Operating expenses (excluding purchased intangibles amortisation and integration costs)
| 2006 £m |
2005 £m |
|
| Administrative expenses: | ||
| Staff costs | 6,647 | 5,844 |
| Premises and equipment | 1,411 | 1,274 |
| Other administrative expenses | 2,626 | 2,592 |
| Total administrative expenses | 10,684 | 9,710 |
| Depreciation and amortisation | 1,568 | 1,588 |
| 12,252 | 11,298 |
2006 compared with 2005
Operating expenses, excluding purchased intangibles amortisation and integration costs, rose by 8% to £12,252 million to support the strong growth in business volumes.
Staff costs were up £803 million, 14% to £6,647 million reflecting growth and expansion of activities in Corporate Markets, where the number of staff increased by 1,700.
Premises and equipment expenses increased by £137 million, 11% to £1,411 million reflecting the continuation of our branch network improvement programme and ongoing investment in our major operational centres.
Other administrative expenses, up 1%, £34 million to £2,626 million reflected efficiency improvements whilst supporting higher business volumes.
The Group’s ratio of operating expenses (excluding purchased intangibles amortisation and integration costs and after netting operating lease depreciation against rental income) to total income was 42.1% compared with 42.4% in 2005.
© 2007