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3 Operating expenses
2010 2009 Restated
£m £m

Branch operating expenses 1,501.8 1,365.9
Administrative expenses 334.9 330.3
Pension costs 98.9 98.2

1,935.6 1,794.4

The presentation of prior year expenses has been restated in respect of the financing element of other employee benefit schemes (long service leave) as explained in note 1.


4 Net finance costs

2010 2009 Restated
£m £m

Finance costs
Interest payable on:
Bank loans and overdrafts 2.3 12.9
Other loans repayable within 5 years 23.2 19.4
Other loans repayable in more than 5 years 18.8 10.6
Finance lease interest payable 1.4 1.5
Amortisation of issue costs of bonds 1.1 0.3
Preference dividends 0.3 0.3
SIP dividends 1.2 1.4

Total finance costs in respect of borrowings 48.3 46.4
Fair value measurements and other 0.5 3.3
Net finance costs arising on defined benefit retirement schemes (note 25) 24.6 5.4
Net finance costs arising on other employee benefit schemes 15.6 –

Total finance costs 89.0 55.1

Finance income
Interest receivable (3.7) (11.1)
Preference dividends (0.1) (0.1)

Total finance income in respect of investments (3.8) (11.2)
Fair value measurements and other (2.1) –
Net finance income arising on other employee benefit schemes – (0.2)

Total finance income (5.9) (11.4)

Net finance costs 83.1 43.7
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