RBS 2005 Annual Report Download - page 69

section
01
Operating and
financial review
67
Operating and financial review
Annual Report and Accounts 2005
Integration costs
Pro forma
2005 2004 2004
£m £m £m
Staff costs 148 83 83
Premises and equipment 39 35 35
Other administrative expenses 131 149 149
Depreciation and amortisation 140 253 253
458 520 520
Accruals in relation to integration costs are set out below.
At 31 December Currency translation Charge to Utilised during At 31 December
2004 adjustments income statement the year 2005
£m £m £m £m £m
Staff costs – redundancy 11 1 23 (18) 17
Staff costs – other 29 1 125 (140) 15
Premises and equipment 13 2 39 (40) 14
Other 44 2 271 (291) 26
97 6 458 (489) 72
Integration costs were £458 million compared with £520 million
in 2004 comprising amortisation of internally developed
software and other expenditure. Software costs were previously
written off as incurred under UK GAAP but under IFRS are
now amortised over 3-5 years. All software relating to the
NatWest integration was fully amortised by the end of 2005.
The balance of integration costs principally relates to the
integration of Churchill, First Active and Citizens’ acquisitions,
including Charter One which was acquired in August 2004.