NatWest (NWG) 20-F5 Mar 212020 FY Annual report (foreign)Financial data

Company Profile

Document and Entity Information

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2020shares
Document Information [Line Items]
Entity Registrant Name	NatWest Group plc
Entity Central Index Key	0000844150
Document Type	20-F
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Entity Incorporation, State or Country Code	X0
Entity Interactive Data Current	Yes
Entity Well-known Seasoned Issuer	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
ICFR Auditor Attestation Flag	false
Ordinary shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	12,129,165,477
11% Cumulative Preference Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	500,000
5 1/2% Cumulative Preference Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	400,000
Non-cumulative preference shares of US$0.01
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	10,130

Consolidated income statement

Consolidated income statement - GBP (£) £ in Millions	12 Months Ended
Consolidated income statement - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated income statement
Interest receivable	£ 10,071	£ 11,375	£ 11,049
Interest payable	(2,322)	(3,328)	(2,393)
Net interest income	7,749	8,047	8,656
Fees and commissions receivable	2,734	3,359	3,218
Fees and commissions payable	(722)	(848)	(861)
Income from trading activities	1,125	932	1,507
Other operating income	(90)	2,763	882
Total Non-interest income	3,047	6,206	4,746
Total income	10,796	14,253	13,402
Staff costs	(3,923)	(4,018)	(4,122)
Premises and equipment	(1,223)	(1,259)	(1,383)
Other administrative expenses	(1,845)	(2,828)	(3,372)
Depreciation and amortisation	(905)	(1,176)	(731)
Impairment of other intangible assets	(9)	(44)	(37)
Operating expenses	(7,905)	(9,325)	(9,645)
Profit before impairment losses	2,891	4,928	3,757
Impairment losses	(3,242)	(696)	(398)
Operating (loss)/profit before tax	(351)	4,232	3,359
Tax charge	(83)	(432)	(1,208)
(Loss)/profit for the year	(434)	3,800	2,151
Attributable to:
Ordinary shareholders	(753)	3,133	1,622
Preference shareholders	26	39	182
Paid-in equity holders	355	367	355
Non-controlling interests	(62)	261	(8)
(Loss)/profit for the year	£ (434)	£ 3,800	£ 2,151
Per ordinary share
Earnings per ordinary share	£ (6.2)	£ 26	£ 13.5
Earnings per ordinary share - fully diluted	£ (6.2)	£ 25.9	£ 13.4

Consolidated statement of compr

Consolidated statement of comprehensive income - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated statement of comprehensive income
(Loss)/profit for the year		£ (434)	£ 3,800	£ 2,151
Items that do not qualify for reclassification
- contributions in preparation for ring-fencing	[1]			(2,053)
- other movements		4	(142)	86
(Loss)/profit on fair value of credit in financial liabilities designated at FVTPL due to own credit risk		(52)	(189)	200
FVOCI financial assets		(64)	(71)	48
Tax		42	28	502
Total - Items that do not qualify for reclassification		(70)	(374)	(1,217)
Items that do qualify for reclassification
FVOCI financial assets		44	(14)	7
Cash flow hedges		271	294	(581)
Currency translation		276	(1,836)	310
Tax		(89)	(170)	189
Total - Items that do qualify for reclassification		502	(1,726)	(75)
Other comprehensive income/(loss) after tax		432	(2,100)	(1,292)
Total comprehensive (loss)/income for the year		(2)	1,700	859
Attributable to:
Ordinary shareholders		(338)	1,044	305
Preference shareholders		26	39	182
Paid-in equity holders		355	367	355
Non-controlling interests		(45)	250	17
Total comprehensive (loss)/income for the year		£ (2)	£ 1,700	£ 859

[1]	On 17 April 2018 NatWest Group agreed a Memorandum of Understanding (MoU) with the Trustees of the NatWest Group Pension Fund in connection with the requirements of ring-fencing. NWM Plc could not continue to be a participant in the Main section and separate arrangements were required for its employees. Under the MoU, NWB Plc made a contribution of £2 billion on 9 October 2018 to strengthen funding of the Main section in recognition of the changes in covenant. Also under the MoU, NWM Plc made a £53 million contribution to the NWM section in Q1 2019

Consolidated statement of com_2

Consolidated statement of comprehensive income (Parenthetical) - GBP (£) £ in Millions	Oct. 09, 2018	Mar. 31, 2019
NWB Plc
Disclosure of transactions between related parties [line items]
Contribution under the MoU to strengthen funding of the Main section and NWM section.	£ 2,000
NWM Plc
Disclosure of transactions between related parties [line items]
Contribution under the MoU to strengthen funding of the Main section and NWM section.		£ 53

Consolidated balance sheet

Consolidated balance sheet - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	[1]	Jan. 01, 2019	[1]
Assets
Cash and balances at central banks	£ 124,489	£ 80,993		£ 91,368
Trading assets	68,990	76,745		75,119
Derivatives	166,523	150,029		133,349
Settlement balances	2,297	4,387		2,928
Loans to banks - amortised cost	6,955	7,554		10,476
Loans to customers - amortised cost	360,544	326,947		305,089
Securities subject to repurchase agreements	11,542	4,269		9,890
Other financial assets excluding securities subject to repurchase agreements	43,606	57,183		49,595
Other financial assets	55,148	61,452		59,485
Intangible assets	6,655	6,622		6,616
Other assets	7,890	8,310		9,805
Total assets	799,491	723,039		694,235
Liabilities
Bank deposits	20,606	20,493		23,297
Customer deposits	431,739	369,247		360,914
Settlement balances	5,545	4,069		3,066
Trading liabilities	72,256	73,949		72,350
Derivatives	160,705	146,879		128,897
Other financial liabilities	45,811	45,220		39,732
Subordinated liabilities	9,962	9,979		10,535
Notes in circulation	2,655	2,109		2,152
Other liabilities	6,388	7,538		6,802
Total liabilities	755,667	679,483		647,745
Ordinary shareholders' interests	38,367	38,993		41,182
Other owners' interests	5,493	4,554		4,554
Owners' equity	43,860	43,547		45,736
Non-controlling interests	(36)	9		754
Total equity	43,824	43,556		46,490
Total liabilities and equity	£ 799,491	£ 723,039		£ 694,235

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Consolidated statement of chang

Consolidated statement of changes in equity - GBP (£) £ in Millions		Called-up share capital	Paid-in equity		Share premium account	Merger reserve	FVOCI reserve	Cash flow hedging reserve		Foreign exchange reserve		Retained earnings	Own shares held	Shareholders' equity	Non-controlling interests	Ordinary shareholders	Preference shareholders	Total
At 1 January at Dec. 31, 2017		£ 11,965	£ 4,058		£ 887	£ 10,881	£ 255	£ 227		£ 2,970		£ 17,130	£ (43)		£ 763
Shares issued		84			140
Implementation of IFRS 9 on 1 January 2018							34					(105)
(Loss)/profit attributable to ordinary shareholders and other equity owners												2,159
Equity preference dividends paid												(182)
Paid-in equity dividends paid												(355)
Ordinary dividends paid												(241)
Redemption of equity preference shares (6)	[1]											(2,805)
Unrealised gains/(losses)							97
Realised losses/(gains) (3)	[2]						(42)
Tax							(1)
Amount recognized in equity								(63)
Amount transferred from equity to earnings								(518)
Tax								163
Retranslation of net assets										195
Foreign currency (losses)/gains on hedges of net assets										(33)
Tax										23
Recycled to profit or loss on disposal of businesses (4)	[3]									123
Realised (losses)/gains in period on FVOCI equity shares Gross												6
Remeasurement of the retirement benefit schemes contributions in preparation for ring-fencing (7)	[4]											(2,053)
Remeasurement of the retirement benefit schemes other movements												86
Remeasurement of the retirement benefit schemes, tax												539
Changes in fair value of credit in financial liabilities designated at FVTPL, gross												200
Changes in fair value of credit in financial liabilities designated at FVTPL, tax												(33)
Shares issued under employee share schemes												(2)	87
Share based payments												(32)
Own shares acquired													(65)
Currency translation adjustments and other movements															25			£ (427)
Profit/(loss) attributable to non-controlling interests															(8)
Dividends paid															(5)
Equity withdrawn and disposals (9)															(21)
At 31 December at Dec. 31, 2018		12,049	4,058		1,027	10,881	343	(191)	[2]	3,278	[2]	14,312	(21)	£ 45,736	754	£ 41,182	£ 496	46,490
Shares issued		45			67
Implementation of IFRS 16 on 1 January 2019 (5)	[5]											(187)
(Loss)/profit attributable to ordinary shareholders and other equity owners												3,539
Equity preference dividends paid												(39)
Paid-in equity dividends paid												(367)
Ordinary dividends paid												(3,018)
Unrealised gains/(losses)							(107)
Realised losses/(gains) (3)	[2]						(90)
Tax							(8)
Amount recognized in equity								573
Amount transferred from equity to earnings								(279)
Tax								(68)
Retranslation of net assets										(428)
Foreign currency (losses)/gains on hedges of net assets										83
Tax										(110)
Recycled to profit or loss on disposal of businesses (4)	[3]									(1,480)
Realised (losses)/gains in period on FVOCI equity shares Gross												112
Remeasurement of the retirement benefit schemes other movements												(142)
Remeasurement of the retirement benefit schemes, tax												24
Changes in fair value of credit in financial liabilities designated at FVTPL, gross												(189)
Changes in fair value of credit in financial liabilities designated at FVTPL, tax												20
Shares issued under employee share schemes												(6)	39
Share based payments												(113)
Own shares acquired													(60)
Currency translation adjustments and other movements															(11)			(949)
Profit/(loss) attributable to non-controlling interests															261
Dividends paid															(5)
Equity raised (8)	[6]														45
Equity withdrawn and disposals (9)															(1,035)
At 31 December at Dec. 31, 2019		12,094	4,058		1,094	10,881	138	35	[2]	1,343	[2]	13,946	(42)	43,547	9	38,993	496	43,556	[7]
Shares issued		35			17
Redeemed/reclassified and Redemption/reclassification of paid-in equity (1)			(1,277)	[8]								(355)
Securities issued during the period (2)	[9]		2,218
(Loss)/profit attributable to ordinary shareholders and other equity owners												(372)
Equity preference dividends paid												(26)
Paid-in equity dividends paid												(355)
Unclaimed dividend												2
Unrealised gains/(losses)							76
Realised losses/(gains) (3)	[2]						152
Tax							(6)
Amount recognized in equity								321
Amount transferred from equity to earnings								(50)
Tax								(77)
Retranslation of net assets										297
Foreign currency (losses)/gains on hedges of net assets										(55)
Tax										6
Recycled to profit or loss on disposal of businesses (4)	[3]									17
Realised (losses)/gains in period on FVOCI equity shares Gross												(248)
Remeasurement of the retirement benefit schemes other movements												4
Remeasurement of the retirement benefit schemes, tax												22
Changes in fair value of credit in financial liabilities designated at FVTPL, gross												(52)
Changes in fair value of credit in financial liabilities designated at FVTPL, tax												8
Shares issued under employee share schemes												(11)	95
Share based payments												4
Own shares acquired													(77)
Currency translation adjustments and other movements															17			2,497
Profit/(loss) attributable to non-controlling interests															(62)
At 31 December at Dec. 31, 2020		£ 12,129	£ 4,999		£ 1,111	£ 10,881	£ 360	£ 229	[2]	£ 1,608	[2]	£ 12,567	£ (24)	£ 43,860	£ (36)	£ 38,367	£ 494	£ 43,824

[1]	During 2018, non-cumulative US dollar, Euro and Sterling preference shares were redeemed.
[2]	During the year NWM Plc sold its entire equity holding in Saudi British Bank (SABB) leading to a realised loss of £337 million after tax which was recognised through other comprehensive income and reclassified to retained earnings. Also, following a conversion of Visa B and C preference shares to Visa Class A shares a gain of £125 million has been realised. There has been a corresponding adjustment to the conversion ratio of the Visa B and C preference shares.
[3]	Includes £290 million recycled on completion of the Alawwal bank merger in June 2019 (with a further £48m shown in Tax), £1,102 million recycled on the subsequent liquidation of RFS Holdings B.V. (with a further £65m shown in Tax), and £67m attributable to the capital repayment by UBI DAC in 2019. The Alawwal bank merger resulted in the derecognition of the associate investment in Alawwal bank and recognition of a new investment in SABB held at FVOCI. The recycling gains arising from the liquidation of RFS Holdings B.V. and capital repayment by UBI DAC, have been calculated using the step-by-step method in IFRIC 16 ‘Hedges of a Net Investment in a Foreign Operation’ and by reference to the absolute reduction in ownership interest respectively. Amount recycled also includes £2,661 million related to historical hedge relationship taken to non interest income.
[4]	On 17 April 2018 NatWest Group agreed a Memorandum of Understanding (MoU) with the Trustees of the NatWest Group Pension Fund in connection with the requirements of ring-fencing. NWM Plc could not continue to be a participant in the Main section and separate arrangements were required for its employees. Under the MoU, NWB Plc made a contribution of £2 billion on 9 October 2018 to strengthen funding of the Main section in recognition of the changes in covenant. Also under the MoU, NWM Plc made a £53 million contribution to the NWM section in Q1 2019.
[5]	Years ended 31 December 2020 and 31 December 2019 prepared under IFRS 16 Leases. Year ended 31 December 2018 prepared under IAS 17 Leases.
[6]	Capital injection from RFS Holdings B.V. consortium members.
[7]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.
[8]	Paid-in equity reclassified to liabilities as the result of a call of US $2 billion AT1 notes in June 2020, redeemed in August 2020.
[9]	AT1 capital notes totalling US$1.5 billion less fees issued in June 2020. In November 2020 AT1 capital notes totalling £1.0 billion less fees were issued.

Consolidated statement of cha_2

Consolidated statement of changes in equity (Parenthetical) £ in Millions, $ in Billions	Oct. 09, 2018GBP (£)	Jun. 30, 2019GBP (£)	Mar. 31, 2019GBP (£)	Dec. 31, 2020GBP (£)	Nov. 30, 2020GBP (£)	Jun. 30, 2020USD ($)
AT1 capital notes issued \| $						$ 1.5
AT1 capital notes issued					£ 1,000
Notional amount				£ 179
Original issue price of non-cumulative preference shares				2,218
Derecognition of investments				27
RFS Holdings
Gains on disposals of investments		£ 1,102
Income tax relating to completion of Alawwal bank merger		65
UBI DAC
Capital repayment		67
Foreign exchange reserve \| RFS Holdings
Gains on disposals of investments		1,102
Paid-in equity
AT1 capital notes issued \| $						$ 2
Nat West Bank
Funding contribution to retirement benefit schemes	£ 2,000
NWM Plc
Funding contribution to retirement benefit schemes			£ 53
Realised loss from sale of equity holding, after tax				337
Alawwal bank merger
Gains on disposals of investments		290
Income tax relating to completion of Alawwal bank merger		48
Derecognition of investments		£ 2,661
VISA
Gain on conversion of preference shares				£ 125

Consolidated cash flow statemen

Consolidated cash flow statement - GBP (£) £ in Millions		12 Months Ended
Consolidated cash flow statement - GBP (£) £ in Millions		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Operating (loss)/profit before tax		£ (351)	£ 4,232	£ 3,359
Impairment losses		3,242	696	398
Amortisation of discounts and premiums of other financial assets		267	255	169
Depreciation, amortisation and impairment of other assets		914	1,220	768
Change in fair value taken to profit or loss of other financial assets		(1,474)	(280)	416
Change in fair value taken to profit or loss on other financial liabilities and subordinated liabilities		962	856	(302)
Elimination of foreign exchange differences		(2,497)	949	427
Other non-cash items		28	(258)	2,553
Income receivable on other financial assets		(518)	(854)	(534)
(Profit)/loss on sale of other financial assets		(96)	22	(34)
Loss/(profit) on sale of subsidiaries and associates		16	(2,224)
Loss on sale of other assets and net assets/liabiltiies		(16)	(58)	(50)
Interest payable on MRELs and subordinated liabilities		1,182	1,151	876
Loss on sale of other assets and net assets/liabiltiies		324
Charges and releases on provisions		296	1,243	1,333
Defined benefit pension schemes		215	188	308
Net cash flows from trading activities		2,494	7,138	9,687
Decrease/(increase) in trading assets		4,147	(659)	7,543
(Increase)/decrease in derivative assets		(16,173)	(16,680)	27,494
Decrease/(increase) in settlement balance assets		2,090	(1,459)	(411)
(Increase)/decrease in loans to banks		(554)	3,563	(1,923)
(Increase)/decrease in loans to customers		(33,748)	(22,642)	3,080
Decrease in other financial assets		221	924	518
Decrease in other assets		8	707	541
Increase/(decrease) in banks deposits		113	(2,804)	(7,099)
Increase/(decrease) in customer deposits		62,492	8,333	(1,064)
(Decrease)/increase in settlement balance liabilities		(1,652)	1,003	222
(Decrease)/increase in trading liabilities		(1,693)	1,599	(9,630)
Increase/(decrease) in derivative liabilities		13,826	17,982	(25,609)
(Decrease)/increase in other financial liabilities		(1,085)	2,871	2,449
Increase/(decrease) in notes in circulation		546	(43)	(34)
Decrease in other liabilities		(1,723)	(2,634)	(12,046)
Changes in operating assets and liabilities		26,815	(9,939)	(15,969)
Income taxes paid		(214)	(278)	(466)
Net cash flows from operating activities	[1]	29,095	(3,079)	(6,748)
Cash flows from investing activities
Sale and maturity of other financial assets		25,952	19,990	11,832
Purchase of other financial assets		(18,825)	(21,345)	(19,516)
Income received on other financial assets		518	854	534
Net movement in business interests and intangible assets		(70)	(84)	(481)
Sale of property, plant and equipment		348	428	264
Purchase of property, plant and equipment		(376)	(559)	(619)
Net cash flows from investing activities		7,547	(716)	(7,986)
Cash flows from financing activities
Movement in MRELs		636	1,927	6,676
Movement in subordinated liabilities		(2,381)	(1,064)	(2,824)
Issue of ordinary shares			17	144
Own shares (acquired)/disposed		(2)	(21)	22
Dividends paid		(381)	(3,429)	(803)
Issue of other equity instruments		2,218
Redemption of other equity instruments				(2,826)
Net cash flows from financing activities		90	(2,570)	389
Effects of exchange rate changes on cash and cash equivalents		1,879	(1,983)	676
Net increase/(decrease) in cash and cash equivalents		38,611	(8,348)	(13,669)
Cash and cash equivalents at beginning of period		100,588	108,936	122,605
Cash and cash equivalents at end of period		£ 139,199	£ 100,588	£ 108,936

[1]	Includes interest received of £10,007 million (2019 - £11,245 million , 2018 - £10,927 million) and interest paid of £2,414 million (2019 - £3,318 million , 2018 - £2,511 million).

