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Operating expenses (Tables)

12 Months Ended

Dec. 31, 2024

Operating expenses

Schedule of operating expenses


		2024		2023		2022
Continuing operations		£m		£m		£m
Salaries		2,477		2,483		2,250
Bonus awards		411		353		334
Temporary and contract costs		162		199		234
Social security costs		371		352		328
Pension costs		311		313		363
- defined benefit schemes (Note 5)		86		122		205
- defined contribution schemes		225		191		158
Other		329		201		207
Staff costs		4,061		3,901		3,716

Premises and equipment		1,211		1,153		1,112
UK bank levy		142		109		101
Depreciation and amortisation (1)		1,058		934		833
Other administrative expenses (2)		1,677		1,899		1,925
Administrative expenses		4,088		4,095		3,971
		8,149		7,996		7,687

(1)Includes depreciation of right of use assets of £103 million (2023 - £104 million; 2022 - £119 million).

(2)Includes litigation and conduct costs, net of amounts recovered. Refer to Note 20 for further details.

Schedule of employees in continuing operations


Continuing operations		2024		2023		2022
Retail Banking		13,000		14,300		15,100
Private Banking		2,200		2,400		2,300
Commercial & Institutional		12,700		12,400		12,200
Central items & other (1)		31,800		32,500		31,400
Total		59,700		61,600		61,000

UK		40,100		41,500		41,200
India		17,600		16,900		15,700
Poland		800		1,500		1,500
USA		300		300		300
Republic of Ireland		100		400		1,400
Rest of the World		800		1,000		900
Total		59,700		61,600		61,000

(1)	Central items & other includes Ulster Bank RoI. The total number of persons employed in Ulster Bank RoI of 200 (2023 – 500; 2022 – 2,200) includes nil people employed in discontinued operations at 31 December 2024 (2023 – nil; 2022 – 400).

Schedule of share-based compensation


Award plan		Eligible employees		Nature of award		Vesting conditions (1)		Settlement
Sharesave		UK, Channel Islands, Gibraltar, Isle of Man, Poland and India.		Option to buy shares under employee savings plan		Continuing employment or leavers in certain circumstances		2025 to 2029
Deferred performance awards		All		Awards of ordinary shares and conditional shares		Continuing employment or leavers in certain circumstances		2025 to 2032
Long-term incentives (2,3)		Senior employees		Awards of ordinary shares and conditional shares		Continuing employment or leavers in certain circumstances and/or satisfaction of the pre-vesting assessment and underpins		2025 to 2031
Sharing in Success (4)		All		Awards of ordinary shares and conditional shares		Future continuing employment and achievement of pre-defined measures.		2025

(1)	All awards are subject to discretion of Remuneration Committee.

(2)	Long-term incentives include buy-out awards offered to compensate certain new hires for the loss of forfeited awards from their previous employment. Existing Long - term incentives vest over 3 to 7 years.

(3)	The existing Restricted Share Plan scheme would be replaced by Performance Share Plan in 2025.

(4)	In 2024 16 million shares at total value of £49 million were granted and vested under Sharing in Success.

Schedule of bonus awards


Bonus awards		2024		2023		Change
		£m		£m		%
March awards (1)		63		43		47	%
Deferred cash awards		324		262		24	%
Deferred share awards		61		51		20	%
Total deferred bonus awards		385		313		23	%
Total bonus awards (2)		448		356		26	%
Bonus awards as a % of operating profit before tax and bonus awards		7	%	5	%
Proportion of bonus awards that are deferred
- deferred cash awards		86	%	86	%
- deferred share awards		14	%	14	%

Reconciliation of bonus awards to income statement charge


		2024		2023		2022
		£m		£m		£m
Bonus awarded		448		356		370
Less: deferral of charge for amounts awarded for current year		(144)		(114)		(127)
Income statement charge for amounts awarded in current year		304		242		243

Add: current year charge for amounts deferred from prior years		109		115		94
Less: forfeiture of amounts deferred from prior years		(2)		(4)		(3)
Income statement charge for amounts deferred from prior years		107		111		91
Income statement charge for bonus awards (2)		411		353		334

(1)	March cash awards are limited to £2,000 for all employees.

(2)	Excludes other performance-related compensation.

Year in which income statement charge is expected to be taken for deferred bonus awards


		Actual						Expected
										2026
		2022		2023		2024		2025		and beyond
		£m		£m		£m		£m		£m
Bonus awards deferred from 2022 and earlier		94		115		17		8		6
Bonus awards deferred from 2023		—		—		92		8		9
Less: forfeiture of amounts deferred from prior years		(3)		(4)		(2)		—		—
Bonus awards deferred for 2024		—		—		—		122		22
		91		111		107		138		37

Operating expenses

Schedule of share-based compensation


Sharesave		2024				2023				2022
		Average		Shares		Average		Shares		Average		Shares
		exercise price		under option		exercise price		under option		exercise price		under option
		£		(million)		£		(million)		£		(million)
At 1 January		1.59		114		1.63		99		1.61		95
Granted		2.94		24		1.42		43		1.86		25
Exercised		1.52		(32)		1.44		(23)		1.88		(15)
Cancelled		1.60		(5)		1.72		(5)		1.60		(6)
At 31 December		1.93		101		1.59		114		1.63		99

Deferred performance awards

Operating expenses

Schedule of share-based compensation


Deferred performance awards		2024				2023				2022
		Value at		Shares		Value at		Shares		Value at		Shares
		grant		awarded		grant		awarded		grant		awarded
		£m		(million)		£m		(million)		£m		(million)
At 1 January		76		35		93		46		132		65
Granted		50		23		52		20		46		20
Forfeited		(3)		(1)		(2)		(1)		(4)		(2)
Vested		(57)		(27)		(67)		(30)		(81)		(37)
At 31 December		66		30		76		35		93		46

Long-term incentives

Operating expenses

Schedule of share-based compensation


Long-term incentives		2024				2023				2022
		Value at		Shares		Value at		Shares		Value at		Shares
		grant		awarded		grant		awarded		grant		awarded
		£m		(million)		£m		(million)		£m		(million)
At 1 January		49		23		49		23		44		21
Granted		9		5		11		5		16		7
Vested/exercised		(11)		(5)		(10)		(4)		(10)		(4)
Lapsed		(7)		(4)		(1)		(1)		(1)		(1)
At 31 December		40		19		49		23		49		23