Integration costs
| 2006 £m |
2005 £m |
|
| Staff costs | 76 | 148 |
| Premises and equipment | 10 | 39 |
| Other administrative expenses | 32 | 131 |
| Depreciation and amortisation | 16 | 140 |
| 134 | 458 |
Integration costs were £134 million compared with £458 million in 2005 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.
Accruals in relation to integration costs are set out below.
| At 31 December 2005 £m |
Currency translation adjustments £m |
Charge to income statement £m |
Utilised during the year £m |
At 31 December 2006 £m |
|
| Staff costs | 32 | (1) | 76 | (84) | 23 |
| Premises and equipment | 14 | (1) | 10 | (23) | — |
| Other | 26 | (1) | 48 | (65) | 8 |
| 72 | (3) | 134 | (172) | 31 |
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