RBS 2004 Annual Report Download - page 183

section
03
181
Annual Report and Accounts 2004
Notes on the accounts
Financial
statements
(b) Other acquisitions
The provisional fair values of the assets and liabilities of all other acquisitions made during the year and the consideration paid are
shown in the table below:
Book value of
net assets Fair value Fair value to
acquired adjustments the Group
At respective dates of acquisition £m £m £m
Cash and balances at central banks 106 2 108
Loans and advances to banks 768 — 768
Loans and advances to customers 5,491 (70) 5,421
Debt securities 938 (6) 932
Tangible fixed assets 106 (7) 99
Other assets 129 (15) 114
Prepayments and accrued income 5510
Deposits by banks (1,874) — (1,874)
Customer accounts (3,208) (4) (3,212)
Debt securities in issue (777) — (777)
Other liabilities (118) 45 (73)
Accruals and deferred income (27) (38) (65)
Deferred tax provisions (6) (20) (26)
Post-retirement benefit liabilities (15) — (15)
Other provisions (13) 1 (12)
Dated loan capital (81) (7) (88)
Undated loan capital (36) (29) (65)
Minority interest-equity (4) — (4)
Net assets acquired 1,384 (143) 1,241
Goodwill 1,245
Total consideration 2,486
Satisfied by:
Payment of cash 2,468
Loan notes 4
Fees and expenses relating to the acquisitions 14
2,486
Fair value adjustments reflect the restatement of balances to their estimated fair values at the date of acquisition, and the related tax effect.
The estimated contribution to the Group’s results, before funding costs of the acquisitions, is shown below:
Year ended
31 December 2004*
£m
Net interest income 165
Non-interest income 88
Total income 253
Operating expenses (125)
Operating profit 128
Provisions (42)
Contribution before goodwill amortisation 86
Goodwill amortisation (45)
Contribution 41
* From the dates of acquisition. The contribution above is after charging goodwill amortisation and includes the post-acquisition effect
of fair value adjustments.