Consolidated cash flow statem_2

Consolidated cash flow statement (Parenthetical) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated cash flow statement
Interest received	£ 10,007	£ 11,245	£ 10,927
Interest paid	£ 2,414	£ 3,318	£ 2,511

Accounting policies

Accounting policies	12 Months Ended
Accounting policies	Dec. 31, 2020
Accounting policies
Accounting policies	1. Presentation of accounts The accounts, set out on pages 257 to 325, including these accounting policies on pages 263 to 267, and the audited sections of the Business review: Risk and capital management on pages 161 to 249, are prepared on a going concern basis (see the Report of the directors, page 157) and in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 and also with International Financial Reporting Standards as issued by International Accounting Standard Board. The significant accounting policies and related judgments are set out below. NatWest Group plc is incorporated in the UK and registered in Scotland. Its accounts are presented in accordance with the Companies Act 2006. The accounts are presented in the functional currency, pounds sterling. With the exception of certain financial instruments as described in Accounting policies 12 and 20 and investment property, the accounts are presented on a historical cost basis. Accounting policy changes effective 1 January 2020 Amendments to IFRS 3 Business Combinations (IFRS 3) - Changes to the definition of a business The IASB amended IFRS 3 to provide additional guidance on the definition of a business. The amendment aims to help entities when determining whether a transaction should be accounted for as a business combination or as an asset acquisition. The amendments are in line with current accounting policy and therefore did not affect the accounts. Definition of material – Amendments to IAS 1 – Presentation of Financial Statements (IAS 1) and IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8) The IASB clarified the definition of ‘material’ and aligned the definition of material used in the Conceptual Framework and in other IFRS standards. The amendments clarify that materiality will depend on the nature or magnitude of information. Under the amended definition of materiality, an entity will need to assess whether the information, either individually or in combination with other information, is material in the context of the accounts. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. NatWest Group’s definition and application of materiality is in line with the definition in the amendments. Interest Rate Benchmark Reform (IBOR reform) Phase 1 amendments to IFRS 9 and IAS 39 The IASB issued 'Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)' as a first reaction to the potential effects the IBOR reform could have on financial reporting. The amendments focused on hedge accounting and allow hedge relationships affected by the IBOR reform to be accounted for as continuing hedges. Amendments are effective for annual reporting periods beginning on or after 1 January 2020 with early application permitted. NatWest Group early adopted these amendments for the annual period ending on 31 December 2019. Interest Rate Benchmark Reform (IBOR reform) Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Phase 2 of the IASB’s IBOR project (published in August 2020) addresses the wider accounting issues arising from the IBOR reform. The amendments are effective for annual reporting periods beginning on or after 1 January 2021 with early application permitted. As NatWest Group early adopted these amendments for the annual period ending on 31 December 2020, which have been endorsed by the EU and UK in January 2021, NatWest Group has applied International Accounting Standards, which have been adopted for use within the UK. NatWest Group’s IBOR transition program remains on-track and key milestones have been met. Conversion from rates subject to reform to alternative risk-free rates (RFRs) is expected to increase as RFR-based products become more widely available and key market-driven conversion events occur. Reclassification of balances held with central banks The definitions of central banks and the classification of amounts that are held in cash and balances at central banks and loans to banks - amortised cost have been refined. Amounts not subject to mandatory or term deposit restrictions that are held with central banks are now classified as Cash and balances with central banks, irrespective of jurisdiction. Amounts that are subject to mandatory restrictions or time deposit restrictions of more than 24 hours are classified as Loans to banks - amortised cost. Previously, this also included amounts subject to restrictions of less than 24 hours. This change resulted in a £5.0 billion increase in Cash and balances at central banks and a corresponding reduction in Loans to banks - amortised cost at 31 December 2020, and a balance sheet reclassification from Loans to banks - amortised cost to Cash and balances at central banks of £3.1 billion at 31 December 2019 (1 January 2019 - £2.5 billion). These did not impact the consolidated cash flow statement. 2. Basis of consolidation The consolidated accounts incorporate the financial statements of NatWest Group plc and entities (including certain structured entities) that give access to variable returns and that are controlled by NatWest Group. Control is assessed by reference to our ability to enforce our will on the other entity, typically through voting rights. All intergroup balances, transactions, income and expenses are eliminated on consolidation. The consolidated accounts are prepared under uniform accounting policies. 3. Revenue recognition Interest income or expense relates to financial instruments measured at amortised cost and debt instruments classified as fair value through OCI using the effective interest rate method, the effective part of any related accounting hedging instruments, and finance lease income recognised at a constant periodic rate of return before tax on the net investment on the lease. Negative effective interest accruing to financial assets is presented in interest payable. Other interest relating to financial instruments measured at fair value is recognised as part of the movement in fair value. Fees in respect of services are recognised as the right to consideration accrues through the performance of each distinct service obligation to the customer. The arrangements are generally contractual and the cost of providing the service is incurred as the service is rendered. The price is usually fixed and always determinable. 4. Assets held for sale A non-current asset (or disposal group) is classified as held for sale if NatWest Group will recover its carrying amount principally through a sale transaction rather than through continuing use and is measured at the lower of its carrying amount or fair value less cost to sell. 5. Employee benefits Short-term employee benefits, such as salaries, paid absences, and other benefits are accounted for on an accruals basis over the period in which the employees provide the related services. Employees may receive variable compensation satisfied by cash, by debt instruments issued by NatWest Group or by NatWest Group plc shares. NatWest Group operates a number of share-based compensation schemes under which it awards NatWest Group plc shares and share options to its employees. Such awards are generally subject to vesting conditions. Variable compensation that is settled in cash or debt instruments is charged to profit or loss on a straight-line basis over the vesting period, taking account of forfeiture and clawback criteria. Contributions to defined contribution pension schemes are recognised in profit or loss as employee service costs accrue. For defined benefit pension schemes, the net of the recognisable scheme assets and obligations is reported in the balance sheet. The defined benefit obligation is measured on an actuarial basis. The charge to profit or loss for pension costs (mainly the service cost and the net interest on the net defined benefit asset or liability) is recognised in operating expenses. Actuarial gains and losses (i.e. gains and/or losses on re-measuring the net defined benefit asset or liability) are recognised in other comprehensive income in full in the period in which they arise. The difference between scheme assets and scheme liabilities, the net defined benefit asset or liability, is recognised in the balance sheet subject to the asset celling test which requires the net defined benefit surplus to be limited to the present value of any economic benefits available to NatWest Group in the form of refunds from the plan or reduced contributions to it. 6. Intangible assets and goodwill Intangible assets acquired by NatWest Group are stated at cost less accumulated amortisation and impairment losses. Amortisation is charged to profit or loss over the assets’ estimated useful economic lives using methods that best reflect the pattern of economic benefits and is included in Depreciation and amortisation. These estimated useful economic lives are: Computer software 3 to 12 years Other acquired intangibles 5 to 10 years Expenditure on internally generated goodwill and brands is written-off as incurred. Direct costs relating to the development of internal-use computer software are capitalised once technical feasibility and economic viability have been established. These costs include payroll, the costs of materials and services, and directly attributable overheads. Capitalisation of costs ceases when the software is capable of operating as intended. During and after development, accumulated costs are reviewed for impairment against the benefits that the software is expected to generate. Costs incurred prior to the establishment of technical feasibility and economic viability are expensed as incurred, as are all training costs and general overheads. The costs of licences to use computer software that are expected to generate economic benefits beyond one year are also capitalised. Goodwill on the acquisition of a subsidiary is the excess of the fair value of the consideration transferred, the fair value of any existing interest in the subsidiary and the amount of any non-controlling interest measured either at fair value or at its share of the subsidiary’s net assets over the net fair value of the subsidiary’s identifiable assets, liabilities and contingent liabilities. Goodwill is measured at initial cost less any subsequent impairment losses. The gain or loss on the disposal of a subsidiary includes the carrying value of any related goodwill. 7. Impairment of non-financial assets At each balance sheet date, NatWest Group assesses whether there is any indication that its intangible assets, rights of use or property, plant and equipment are impaired. If any such indication exists, NatWest Group estimates the recoverable amount of the asset and the impairment loss, if any. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. The recoverable amount of an asset that does not generate cash flows that are independent from those of other assets or groups of assets, is determined as part of the cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For the purposes of impairment testing, goodwill acquired in a business combination is allocated to each of NatWest Group's cash-generating units or groups of cash-generating units expected to benefit from the combination. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less cost to sell or its value in use. Value in use is the present value of future cash flows from the asset or cash-generating unit discounted at a rate that reflects market interest rates adjusted for risks specific to the asset or cash-generating unit that have not been taken into account in estimating future cash flows. An impairment loss is recognised if the recoverable amount of an intangible or tangible asset is less than its carrying value. The carrying value of the asset is reduced by the amount of the loss and a charge recognised in profit or loss. A reversal of an impairment loss on intangible assets (excluding goodwill) or property, plant and equipment can be recognised when an increase in service potential arises provided the increased carrying value is not greater than it would have been had no impairment loss been recognised. Impairment losses on goodwill are not reversed. 8. Foreign currencies Transactions in foreign currencies are recorded in the functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the relevant functional currency at the foreign exchange rates ruling at the balance sheet date. Foreign exchange differences arising on the settlement of foreign currency transactions and from the translation of monetary assets and liabilities are reported in income from trading activities except for differences arising on cash flow hedges and hedges of net investments in foreign operations (see Accounting policy 20). Non-monetary items denominated in foreign currencies that are stated at fair value are translated into the relevant functional currency at the foreign exchange rates ruling at the dates the values are determined. Translation differences arising on non-monetary items measured at fair value are recognised in profit or loss except for differences arising on non-monetary financial assets classified as fair value through OCI, for example equity shares, which are recognised in other comprehensive income unless the asset is the hedged item in a fair value hedge. Assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into sterling at foreign exchange rates ruling at the balance sheet date. Income and expenses of foreign operations are translated into sterling at average exchange rates unless these do not approximate to the foreign exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on the translation of a foreign operation are recognised in other comprehensive income. The amount accumulated in equity is reclassified from equity to profit or loss on disposal of a foreign operation. 9. Leases As lessor Finance lease contracts are those which transfer substantially all the risks and rewards of ownership of an asset to a customer. All other contracts with customers to lease assets are classified as operating leases. Loans to customers include finance lease receivables measured at the net investment in the lease, comprising the minimum lease payments and any unguaranteed residual value discounted at the interest rate implicit in the lease. Interest receivable includes finance lease income recognised at a constant periodic rate of return before tax on the net investment. Unguaranteed residual values are subject to regular review; if there is a reduction in their value, income allocation is revised and any reduction in respect of amounts accrued is recognised immediately. Rental income from operating leases is recognised in other operating income on a straight-line basis over the lease term unless another systematic basis better represents the time pattern of the asset’s use. Operating lease assets are included within Property, plant and equipment and depreciated over their useful lives. As lessee On entering a new lease contract, NatWest Group recognises a right of use asset and a lease liability to pay future rentals. The liability is measured at the present value of future lease payments discounted at the applicable incremental borrowing rate. The right of use asset is depreciated over the shorter of the term of the lease and the useful economic life, subject to review for impairment. Short term and low value leased assets are expensed on a systematic basis. 10. Provisions and contingent liabilities NatWest Group recognises a provision for a present obligation resulting from a past event when it is more likely than not that it will be required to transfer economic benefits to settle the obligation and the amount of the obligation can be estimated reliably. Provision is made for restructuring costs, including the costs of redundancy, when NatWest Group has a constructive obligation to restructure. An obligation exists when NatWest Group has a detailed formal plan for the restructuring and has raised a valid expectation in those affected by starting to implement the plan or by announcing its main features. NatWest Group recognises any onerous cost of the present obligation under a contract as a provision. An onerous cost is the unavoidable cost of meeting NatWest Group’s contractual obligations that exceed the expected economic benefits. When NatWest Group vacates a leasehold property, the right of use asset would be tested for impairment and a provision may be recognised for the ancillary contractual occupancy costs, such as rates. Contingent liabilities are possible obligations arising from past events, whose existence will be confirmed only by uncertain future events, or present obligations arising from past events that are not recognised because either an outflow of economic benefits is not probable or the amount of the obligation cannot be reliably measured. Contingent liabilities are not recognised but information about them is disclosed unless the possibility of any outflow of economic benefits in settlement is remote. 11. Tax Income tax expense or income, comprising current tax and deferred tax, is recorded in the income statement except income tax on items recognised outside profit or loss which is credited or charged to other comprehensive income. The tax consequences of servicing equity instruments are recognised in the income statement. Current tax is income tax payable or recoverable in respect of the taxable profit or loss for the year arising in profit or loss, other comprehensive income or equity. Provision is made for current tax at rates enacted, or substantively enacted, at the balance sheet date. Deferred tax is the tax expected to be payable or recoverable in respect of temporary differences between the carrying amount of an asset or liability for accounting purposes and the carrying amount for tax purposes. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent their recovery is probable. Deferred tax is not recognised on temporary differences that arise from initial recognition of an asset or a liability in a transaction (other than a business combination) that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is calculated using tax rates expected to apply in the periods when the assets will be realised or the liabilities settled, based on tax rates and laws enacted, or substantively enacted, at the balance sheet date. Deferred tax assets and liabilities are offset where NatWest Group has a legally enforceable right to offset and where they relate to income taxes levied by the same taxation authority either on an individual NatWest Group company or on NatWest Group companies in the same tax group that intend, in future periods, to settle current tax liabilities and assets on a net basis or on a gross basis simultaneously. Accounting for taxes is judgmental and carries a degree of uncertainty because tax law is subject to interpretation, which might be questioned by the relevant tax authority. NatWest Group recognises the most likely current and deferred tax liability or asset, assessed for uncertainty using consistent judgments and estimates. Current and deferred tax assets are only recognised where their recovery is deemed probable, and current and deferred tax liabilities are recognised at the amount that represents the best estimate of the probable outcome having regard to their acceptance by the tax authorities. 12. Financial instruments Financial instruments are classified either by product, by business model or by reference to the IFRS default classification. Classification by product relies on specific designation criteria which are applicable to certain classes of financial assets or circumstances where accounting mismatches would otherwise arise. Classification by business model reflects how NatWest Group manages its financial assets to generate cash flows. A business model assessment determines if cash flows result from holding financial assets to collect the contractual cash flows, from selling those financial assets, or both. The product classifications apply to financial assets that are either designated at fair value through profit or loss (DFV), or to equity investments designated as at fair value through other comprehensive income (FVOCI). Financial assets may also be irrevocably designated at fair value through profit or loss upon initial recognition if such designation eliminates, or significantly reduces, accounting mismatch. In all other instances, fair value through profit or loss (MFVTPL) is the default classification and measurement category for financial assets. Regular way purchases of financial assets classified as amortised cost are recognised on the settlement date; all other regular way transactions in financial assets are recognised on the trade date. Business model assessment of assets is made at portfolio level, being the level at which they are managed to achieve a predefined business objective. This is expected to result in the most consistent classification of assets because it aligns with the stated objectives of the portfolio, its risk management, manager’s remuneration and the ability to monitor sales of assets from a portfolio. Financial assets which are managed under a ‘held to collect’ business model, and have contractual cash flows that comprise solely payments of principal and interest are measured at amortised cost. Other financial assets which are managed under a business model of both ‘held to collect and sell’ and have contractual cash flows comprising solely of payments of principal and interest are measured at fair value through other comprehensive income (‘FVOCI’). The contractual terms of a facility; any leverage features; prepayment and extension terms; and triggers that might reset the effective rate of interest; are considered in determining whether cash flows comprise solely payments of principal and interest. All financial instruments are measured at fair value on initial recognition. All liabilities not subsequently measured at fair value are measured at amortised cost. 13. Impairment: expected credit losses (ECL) At each balance sheet date each financial asset or portfolio of loans measured at amortised cost or at fair value through other comprehensive income, issued financial guarantee and loan commitment is assessed for impairment and presented as impairments in the income statement. Loss allowances are forward-looking, based on 12 month ECL where there has not been a significant increase in credit risk rating, otherwise allowances are based on lifetime expected losses. ECL are a probability-weighted estimate of credit losses. The probability is determined by the risk of default which is applied to the cash flow estimates. In the absence of a change in credit rating, allowances are recognised when there is a reduction in the net present value of expected cash flows. On a significant increase in credit risk, allowances are recognised without a change in the expected cash flows, although typically expected cash flows do change also; and ECL are adjusted from 12 month to lifetime expectations. Judgement is exercised as follows: · Models – in certain low default portfolios, Basel parameter estimates are also applied for IFRS 9. · Non-modelled portfolios , mainly in Private Banking, RBSI and Lombard, use a standardised capital requirement under Basel II. Under IFRS 9, they have bespoke treatments for the identification of significant increase in credit risk. Benchmark PDs, EADs and LGDs are reviewed annually for appropriateness. The ECL calculation is based on expected future cash flows, which is typically applied at a portfolio level. · Multiple economic scenarios (MES) – the central, or base, scenario is most critical to the ECL calculation, independent of the method used to generate a range of alternative outcomes and their probabilities. · Significant increase in credit risk - IFRS 9 requires that at each reporting date, an entity shall assess whether the credit risk on an account has increased significantly since initial recognition. Part of this assessment requires a comparison to be made between the current lifetime PD (i.e. the current probability of default over the remaining lifetime) with the equivalent lifetime PD as determined at the date of initial recognition. On restructuring a financial asset without causing derecognition of the original asset, the revised cash flows are used in re-estimating the credit loss. Where restructuring causes derecognition of the original financial asset, the fair value of the replacement asset is used as the closing cash flow of the original asset. Where, in the course of the orderly realisation of a loan, it is exchanged for equity shares or property, the exchange is accounted for as the sale of the loan and the acquisition of equity securities or investment property. Where NatWest Group’s interest in equity shares following the exchange is such that NatWest Group controls an entity, that entity is consolidated. Impaired loans are written off and therefore derecognised from the balance sheet when NatWest Group concludes that there is no longer any realistic prospect of recovery of part, or all, of the loan. For loans that are individually assessed for impairment, the timing of the write-off is determined on a case by case basis. Such loans are reviewed regularly and write-off will be prompted by bankruptcy, insolvency, renegotiation and similar events. The typical time frames from initial impairment to write-off for NatWest Group’s collectively-assessed portfolios are: · Retail mortgages: write-off usually occurs within five years, or earlier, when an account is closed, but can be longer where the customer engages constructively, · Credit cards: the irrecoverable amount is typically written off after twelve arrears cycles or at four years post default any remaining amounts outstanding are written off, · Overdrafts and other unsecured loans: write-off occurs within six years, · Commercial loans: write-offs are determined in the light of individual circumstances; and Business loans are generally written off within five years. 14. Financial guarantee contracts Under a financial guarantee contract, NatWest Group, in return for a fee, undertakes to meet a customer’s obligations under the terms of a debt instrument if the customer fails to do so. A financial guarantee is recognised as a liability; initially at fair value and, if not designated as at fair value through profit or loss, subsequently at the higher of its initial value less cumulative amortisation and any provision under the contract measured in accordance with Accounting policy 13. Amortisation is calculated to recognise fees receivable in profit or loss over the period of the guarantee. 15. Loan commitments Provision is made for ECL on loan commitments, other than those classified as held-for-trading. Syndicated loan commitments in excess of the level of lending under the commitment approved for retention by NatWest Group are classified as held-for-trading and measured at fair value through profit or loss. 16. Derecognition A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired or when it has been transferred and the transfer qualifies for derecognition. Conversely, an asset is not derecognised by a contract under which NatWest Group retains substantially all the risks and rewards of ownership. If substantially all the risks and rewards have been neither retained nor transferred, NatWest Group does not derecognise an asset over which it has retained control but limits its recognition to the extent of its continuing involvement. A financial liability is removed from the balance sheet when the obligation is discharged, or is cancelled, or expires. 17. Sale and repurchase transactions Securities subject to a sale and repurchase agreement under which substantially all the risks and rewards of ownership are retained by NatWest Group continue to be shown on the balance sheet and the sale proceeds recorded as a financial liability. Securities acquired in a reverse sale and repurchase transaction under which NatWest Group is not exposed to substantially all the risks and rewards of ownership are not recognised on the balance sheet and the consideration paid is recorded as a financial asset. Sale and repurchase transactions that are not accounted for at fair value through profit or loss are measured at amortised cost. The difference between the consideration paid or received and the repurchase or resale price is treated as interest and recognised in interest income or interest expense over the life of the transaction. 18. Netting Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, NatWest Group currently has a legally enforceable right to set off the recognised amounts and it intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. NatWest Group is party to a number of arrangements, including master netting agreements, that give it the right to offset financial assets and financial liabilities, but where it does not intend to settle the amounts net or simultaneously, the assets and liabilities concerned are presented gross. 19. Capital instruments NatWest Group classifies a financial instrument that it issues as a liability if it is a contractual obligation to deliver cash or another financial asset, or to exchange financial assets or financial liabilities on potentially unfavourable terms and as equity if it evidences a residual interest in the assets of NatWest Group after the deduction of liabilities. The components of a compound financial instrument issued by NatWest Group are classified and accounted for separately as financial assets, financial liabilities or equity as appropriate. Incremental costs and related tax that are directly attributable to an equity transaction are deducted from equity. The consideration for any ordinary shares of NatWest Group plc purchased by NatWest Group (treasury shares) is deducted from equity. On the cancellation of treasury shares their nominal value is removed from equity and any excess of consideration over nominal value is treated in accordance with the capital maintenance provisions of the Companies Act 2006. On the sale or re-issue of treasury shares the consideration received and related tax are credited to equity, net of any directly attributable incremental costs. 20. Derivatives and hedging Derivative financial instruments are initially recognised, and subsequently measured, at fair value. NatWest Group’s approach to determining the fair value of financial instruments is set out in the Critical accounting policies section and key sources of estimation uncertainty entitled Fair value - financial instruments; further details are given in Notes 10 and 12 to the accounts. A derivative embedded in a financial liability contract is accounted for as a stand-alone derivative if its economic characteristics are not closely related to the economic characteristics of the host contract; unless the entire contract is measured at fair value with changes in fair value recognised in profit or loss. Gains and losses arising from changes in the fair value of derivatives that are not the hedging instrument in a qualifying hedge are recognised as they arise in profit or loss. Gains and losses are recorded in Income from trading activities except for gains and losses on those derivatives that are managed together with financial instruments designated at fair value; these gains and losses are included in Other operating income. NatWest Group enters into three types of hedge relationship: hedges of changes in the fair value of a recognised asset or liability or unrecognised firm commitment (fair value hedges); hedges of the variability in cash flows from a recognised asset or liability or a highly probable forecast trans

