Barclays 2013 Annual Report Download - page 295

Note 8: Administration and general expenses
2013
£m
2012
£m
2011
£m
Infrastructure costs
Property and equipment 1,610 1,656 1,763
Depreciation of property, plant and equipment 647 669 673
Operating lease rentals 645 622 659
Amortisation of intangible assets 480 435 419
Impairment of property, equipment and intangible assets 149 17 12
Total infrastructure costs 3,531 3,399 3,526
Other costs
Consultancy, legal and professional fees 1,253 1,182 1,027
Subscriptions, publications, stationery and communications 869 727 740
Marketing, advertising and sponsorship 583 572 585
Travel and accommodation 307 324 328
UK bank levy 504 345 325
Goodwill impairment 79 – 597
Other administration and general expenses 691 546 405
Total other costs 4,286 3,696 4,007
Administration and general expensesa,b 7,817 7,095 7,533
2013
Administration and general expenses have increased 10% to £7,817m. This was driven by increased infrastructure costs due to the Transform
programme, increased consultancy, legal and professional costs to meet new regulatory requirements such as the Dodd-Frank Act and CRD IV, an
increase in the UK bank levy reflecting the increased rate and an increase in impairment in relation to premises restructuring in Europe. Within
other administration and general expenses, increases in provisions for litigation and regulatory penalties were offset by the non-recurrence of the
£290m penalty incurred in 2012 arising from the industry wide investigation into the setting of inter-bank offered rates.
2012
Administration and general expenses have fallen 6% to £7,095m, primarily due to £597m goodwill impairment in 2011 not recurring in 2012 and a
reduction in the underlying cost base reflecting the impact of the Group-wide cost reduction initiative. This has been partly offset by the £290m
penalty relating to the industry wide investigation into the setting of interbank offered rates and an increase in expenses relating to the Financial
Services Compensation Scheme.
Note 9: Profit on disposal of subsidiaries, associates and joint ventures
There have been no material disposals during the year. The profit on disposal of subsidiaries, associates and joint ventures was £6m (2012: £28m),
principally relating to accumulated foreign exchange gains (previously recognised directly in equity) recycled through the income statement
within Head Office and Other Operations.
Notes
a Total administration and general expenses of £7,817m (2012: £7,095m; 2011: £7,533m) include depreciation of property, plant and equipment of £647m (2012: £669m; 2011:
£673m), amortisation of intangible assets of £480m (2012: £435m; 2011: £419m), goodwill impairment of £79m (2012: £nil; 2011: £597m) and administration and other
expenses of £6,611m (2012: £5,991m; 2011: £5,844m).
b The group has realigned outsourcing costs from administration and general expenses to staff costs in order to more appropriately reflect the nature and internal management of
these costs. The net effect of these movements is to reduce administration and general expenses and, to increase staff costs by £1,084m in 2013 and £997m in 2012.
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