Barclays 2004 Annual Report Download - page 105

Barclays PLC Annual Report 2004
103
Administrative expenses – staff costs
2004 2003 2002
£m £m £m
Salaries and accrued
incentive payments 4,043 3,441 3,159
Social security costs 339 278 240
Pension costs 160 180 (27)
Post-retirement health care 22 19 15
Other staff costs 434 377 368
4,998 4,295 3,755
Staff costs
Staff costs increased by 16% (£703m) to £4,998m (2003: £4,295m).
Salaries and accrued incentive payments rose by 17% (£602m)
to £4,043m (2003: £3,441m) principally reflecting increased
performance related payments primarily within Barclays Capital and
Barclays Global Investors, increased headcount, and the impact of the
businesses acquired in 2003.
Pension costs comprise all UK and international pension schemes.
Included in the costs is a charge of £103m (2003: £128m) in respect
of the Group’s main UK pension schemes.
Staff costs in 2003 were 14% higher than 2002. Salaries and accrued
incentive payments increased by 9% reflecting increased performance
related payments primarily within Barclays Capital and Barclays Global
Investors. Pension costs in 2002 reflected a £72m credit in respect of
the Group’s main UK pension schemes.
Staff numbers
2004 2003 2002
By class of business
UK Banking 41,800 41,000 43,900
UK Retail Banking 34,400 34,000 36,300
UK Business Banking 7,400 7,000 7,600
Private Clients & International 19,300 19,000 16,900
Private Clients 7,200 6,900 6,400
International 12,100 12,100 10,500
Barclaycard 6,700 6,200 5,600
Barclays Capital 7,800 5,800 5,600
Barclays Global Investors 1,900 2,000 2,000
Head office functions and
other operations 900 800 700
Total Group permanent and
contract staff worldwide 78,400 74,800 74,700
Temporary and agency staff
worldwide 4,300 4,100 3,700
Total including temporary
and agency staff 82,700 78,900 78,400
By geographic segments
United Kingdom 60,000 58,000 59,000
Non-United Kingdom 18,400 16,800 15,700
78,400 74,800 74,700
Staff numbers are shown on a full-time equivalent basis UK permanent
and contract staff.
During 2004, staff numbers permanent and contract staff increased
by 3,600. The implementation of restructuring programmes resulted
in a decrease of 2,100 staff, but this was more than offset by the
recruitment of additional staff throughout the Group and 400 staff
from the acquisition of Juniper. Significant areas of recruitment were
Barclays Capital to support the expansion of their business, and
Barclaycard through the growth of Barclaycard International and
the addition of front-office staff to improve customer service in
Barclaycard UK; and UK Banking, mostly from the recruitment of
frontline staff in both UK Retail Banking and UK Business Banking.
Head office functions and other operations includes staff undertaking
activities which support and provide central information technology
services and their costs are predominantly passed on to the
businesses.
In 2003, Private Clients and International staff numbers increased by
3,500 as a result of the acquisition of Charles Schwab Europe, Banco
Zaragozano and Gerrard. This increase was partially offset by
restructuring initiatives.
UK Retail Banking staff numbers decreased in 2003 by 2,300. 1,400
of this decrease was a result of a number of productivity initiatives.
Administrative expenses – other
2004 2003 2002
£m £m £m
Property and equipment
expenses
Hire of equipment 9812
Property rentals 197 184 180
Other property and
equipment expenses 835 793 725
1,041 985 917
Other administrative expenses
Stationery, postage and
telephones 324 311 294
Advertising and market
promotion 264 237 238
Travel, accommodation and
entertainment 174 145 136
Subscriptions and publications 130 91 86
Sundry losses, provisions
and write-offs 185 128 121
Consultancy fees 67 56 85
Professional fees 234 159 161
Other expenses 339 292 274
1,717 1,419 1,395
2,758 2,404 2,312
In 2004, administrative expenses – other rose by 15% (£354m) to
£2,758m (2003: £2,404m).