Net interest income

Net interest income	12 Months Ended
Net interest income	Dec. 31, 2020
Net interest income
Net interest income	1 Net interest income £m £m £m Balances at central banks 90 321 358 Loans to banks - amortised cost 246 405 164 Loans to customers - amortised cost 9,252 9,795 9,993 Other financial assets 483 854 534 Interest receivable 10,071 Balances with banks 144 319 250 Customer deposits 911 1,256 849 Other financial liabilities 846 1,102 791 Subordinated liabilities 402 483 461 Internal funding of trading businesses 19 168 42 Interest payable 2,322 Net interest income 7,749 8,047 8,656 Interest income on financial instruments measured at amortised cost and debt instruments classified as FVOCI is measured using the effective interest rate which allocates the interest income or interest expense over the expected life of the asset or liability at the rate that exactly discounts all estimated future cash flows to equal the instrument's initial carrying amount. Calculation of the effective interest rate takes into account fees payable or receivable that are an integral part of the instrument's yield, premiums or discounts on acquisition or issue, early redemption fees and transaction costs. All contractual terms of a financial instrument are considered when estimating future cash flows. Included in interest receivable is finance lease income which is recognised at a constant periodic rate of return before tax on the net investment.

Non-interest income

Non-interest income	12 Months Ended
Non-interest income	Dec. 31, 2020
Non-interest income
Non-interest income	2 Non-interest income £m £m £m Net fees and commissions (1) 2,012 2,511 2,357 Income from trading activities Foreign exchange 569 448 643 Interest rate 541 532 695 Credit 3 32 45 Changes in fair value of own debt and derivative liabilities attributable to own credit risk - debt securities in issue (24) (60) 72 - derivative liabilities — (20) 20 Equities, commodities and other 36 — 32 1,125 932 1,507 Other operating income Loss on redemption of own debt (324) — — Operating lease and other rental income 232 250 256 Changes in the fair value of financial assets and liabilities designated at fair value through profit or loss (2) (54) (17) (26) Changes in fair value of other financial assets at fair value through profit or loss (3) 2 58 18 Hedge ineffectiveness 24 48 (65) (Loss)/profit on disposal of amortised cost assets (18) 42 44 Profit/(loss) on disposal of fair value through other comprehensive income assets 96 (22) 34 Profit on sale of property, plant and equipment 13 58 50 Share of (losses)/profits of associated entities (30) (14) 83 (Loss)/profit on disposal of subsidiaries and associates (4) (16) 2,224 (72) Other income (5, 6) (15) 136 560 (90) 2,763 882 3,047 6,206 4,746 Notes: (1) Refer to Note 4 for further analysis. (2) Including related derivatives. (3) Includes instruments that have failed SPPI testing under IFRS 9. (4) 2019 includes a gain of £444 million(€523 million), a legacy liability release of £256 million and an FX recycling gain of £290 million on completion of the Alawwal bank merger in June 2019; In 2019, £1,102 million of FX recycling gains arising on the liquidation of RFS Holdings BV and £67 million in relation to a capital repayment by UBI DAC. The recycling gains and capital repayment have been calculated using the step-by-step method in IFRIC 16 and by reference to the proportion of equity applied to the FX translation reserve. (5) Includes income from activities other than banking. 2018 includes insurance recoveries of £357 million. (6) 2020 includes £58 million loss on acquisition of a £3.0 billion prime UK mortgages portfolio from Metro Bank plc.

Operating expenses

Operating expenses	12 Months Ended
Operating expenses	Dec. 31, 2020
Operating expenses
Operating expenses	3 Operating expenses £m £m £m Salaries 2,533 2,513 2,560 Bonus awards 232 299 225 Temporary and contract costs 258 401 442 Social security costs 320 300 307 Pension costs 342 303 - defined benefit schemes (see Note 5) 215 188 307 - defined contribution schemes 127 115 94 Other 238 202 187 Staff costs 3,923 4,018 4,122 Premises and equipment (1) 1,223 1,259 1,383 UK bank levy (2) 167 134 179 Depreciation and amortisation (3) 905 1,176 731 Other administrative expenses (4) 1,678 2,694 3,193 Administrative expenses 3,973 5,263 5,486 Impairment of other intangible assets 9 44 37 7,905 9,325 9,645 Notes: (1) 2020 includes cost of £144 million including accelerated depreciation of £71 million (2019 - £161 million including £40 million accelerated depreciation) in relation to the planned reduction of the property portfolio (2020 – freehold £1 million; leasehold £143 million; 2019 - freehold £4million; leasehold £157 million). (2) 2019 includes a rebate of £31 million relating to prior periods. (3) 2020 includes a £107 million charge relating to the reduction in property portfolio, leasehold £86 million and freehold £21 million (2019 - £287 million charge, leasehold £37 million and freehold £250 million). (4) Includes litigation and conduct costs, net of amounts recovered. Refer to Notes 20 and 26 for further details. The average number of persons employed, rounded to the nearest hundred, during the year, excluding temporary staff,was 61,400 (2019 - 64,200;2018 - 67,600). The average number of temporary employees during 2020 was 3,200 (2019 -4,100;2018 - 4,000). The number of persons employed at 31 December, excluding temporary staff, by reportable segment, was as follows: Retail Banking 17,200 19,600 21,300 Ulster Bank RoI 2,600 2,700 2,900 Commercial Banking 9,700 9,700 9,800 Private Banking 2,200 1,900 1,900 RBS International 1,500 1,600 1,600 NatWest Markets 2,100 5,000 4,500 Central items & other 24,600 22,400 23,400 Total 59,900 62,900 65,400 UK 42,500 44,600 46,600 USA 300 400 500 Europe 3,800 4,100 4,100 Rest of the World 13,300 13,800 14,200 Total 59,900 62,900 65,400 During the year a number of roles transferred from Retail Banking and Commercial Banking into centralised functions. Comparatives have been re-stated . Share-based payments As described in the Remuneration report, NatWest Group grants share-based awards to employees principally on the following bases: Award plan Eligible employees Nature of award Vesting conditions (1) Settlement Sharesave UK, Republic of Ireland, Channel Islands, Gibraltar and Isle of Man Option to buy shares under employee savings plan Continuing employment or leavers in certain circumstances 2021 to 2024 Deferred performance awards All Awards of ordinary shares Continuing employment or leavers in certain circumstances 2021 to 2027 Long-term incentives (2) Senior employees Awards of ordinary shares and conditional shares Continuing employment or leavers in certain circumstances and/or satisfaction of the pre-vest assessment and underpins 2021 to 2027 Notes: (1) All awards have vesting conditions and therefore some may not vest. (2) Long-term incentives include the Executive Share Option Plan, the Long-Term Incentive Plan and the Employee Share Plan. The fair value of options granted in 2020 was determined using a pricing model that included: expected volatility of shares determined at the grant date based on historical volatility over a period of up to five years; expected option lives that equal the vesting period; expected dividends on equity shares; and risk-free interest rates determined from UK gilts with terms matching the expected lives of the options. The strike price of options and the fair value on granting awards of fully paid shares is the average market price over the five trading days (three trading days for Sharesave) preceding grant date. Sharesave 2020 2019 2018 Average Shares Average Shares Average Shares exercise price under option exercise price under option exercise price under option £ (million) £ (million) £ (million) At 1 January 2.01 84 2.18 75 2.38 60 Granted 1.12 35 1.78 25 1.89 28 Exercised 1.83 — 2.83 (4) 2.44 (4) Cancelled 2.20 (23) 2.25 (12) 2.46 (9) At 31 December 1.64 96 2.01 84 2.18 75 Options are exercisable within six months of vesting; 6.3 million options were exercisable at 31 December 2020 ( 2019 - 3.2 million; 2018 – 4.9 million ). The weighted average share price at the date of exercise of options was £ 1.57 (2019 - £2.49 ; 2018 - £2. 13). At 31 December 2020, exercise prices ranged from £1.12 to £2.27 (2019 - £1.68 to £ 2.91; 2018 - £1.68 to £3.43) and the remaining average contractual life was 2.3 years (2019 - 2.7 years; 2018 - 2.9 years ). The fair value of options granted in 2020 was £ 8 million (2019 - £11 million; 2018 - £21 million). Deferred performance awards 2020 2019 2018 Value at Shares Value at Shares Value at Shares grant awarded grant awarded grant awarded £m (million) £m (million) £m (million) At 1 January 196 76 233 92 264 101 Granted 109 67 110 42 156 59 Forfeited (5) (2) (10) (4) (21) (8) Vested (131) (64) (137) (54) (166) (60) At 31 December 169 77 196 76 233 92 The awards granted in 2020 vest in equal tranches on their anniversaries, predominantly over three years . Long-term incentives 2020 2019 2018 Value at Shares Options Value at Shares Options Value at Shares Options grant awarded over shares grant awarded over shares grant awarded over shares £m (million) (million) £m (million) (million) £m (million) (million) At 1 January 63 25 — 85 32 2 102 37 2 Granted 14 10 — 15 6 — 12 5 — Vested/exercised (17) (7) — (12) (4) — (5) (2) — Lapsed (10) (4) — (25) (9) (2) (24) (8) — At 31 December 50 24 — 63 25 — 85 32 2 The market value of awards vested/exercised in 2020 was £ 13 million (2019 - £10 million; 2018 - £5 million). There are no vested options of shares exercisable up to 2021 (2019 - nil; 2018 - 2 million). Bonus awards The following tables analyse NatWest Group’s bonus awards for 2020. Change £m £m % Non-deferred cash awards (1) 35 40 (13) Total non-deferred bonus awards 35 40 (13) Deferred bond awards 111 184 (40) Deferred share awards 60 83 (28) Total deferred bonus awards 171 267 (36) Total bonus awards (2) 206 307 (33) Bonus awards as a % of operating profit before tax (3) (173) % 7 % Proportion of bonus awards that are deferred 83 % 87 % of which - deferred bond awards 65 % 69 % - deferred share awards 35 % 31 % Reconciliation of bonus awards to income statement charge £m £m £m Bonus awarded 206 307 335 Less: deferral of charge for amounts awarded for current year (77) (110) (130) Income statement charge for amounts awarded in current year 129 197 205 Add: current year charge for amounts deferred from prior years 114 127 86 Less: forfeiture of amounts deferred from prior years (11) (25) (66) Income statement charge for amounts deferred from prior years 103 102 20 Income statement charge for bonus awards (2) 232 299 225 Notes: (1) Cash awards are limited to £2,000 for all employees. (2) Excludes other performance related compensation. (3) Operating profit before tax and bonus expense. Actual Expected and beyond Year in which income statement charge is expected to be taken for deferred bonus awards £m £m £m £m £m Bonus awards deferred from 2018 and earlier 86 127 30 13 Bonus awards deferred from 2019 — — 84 12 Less: forfeiture of amounts deferred from prior years (66) (25) (11) — — Bonus awards for 2020 deferred — — — 58 20 102 103 83

