RBS 2011 Annual Report Download - page 58

56 RBS Group 2011
Operating expenses and insurance claims continued
2010 compared with 2009 - statutory
The main driver of a 7% decrease in operating expenses, excluding gains
on pensions curtailment, is the recognition of benefits from the Group-
wide efficiency programme. The programme continues to deliver material
savings which have been funding investments to strengthen our Core
franchises. Annualised savings are now just ahead of the £2.5 billion
target for 2011 and are forecast to exceed £3 billion by 2013.
Staff costs, excluding pension schemes curtailment gains, fell by £322
million to £9,671 million, driven by savings in Global Banking & Markets,
UK Retail and Non-Core partially offset by higher costs in Group Centre.
Premises and equipment costs fell by 7% in the year to £2,402 million
largely driven by efficiency cost savings, significant one-off property
impairments recognised in 2009 and country exits following Non-Core
disposals.
Other expenses fell by £454 million to £3,995 million principally reflecting
continued savings from the Group’s efficiency programme.
Insurance net claims increased 10% to £4,783 million.
Integration costs
2011 2010 2009
£m £m £m
Staff costs 38 210 365
Premises and equipment 63 78
Other administrative expenses 51 143 398
Depreciation and amortisation 11 20 18
106 376 859
Note:
(1) Integration costs for 2011 above exclude a £2 million charge included within net interest income and a loss of £3 million within other operating income in respect of integration activities.
2011 compared with 2010
Integration costs were £106 million compared with £376 million in 2010.
Integration costs decreased primarily due to a reduction of RBS N.V.
(formerly ABN AMRO) integration activity during the year.
2010 compared with 2009
Integration costs were £376 million compared with £859 million in 2009.
The fall in integration costs primarily relates to RBS N.V., as they migrate
onto RBS systems.
Accruals in relation to integration costs are set out below.
At
1January
Charge
to income
Utilised
during
At
31 December
2011 statement the year 2011
£m £m £m £m
Staff costs - redundancy — 8 (8) —
Staff costs - other —30 (30) —
Premises and equipment 24 6 (19) 11
Other administrative expenses —51 (48) 3
Depreciation and amortisation —11 (11) —
24 106 (116) 14
Business review continued