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2. Operating expenses

		Group
	2006 £m	2005 £m	2004 £m
Wages, salaries and other staff costs	5,652	5,084	4,421
Social security costs	389	354	295
Share-based compensation	65	44	36
Pension costs (see Note 3)
– defined benefit schemes	580	462	397
– defined contribution schemes	37	48	39
Staff costs	6,723	5,992	5,188
Premises and equipment	1,421	1,313	1,177
Other administrative expenses	2,658	2,816	2,323

Property, plant and equipment (see Note 18)	1,293	1,326	1,155
Intangible assets (see Note 17)	385	499	519
Depreciation and amortisation	1,678	1,825	1,674
	12,480	11,946	10,362

Integration costs included in operating expenses comprise expenditure incurred in respect of cost reduction and revenue enhancement targets set in connection with the various acquisitions made by the Group:

		Group
	2006 £m	2005 £m	2004 £m
Staff costs	76	148	83
Premises and equipment	10	39	35
Other administrative expenses	32	131	149
Depreciation and amortisation	16	140	253
	134	458	520

The average number of persons employed by the Group during the year, excluding temporary staff, was 142,600 (2005 – 144,900; 2004 – 133,300). The average number of temporary employees during 2006 was 4,800. The number of persons employed by the Group at 31 December, excluding temporary staff, was as follows:

		Group
	2006	2005	2004
Global Banking & Markets	7,800	6,900	8,600
UK Corporate Banking	8,800	8,200	7,800
Retail	43,800	44,200	42,800
Wealth Management	4,600	4,300	4,200
Ulster Bank	4,800	4,500	4,200
Citizens	24,600	26,000	25,800
RBS Insurance	18,500	20,500	20,100
Manufacturing	26,400	26,600	26,200
Centre	2,500	2,300	2,200
Total	141,800	143,500	141,900

UK	105,700	107,200	106,900
USA	26,200	27,400	27,100
Europe	8,100	7,800	7,000
Rest of the World	1,800	1,100	900
Total	141,800	143,500	141,900

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2. Operating expenses

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