Segmental analysis

Segmental analysis	12 Months Ended
Segmental analysis	Dec. 31, 2020
Segmental analysis
Segmental analysis	4 Segmental analysis The directors manage NatWest Group primarily by class of business and present the segmental analysis on that basis. This includes the review of net interest income for each class of business. Interest receivable and payable for all reportable segments is therefore presented net. Segments charge market prices for services rendered between each other; funding charges between segments are determined by NatWest Group Treasury, having regard to commercial demands. The segment performance measure is operating profit/(loss). Reportable operating segments: The reportable operating segments are as follows: Retail Banking serves individuals and mass affluent customers in the UK and includes Ulster Bank customers in Northern Ireland. Ulster Bank RoI serves individuals and businesses in the Republic of Ireland (RoI). Commercial Banking serves start-up, SME, commercial and corporate customers in the UK. Private Banking serves UK connected high net worth individuals and their business interests. RBS International (RBSI) serves retail, commercial, and corporate customers in the Channel Islands, Isle of Man and Gibraltar, and financial institution customers in those same locations in addition to the UK and Luxembourg. NatWest Markets (NWM) helps NatWest Group's corporate and institutional customers manage their financial risks safely and achieve their short -term and long-term sustainable financial goals. Central items & other includes corporate functions, such as NatWest Group Treasury, finance, risk management, compliance, legal, communications and human resources. Central functions manages NatWest Group capital resources and NatWest Group-wide regulatory projects and provides services to the reportable segments. Balances in relation to legacy litigation issues and the international private banking business are included in Central items in the relevant periods. Allocation of central balance sheet items NatWest Group allocates all central costs relating to Services and Functions to the business using appropriate drivers; these are reported as indirect costs in the segmental income statements. Assets and risk-weighted assets held centrally, mainly relating to NatWest Group Treasury, are allocated to the business using appropriate drivers. Retail Ulster Commercial Private Central items Banking Bank RoI Banking Banking RBSI NWM & other (1) Total 2020 £m £m £m £m £m £m £m £m Net interest income 3,868 395 2,740 489 371 (57) (57) 7,749 Net fees and commissions 379 89 1,110 257 94 99 (16) 2,012 Other non-interest income (66) 26 108 17 32 1,081 (163) 1,035 Total income 4,181 510 3,958 763 497 1,123 (236) 10,796 Operating expenses (2,540) (486) (2,281) (447) (274) (1,294) 322 (7,000) Depreciation and amortisation — — (149) (8) (17) (16) (715) (905) Impairment losses (792) (250) (1,927) (100) (107) (40) (26) (3,242) Operating profit/(loss) 849 (226) (399) 208 99 (227) (655) (351) Retail Ulster Commercial Private Central items Banking Bank RoI Banking Banking RBSI NWM & other (1) Total 2019 £m £m £m £m £m £m £m £m Net interest income 4,130 400 2,842 521 478 (188) (136) 8,047 Net fees and commissions 696 109 1,312 226 106 85 (23) 2,511 Other non-interest income 40 58 164 30 26 1,445 1,932 3,695 Total income 4,866 567 4,318 777 610 1,342 1,773 14,253 Operating expenses (3,618) (552) (2,458) (482) (254) (1,406) 621 (8,149) Depreciation and amortisation — — (142) (4) (10) (12) (1,008) (1,176) Impairment losses (393) 34 (391) 6 (2) 51 (1) (696) Operating profit/(loss) 855 49 1,327 297 344 (25) 1,385 4,232 2018 Net interest income 4,283 444 2,855 518 466 112 (22) 8,656 Net fees and commissions 692 91 1,283 228 101 (33) (5) 2,357 Other non-interest income 79 75 464 29 27 1,363 352 2,389 Total income 5,054 610 4,602 775 594 1,442 325 13,402 Operating expenses (2,867) (583) (2,362) (476) (254) (1,589) (783) (8,914) Depreciation and amortisation — — (125) (2) (6) (15) (583) (731) Impairment losses (339) (15) (147) 6 2 92 3 (398) Operating profit/(loss) 1,848 12 1,968 303 336 (70) (1,038) 3,359 Note: (1) 2020 predominantly relates to interest receivable in Treasury; 2019 predominantly related to interest receivable in Treasury and strategic disposals in Functions and 2018 predominately related to interest receivable in Treasury. 2020 2019 2018 Inter Inter Inter External segment Total External segment Total External segment Total Total revenue (1) £m £m £m £m £m £m £m £m £m Retail Banking 5,386 39 5,425 6,161 62 6,223 6,188 63 6,251 Ulster Bank RoI 568 2 570 616 6 622 668 — 668 Commercial Banking 3,734 64 3,798 4,347 139 4,486 4,576 89 4,665 Private Banking 702 163 865 703 241 944 681 195 876 RBS International 505 3 508 639 19 658 506 148 654 NatWest Markets 1,984 13 1,997 2,516 558 3,074 1,882 916 2,798 Central items & other 961 (284) 677 3,447 (1,025) 2,422 2,155 (1,411) 744 Total 13,840 — 13,840 18,429 — 18,429 16,656 — 16,656 Note: (1) Total revenue comprises interest receivable, fees and commissions receivable, income from trading activities and other operating income. 2020 2019 2018 Inter Inter Inter External segment Total External segment Total External segment Total Total income £m £m £m £m £m £m £m £m £m Retail Banking 4,157 24 4,181 4,834 32 4,866 5,021 33 5,054 Ulster Bank RoI 516 (6) 510 562 5 567 613 (3) 610 Commercial Banking 4,065 (107) 3,958 4,814 (496) 4,318 5,079 (477) 4,602 Private Banking 700 63 763 631 146 777 655 120 775 RBS International 500 (3) 497 603 7 610 469 125 594 NatWest Markets 1,395 (272) 1,123 1,664 (322) 1,342 1,510 (68) 1,442 Central items & other (537) 301 (236) 1,145 628 1,773 55 270 325 Total 10,796 — 10,796 14,253 — 14,253 13,402 — 13,402 Retail Ulster Commercial Private RBS NatWest Central items Analysis of net fees and commissions Banking Bank RoI Banking Banking International Markets & other Total 2020 £m £m £m £m £m £m £m £m Fees and commissions receivable - Payment services 264 57 507 28 18 18 — 892 - Credit and debit card fees 299 21 129 9 2 — — 460 - Lending and financing 42 16 505 7 34 86 — 690 - Brokerage 54 1 — 6 1 93 — 155 - Investment management, trustee and fiduciary services (1) 3 2 1 225 38 2 — 271 - Underwriting fees — — — — — 183 — 183 - Other 1 — 82 26 3 4 (33) 83 Total 663 97 1,224 301 96 386 (33) 2,734 Fees and commissions payable (284) (8) (114) (44) (2) (287) 17 (722) Net fees and commissions 379 89 1,110 257 94 99 (16) 2,012 2019 Fees and commissions receivable - Payment services 292 61 659 33 27 24 — 1,096 - Credit and debit card fees 427 28 154 12 2 — — 623 - Lending and financing 356 16 510 3 36 85 — 1,006 - Brokerage 55 8 — 5 — 96 — 164 - Investment management, trustee and fiduciary services 44 3 3 186 41 1 — 278 - Underwriting fees — — — — — 170 — 170 - Other 2 5 90 27 2 69 (173) 22 Total 1,176 121 1,416 266 108 445 (173) 3,359 Fees and commissions payable (480) (12) (104) (40) (2) (360) 150 (848) Net fees and commissions 696 109 1,312 226 106 85 (23) 2,511 2018 Fees and commissions receivable - Payment services 227 34 556 33 25 3 — 878 - Credit and debit card fees 402 22 175 13 — — — 612 - Lending and financing 408 31 537 3 33 91 — 1,103 - Brokerage 62 6 — 5 — 85 — 158 - Investment management, trustee and fiduciary services 49 4 — 191 42 — — 286 - Underwriting fees 13 — 17 — — 144 — 174 - Other 2 1 60 16 2 67 (141) 7 Total 1,163 98 1,345 261 102 390 (141) 3,218 Fees and commissions payable (471) (7) (62) (33) (1) (423) 136 (861) Net fees and commissions 692 91 1,283 228 101 (33) (5) 2,357 Note: (1) Comparisons with prior periods are impacted by the transfer of the Private Client Advice business to Private Banking from 1 January 2020. 2020 2019 2018 Assets Liabilities Assets Liabilities Assets Liabilities £m £m £m £m £m £m Retail Banking 197,618 178,617 182,305 153,999 171,011 148,792 Ulster Bank RoI 26,620 22,993 25,385 21,012 25,193 21,189 Commercial Banking 187,413 174,251 165,399 140,863 166,478 139,804 Private Banking 26,206 32,457 23,304 28,610 21,983 28,554 RBS International 33,984 31,989 31,738 30,330 28,398 27,663 NatWest Markets 270,147 254,098 263,885 246,907 244,531 227,399 Central items & other 57,503 61,262 31,023 57,762 36,641 54,344 Total 799,491 755,667 723,039 679,483 694,235 647,745 Segmental analysis of goodwill There was no movement in the goodwill held by segments for the period 1 January 2019 to 31 December 2020. The total carrying value was £5,607 million, comprised of Retail Banking £2,692 million; Commercial Banking £2,606 million; Private Banking £9 million; and RBS International £300 million. Geographical segments The geographical analysis in the tables below has been compiled on the basis of location of office where the transactions are recorded. UK USA Europe RoW Total 2020 £m £m £m £m £m Total revenue 12,511 211 944 174 13,840 Interest receivable 9,479 — 570 22 10,071 Interest payable (2,163) — (158) (1) (2,322) Net fees and commissions 1,637 33 245 97 2,012 Income from trading activities 911 170 33 11 1,125 Other operating income (117) (22) 45 4 (90) Total income 9,747 181 735 133 10,796 Operating (loss)/profit before tax (193) (85) (161) 88 (351) Total assets 704,725 25,439 66,884 2,443 799,491 Total liabilities 686,500 26,932 41,018 1,217 755,667 Contingent liabilities and commitments 118,654 — 10,068 10 128,732 2019 Total revenue 16,925 228 1,148 128 18,429 Interest receivable 10,923 — 417 35 11,375 Interest payable (3,255) — (70) (3) (3,328) Net fees and commissions 2,191 37 211 72 2,511 Income from trading activities 727 148 49 8 932 Other operating income 2,305 13 436 9 2,763 Total income 12,891 198 1,043 121 14,253 Operating profit before tax 3,543 186 421 82 4,232 Total assets* 634,642 27,396 57,534 3,467 723,039 Total liabilities 613,151 31,715 33,539 1,078 679,483 Contingent liabilities and commitments 114,422 — 10,571 2 124,995 2018 Total revenue 15,351 300 838 167 16,656 Interest receivable 10,589 — 430 30 11,049 Interest payable (2,366) — (26) (1) (2,393) Net fees and commissions 2,183 12 102 60 2,357 Income from trading activities 1,308 124 68 7 1,507 Other operating income 467 119 229 67 882 Total income 12,181 255 803 163 13,402 Operating profit/(loss) before tax 3,805 (718) 150 122 3,359 Total assets 615,933 25,487 47,211 5,604 694,235 Total liabilities 588,185 31,329 27,183 1,048 647,745 Contingent liabilities and commitments 121,267 — 5,408 208 126,883 *2019 re-presented.

Pensions

Pensions	12 Months Ended
Pensions	Dec. 31, 2020
Pensions
Pensions	5 Pensions Defined contribution schemes NatWest Group sponsors a number of defined contribution pension schemes in different territories, which new employees are offered the opportunity to join. Defined benefit schemes NatWest Group sponsors a number of pension schemes in the UK and overseas, including the Main section of the NatWest Group Pension Fund (the “Main section”) which operates under UK trust law and is managed and administered on behalf of its members in accordance with the terms of the trust deed, the scheme rules and UK legislation. Pension fund trustees are appointed to operate each fund and ensure benefits are paid in accordance with the scheme rules and national law. The trustees are the legal owner of a scheme’s assets, and have a duty to act in the best interests of all scheme members. The schemes generally provide a pension of one -sixtieth of final pensionable salary for each year of service prior to retirement up to a maximum of 40 years and are contributory for current members. These have been closed to new entrants for over ten years, although current members continue to build up additional pension benefits, currently subject to 2% maximum annual salary inflation, while they remain employed by NatWest Group. The Main section corporate trustee is NatWest Pension Trustee Limited (the Trustee), a wholly owned subsidiary of NWB Plc, Principal Employer of the Main section. The Board of the Trustee comprises four member trustee directors selected from eligible active staff, deferred and pensioner members who apply and six appointed by NatWest Group. Under UK legislation, a defined benefit pension scheme is required to meet the statutory funding objective of having sufficient and appropriate assets to cover its liabilities (the pensions that have been promised to members). Similar governance principles apply to NatWest Group’s other pension schemes. Investment strategy The assets of the Main section, which is typical of other group schemes, represent 90% of plan assets at 31 December 2020 (2019 - 90%) and are invested as shown below. The Main section employs derivative instruments to achieve a desired asset class exposure and to reduce the section’s interest rate, inflation and currency risk. This means that the net funding position is considerably less sensitive to changes in market conditions than the value of the assets or liabilities in isolation. Major classes of plan assets as a percentage of 2020 2019 total plan assets of the Main section Quoted Unquoted Total Quoted Unquoted Total % % % % % % Equities 3.9 4.6 8.5 3.9 4.8 8.7 Index linked bonds 49.4 — 49.4 47.8 — 47.8 Government bonds 6.2 — 6.2 9.3 — 9.3 Corporate and other bonds 11.8 5.0 16.8 11.6 5.0 16.6 Real estate — 4.2 4.2 — 4.8 4.8 Derivatives — 10.0 10.0 — 7.8 7.8 Cash and other assets — 4.9 4.9 — 5.0 5.0 71.3 28.7 100.0 72.6 27.4 100.0 The Main section’s holdings of derivative instruments are summarised in the table below: 2020 2019 Notional Fair value Notional Fair value amounts Assets Liabilities amounts Assets Liabilities £bn £m £m £bn £m £m Inflation rate swaps 18 1,390 1,716 16 909 1,094 Interest rate swaps 68 11,197 6,215 57 6,407 2,992 Currency forwards 11 334 38 9 215 42 Equity and bond call options 1 169 1 1 122 — Equity and bond put options 3 1 19 5 3 1 Other 2 63 17 3 124 13 Swaps have been executed at prevailing market rates and within standard market bid/offer spreads with a number of counterparty banks, including NWB Plc. At 31 December 2020, the gross notional value of the swaps was £ 88 billion (2019 - £75 billion) and had a net positive fair value of £4,706 million (2019 - £3,340 million) against which the banks had posted approximately 104% collateral. The schemes do not invest directly in NatWest Group but can have exposure to NatWest Group. The trustees of the respective UK schemes are responsible for ensuring that indirect investments in NatWest Group do not exceed the 5% regulatory limit. Main section All schemes Present value Asset Net Present value Asset Net Fair of defined ceiling/ pension Fair of defined ceiling/ pension value of benefit minimum (asset)/ value of benefit minimum (asset)/ plan assets obligation(1) funding (2) liability plan assets obligation(1) funding (2) liability Changes in value of net pension (asset)/liability £m £m £m £m £m £m £m £m At 1 January 2019 43,806 35,466 8,340 — 48,752 39,607 8,790 (355) Currency translation and other adjustments — — — — (85) (76) — 9 Income statement 1,245 1,156 242 153 1,374 1,307 255 188 Statement of comprehensive income 3,021 4,825 (1,696) 108 3,556 5,428 (1,730) 142 Contributions by employer 261 — — (261) 473 — — (473) Contributions by plan participants and other scheme members 10 10 — — 15 15 — — Liabilities extinguished upon settlement — — — — (188) (194) — (6) Benefits paid (1,788) (1,788) — — (1,972) (1,972) — — At 1 January 2020 46,555 39,669 6,886 — 51,925 44,115 7,315 (495) Currency translation and other adjustments — 4 — 4 92 71 — (21) Income statement Net interest expense 936 795 141 — 1,037 890 149 2 Current service cost — 156 — 156 — 208 — 208 Past service cost — 3 — 3 — 5 — 5 936 954 141 159 1,037 1,103 149 215 Statement of comprehensive income Return on plan assets excluding recognised interest income 5,486 — — (5,486) 6,027 — — (6,027) Experience gains and losses — (427) — (427) — (455) — (455) Effect of changes in actuarial financial assumptions — 5,419 — 5,419 — 5,974 — 5,974 Effect of changes in actuarial demographic assumptions — 138 — 138 — 185 — 185 Asset ceiling adjustments — — 426 426 — — 319 319 5,486 5,130 426 70 6,027 5,704 319 (4) Contributions by employer 233 — — (233) 296 — — (296) Contributions by plan participants and other scheme members 9 9 — — 14 14 — — Liabilities extinguished upon settlement — — — — (2) (3) — (1) Benefits paid (1,896) (1,896) — — (2,140) (2,140) — — At 31 December 2020 51,323 43,870 7,453 — 57,249 48,864 7,783 (602) Notes: (1) Defined benefit obligations are subject to annual valuation by independent actuaries. (2) NatWest Group recognises the net pension scheme surplus or deficit as a net asset or liability. In doing so, the funded status is adjusted to reflect any schemes with a surplus that NatWest Group may not be able to access, as well as any minimum funding requirement to pay in additional contributions. This is most relevant to the Main section, where the surplus is not recognised. Other NatWest Group schemes that this applies to include the Ulster Bank Limited scheme and the NatWest Markets section. (3) NatWest Group expects to make contributions to the Main section of £215 million in 2021. Additional contributions of up to £500 million will be paid to the Main section, should NatWest Group make distributions in 2021, in line with the ring-fencing agreement with the Trustee. All schemes Amounts recognised on the balance sheet £m £m Fund assets at fair value 57,249 51,925 Present value of fund liabilities 48,864 44,115 Funded status 8,385 7,810 Asset ceiling/minimum funding 7,783 7,315 602 495 Net pension asset/(liability) comprises £m £m Net assets of schemes in surplus (included in Other assets, Note 17) 723 614 Net liabilities of schemes in deficit (included in Other liabilities, Note 20) (121) (119) 602 495 Funding and contributions by NatWest Group In the UK, the trustees of defined benefit pension schemes are required to perform funding valuations every three years. The trustees and the sponsor, with the support of the Scheme Actuary, agree the assumptions used to value the liabilities and a Schedule of Contributions required to eliminate any funding deficit. The funding assumptions incorporate a margin for prudence over and above the expected cost of providing the benefits promised to members, taking into account the sponsor’s covenant and the investment strategy of the scheme. Similar arrangements apply in the other territories where the NatWest Group sponsors defined benefit pension schemes. The last funding valuation of the Main section was at 31 December 2017. The next funding valuation, as at 31 December 2020, is to be agreed by 31 March 2022. The triennial funding valuation of the Main section as at 31 December 2017 determined the funding level to be 96%, pension liabilities to be £47 billion and the deficit to be £2 billion, which was eliminated by a £2 billion cash payment in October 2018. The average cost of the future service of current members is 44% of salary before administrative expenses and contributions from those members. In 2018, the Group recognised an updated estimate of the impact of guaranteed minimum pension equalisation (£102m) following the clarity provided by the October 2018 Court ruling . Discussions around implementing changes to benefits are well advanced, and the estimate has been revised to £169m (2019: £141m) to reflect this. Assumptions Placing a value on NatWest Group’s defined benefit pension schemes’ liabilities requires NatWest Group’s management to make a number of assumptions, with the support of independent actuaries. The ultimate cost of the defined benefit obligations depends upon actual future events and the assumptions made are unlikely to be exactly borne out in practice, meaning the final cost may be higher or lower than expected. The most significant assumptions used for the Main section are shown below: Principal IAS 19 actuarial assumptions Principal assumptions of Main section % % 2017 triennial valuation Discount rate 1.4 2.1 Fixed interest swap yield curve plus 0.8% per annum Inflation assumption (RPI) 2.9 2.9 RPI swap yield curve Rate of increase in salaries 1.8 1.8 Rate of increase in deferred pensions 3.0 3.0 Rate of increase in pensions in payment 2.7 2.8 Modelled allowance for relevant caps and floors Lump sum conversion rate at retirement 20 20 % Longevity at age 60: years years Current pensioners Males 27.1 26.9 Females 29.0 28.7 Future pensioners, currently aged 40 Males 28.3 28.2 Females 30.4 30.2 Discount rate The IAS 19 valuation uses a single discount rate set by reference to the yield on a basket of ‘high quality’ sterling corporate bonds. For the triennial valuation discounting is by reference to a yield curve. The weighted average duration of the Main section’s defined benefit obligation at 31 December 2020 is 22 years ( 2019 - 21 years). Significant judgement is required when setting the criteria for bonds to be included in the basket of bonds that is used to determine the discount rate used in the IAS 19 valuations. The criteria include issue size, quality of pricing and the exclusion of outliers. Judgement is also required in determining the shape of the yield curve at long durations; a constant credit spread relative to gilts is assumed. Sensitivity to the main assumptions is presented below. The chart below shows the projected benefit payment pattern for the Main section in nominal terms. These cashflows are based on the most recent formal actuarial valuation, effective 31 December 2017. Graphic removed for filing purposes The larger outflow in the first four years represents the expected level of transfers out to 31 December 2021. The table below shows how the net pension asset of the Main section would change if the key assumptions used were changed independently. In practice the variables have a degree of correlation and do not move completely in isolation. (Decrease)/ (Decrease)/ Increase in increase in increase in net pension value of value of (obligations)/ assets liabilities assets 2020 £m £m £m 0.25% increase in interest rates/discount rate (2,585) (2,384) (201) 0.25% increase in inflation 2,204 1,603 601 0.25% increase in credit spreads (6) (2,384) 2,378 Longevity increase of one year — 1,930 (1,930) 0.25% additional rate of increase in pensions in payment — 1,608 (1,608) Increase in equity values of 10% (1) 454 — 454 2019 0.25% increase in interest rates/discount rate (2,330) (1,973) (357) 0.25% increase in inflation 1,923 1,394 529 0.25% increase in credit spreads (5) (1,973) 1,968 Longevity increase of one year — 1,706 (1,706) 0.25% additional rate of increase in pensions in payment — 1,326 (1,326) Increase in equity values of 10% (1) 430 — 430 Note: (1) Includes both quoted and private equity. The funded status is most sensitive to movements in credit spreads and longevity. The table below shows the combined change in the funded status of the Main section as a result of larger movements in these assumptions, assuming no changes in other assumptions. Change in life expectancies -2 years -1 years No change + 1 year + 2 years 2020 £bn £bn £bn £bn £bn Change in credit spreads +50 bps 7.8 6.1 4.5 2.9 1.3 No change 3.9 1.9 — (1.9) (3.9) -50 bps (0.6) (2.8) (5.1) (7.4) (9.7) 2019 Change in credit spreads +50 bps 6.9 5.4 3.9 2.3 0.8 No change 3.6 1.7 — (1.7) (3.6) -50 bps (0.2) (2.3) (4.4) (6.5) (8.7) The defined benefit obligation of the Main section is attributable to the different classes of scheme members in the following proportions: Membership category % % Active members 14.2 13.6 Deferred members 50.9 49.7 Pensioners and dependants 34.9 36.7 100.0 100.0 The experience history of NatWest Group schemes is shown below: Main section All schemes History of defined benefit schemes £m £m £m £m £m £m £m £m £m £m Fair value of plan assets 51,323 46,555 43,806 44,652 43,824 57,249 51,925 48,752 49,746 49,229 Present value of plan obligations 43,870 39,669 35,466 37,937 38,851 48,864 44,115 39,607 42,378 43,990 Net surplus 7,453 6,886 8,340 6,715 4,973 8,385 7,810 9,145 7,368 5,239 Experience gains/(losses) on plan liabilities 427 275 (122) (107) 658 455 279 (81) (93) 794 Experience gains/(losses) on plan assets 5,486 3,021 (1,891) 1,580 8,562 6,027 3,556 (2,090) 1,728 9,254 Actual return on plan assets 6,422 4,266 (768) 2,735 9,872 7,064 4,930 (848) 3,013 10,708 Actual return on plan assets 13.8 % 9.7 % (1.7) % 6.2 % 32.2 % 13.6 % 10.1 % (1.7) % 6.1 % 30.9 %

