For the year to 31 March
2007
2006
 £’000 3. Principal transactions Principal transaction income includes: Gross trading income
103 469
126 203
Funding cost against trading income
(33 665)
(16 832)
 Net trading income
69 804
109 371
Fair value movement from financial instruments designated as held at fair value
142 769
99 825
Gains/(losses) on available for sale instruments
4 626
(803)
Impairments on available for sale instruments
(1 529)
-
Fair value income on investment properties
17 339
28 301
Dividend income
10 360
9 340
Other income
2 094
25
245 463
246 059
Fair value movement from financial instruments designated as held at fair value includes: Fair value movement of designated equity positions
109 182
79 669
Fair value movement of designated loans and receivables net of associated derivative instruments
15 686
187
Fair value movement of designated securities
14 464
15 245
Fair value movement of designated liabilities
9 268
4 724
148 600
99 825
 4. Other operating income Rental income from properties
1 558
1 950
Gains on realisation of properties
42
771
Operating income of non-core businesses*
48 085
-   
49 685
2 721
 * Includes income of certain private equity investments that have been consolidated, with their respective operating costs included in administrative costs. 5.  Administrative expenses Staff costs
482 050
372 643
Salaries and wages (including directors' remuneration)
443 573
341 839
Social security costs
23 092
17 474
Pensions and provident fund contributions
15 385
13 330
Premises (excluding depreciation)
35 610
39 607
Equipment (excluding depreciation)
29 684
19 837
Business expenses**
105 911
104 258
Marketing expenses
27 432
22 542
680 687
558 887
The following amounts were paid to the auditors: Audit fees
5 096
4 654
Audit related fees
276
211
Other services
443
635
5 815
5 500
Audit fees by audit firm: Ernst & Young
4 096
3 750
KPMG Inc
1 635
1 620
Other
84
130
5 815
5 500
Details of the directors' emoluments, pensions and their interests are disclosed in the directors' remuneration report on pages 121 to 138. **   Business expenses significantly comprise insurance costs, consulting and professional fees, travel expenses and subscriptions.