Operating income

Operating expenses amounted to €7,299m year to date, slowing their rate of year-on-year growth to 9.9%. This item continues to be influenced by the Group’s investments in emerging countries, in infrastructure, in its new technological platform and brand image.

Breakdown of operating costs and efficiency calculation (Million euros)
	January-Sep. 11	∆%	January-Sep. 10	2010
Personnel expenses	3.907	9.3	3.575	4.814
Wages and salaries	3.003	8.7	2.763	3.740
Employee welfare expenses	567	10.3	514	689
Training expenses and other	337	13.0	298	386
General and administrative expenses	2.771	10.6	2.506	3.392
Premises	633	12.7	562	750
IT	462	8.9	424	563
Communications	223	6.4	209	284
Advertising and publicity	271	8.2	250	345
Corporate expenses	77	19.1	65	89
Other expenses	829	8.1	767	1.040
Levies and taxes	276	20.8	228	322
Administration costs	6.678	9.8	6.080	8.207
Depreciation and amortization	620	10.4	562	761
Operating costs	7.299	9.9	6.642	8.967
Gross income	15.052	(5.7)	15.964	20.910
Efficiency ratio (Operating costs/Gross income, in %)	48.5	16.5	41.6	42.9

Operating costs (Million euros)	Efficiency

At the close of September, the Bank employed 110,625 people, a year-on-year increase of 5.1% and a quarter-on-quarter increase of 0.9%. The branch network numbered 7,436 units as of 30-Sep-2011, 9 more than at the close of June and 74 more than the figure for 30-Sep-2010. The increase is the result of the expansion process undertaken in emerging countries (basically Mexico and South America). Finally, there is the ongoing increase in ATM numbers.

As of 30-Sep-2011 there were 18,192 units, 9.5% up year-on-year and 1.9% up quarter-on-quarter.

To sum up, this trend in income and costs has resulted in an operating income year to date (30-Sep-2011) of €7,753m (€9,322m in January-September 2010). Excluding the least recurring income, NTI and dividends, this figure is €6,358m, 13.8% down on that a year ago.

Number of employees ⁽¹⁾	Number of branches⁽¹⁾
Number of ATMs ⁽¹⁾	Operating income (Million euros)