Auditor's remuneration

Auditor's remuneration	12 Months Ended
Auditor's remuneration	Dec. 31, 2020
Auditor's remuneration
Auditor's remuneration	6 Auditor’s remuneration Amounts payable to NatWest Group's auditors for statutory audit and other services are set out below. All audit-related and other services are approved by the Group Audit Committee and are subject to strict controls to ensure the external auditor’s independence is unaffected by the provision of other services. The Group Audit Committee recognises that for certain assignments, the auditors are best placed to perform the work economically; for other work, NatWest Group selects the supplier best placed to meet its requirements. NatWest Group’s auditors are permitted to tender for such work in competition with other firms where the work is permissible under audit independence rules. £m £m £m Fees payable for : - the audit of NatWest Group’s annual accounts (1) 4.7 3.8 3.5 - the audit of NatWest Group plc’s subsidiaries (1) 30.6 25.7 27.5 - audit-related assurance services (1,2) 4.7 3.2 2.9 Total audit and audit-related assurance services fees 40.0 32.7 33.9 Other assurance services 0.6 1.2 1.3 Corporate finance services (3) 0.4 0.6 0.2 Total other services 1.0 1.8 1.5 Notes: (1) The 2020 audit fee was approved by the Group Audit Committee. At 31 December 2020, £23 million has been billed and paid in respect of the 2020 NatWest Group audit fees. (2) Comprises fees of £1.1 million (2019 - £1.1 million) in relation to reviews of interim financial information, £3.2 million (2019 - £1. 4 million) in respect of reports to NatWest Group’s regulators in the UK and overseas, and £0.4 million (2019 - £0.7 million) in relation to non-statutory audit opinions. (3) Comprises fees of £0.4 million (2019 - £0.6 million) in respect of work performed by the auditors as reporting accountants on debt and equity issuances undertaken by NatWest Group.

Tax

Tax	12 Months Ended
Tax	Dec. 31, 2020
Tax
Tax	7 Tax £m £m £m Current tax Charge for the year (191) (673) (1,025) Over provision in respect of prior years 86 122 125 (105) (551) (900) Deferred tax Credit/(charge) for the year 251 38 (280) (Decrease)/increase in the carrying value of deferred tax assets in respect of UK and Ireland losses (139) 62 7 (Under)/over provision in respect of prior years (90) 19 (35) Tax charge for the year (83) (432) (1,208) The actual tax charge differs from the expected tax charge, computed by applying the standard rate of UK corporation tax of 19% (2019 and 2018 – 19%), as follows: £m £m £m Expected tax credt/(charge) 67 (804) (638) Losses and temporary differences in year where no deferred tax asset recognised (27) (4) (55) Foreign profits taxed at other rates (20) 23 (8) Items not allowed for tax: - losses on disposals and write-downs (22) (71) (44) - UK bank levy (32) (26) (38) - regulatory and legal actions 14 (165) (203) - other disallowable items (70) (62) (63) Non-taxable items: - Alawwal bank merger gain disposal — 215 — - FX recycling on the liquidation of RFS Holdings — 279 — - other non-taxable items 28 80 47 Taxable foreign exchange movements (3) (1) (27) Losses brought forward and utilised 16 27 14 Increase/(decrease) in the carrying value of deferred tax assets in respect of: - UK losses 7 129 7 - Ireland losses (146) (67) — Banking surcharge (27) (199) (357) Tax on paid-in equity 61 73 67 UK tax rate change impact (1) 75 — — Adjustments in respect of prior years (2) (4) 141 90 Actual tax charge (83) (432) (1,208) Notes: (1) The Finance Bill 2020 amended the rate of UK corporation tax to 19% for the financial year beginning 1 April 2020. This reverses the rate reduction to 17% for the financial year beginning 1 April 2020 previously enacted. Deferred tax balances previously based on the lower rate have been restated accordingly. (2) Prior year tax adjustments incorporate refinements to tax computations made on submission and agreement with the tax authorities. Current taxation balances include provisions in respect of uncertain tax positions, in particular in relation to restructuring and other costs where the taxation treatment remains subject to agreement with the relevant tax authorities. Judgment: tax contingencies NatWest Group’s income tax charge and its provisions for income taxes necessarily involve a degree of estimation and judgement. The tax treatment of some transactions is uncertain and tax computations are yet to be agreed with the tax authorities in a number of jurisdictions. NatWest Group recognises anticipated tax liabilities based on all available evidence and, where appropriate, in the light of external advice. Any difference between the final outcome and the amounts provided will affect current and deferred income tax charges in the period when the matter is resolved. Deferred tax £m £m Deferred tax asset (901) (1,011) Deferred tax liability 291 266 Net deferred tax asset (610) (745) Tax Accelerated losses capital Expense Financial carried Pension allowances provisions instruments forward Other Total £m £m £m £m £m £m £m At 1 January 2019 (528) 220 (159) 349 (936) 96 (958) Implementation of IFRS16 on 1 January 2019 — — — — — (60) (60) Acquisitions and disposals of subsidiaries (1) (1) — 18 — — 16 Charge/(credit) to income statement 28 (43) 41 (81) (28) (36) (119) Charge/(credit) to other comprehensive income 362 — — 30 — (20) 372 Currency translation and other adjustments — (4) — (1) 13 (4) 4 At 1 January 2020 (139) 172 (118) 315 (951) (24) (745) Charge/(credit) to income statement 15 (234) 33 114 55 (5) (22) Charge/(credit) to other comprehensive income 119 — — 51 — (7) 163 Currency translation and other adjustments 1 (2) — — (9) 4 (6) At 31 December 2020 (4) (64) (85) 480 (905) (32) (610) Deferred tax assets in respect of carried forward tax losses are recognised if the losses can be used to offset probable future taxable profits after taking into account the expected reversal of other temporary differences. Recognised deferred tax assets in respect of tax losses are analysed further below. £m £m UK tax losses carried forward - NWM Plc 62 75 - NWB Plc 592 530 - RBS plc 200 150 - Ulster Bank Limited 8 15 Total 862 770 Overseas tax losses carried forward UBI DAC 43 181 905 951 Critical accounting policy: Deferred Tax NatWest Group has recognised a deferred tax asset of £901 million (31 December 2019 - £1,011 million) that principally comprises losses that arose in the UK, temporary differences, and a deferred tax liability of £291 million (31 December 2019 - £266 million). This includes amounts recognised in respect of UK trading losses of £862 million (31 December 2019 - £770 million). Deferred tax assets are recognised to the extent that it is probable that there will be future taxable profits to recover them. Judgment – NatWest Group has considered the carrying value of deferred tax assets and concluded that, based on management’s estimates, sufficient taxable profits will be generated in future years to recover recognised deferred tax assets. Estimate - These estimates are partly based on forecast performance beyond the horizon for management’s detailed plans. They have regard to inherent uncertainties, such as Brexit, climate change, and the impact of COVID. The deferred tax asset in NWM Group is supported by way of future reversing temporary timing differences on which deferred tax liabilities are recognised at 31 December 2020. UK tax losses – Under UK tax rules, tax losses can be carried forward indefinitely. As the recognised tax losses in NatWest Group arose prior to 1 April 2015, credit in future periods is given against 25% of profits at the main rate of UK corporation tax, excluding the Banking Surcharge 8% rate introduced by The Finance (No. 2) Act 2015. Deferred tax assets and liabilities at 31 December 2020 take into account the reduced rates in respect of tax losses and temporary differences and where appropriate, the banking surcharge inclusive rate in respect of other banking temporary differences. NWM Plc - NWM Plc expects that the balance of recognised deferred tax asset at 31 December 2020 of £62 million (2019 - £75 million) in respect of tax losses amounting to approximately £325 million will be recovered by the end of 2027. The movement in the current financial year reflects a £22 million decrease in the carrying value of the deferred tax asset, offset by a £9m increase due to the UK tax rate change impact. NWB Plc – A deferred tax asset of £592 million has been recognised in respect of total losses of £3,117 million. The losses arose principally as a result of significant impairment and conduct charges between 2009 and 2012 during challenging economic conditions in the UK banking sector. NWB Plc returned to tax profitability during 2015 and expects the deferred tax asset to be utilised against future taxable profits by the end of 2026. RBS plc – A deferred tax asset of £200 million has been recognised in respect of losses of £1,053 million of total losses of £4,242 million carried forward at 31 December 2020. The losses were transferred from NatWest Markets Plc as a consequence of the ring fencing regulations. RBS plc expects the deferred tax asset to be utilised against future taxable profits by the end of 2026. Overseas tax losses UBI DAC – The Bank carried forward losses of £9,071 million at 31 December 2020. The losses arose principally as a result of significant impairment charges between 2008 and 2013 during challenging economic conditions in the Republic of Ireland. A deferred tax asset of £43 million has been recognised at 31 December 2020 in respect of £342 million of those total losses. The movement in the current financial year reflects a £146 million reduction in the carrying value of the deferred tax asset based on a revised economic outlook, and £:€ exchange differences. UBIDAC expects the deferred tax asset to be utilised against future taxable profits by the end of 2029. NatWest Market N.V. (NWM N.V.) - NWM N.V. Group management did not recognise a deferred tax asset in respect of losses carried forward at 31 December 2020 due to the implications from the wider strategic review of the NWM franchise, and the uncertainty around the consequences of Brexit on the volume and pace of transfers of business from NWM Plc and NWB Plc to NWM N.V.. Unrecognised deferred tax Deferred tax assets of £4,965 million (2019 - £ 4,653 million; 2018 - £5,118, million) have not been recognised in respect of tax losses and other temporary differences carried forward of £ 25,091 million (2019 - £23,555 million; 2018 - £25,597 million) in jurisdictions where doubt exists over the availability of future taxable profits. Of these losses and other temporary differences, £714 million expire within five years and £4,496 million thereafter. The balance of tax losses and other temporary differences carried forward has no expiry date. Deferred tax liabilities of £ 242 million (2019 - £ 262 million; 2018 - £257 million) have not been recognised in respect of retained earnings of overseas subsidiaries and held-over gains on the incorporation of certain overseas branches. Retained earnings of overseas subsidiaries are expected to be reinvested indefinitely or remitted to the UK free from further taxation. No taxation is expected to arise in the foreseeable future in respect of held-over gains on which deferred tax is not recognised. Changes to UK tax legislation largely exempts from UK tax, overseas dividends received on or after 1 July 2009.

