(16) Other operating expenses
| All figures in €’000 | 2008 | 2007 |
|---|---|---|
| IT costs | 47,208 | 36,916 |
| Cost of premises | 22,463 | 21,728 |
| Audit and consultancy costs | 15,193 | 17,347 |
| Advertising expenses | 11,622 | 9,382 |
| Training and seminars | 11,396 | 11,235 |
| Communication requirements | 8,665 | 8,420 |
| Banking-related expenses | 8,607 | 8,336 |
| Allowances for bad debts | 6,939 | 4,688 |
| Representation and entertainment expenses | 6,498 | 5,576 |
| Insurance | 6,358 | 2,238 |
| Expenses for consultants and branch office managers | 5,777 | 6,083 |
| Rental and leasing | 5,007 | 4,758 |
| Office supplies | 2,921 | 3,265 |
| Travel expenses | 2,488 | 2,241 |
| Other personnel costs | 2,069 | 2,021 |
| Expenses for corporate communications | 1,398 | 1,222 |
| Vehicle costs | 1,389 | 759 |
| Premiums and fees | 1,327 | 2,331 |
| Losses on the disposal of intangible assets and property, plant and equipment | 534 | 1,152 |
| Share-based payment (convertible debentures) | 513 | 1,263 |
| Sundry other operating expenses | 13,714 | 7,238 |
| Total | 182,084 | 158,200 |
The increase in IT costs is mainly attributable to higher maintenance expenses and, due to a wider range of services, higher costs for the Computer Centre.
The audit and consultancy costs fell due to the lower number of projects in the current fiscal year. The increased expenses for advertising activities are mainly attributable to increased sales activities with cooperation partners and the broadening of the media presence. The higher expenses for representation and entertainment are largely due to increased costs for training courses and conventions. Insurance expenses increased due to premium payments for reinsurance of pension obligations. The reduction in premiums and fees is primarily attributable to the fact that contributions in deposit guarantee schemes for two institutions accrued in the previous year. The sundry other operating expenses consist of third party work/services, goodwill gestures, repair and maintenance costs and the addition of tax liabilities.
The adjustments made are explained in note 3.