Mega Bank Annual Report 2017

120 Mega Bank -120- MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD. STATEMENTS OF CASH FLOWS (EXPRESSED IN THOUSANDS OF DOLLARS) For the years ended December 31, 2017 2016 NT$ US$ NT$ CASH FLOWS FROM OPERATING ACTIVITIES (Unaudited) Income before income tax $ 24,237,489 $ 817,508 $ 23,057,927 Adjustments to reconcile income before tax to net cash provided by operating activities Income and expenses having no effect on cash flows Provision for loan losses and guarantee reserve 4,371,190 147,436 3,593,348 Depreciation 523,596 17,660 471,791 Amortization 6,039 204 5,695 Interest income ( 53,202,794 ) ( 1,794,482 ) ( 50,236,766 ) Dividend income ( 962,590 ) ( 32,467 ) ( 1,102,239 ) Interest expense 19,650,049 662,778 15,191,706 Investment income recognized under the equity method ( 471,613 ) ( 15,907 ) ( 451,001 ) Gain on disposal of property and equipment ( 1,262 ) ( 43 ) ( 723 ) Loss on asset impairment 205,179 6,920 334,397 Loss on retirement of property and equipment 32 1 253 Changes in assets/liabilities relating to operating activities Decrease in due from the Central Bank and call loans to banks 34,950,178 1,178,838 6,827,796 Decrease in financial assets at fair value through profit or loss 3,695,683 124,652 1,712,868 Decrease in receivables 785,631 26,499 83,681,216 (Increase) decrease in bills discounted and loans ( 50,966,689 ) ( 1,719,060 ) 53,574,085 (Increase) decrease in available-for-sale financial assets ( 71,282,208 ) ( 2,404,284 ) 25,309,572 Increase in held-to-maturity financial assets ( 3,289,159 ) ( 110,940 ) ( 79,073,379 ) Increase in other financial assets ( 569,350 ) ( 19,204 ) ( 125,896 ) Increase in other assets ( 1,258,268 ) ( 42,440 ) ( 184,590 ) Decrease in due to the Central Bank and commercial banks ( 15,650,120 ) ( 527,864 ) ( 32,751,574 ) Decrease in financial liabilities at fair value through profit or loss ( 2,618,436 ) ( 88,317 ) ( 10,543,422 ) Increase (decrease) in securities sold under repurchase agreements 403,447 13,608 ( 103,120 ) Increase (decrease) in payables 2,739,396 92,397 ( 3,465,766 ) Increase (decrease) in deposits and remittances 216,081,770 7,288,241 ( 62,904,625 ) Decrease in other financial liabilities 385,652 13,008 ( 89,234 ) Increase in reserve for employee benefit liabilities 159,054 5,365 45,482 Decrease in other liabilities ( 38,645 ) ( 1,304 ) ( 3,085,411 ) Interest received 52,347,611 1,765,637 50,017,566 Dividend received 1,307,367 44,096 1,498,304 Interest paid ( 19,037,239 ) ( 642,109 ) ( 15,399,015 ) Income tax paid ( 3,821,882 ) ( 128,909 ) ( 4,426,774 ) Net cash provided by operating activities 138,679,108 4,677,518 1,378,471 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of investments under the equity method - - 2,747 Proceeds from capital reduction of financial assets carried at cost 387,056 13,055 193 Acquisitions of property and equipment ( 848,802 ) ( 28,629 ) ( 460,718 ) Proceeds from disposal of property and equipment 6,621 223 1,379 Net cash used in investing activities ( 455,125 ) ( 15,351 ) ( 456,399 ) CASH FLOWS FROM FINANCING ACTIVITIES Decrease in borrowed funds ( 6,924,896 ) ( 233,570 ) ( 4,759,539 ) Decrease in financial bonds payable ( 10,300,000 ) ( 347,410 ) - Increase (decrease) in deposits received 1,150,655 38,810 ( 534,303 ) Payments of cash dividends ( 12,804,350 ) ( 431,879 ) ( 12,804,350 ) Net cash (used in) provided by financing activities ( 28,878,591 ) ( 974,049 ) ( 18,098,192 ) EFFECT OF EXCHANGE RATE CHANGES ( 1,780,612 ) ( 60,056 ) ( 1,174,871 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 107,564,780 3,628,062 ( 18,350,991 ) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 420,189,855 14,172,621 438,540,846 CASH AND CASH EQUIVALENTS, END OF YEAR $ 527,754,635 $ 17,800,683 $ 420,189,855 CASH AND CASH EQUIVALENTS COMPOSITION: Cash and cash equivalents shown in balance sheet $ 134,573,043 $ 4,539,026 $ 86,952,288 Due from the Central Bank and call loans to bank meeting the definition of cash and cash equivalents as stated in IAS No. 7 "Cash Flow Statements" 391,484,006 13,204,399 328,981,599 Securities purchased under resale agreements meeting the definition of cash and cash equivalents as stated in IAS No. 7 "Cash Flow Statements" 1,697,586 57,258 4,255,968 CASH AND CASH EQUIVALENTS, END OF YEAR $ 527,754,635 $ 17,800,683 $ 420,189,855