Earnings per share

Earnings per share	12 Months Ended
Earnings per share	Dec. 31, 2020
Earnings per share
Earnings per share	8 Earnings per share £m £m £m Earnings (Loss)/Profit attributable to ordinary shareholders (753) 3,133 1,622 Weighted average number of shares (millions) Weighted average number of ordinary shares outstanding during the year 12,095 12,067 12,009 Effect of dilutive share options and convertible securities 23 35 52 Diluted weighted average number of ordinary shares outstanding during the year 12,118 12,102 12,061

Trading assets and liabilities

Trading assets and liabilities	12 Months Ended
Trading assets and liabilities	Dec. 31, 2020
Trading assets and liabilities
Trading assets and liabilities	9 Trading assets and liabilities Trading assets and liabilities comprise assets and liabilities held at fair value in trading portfolios. Assets £m £m Loans Reverse repos 19,404 24,095 Collateral given 18,760 20,579 Other loans 1,611 1,947 Total loans 39,775 46,621 Securities Central and local government - UK 4,184 4,897 - US 5,149 5,458 - Other 16,436 14,902 Financial institutions and Corporate 3,446 4,867 Total securities 29,215 30,124 Total 68,990 76,745 Liabilities Deposits Repos 19,036 27,885 Collateral received 23,229 21,509 Other deposits 1,804 1,606 Total deposits 44,069 51,000 Debt securities in issue 1,408 1,762 Short positions 26,779 21,187 Total 72,256 73,949

Derivatives

Derivatives	12 Months Ended
Derivatives	Dec. 31, 2020
Derivatives
Derivatives	10 Derivatives Companies within NatWest Group transact derivatives as principal either as a trading activity or to manage balance sheet foreign exchange, interest rate and credit risk. 2020 2019 Notional Assets Liabilities Notional Assets Liabilities £bn £m £m £bn £m £m Exchange rate contracts 3,328 52,239 55,107 3,750 44,792 47,141 Interest rate contracts 10,703 114,115 105,214 11,293 104,957 99,331 Credit derivatives 15 161 376 17 280 359 Equity and commodity contracts 1 8 8 3 — 48 166,523 160,705 150,029 146,879 NatWest Group applies hedge accounting to manage the following risks: interest rate, foreign exchange and net investment in foreign operations. NatWest Group’s interest rate hedging relate to the management of NatWest Group’s non-trading structural interest rate risk, caused by the mismatch between fixed interest rates and floating interest rates. NatWest Group manages this risk within approved limits. Residual risk positions are hedged with derivatives, principally interest rate swaps. Suitable larger financial instruments are fair value hedged; the remaining exposure, where possible, is hedged by derivatives documented as cash flow hedges. Cash flow hedges of interest rate risk relates to exposures to the variability in future interest payments and receipts due to the movement of benchmark interest rates on forecast transactions and on recognised financial assets and financial liabilities. This variability in cash flows is hedged by interest rate swaps , fixing the hedged cash flows. For these cash flow hedge relationships, the hedged items are actual and forecast variable interest rate cash flows arising from financial assets and financial liabilities with interest rates linked to the relevant benchmark rate LIBOR, EURIBOR, SONIA, the Bank of England Official Bank Rate or the European Central Bank Refinance Rate. The variability in cash flows due to movements in the relevant benchmark rate is hedged; this risk component is identified using the risk management systems of NatWest Group. This risk component comprises the majority of cash flow variability risk. Fair value hedges of interest rate risk involve interest rate swaps transforming the fixed interest rate risk in recognised financial assets and financial liabilities to floating. The hedged risk is the risk of changes in the hedged item’s fair value attributable to changes in the benchmark interest rate embedded in the hedged item. The significant embedded benchmarks are LIBOR, EURIBOR and SONIA. This risk component is identified using the risk management systems of NatWest Group. This risk component comprises the majority of the hedged items fair value risk. NatWest Group hedges the exchange rate risk of its net investment in foreign currency denominated operations with currency borrowings and forward foreign exchange contracts. NatWest Group reviews the value of the investments’ net assets, executing hedges where appropriate to reduce the sensitivity of capital ratios to foreign exchange rate movement. Hedge accounting relationships will be designated where required. Exchange rate risk also arises in NatWest Group where payments are denominated in different currencies than the functional currency. Residual risk positions are hedged with forward foreign exchange contracts. Exposure to the variability in future payments due to the movement of foreign exchange rates is hedged, fixing the exchange rate the payments will be settled in. The derivatives are documented as cash flow hedges. For all cash flow hedging and fair value hedge relationships NatWest Group determines that there is an adequate level of offsetting between the hedged item and hedging instrument by assessing the initial and ongoing effectiveness by comparing movements in the fair value of the expected highly probable forecast interest cash flows/ fair value of the hedged item attributable to the hedged risk with movements in the fair value of the expected changes in cash flows from the hedging interest rate swap. Hedge effectiveness is measured on a cumulative basis over a time period management determines to be appropriate. NatWest Group uses either the actual ratio between the hedged item and hedging instrument(s) or one that minimises hedge ineffectiveness to establish the hedge ratio for hedge accounting. A number of the current cash flow and fair value hedges of interest rate risk that mature post 31 December 2021 will be directly affected by interest rate benchmark reform. NatWest Group early adopted the amendments to IAS 39 and IFRS 7 issued in September 2019 for reporting periods beginning 1 January 2019; these amendments are known as Phase 1 relief. The relief allows, where uncertainty arising from benchmark rate reform exists, the following: • • • • The disclosures made for the notional of hedging instruments and risk exposures affected by interest rate benchmark reform contain information for both the hedging instrument and hedged risks even if only one of these will be directly impacted by the reform. NatWest Group early adopted the amendments to IAS 39 issued in August 2020 for reporting periods beginning 1 January 2021; these amendments are known as Phase 2 relief and apply at the point where components of a hedge accounting relationships transition to reference an alternative interest rate benchmark. Where relationships have transitioned in the year, the impacted hedge accounting relationships had their designations amended in line with the Phase 2 relief. The following phase 2 reliefs have been applied: · Where forecasted cash flows in cash flow hedge relationships have transitioned to an alternative benchmark interest rate, the relevant hedge accounting designations have been amended. · As a result of the amended designations the balances in other comprehensive income linked to the transitioned forecasted cash flows are now deemed based on the alternative benchmark interest rate. Included in the table above are derivatives held for hedging purposes as follows: 2020 2019 Changes in fair Changes in fair value used for value used for Notional Assets Liabilities hedge ineffectiveness (1) Notional Assets Liabilities hedge ineffectiveness (1) £bn £m £m £m £bn £m £m £m Fair value hedging Interest rate contracts 65.5 1,878 3,844 (875) 65.1 1,186 2,641 (585) Cash flow hedging Interest rate contracts 128.8 2,035 1,210 217 148.4 1,450 833 366 Exchange rate contracts 14.4 37 116 (52) 12.3 66 8 (59) Net investment hedging Exchange rate contracts 0.2 — 9 11 0.4 — 4 8 208.9 3,950 5,179 (699) 226.2 2,702 3,486 (270) IFRS netting (3,857) (5,049) — (2,500) (3,464) — 93 130 — 202 22 — Note: (1) The change in fair value used for hedge ineffectiveness includes instruments that were decrecognised in the year. The notional of hedging instruments affected by interest rate benchmark reform is as follows: £bn £bn Fair value hedging - EURIBOR 13.6 11.1 - GBP LIBOR 11.2 13.6 - USD LIBOR 26.6 26.6 - Other CCY LIBOR 1.1 — Cash flow hedging - EURIBOR 5.2 3.4 - GBP LIBOR 51.7 47.2 - USD LIBOR 2.7 2.1 The following table shows the period in which the hedging contract ends: 0-3 months 3-12 months 1-3 years 3-5 years 5-10 years 10-20 years 20+ years Total 2020 £bn £bn £bn £bn £bn £bn £bn £bn Fair value hedging Hedging assets - interest rate risk 1.2 2.3 6.3 7.4 8.9 5.1 4.2 35.4 Hedging liabilities - interest rate risk — 0.6 10.1 11.6 7.1 0.5 0.2 30.1 Cash flow hedging Hedging assets Interest rate risk 0.7 10.5 19.3 13.9 10.5 0.1 — 55.0 Average fixed interest rate (%) 1.28 1.22 1.51 1.06 0.92 3.12 — 1.23 Hedging liabilities Interest rate risk 1.6 28.9 36.8 3.4 2.4 0.7 — 73.8 Average fixed interest rate (%) 1.14 0.78 0.37 1.25 0.65 4.55 — 0.64 Hedging assets Exchange rate risk — — 1.0 0.2 — — — 1.2 Average JPY - € rate — — 120.21 — — — — 120.21 Average JPY - £ rate — — 133.31 132.89 — — — 132.93 Average JPY - $ rate — 107.53 107.06 109.70 — — — 107.44 Average USD - £ rate — — 1.22 — — — — 1.22 Hedging liabilities Exchange rate risk 0.1 5.5 4.4 1.5 1.7 — — 13.2 Average USD - £ rate — 1.32 1.33 1.56 1.38 — — 1.36 Average INR - £ rate 93.21 95.99 — — — — — 95.29 Net investment hedging Exchange rate risk 0.1 0.1 — — — — — 0.2 Principal currency hedges Average SEK - £ rate 11.15 12.56 — — — — — 11.53 Average DKK - £ rate 8.28 — — — — — — 8.28 Average NOK - £ rate 12.73 — — — — — — 12.73 2019 Fair value hedging Hedging assets - interest rate risk 0.6 1.6 8.1 5.5 12.5 4.4 4.3 37.0 Hedging liabilities - interest rate risk — 0.5 6.3 12.7 6.6 2.0 — 28.1 Cash flow hedging Hedging assets Interest rate risk 4.8 11.4 31.7 10.7 12.2 — — 70.8 Average fixed interest rate (%) 1.10 0.97 1.20 1.78 1.44 3.12 — 1.11 Hedging liabilities Interest rate risk 1.9 22.0 45.2 5.3 2.4 0.8 — 77.6 Average fixed interest rate (%) 0.83 1.01 0.87 1.32 1.12 4.31 — 0.98 Exchange rate risk — 1.9 6.2 3.1 1.1 — — 12.3 Average USD - £ rate — 1.56 1.30 1.30 1.44 — — 1.35 Average INR - £ rate — 88.64 94.01 — — — — 93.11 Net investment hedging Exchange rate risk 0.1 0.3 — — — — — 0.4 Principal currency hedges Average SEK - £ rate 12.27 12.10 — — — — — 12.21 Average DKK - £ rate 8.78 — — — — — — 8.78 Average NOK - £ rate 12.36 — — — — — — 12.36 The table below analyses assets and liabilities, subject to hedging derivatives. Impact on Changes in fair hedged items Carrying value Impact on value used as ceased to be of hedged hedged items a basis to adjusted for assets and included in determine hedging liabilities carrying value ineffectiveness (1) gains or losses 2020 £m £m £m £m Fair value hedging - interest rate Loans to banks and customers - amortised cost 7,947 1,242 323 77 Other financial assets - securities 34,665 2,254 1,568 — Total 42,612 3,496 1,891 77 Other financial liabilities - debt securities in issue 29,317 1,336 (746) — Subordinated liabilities 6,877 356 (268) 10 Total 36,194 1,692 (1,014) 10 Cash flow hedging - interest rate Loans to banks and customers - amortised cost 53,447 — (601) — Other financial assets - securities 2,616 — (16) — Total 56,063 — (617) — Cash flow hedging - interest rate Bank and customer deposits 72,880 — 409 — Other financial liabilities - debt securities in issue 1,014 — 13 — Cash flow hedging - exchange rate Other financial liabilities - debt securities in issue 9,582 — 52 — Total 83,476 — 474 — 2019 Fair value hedging - interest rate Loans to banks and customers - amortised cost 6,716 1,023 165 86 Other financial assets - securities 35,796 1,274 1,474 — Total 42,512 2,297 1,639 86 Other financial liabilities - debt securities in issue 26,811 830 (807) 30 Subordinated liabilities 5,398 (275) (222) 24 Total 32,209 555 (1,029) 54 Cash flow hedging - interest rate Loans to banks and customers - amortised cost 69,254 — (566) — Other financial assets - securities 2,275 — (16) — Total 71,529 — (582) — Cash flow hedging - interest rate Bank and customer deposits 75,837 — 225 — Other financial liabilities - debt securities in issue 1,009 — 14 — Cash flow hedging - exchange rate Other financial liabilities - debt securities in issue 12,264 — 59 — Total 89,110 — 298 — Note: (1) The change in fair value used for hedge ineffectiveness instruments derecognised in the year. The following risk exposures will be affected by interest rate benchmark reform (notional, hedged adjustment): 2020 2019(1) Hedged Hedged Notional adjustment Notional adjustment £bn £m £bn £m Fair value hedging - EURIBOR 15.1 27 12.7 93 - GBP LIBOR 11.4 1,178 13.9 1,211 - USD LIBOR 28.1 (427) 27.3 (303) - Other CCY LIBOR 1.1 1 0.8 — Cash flow hedging - EURIBOR 4.1 (76) 3.3 (46) - GBP LIBOR 10.5 (473) 9.6 (186) - USD LIBOR 2.7 (61) 2.0 5 - BOE Base rate (2) 40.7 (156) 37.5 (285) - ECB REFI rate (2) 1.2 — 0.1 — - SONIA (2) 0.6 4 0.1 — Notes: (1) (2) The following table shows an analysis of cash flow hedge reserve and foreign exchange hedge reserve. 2020 2019 Cash flow Foreign exchange Cash flow Foreign exchange hedge reserve hedge reserve hedge reserve hedge reserve £m £m £m £m Continuing — — Interest rate risk 690 — 460 — Foreign exchange risk 27 (72) 56 (50) De-designated — — Interest rate (424) — (494) — Foreign exchange risk (1) (716) (2) (510) Total 292 (788) 20 (560) 2020 2019 Foreign Foreign Cash flow exchange hedge Cash flow exchange hedge hedge reserve reserve hedge reserve reserve £m £m £m £m Interest rate risk Amount recognised in equity 318 — 585 — Amount transferred from equity to net interest income (19) — (243) — Foreign exchange risk Amount recognised in equity 3 (57) (12) 83 Amount transferred from equity to net interest income (35) — (36) — Amount transferred from equity to non interest income — 2 — 2,752 Amount transferred from equity to operating expenses 4 — — — Total 271 (55) 294 2,835 Hedge ineffectiveness recognised in other operating income comprises: £m £m £m Fair value hedging Gains on the hedged items attributable to the hedged risk 877 610 54 Losses on the hedging instruments (875) (585) (7) Fair value hedging ineffectiveness 2 25 47 Cash flow hedging - Interest rate risk 22 23 (112) Cash flow hedging ineffectiveness 22 23 (112) Total 24 48 (65) The main sources of ineffectiveness for interest rate risk hedge accounting relationships are: · The effect of the counterparty credit risk on the fair value of the interest rate swap which is not reflected in the fair value of the hedged item attributable to the change in interest rate (fair value hedge). · Differences in the repricing basis between the hedging instrument and hedged cash flows (cash flow hedge); and · Upfront present values on the hedging derivatives where hedge accounting relationships have been designated after the trade date (cash flow hedge and fair value hedge). Additional information on cash flow hedging and hedging of net assets can be found in the Statement of Changes in Equity.

