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Intangible assets (Tables)

12 Months Ended

Dec. 31, 2021

Intangible assets

Schedule of Intangible assets


		2021						2020
		Goodwill		Other (1)		Total		Goodwill		Other (1)		Total
Cost		£m		£m		£m		£m		£m		£m
At 1 January		9,939		2,592		12,531		9,980		2,293		12,273
Currency translation and other adjustments		—		29		29		—		(1)		(1)
Additions		—		479		479		—		348		348
Disposals and write-off of fully amortised assets		—		(50)		(50)		(41)		(48)		(89)
At 31 December		9,939		3,050		12,989		9,939		2,592		12,531

Accumulated amortisation and impairment
At 1 January		4,332		1,544		5,876		4,373		1,278		5,651
Currency translation and other adjustments		—		31		31		—		1		1
Disposals and write-off of fully amortised assets		—		(28)		(28)		(41)		(26)		(67)
Impairment of intangible assets		85		2		87		—		9		9
Amortisation charge for the year		—		300		300		—		282		282
At 31 December		4,417		1,849		6,266		4,332		1,544		5,876

Net book value at 31 December		5,522		1,201		6,723		5,607		1,048		6,655

(1)	Principally internally generated software.

Schedule of key assumptions applied in calculating the recoverable amount and sensitivities to changes in those assumptions for Commercial Banking

Consequential impact of 1%

Consequential impact of 5%

Assumptions

Recoverable

adverse movement

adverse movement

Terminal

Pre-tax

Cost:

amount exceeded

Discount

Terminal

Forecast

Forecast

Goodwill

growth rate

discount rate

income ratio (1)

carrying value

rate

growth rate

Income

cost

31 December 2021

£bn

%

%

%

£bn

£bn

£bn

£bn

£bn

Retail Banking

2.6

1.6

13.9

51.6

6.8

(1.8)

(0.8)

(2.1)

(1.0)

Commercial Banking

2.6

1.6

13.9

52.3

6.3

(1.9)

(0.8)

(2.0)

(1.0)

RBS International

0.3

1.6

12.1

37.0

2.6

(0.6)

(0.3)

(0.4)

(0.1)

31 December 2020

Retail Banking

2.7

1.6

13.7

48.3

5.9

(1.8)

(0.8)

(2.0)

(0.9)

Commercial Banking

2.6

1.6

13.7

53.7

1.5

(1.5)

(0.5)

(1.8)

(0.9)

RBS International

0.3

1.6

12.1

42.7

1.1

(0.4)

(0.2)

(0.3)

(0.1)

(1)	Average Cost:income ratio % over the 5-year forecast period

Schedule of impact on Commercial Banking VIU of reasonably possible changes to key assumptions

2021

2020

Terminal

Pre-tax

Forecast

Forecast

Terminal

Pre-tax

Forecast

Forecast

growth rate

discount rate

income

cost

growth rate

discount rate

income

cost

Change in key assumptions to reduce headroom to nil (%)

%

%

%

%

%

%

%

%

Retail Banking

(139.2)

8.1

(16.1)

32.7

(25.4)

6.2

(14.6)

33.9

Commercial Banking

(47.0)

6.6

(15.7)

32.8

(4.0)

1.3

(4.1)

8.2

RBS International

(85.2)

10.3

(30.3)

87.2

(10.8)

4.4

(18.6)

52.8