OPERATING EXPENSES

12 Months Ended

Dec. 31, 2019

Disclosure of expenses [text block] [Abstract]

Disclosure of expenses [text block]

NOTE 11: OPERATING EXPENSES

	2019	2018	2017
	£m	£m	£m
Staff costs:
Salaries	2,539	2,482	2,679
Performance-based compensation	380	509	473
Social security costs	325	343	361
Pensions and other post-retirement benefit schemes (note 36)	532	705	625
Restructuring costs	92	249	24
Other staff costs	383	474	448
	4,251	4,762	4,610
Premises and equipment:
Rent and rates	93	370	365
Repairs and maintenance	187	190	231
Other	211	169	134
	491	729	730
Other expenses:
Communications and data processing	1,038	1,121	882
Advertising and promotion	170	197	208
Professional fees	226	287	328
UK bank levy	224	225	231
Other	715	653	814
	2,373	2,483	2,463
Depreciation and amortisation:
Depreciation of property, plant and equipment (note 27)	2,064	1,852	1,944
Amortisation of acquired value of in-force non-participating investment contracts (note 25)	30	40	34
Amortisation of other intangible assets (note 26)	566	513	392
	2,660	2,405	2,370
Goodwill impairment	–	–	8
Total operating expenses, excluding regulatory provisions	9,775	10,379	10,181
Regulatory provisions:
Payment protection insurance provision (note 38)	2,450	750	1,300
Other regulatory provisions (note 38)	445	600	865
	2,895	1,350	2,165
Total operating expenses	12,670	11,729	12,346

Performance-based compensation

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.

	2019		2018		2017
	£m		£m		£m
Performance-based compensation expense comprises:
Awards made in respect of the year ended 31 December		244		362		334
Awards made in respect of earlier years		136		147		139
		380		509		473
Performance-based compensation expense deferred until later years comprises:
Awards made in respect of the year ended 31 December		113		152		127
Awards made in respect of earlier years		36		37		35
		149		189		162

Performance-based awards expensed in 2019 include cash awards amounting to £89 million (2018: £137 million; 2017: £102 million).

Average headcount

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

	2019		2018		2017
UK		69,321		71,857		75,150
Overseas		762		769		794
Total		70,083		72,626		75,944