Financial instruments - classif

Financial instruments - classification	12 Months Ended
Financial instruments - classification	Dec. 31, 2020
Financial instruments
Financial instruments - classification	11 Financial instruments – classification The following tables analyse financial assets and liabilities in accordance with the categories of financial instruments on an IFRS 9 basis. Assets and liabilities outside the scope of IFRS 9 are shown within other assets and other liabilities. Amortised Other MFVTPL FVOCI cost assets Total Assets £m £m £m £m £m Cash and balances at central banks 124,489 124,489 Trading assets 68,990 68,990 Derivatives (1) 166,523 166,523 Settlement balances 2,297 2,297 Loans to banks - amortised cost (2) 6,955 6,955 Loans to customers - amortised cost (3) 360,544 360,544 Other financial assets 440 44,902 9,806 55,148 Intangible assets 6,655 6,655 Other assets 7,890 7,890 31 December 2020 235,953 44,902 504,091 14,545 799,491 Amortised Other MFVPL FVOCI cost assets Total £m £m £m £m £m Cash and balances at central banks* 80,993 80,993 Trading assets 76,745 76,745 Derivatives (1) 150,029 150,029 Settlement balances 4,387 4,387 Loans to banks - amortised cost* (2) 7,554 7,554 Loans to customers - amortised cost (3) 326,947 326,947 Other financial assets 715 49,283 11,454 61,452 Intangible assets 6,622 6,622 Other assets 8,310 8,310 31 December 2019 227,489 49,283 431,335 14,932 723,039 Held-for- Amortised Other trading DFV cost liabilities Total Liabilities £m £m £m £m £m Bank deposits (4) 20,606 20,606 Customer deposits 431,739 431,739 Settlement balances 5,545 5,545 Trading liabilities 72,256 72,256 Derivatives (1) 160,705 160,705 Other financial liabilities (5) 2,403 43,408 45,811 Subordinated liabilities 793 9,169 9,962 Notes in circulation 2,655 2,655 Other liabilities (6) 1,882 4,506 6,388 31 December 2020 232,961 3,196 515,004 4,506 755,667 Bank deposits (4) 20,493 20,493 Customer deposits 369,247 369,247 Settlement balances 4,069 4,069 Trading liabilities 73,949 73,949 Derivatives (1) 146,879 146,879 Other financial liabilities (5) 2,258 42,962 45,220 Subordinated liabilities 724 9,255 9,979 Notes in circulation 2,109 2,109 Other liabilities (6) 1,920 5,618 7,538 31 December 2019 220,828 2,982 450,055 5,618 679,483 *2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details. Notes: (1) Includes net hedging derivatives assets of £93 million (2019 - £202 million) and net hedging derivatives liabilities of £130 million (2019 - £22 million). (2) Includes items in the course of collection from other banks of £148 million (2019 - £50 million). (3) Includes finance lease receivables of £9,061 million (2019 – £9,212 million). (4) Includes items in the course of transmission to other banks of £12 million (2019 - £2 million). (5) The carrying amount of other customer accounts designated as at fair value through profit or loss is the same as the principal amount for both periods. No amounts have been recognised in the profit or loss for changes in credit risk associated with these liabilities as the changes are immaterial both during the period and cumulatively. (6) Includes lease liabilities of £1,698 million (2019 - £ 1,823 million ) held at amortised cost. Judgment: classification of financial assets Classification of financial assets between amortised cost and fair value through other comprehensive income requires a degree of judgement in respect of business models and contractual cashflows. · The business model criteria is assessed at a portfolio level to determine whether assets are classified as held to collect or held to collect and sell. Information that is considered in determining the applicable business model includes the portfolio’s policies and objectives, how the performance and risks of the portfolio are managed, evaluated and reported to management; and the frequency, volume and timing of sales in prior periods, sales expectation for future periods, and the reasons for sales. · The contractual cash flow characteristics of financial assets are assessed with reference to whether the cash flows represent SPPI. A level of judgement is made in assessing terms that could change the contractual cash flows so that it would not meet the condition for SPPI are considered, including contingent and leverage features, non-recourse arrangements and features that could modify the time value of money. NatWest Group's financial assets and liabilities include: £m £m Reverse repos Trading assets 19,404 24,095 Loans to banks - amortised cost 153 165 Loans to customers - amortised cost 25,011 10,649 Repos Bank deposits 6,470 2,597 Customer deposits 5,167 1,765 Trading liabilities 19,036 27,885 The tables below present information on financial assets and financial liabilities that are offset on the balance sheet under IFRS or subject to enforceable master netting agreements together with financial collateral received or given. Instruments which can be offset Potential for offset not recognised by IFRS Effect of Net amount after Instruments master netting the effect of netting outside IFRS Balance and similar Cash Securities agreements and netting Balance Gross offset sheet agreements collateral collateral related collateral agreements sheet total 2020 £m £m £m £m £m £m £m £m £m Derivative assets 176,425 (10,807) 165,618 (137,086) (19,608) (5,053) 3,871 905 166,523 Derivative liabilities 171,614 (11,540) 160,074 (137,086) (15,034) (4,921) 3,033 631 160,705 Net position (1) 4,811 733 5,544 — (4,574) (132) 838 274 5,818 Trading reverse repos 43,908 (24,867) 19,041 (929) — (18,040) 72 363 19,404 Trading repos 42,203 (24,867) 17,336 (929) — (16,407) — 1,700 19,036 Net position 1,705 — 1,705 — — (1,633) 72 (1,337) 368 Non trading reverse repos 36,117 (10,953) 25,164 — — (25,164) — — 25,164 Non trading repos 22,590 (10,953) 11,637 — — (11,637) — — 11,637 Net position 13,527 — 13,527 — — (13,527) — — 13,527 2019 Derivative assets 158,850 (10,913) 147,937 (122,697) (18,685) (4,292) 2,263 2,092 150,029 Derivative liabilities 154,396 (11,724) 142,672 (122,697) (17,296) (1,276) 1,403 4,207 146,879 Net position (1) 4,454 811 5,265 — (1,389) (3,016) 860 (2,115) 3,150 Trading reverse repos 52,007 (28,720) 23,287 (562) — (22,364) 361 808 24,095 Trading repos 54,131 (28,720) 25,411 (562) — (24,849) — 2,474 27,885 Net position (2,124) — (2,124) — — 2,485 361 (1,666) (3,790) Non trading reverse repos 21,341 (10,527) 10,814 — — (10,814) — — 10,814 Non trading repos 14,889 (10,527) 4,362 — — (4,362) — — 4,362 Net position 6,452 — 6,452 — — (6,452) — — 6,452 Note: (1) Interest rate benchmark reform In 2020 NatWest Group continued to implement its entity-wide LIBOR programme with the view of being ready for the various transition events that are expected to occur prior to the cessation of the vast majority of the IBOR benchmark rates at the end of 2021 and the USD LIBOR in 2023. In the UK, regulators, most notably the Bank of England (BoE) and the Financial Conduct Authority (FCA), have issued guidance on how market participants are expected to approach transition as well as the regulatory expectations in relation to the credit adjustment spread calculation methodologies, conversion strategies amongst, existence of products referencing IBOR benchmark rates amongst other items. The group-wide programme continued to address the key areas that will be affected by the IBOR reform most notably: · Client stratification, engagement and education; · Contract fall-back remediation; · Transition on an economically equivalent basis; · Effect of modifications to existing terms beyond those that are attributable to the IBOR reform; · Funding and liquidity management, planning and forecast; · Risk management; · Financial reporting and valuation;and, · Changes to processes and systems covering front-end, risk and finance systems. NatWest Group continued to develop new products across its different segments that reference the new alternative risk-free rates and worked with clients to assess their readiness and ability to adopt new products or transition existing products. A comprehensive review of the effect of IBOR reform on funding, liquidity and risk management has also been conducted. This is expected to be fully implemented over the course of 2021. NatWest Group will continue to adapt its key systems, methodologies and processes to meet the requirements of the new risk-free rates. This is expected to be concluded in advance of the LIBOR cessation date at the end of 2021. NatWest Group also remained engaged with regulators, standard setters and other market participants on key matters related to the IBOR reform and an open dialogue is expected throughout 2021. It is expected that the programme will meet all timelines set by the regulators. The table below provides an overview of IBOR related exposure by currency and nature of financial instruments. Non-derivative financial instruments are presented on the basis of their carrying amounts excluding expected credit losses while derivative financial instruments are presented on the basis of their notional amount. Balances not Rates subject to IBOR reform subject to Expected GBP LIBOR USD IBOR(1) EUR IBOR Other IBOR IBOR reform credit losses Total £m £m £m £m £m £m £m Trading assets 75 60 348 1 68,506 — 68,990 Loans to banks - amortised cost 23 82 101 — 6,751 (2) 6,955 Loans to customers - amortised cost 39,858 5,289 4,950 234 316,200 (5,987) 360,544 Other financial assets 2,847 303 370 71 51,568 (11) 55,148 Bank deposits — — — — 20,606 20,606 Customer deposits — — — 4 431,735 431,739 Trading liabilities 54 301 269 2 71,630 72,256 Other financial liabilities 1,116 9,792 5,902 146 28,856 45,812 Subordinated liabilities 8 1,286 438 — 8,230 9,962 Loan commitments (2) 25,616 9,228 7,176 682 79,220 121,922 Derivatives notional (£bn) 1,407.5 1,368.8 2,358.8 289.6 8,622.1 14,046.8 Notes: (1) USD LIBOR is now expected to convert to alternative risk free rates in mid-2023 subject to consultation. (2) Certain loan commitments are multi-currency facilities. Where these are fully undrawn, they are allocated to the principal currency of the facility. Where the facilities are partly drawn, the remaining loan commitment is allocated to the currency with the largest drawn amount. Included within the table above for derivatives were currency swaps with corresponding legs also subject to IBOR reform of GBP LIBOR of £5.2 billion with USD IBOR £2.0 billion, EUR IBOR £2.9 billion and Other IBOR £0.3 billion. Currency swaps of USD IBOR of £231.7 billion with GBP LIBOR £98.5 billion, EUR IBOR £85.8 billion and Other IBOR £47.4 billion. Currency swaps of EUR IBOR of £5.1 billion with GBP LIBOR £2.3billion, USD IBOR £1.8 billion and Other IBOR £1.0 billion. Currency swaps of Other IBOR of £2.2 billion with EUR IBOR £0.7 billion, USD IBOR £1.2 billion and Other IBOR £0.3 billion. Additionally, included above are basis swaps for GBP LIBOR of £97.0 billion, USD IBOR of £ 81.0 billion, EUR IBOR of £49.0 billion and Other IBOR of £10.0 billion. AT1 issuances NatWest Group has issued certain capital instruments (AT1), under which reset clauses are linked to IBOR rates subject to reform. Where under the contractual terms of the instrument the coupon resets to a rate which has IBOR as a specified component of its pricing structure, these are subject to IBOR reform and listed below: £m US$1.15 billion 8% notes 734 US$2.65 billion 8.625% notes 2,046 NatWest Group‘s non-cumulative preference shares of USD$0.01 Series U (£494 million) is also subject to IBOR reform.

