and in note 37, comparative periods have been restated to reflect the impact of the adoption of IFRIC 21 ‘Levies’.
C o n s o lid a te d F in a n c ia l S ta te m e n ts R is k M a n a g e m e n t G o v e rn a n c e B a n k F in a n c ia l S ta te m e n ts n
C o n s o lid a te d F in a n c ia l S ta te m e n ts R is k M a n a g e m e n t ie w G o v e rn a n c e B a n k F in a n c ia l S ta te m e n ts O th e In fo rm a
Restated1
Year ended Year ended
31 December 2014 31 December 2013
£m £m
Share capital
Balance at 1 January 1,151 1,116
Issue of share capital – ordinary - 35
Balance at 31 December 1,151 1,151
Retained earnings
Balance at 1 January 14 (52)
Profit for the year attributable to equity holders of the Parent 172 65
Net actuarial gain on defined benefit schemes - 1
Balance at 31 December 186 14
Other reserves:
Available for sale reserve
Balance at 1 January (3) 1
Changes in fair value, net of hedge accounting adjustments 8 (5)
Deferred tax on reserve movements (2) 1
Balance at 31 December 3 (3)
Cash flow hedge reserve
Balance at 1 January -
-Changes in fair value 32
-Deferred tax on reserve movements (6)
-Balance at 31 December 26
-Capital contribution
Balance at 1 January 386 300
Contribution during the period 15 86
Balance at 31 December 401 386
Total other reserves 430 383
Total equity 1,767 1,548
Included in the above:
Total comprehensive income attributable to owners of the Parent 204 62
Total comprehensive income for the year 204 62
1As outlined in the Group accounting policies and in note 37, comparative periods have been restated to reflect the impact of the adoption of IFRIC 21 ‘Levies’.
Restated1 Year ended Year ended 31 December 2014 31 December 2013 Notes £m £m
Cash flows from operating activities
Profit before taxation 199 61
Interest expense on subordinated liabilities and other capital instruments 3 52 52
Depreciation and amortisation 7,15 11 9
Impairment charges on loans and advances to customers 9 61 125
Share of results of associates and joint venture 10 (35) (34)
Net change in prepayments and interest receivable 21 8 18
Net change in accruals and interest payable 24 (20) (101)
Retirement benefit obligation 26 2 1
Charge for provisions 25 15 13 Cash flows from operating activities before changes in operating
assets and liabilities 293 144
Net change in items in the course of collection from / to banks 33 (68)
Net change in loans and advances to banks 12 6,872 1,284
Net change in derivative financial instruments 13 (9) 1
Net change in loans and advances to customers 16,17 (434) (35)
Net change in deposits from banks 22 (6,426) (14,082)
Net change in customer accounts 23 (679) (2,418)
Net change in provisions 25 (15) (15)
Net change in retirement benefit obligation 26 (2) (2)
Net change in other assets and other liabilities 21,24 44 63
Net cash flow from operating assets and liabilities (616) (15,272)
Net cash flow from operating activities before taxation (323) (15,128) Taxation refunded 5 24
Net cash flow from operating activities (318) (15,104)
Investing activities (section a - see below) (457) (116)
Financing activities (section b - see below) (52) (17)
Net change in cash and cash equivalents (827) (15,237)
Opening cash and cash equivalents 5,918 21,155
Closing cash and cash equivalents 12 5,091 5,918
1As outlined in the Group accounting policies and in note 37, comparative periods have been restated to reflect the impact of the adoption of IFRIC 21 ‘Levies’.
C o n s o lid a te d F in a n c ia l S ta te m e n ts R is k M a n a g e m e n t G o v e rn a n c e B a n k F in a n c ia l S ta te m e n ts n
C o n s o lid a te d F in a n c ia l S ta te m e n ts R is k M a n a g e m e n t ie w G o v e rn a n c e B a n k F in a n c ia l S ta te m e n ts O th e In fo rm a
Year ended Year ended 31 December 2014 31 December 2013 Notes £m £m
(a) Investing activities
Additions to available for sale financial assets 15 (553) (167)
Redemptions of available for sale financial assets 15 71 19
Dividends received from joint venture 18 30 33
Additions to intangible assets 19 (1) (3)
Disposal of intangible assets 19 - 2
Additions to property, plant and equipment 20 (4)
-Cash flows from investing activities (457) (116)
(b) Financing activities
Issue of share capital 30 - 35
Interest paid on subordinated liabilities 3 (52) (52)
Cash flows from financing activities (52) (17)
Basis of preparation 83
Adoption of new accounting standards 83
Comparatives 84
Going concern 85
Group financial statements 86
Foreign currency translation 88
Interest income and expense 88
Fee and commission income and expense 89
Operating profit / loss 89
Leases 89
Financial assets 89
Financial liabilities 91
Valuation of financial instruments 91
Sale and repurchase agreements 92
Derivative financial instruments and hedge accounting 92
Impairment of financial assets 93
Property, plant and equipment 95
Intangible assets 95
Provisions 96
Employee benefits 96
Income taxes 97
Cash and cash equivalents 97
Share capital and reserves 98
Offsetting financial instruments 98
Collateral 98
Financial guarantees 99
Operating segments 99
Materiality 99
Impact of new accounting standards not yet adopted 100
Critical accounting estimates and judgements 102
C o n s o lid a te d F in a n c ia l S ta te m e n ts R is k M a n a g e m e n t G o v e rn a n c e B a n k F in a n c ia l S ta te m e n ts n
C o n s o lid a te d F in a n c ia l S ta te m e n ts R is k M a n a g e m e n t ie w G o v e rn a n c e B a n k F in a n c ia l S ta te m e n ts O th e In fo rm a
The following are the principal accounting policies for the Bank of Ireland (UK) plc Group and Bank.