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Operating expenses
12 Months Ended
Dec. 31, 2017
Operating expenses  
Operating expenses

 

3 Operating expenses

 

Group

 

 

2017

 

2016

 

2015

 

 

£m

 

£m

 

£m

Wages, salaries and other staff costs

 

647

 

582

 

750

Social security costs

 

52

 

53

 

50

Pension costs

 

 

 

 

 

 

- defined benefit schemes (see Note 4)

 

131

 

60

 

239

- gains on curtailments or settlements (see Note 4)

 

 

 

(57)

- defined contribution schemes

 

14

 

18

 

18

 

 

 

 

 

 

 

Staff costs

 

844

 

713

 

1,000

 

 

 

 

 

 

 

Premises and equipment

 

273

 

233

 

442

Other administrative expenses (1)

 

2,921

 

3,326

 

3,306

 

 

 

 

 

 

 

Property, plant and equipment, depreciation and write down (see Note 17)

 

213

 

79

 

75

Intangible assets amortisation (see Note 16)

 

69

 

48

 

61

 

 

 

 

 

 

 

Depreciation and amortisation

 

282

 

127

 

136

 

 

 

 

 

 

 

Write down of goodwill and other intangible assets (see Note 16)

 

 

16

 

85

 

 

 

 

 

 

 

 

 

4,320

 

4,415

 

4,969

 

 

 

 

 

 

 

 

Restructuring costs relating to continuing operations included in operating expenses comprise:

 

 

 

2017

 

2016

 

2015

 

 

£m

 

£m

 

£m

Staff costs

 

83

 

44

 

81

Premises and depreciation

 

104

 

(3)

 

523

Other (2)

 

31

 

29

 

112

 

 

 

 

 

 

 

 

 

218

 

70

 

716

 

 

 

 

 

 

 

 

Notes:

(1)

Includes litigation and conduct costs. Further details are provided in Note 21.

(2)

Includes other administration expenses and write down of intangible assets.

 

The average number of persons employed in continuing operations, rounded to the nearest hundred, in the Group during the year, excluding temporary staff, was 14,700 (2016 - 20,200, 2015 - 25,600); on the same basis, there were 2,100 people employed in discontinued operations (2016 – 3,600, 2015 – 4,200). The number of people employed by the Group in continued operations at 31 December, excluding temporary staff was as follows:

 

 

 

2017

 

2016*

 

2015*

UK Personal & Business Banking

 

10,200

 

11,000

 

13,300

Commercial Banking

 

300

 

200

 

100

Private Banking

 

1,400

 

1,600

 

1,700

 

 

 

 

 

 

 

Commercial & Private Banking

 

1,700

 

1,800

 

1,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Central & Other

 

2,500

 

2,100

 

10,300

 

 

 

 

 

 

 

Total

 

14,400

 

14,900

 

25,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UK

 

12,800

 

14,500

 

16,300

Europe

 

1,600

 

400

 

500

Rest of the World

 

 

 

8,600

 

 

 

 

 

 

 

Total

 

14,400

 

14,900

 

25,400

 

 

 

 

 

 

 

 

* Restated - refer to page 165 for further details. Re-presented to reflect the segmental reorganisation.

 

There were 800 people employed in discontinued operations at 31 December 2017 (2016 – 3,400; 2015 – 3,800).