OPERATING EXPENSES (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of expenses [text block] [Abstract]

Disclosure of other operating expense [text block]

	2018 £m		2017 £m		2016 £m
Staff costs:
Salaries		2,482		2,679		2,750
Performance-based compensation		509		473		475
Social security costs		343		361		363
Pensions and other post-retirement benefit schemes (note 35)		705		625		555
Restructuring costs		249		24		241
Other staff costs		474		448		433
		4,762		4,610		4,817
Premises and equipment:
Rent and rates		370		365		365
Repairs and maintenance		190		231		187
Other		169		134		120
		729		730		672
Other expenses:
Communications and data processing		1,121		882		848
Advertising and promotion		197		208		198
Professional fees		287		328		265
UK bank levy		225		231		200
Other		653		814		873
		2,483		2,463		2,384
Depreciation and amortisation:
Depreciation of property, plant and equipment (note 26)		1,852		1,944		1,761
Amortisation of acquired value of in-force non-participating investment contracts (note 24)		40		34		37
Amortisation of other intangible assets (note 25)		513		392		582
		2,405		2,370		2,380
Goodwill impairment (note 23)		–		8		–
Total operating expenses, excluding regulatory provisions		10,379		10,181		10,253
Regulatory provisions:
Payment protection insurance provision (note 37)		750		1,300		1,350
Other regulatory provisions1 (note 37)		600		865		1,024
		1,350		2,165		2,374
Total operating expenses		11,729		12,346		12,627

1  In 2016, regulatory provisions of £61 million were charged against income.

Disclosure of performance-based compensation costs [text block]

The table below analyses the Group’s performance-based compensation costs between those relating to the current performance year and those relating to earlier years.

	2018 £m		2017 £m		2016 £m
Performance-based compensation expense comprises:
Awards made in respect of the year ended 31 December		362		334		312
Awards made in respect of earlier years		147		139		163
		509		473		475
Performance-based compensation expense deferred until later years comprises:
Awards made in respect of the year ended 31 December		152		127		123
Awards made in respect of earlier years		37		35		41
		189		162		164

Disclosure of information about employees [text block]

The average number of persons on a headcount basis employed by the Group during the year was as follows:

	2018		2017		2016
UK		71,857		75,150		79,606
Overseas		769		794		812
Total		72,626		75,944		80,418