Financial instruments - valuati

Financial instruments - valuation	12 Months Ended
Financial instruments - valuation	Dec. 31, 2020
Financial instruments
Financial instruments - valuation	12 Financial instruments – valuation Critical accounting policy: Fair value - financial instruments In accordance with Accounting policies 12 and 20, financial instruments classified as mandatory fair value through profit or loss, held-for-trading or designated as at fair value through profit or loss and financial assets classified as fair value through other comprehensive income are recognised in the financial statements at fair value. All derivatives are measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. It also uses the assumptions that market participants would use when pricing the asset or liability. In determining fair value, NatWest Group maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Modelled approaches may be used to measure instruments classed as level 2 or 3. Estimation expertise is required in the selection, implementation and calibration of appropriate models. The resulting modelled valuations are considered for accuracy and reliability. Portfolio level adjustments consistent with IFRS 13 are raised to incorporate counterparty credit risk, funding and margining risks. Expert judgement is used in the initial measurement of modelled products by control teams. Where NatWest Group manages a group of financial assets and financial liabilities on the basis of its net exposure to either market risks or credit risk, it measures the fair value of a group of financial assets and financial liabilities on the basis of the price that it would receive to sell a net long position (i.e. an asset) for a particular risk exposure or to transfer a net short position (i.e. a liability) for a particular risk exposure in an orderly transaction at the measurement date under current market conditions. Credit valuation adjustments are made when valuing derivative financial assets to incorporate counterparty credit risk. Adjustments are also made when valuing financial liabilities measured at fair value to reflect the NatWest Group’s own credit standing.Where the market for a financial instrument is not active, fair value is established using a valuation technique. These valuation techniques involve a degree of estimation, the extent of which depends on the instrument’s complexity and the availability of market-based data. Further details about the valuation methodologies and the sensitivity to reasonably possible alternative assumptions of the fair value of financial instruments valued using techniques where at least one significant input is unobservable are given below. 2020 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total £m £m £m £m £m £m £m £m Assets Trading assets Loans — 39,550 225 — 46,172 449 46,621 Securities 21,535 7,599 81 20,865 8,704 555 30,124 Derivatives — 165,441 1,082 — 148,800 1,229 150,029 Other financial assets Loans — 185 168 — 307 58 365 Securities 35,972 8,850 167 41,044 8,326 263 49,633 Total financial assets held at fair value 57,507 221,625 1,723 61,909 212,309 2,554 276,772 Liabilities Trading liabilities Deposits — 44,062 7 — 50,944 56 51,000 Debt securities in issue — 1,408 — — 1,703 59 1,762 Short positions 19,045 7,734 — 15,565 5,622 — 21,187 Derivatives — 159,818 887 — 145,818 1,061 146,879 Other financial liabilities Debt securities in issue — 1,607 — — 2,117 141 2,258 Other deposits — 796 — — — — — Subordinated liabilities — 793 — — 724 — 724 Total financial liabilities held at fair value 19,045 216,218 894 15,565 206,928 1,317 223,810 Notes: (1) Transfers between levels are deemed to have occurred at the beginning of the quarter in which the instrument was transferred. There were no significant transfers between level 1 and level 2. (2) For an analysis of debt securities held at mandatory fair value through profit or loss by issuer as well as ratings and derivatives, by type and contract, refer to Risk and capital management – Credit risk. (3) The determination of an instrument’s level cannot be made at a global product level as a single product type can be in more than one level. For example, a single name corporate credit default swap could be in level 2 or level 3 depending on whether the reference counterparty’s obligations are liquid or illiquid. Fair value hierarchy Financial Instruments carried at fair value have been classified under the IFRS fair value hierarchy as follows. Level 1 – instruments valued using unadjusted quoted prices in active and liquid markets, for identical financial instruments. Examples include government bonds, listed equity shares and certain exchange-traded derivatives. Level 2 - instruments valued using valuation techniques that have observable inputs. Examples include most government agency securities, investment-grade corporate bonds, certain mortgage products, including CLOs, most bank loans, repos and reverse repos, less liquid listed equities, state and municipal obligations, most notes issued, certain money market securities, loan commitments and most OTC derivatives. Level 3 - instruments valued using a valuation technique where at least one input which could have a significant effect on the instrument’s valuation, is not based on observable market data. Examples include cash instruments which trade infrequently, certain syndicated and commercial mortgage loans, certain emerging markets and derivatives with unobservable model inputs. Valuation techniques NatWest Group derives the fair value of its instruments differently depending on whether the instrument is a non-modelled or a modelled product. Non-modelled products are valued directly from a price input, typically on a position by position basis, and include cash, equities and most debt securities. Modelled products valued using a pricing model range in complexity from comparatively vanilla products such as interest rate swaps and options (e.g. interest rate caps and floors) through to more complex derivatives. The valuation of modelled products requires an appropriate model and inputs into this model. Sometimes models are also used to derive inputs (e.g. to construct volatility surfaces). NatWest Group uses a number of modelling methodologies. Inputs to valuation models Values between and beyond available data points are obtained by interpolation and extrapolation. When utilising valuation techniques, the fair value can be significantly affected by the choice of valuation model and by underlying assumptions concerning factors such as the amounts and timing of cash flows, discount rates and credit risk. The principal inputs to these valuation techniques are as follows: Bond prices - quoted prices are generally available for government bonds, certain corporate securities and some mortgage-related products. Credit spreads - where available, these are derived from prices of credit default swaps or other credit based instruments, such as debt securities. For others, credit spreads are obtained from third-party benchmarking services. For counterparty credit spreads, adjustments are made to market prices (or parameters) when the creditworthiness of the counterparty differs from that of the assumed counterparty in the market price (or parameters). Interest rates - these are principally benchmark interest rates such as the London Interbank Offered Rate (LIBOR), Overnight Index Swaps (OIS) rate and other quoted interest rates in the swap, bond and futures markets. Foreign currency exchange rates - there are observable prices both for spot and forward contracts and futures in the world's major currencies. Equity and equity index prices - quoted prices are generally readily available for equity shares listed on the world's major stock exchanges and for major indices on such shares. Commodity prices - many commodities are actively traded in spot and forward contracts and futures on exchanges in London, New York and other commercial centres. Price volatilities and correlations - volatility is a measure of the tendency of a price to change with time. Correlation measures the degree which two or more prices or other variables are observed to move together. Prepayment rates - the fair value of a financial instrument that can be prepaid by the issuer or borrower differs from that of an instrument that cannot be prepaid. In valuing prepayable instruments that are not quoted in active markets, NatWest Group considers the value of the prepayment option. Recovery rates/loss given default - these are used as an input to valuation models and reserves for asset-backed securities and other credit products as an indicator of severity of losses on default. Recovery rates are primarily sourced from market data providers or inferred from observable credit spreads. Valuation control NatWest Group's control environment for the determination of the fair value of financial instruments includes formalised protocols for the review and validation of fair values independent of the businesses entering into the transactions. Independent price verification (IPV) is a key element of the control environment. Valuations are first performed by the business which entered into the transaction. Such valuations may be directly from available prices, or may be derived using a model and variable model inputs. These valuations are reviewed, and if necessary amended, by a team independent of those trading the financial instruments, in the light of available pricing evidence. Where measurement differences are identified through the IPV process these are grouped by fair value level and quality of data. If the size of the difference exceeds defined thresholds adjustment to independent levels are made. IPV takes place at least each monthly, for all fair value positions. The IPV control includes formalised reporting and escalation of any valuation differences in breach of established thresholds. The Model Oversight Review Committee sets the policy for model documentation, testing and review, and prioritises models with significant exposure being reviewed by the NatWest Group Model Risk team. Valuation Committees are made up of valuation specialists and senior business representatives from various functions and oversees pricing, reserving and valuations issues. These committees meet monthly to review and ratify any methodology changes. The Executive Valuation Committee meets quarterly to address key material and subjective valuation issues, to review items escalated by Valuation Committees and to discuss other relevant matters, including prudential valuation. Initial classification of a financial instrument is carried out by the Product Control team following the principles in IFRS 13. They base their judgment on information gathered during the IPV process for instruments which include the sourcing of independent prices and model inputs. The quality and completeness of the information gathered in the IPV process gives an indication as to the liquidity and valuation uncertainty of an instrument. These initial classifications are subject to senior management review. Particular attention is paid to instruments crossing from one level to another, new instrument classes or products, instruments that are generating significant profit and loss and instruments where valuation uncertainty is high. NatWest Group uses consensus prices for the IPV of some instruments. The consensus service encompasses the equity, interest rate, currency, commodity, credit, property, fund and bond markets, providing comprehensive matrices of vanilla prices and a wide selection of exotic products. NatWest Group contributes to consensus pricing services where there is a significant interest either from a positional point of view or to test models for future business use. Data sourced from consensus pricing services are used for a combination of control processes including direct price testing, evidence of observability and model testing. In practice this means that NatWest Group submits prices for all material positions for which a service is available. Data from consensus services are subject to the same level of quality review as other inputs used for IPV process. All sources of independent data are reviewed for quality and are applied in the IPV processes using a formalised input quality hierarchy. In order to determine a reliable fair value, where appropriate, management applies valuation adjustments to the pricing information gathered from the above sources. The sources of independent data are reviewed for quality and are applied in the IPV processes using a formalised input quality hierarchy. These adjustments reflect NatWest Group's assessment of factors that market participants would consider in setting a price. Where unobservable inputs are used, NatWest Group may determine a range of possible valuations derived from differing stress scenarios to determine the sensitivity associated with the valuation. When establishing the fair value of a financial instrument using a valuation technique, NatWest Group considers adjustments to the modelled price which market participants would make when pricing that instrument. Such adjustments include the credit quality of the counterparty and adjustments to compensate for model limitations. When valuing financial instruments in the trading book, adjustments are made to mid-market valuations to cover bid-offer spread, funding and credit risk. These adjustments are presented in the table below: Adjustment £m £m Funding – FVA 140 244 Credit – CVA 390 386 Bid – Offer 148 165 Product and deal specific 172 238 850 1,033 The reduction in valuation reserves was primarily driven by a combination of market moves, trade close-out activity and risk reduction together with a reallocation of product and deal specific reserves that are now included within modelled trade valuations. Funding valuation adjustment (FVA) FVA represents an estimate of the adjustment that a market participant would make to incorporate funding costs and benefits that arise in relation to derivative exposures. FVA is calculated as a portfolio level adjustment and can result in either a funding charge or funding benefit. Funding levels are applied to estimated potential future exposures. For uncollateralised derivatives, the modelling of the exposure is consistent with the approach used in the calculation of CVA, and the counterparty contingent nature of the exposure is reflected in the calculation. For collateralised derivatives, the exposure reflects initial margin posting requirements. Credit valuation adjustments (CVA) CVA represents an estimate of the adjustment to fair value that a market participant would make to incorporate the counterparty credit risk inherent in derivative exposures. CVA is actively managed by a credit and market risk hedging process, and therefore movements in CVA are partially offset by trading revenue on the hedges. The CVA is calculated on a portfolio basis reflecting an estimate of the amount a third party would charge to assume the credit risk. Collateral held under a credit support agreement is factored into the CVA calculation. In such cases where NatWest Group holds collateral against counterparty exposures, CVA is held to the extent that residual risk remains. Bid-offer Fair value positions are adjusted to bid (long positions) or offer (short positions) levels, by marking individual cash positions directly to bid or offer or by taking bid-offer reserves calculated on a portfolio basis for derivatives exposures. The bid-offer approach is based on current market spreads and standard market bucketing of risk. Bid-offer spreads vary by maturity and risk type to reflect different spreads in the market. For positions where there is no observable quote, the bid-offer spreads are widened in comparison to proxies to reflect reduced liquidity or observability. Bid-offer methodologies may also incorporate liquidity triggers whereby wider spreads are applied to risks above pre-defined thresholds. As permitted by IFRS 13, netting is applied on a portfolio basis to reflect the value at which NatWest Group believes it could exit the portfolio, rather than the sum of exit costs for each of the portfolio’s individual trades. This is applied where the asset and liability positions are managed as a portfolio for risk and reporting purposes. The discount rates applied to derivative cash flows in determining fair value reflect any underlying collateral agreements. Collateralised derivatives are generally discounted at the relevant OIS-related rates at an individual trade level. Reserves are held to the extent that the discount rates applied do not reflect all of the terms of the collateral agreements. Product and deal specific On initial recognition of financial assets and liabilities valued using valuation techniques incorporating information other than observable market data, any difference between the transaction price and that derived from the valuation technique is deferred. Such amounts are recognised in profit or loss over the life of the transaction; when market data becomes observable; or when the transaction matures or is closed out as appropriate. At 31 December 2020, net gains of £63 million (2019 - £88 million) were carried forward. During the year, net gains of £75 million (2019 - £183 million) were deferred and £100 million (2019 - £154 million) were recognised in the income statement. Where system generated valuations do not accurately recover market prices, manual valuation adjustments are applied either at a position or portfolio level. Manual adjustments are subject to the scrutiny of independent control teams and are subject to monthly review by senior management. Own Credit NatWest Group takes into account the effect of its own credit standing when valuing financial liabilities recorded at fair value in accordance with IFRS. Own credit spread adjustments are made when valuing issued debt held at fair value, including issued structured notes. An own credit adjustment is applied to positions where it is believed that counterparties would consider NWM Group's creditworthiness when pricing trades. 12 Financial instruments - valuation: Level 3 ranges of unobservable inputs 2020 2019 Financial instrument Valuation technique Unobservable inputs Units Low High Low High Trading assets and Other financial assets Loans Price-based Price % — 105 — 101 Discount cash flow Credit spreads bps 69 119 53 101 Discount cash flow Discount margin bps 51 226 — — Debt securities Price-based Price % — 232 — 246 Equity Shares Price-based Price GBP — 27,737 — 25,914 Market comparables Price % — 80 — 80 Discount cash flow Discount margin % 7 9 6 9 Net asset valuation Net asset value % 80 120 80 120 Trading liabilities and Other financial liabilities Deposits Price-based Price % — 100 — 98 Yield analysis Day count Number — — 65 95 Debt securities in issue Price-based Price CCY — — 44 JPY 146 EUR Derivative assets and liabilities Credit derivatives Credit derivative pricing Credit spreads bps 2 500 6 500 Correlation % (50) 95 (50) 80 Volatility % 27 80 27 80 Upfront points % — 100 — 99 Recovery rate % 10 40 10 40 Interest rate & FX Option pricing Correlation % (50) 100 (50) 99 derivatives Volatility % 17 60 19 70 Constant Prepayment Rate % 2 18 2 15 Mean Reversion % — 92 — 92 Basis volatility bps 15 21 — — Inflation volatility % 1 2 1 2 Inflation rate % 1 2 1 2 Equity derivatives Option pricing Correlation % (53) 87 (53) 87 Notes: (1) The table above presents the range of values for significant inputs used in the valuation of level 3 assets and liabilities. The range represents the highest and lowest values of the input parameters and therefore is not a measure of parameter uncertainty. Movements in the underlying input may have a favourable or unfavourable impact on the valuation depending on the particular terms of the contract and the exposure. For example, an increase in the credit spread of a bond would be favourable for the issuer but unfavourable for the note holder. Whilst NatWest Group indicates where it considers that there are significant relationships between the inputs, their inter-relationships will be affected by macro economic factors including interest rates, foreign exchange rates or equity index levels. (2) Credit spreads and discount margins: credit spreads and margins express the return required over a benchmark rate or index to compensate for the credit risk associated with a cash instrument. A higher credit spread would indicate that the underlying instrument has more credit risk associated with it. Consequently, investors require a higher yield to compensate for the higher risk. (3) Price and yield: There may be a range of prices used to value an instrument that may be a direct comparison of one instrument or portfolio with another or, movements in a more liquid instrument may be used to indicate the movement in the value of a less liquid instrument. The comparison may also be indirect in that adjustments are made to the price to reflect differences between the pricing source and the instrument being valued. (4) Recovery rate: reflects market expectations about the return of principal for a debt instrument or other obligations after a credit event or on liquidation. Recovery rates tend to move conversely to credit spreads. (5) Valuation: for private equity investments, values may be estimated by looking at past prices of similar stocks and from valuation statements where valuations are usually derived from earnings measures such as EBITDA or net asset value (NAV). Similarly for equity or bond fund investments, prices may be estimated from valuation or credit statements using NAV or similar measures. (6) Correlation: measures the degree by which two prices or other variables are observed to move together. If they move in the same direction there is positive correlation; if they move in opposite directions there is negative correlation. Correlations typically include relationships between: default probabilities of assets in a basket (a group of separate assets), exchange rates, interest rates and other financial variables. (7) Volatility: a measure of the tendency of a price to change with time. (8) Interest rate delta: these ranges represent the low/high marks on the relevant discounting curve. (9) Upfront points: where CDS contracts are standardised, the inherent spread of the trade may exceed the standard premium paid or received under the contract. Upfront points will compensate for the difference between the standard premium and the actual premium at the start of the contract. (10) Mean reversion: a measure of how much a rate reverts to its mean level. (11) Constant prepayment rate: the rate is used to reflect how fast a pool of assets pay down. (12) Day count: yield analysis on deposits are calculated using day count as an input, referring to the maturity of the deposit. (13) NatWest Group does not have any material liabilities measured at fair value that are issued with an inseparable third party credit enhancement. 12 Financial instruments – valuation: areas of judgment Whilst the business has simplified, the diverse range of products historically traded by NatWest Group results in a wide range of instruments that are classified into level 3 of the hierarchy. Whilst the majority of these instruments naturally fall into a particular level, for some products an element of judgment is required. The majority of NatWest Group financial instruments carried at fair value are classified as level 2. IFRS requires extra disclosures in respect of level 3 instruments. Active and inactive markets A key input in the decision making process for the allocation of assets to a particular level is market activity. In general, the degree of valuation uncertainty depends on the degree of liquidity of an input. Where markets are liquid, little judgment is required. However, when the information regarding the liquidity in a particular market is not clear, a judgment may need to be made. This can be more difficult as assessing the liquidity of a market is not always straightforward. For an equity traded on an exchange, daily volumes of trading can be seen, but for an over-the-counter (OTC) derivative assessing the liquidity of the market with no central exchange is more difficult. A key related matter is where a market moves from liquid to illiquid or vice versa. Where this change is considered to be temporary, the classification is not changed. For example, if there is little market trading in a product on a reporting date but at the previous reporting date and during the intervening period the market has been considered to be liquid, the instrument will continue to be classified in the same level in the hierarchy. This is to provide consistency so that transfers between levels are driven by genuine changes in market liquidity and do not reflect short term or seasonal effects. Material movements between levels are reviewed quarterly. The breadth and depth of the IPV data allows for a rules based quality assessment to be made of market activity, liquidity and pricing uncertainty, which assists with the process of allocation to an appropriate level. Where suitable independent pricing information is not readily available, the quality assessment will result in the instrument being assessed as level 3. Modelled products For modelled products the market convention is to quote these trades through the model inputs or parameters as opposed to a cash price equivalent. A mark-to-market is derived from the use of the independent market inputs calculated using NatWest Group’s model. The decision to classify a modelled instrument as level 2 or 3 will be dependent upon the product/model combination, the observability and quality of input parameters and other factors. All these must be assessed to classify the asset. If an input fails the observability or quality tests then the instrument is considered to be in level 3 unless the input can be shown to have an insignificant effect on the overall valuation of the product. The majority of derivative instruments, for example vanilla interest rate swaps, foreign exchange swaps and liquid single name credit derivatives, are classified as level 2 as they are vanilla products valued using observable inputs. The valuation uncertainty on these is considered to be low and both input and output testing may be available. Non-modelled products Non- modelled products are generally quoted on a price basis and can therefore be considered for each of the three levels. This is determined by the market activity, liquidity and valuation uncertainty of the instruments which is in turn measured from the availability of independent data used by the IPV process to allocate positions to IPV quality levels. The availability and quality of independent pricing information are considered during the classification process. An assessment is made regarding the quality of the independent information. For example, where consensus prices are used for non- modelled products, a key assessment of the quality of a price is the depth of the number of prices used to provide the consensus price. If the depth of contributors falls below a set hurdle rate, the instrument is considered to be level 3. This hurdle rate is that used in the IPV process to determine the IPV quality rating. However, where an instrument is generally considered to be illiquid, but regular quotes from market participants exist, these instruments may be classified as level 2 depending on frequency of quotes, other available pricing and whether the quotes are used as part of the IPV process or not. For some instruments with a wide number of available price sources, there may be differing quality of available information and there may be a wide range of prices from different sources. In these situations the highest quality source is used to determine the classification of the asset. For example, a tradable quote would be considered a better source than a consensus price. 2020 2019 Level 3 Favourable Unfavourable Level 3 Favourable Unfavourable £m £m £m £m £m £m Assets Trading assets Loans 225 10 — 449 10 (10) Securities 81 — — 555 — — Derivatives 1,082 80 (80) Other financial assets Loans 168 20 (10) 58 — — Securities 167 30 (20) 263 80 (20) 1,723 140 (110) 2,554 270 (210) Liabilities Trading liabilities Deposits 7 — — 56 — — Debt securities in issue — — — 59 — — Derivatives 887 50 (40) 1,061 (90) Other financial liabilities - debt securities in issue — — — 141 10 (10) 894 50 (40) 1,317 110 (100) 12 Financial instruments – valuation: level 3 sensitivities The level 3 sensitivities presented above are calculated at a trade or low level portfolio basis. They are not calculated on an overall portfolio basis and therefore do not reflect the likely potential uncertainty on the portfolio as a whole. The figures are aggregated and do not reflect the correlated nature of some of the sensitivities. In particular, for some of the portfolios the sensitivities may be negatively correlated where a downwards movement in one asset would produce an upwards movement in another, but due to the additive presentation of the above figures this correlation cannot be displayed. The actual potential downside sensitivity of the total portfolio may be less than the non-correlated sum of the additive figures as shown in the above table. Reasonably plausible alternative assumptions of unobservable inputs are determined based on a specified target level of certainty of 90%. The assessments recognise different favourable and unfavourable valuation movements where appropriate. Each unobservable input within a product is considered separately and sensitivity is reported on an additive basis. Alternative assumptions are determined with reference to all available evidence including consideration of the following: quality of independent pricing information taking into account consistency between different sources, variation over time, perceived tradability or otherwise of available quotes; consensus service dispersion ranges; volume of trading activity and market bias (e.g. one-way inventory); day 1 profit or loss arising on new trades; number and nature of market participants; market conditions; modelling consistency in the market; size and nature of risk; length of holding of position; and market intelligence. Other considerations Whilst certain inputs used to calculate CVA, FVA and own credit adjustments are not based on observable market data, the uncertainty of the inputs is not considered to have a significant effect on the net valuation of the related derivative portfolios and issued debt. The classification of the derivative portfolios and issued debt is not determined by the observability of these inputs and any related sensitivity does not form part of the level 3 sensitivities presented. Level 3 The following table shows the movement in level 3 assets and liabilities in the year. 2020 2019 Trading Other financial Total Total Trading Other financial Total Total assets (2) assets (3) assets liabilities assets (2) assets (3) assets liabilities £m £m £m £m £m £m £m £m At 1 January 2,233 321 2,554 1,317 2,657 643 3,300 1,957 Amounts recorded in the income statement (1) 127 (21) 106 (67) (418) (1) (419) 162 Amounts recorded in the statement of comprehensive income — 63 63 — — 86 86 — Level 3 transfers in 165 261 426 188 492 2 494 104 Level 3 transfers out (139) — (139) (368) (857) (59) (916) (588) Issuances — — — — — — — 46 Purchases 441 164 605 127 1,121 15 1,136 532 Settlements (293) (153) (446) (59) (218) (38) (256) (429) Sales (1,148) (301) (1,449) (245) (541) (326) (867) (466) Foreign exchange and other adjustments 2 1 3 1 (3) (1) (4) (1) At 31 December 1,388 335 1,723 894 2,233 321 2,554 1,317 Amounts recorded in the income statement in respect of balances held at year end - unrealised 129 (22) 107 (68) (421) 8 (413) 110 Notes: (1) There were £194 million net gain on trading assets and liabilities (2019 - £596 million losses) recorded in income from trading activities. Net losses on other instruments of £21 million (2019 – £15 million gain) were recorded in other operating income and interest income as appropriate. (2) Trading assets comprise assets held at fair value in trading portfolios. (3) Other financial assets comprise fair value through other comprehensive income, designated as at fair value through profit or loss and

Financial instruments - maturit

Financial instruments - maturity analysis	12 Months Ended
Financial instruments - maturity analysis	Dec. 31, 2020
Financial instruments
Financial instruments - maturity analysis	13 Financial instruments - maturity analysis Remaining maturity The following table shows the residual maturity of financial instruments, based on contractual date of maturity. 2020 2019 Less than More than Less than More than 12 months 12 months Total 12 months 12 months Total £m £m £m £m £m £m Assets Cash and balances at central banks* 124,489 — 124,489 80,993 — 80,993 Trading assets 42,037 26,953 68,990 51,825 24,920 76,745 Derivatives 46,244 120,279 166,523 40,798 109,231 150,029 Settlement balances 2,297 — 2,297 4,387 — 4,387 Loans to banks - amortised cost* 6,835 120 6,955 7,541 13 7,554 Loans to customers - amortised cost 87,531 273,013 360,544 77,742 249,205 326,947 Other financial assets 8,901 46,247 55,148 10,187 51,265 61,452 Liabilities Bank deposits (1) 12,315 8,291 20,606 9,286 11,207 20,493 Customer deposits 430,283 1,456 431,739 367,098 2,149 369,247 Settlement balances 5,545 — 5,545 4,069 — 4,069 Trading liabilities 45,037 27,219 72,256 53,047 20,902 73,949 Derivatives 47,361 113,344 160,705 41,276 105,603 146,879 Other financial liabilities 12,403 33,408 45,811 11,915 33,305 45,220 Subordinated liabilities 365 9,597 9,962 160 9,819 9,979 Notes in circulation 2,655 — 2,655 2,109 — 2,109 Lease liabilities 185 1,513 1,698 194 1,629 1,823 2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details. Note: (1) Assets and liabilities by contractual cash flow maturity The tables on the following page, show the contractual undiscounted cash flows receivable and payable, up to a period of 20 years, including future receipts and payments of interest of financial assets and liabilities by contractual maturity. The balances in the following tables do not agree directly with the consolidated balance sheet, as the tables include all cash flows relating to principal and future coupon payments, presented on an undiscounted basis. The tables have been prepared on the following basis: Financial assets have been reflected in the time band of the latest date on which they could be repaid, unless earlier repayment can be demanded by NatWest Group. Financial liabilities are included at the earliest date on which the counterparty can require repayment, regardless of whether or not such early repayment results in a penalty. If the repayment of a financial instrument is triggered by, or is subject to, specific criteria such as market price hurdles being reached, the asset is included in the time band that contains the latest date on which it can be repaid, regardless of early repayment. The liability is included in the time band that contains the earliest possible date on which the conditions could be fulfilled, without considering the probability of the conditions being met. For example, if a structured note is automatically prepaid when an equity index exceeds a certain level, the cash outflow will be included in the less than three months period, whatever the level of the index at the year end. The settlement date of debt securities in issue, issued by certain securitisation vehicles consolidated by NatWest Group, depends on when cash flows are received from the securitised assets. Where these assets are prepayable, the timing of the cash outflow relating to securities assumes that each asset will be prepaid at the earliest possible date. As the repayments of assets and liabilities are linked, the repayment of assets in securitisations is shown on the earliest date that the asset can be prepaid, as this is the basis used for liabilities. The principal amounts of financial assets and liabilities that are repayable after 20 years or where the counterparty has no right to repayment of the principal are excluded from the table, as are interest payments after 20 years. The maturity of guarantees and commitments is based on the earliest possible date they would be drawn in order to evaluate NatWest Group's liquidity position. MFVTPL assets of £235.9 billion (2019 - £227.3 billion) and HFT liabilities of £232.8 billion (2019 - £220.8 billion) have been excluded from the following tables. 0-3 months 3-12 months 1-3 years 3-5 years 5-10 years 10-20 years 2020 £m £m £m £m £m £m Assets by contractual maturity Cash and balances at central banks 124,489 — — — — — Derivatives held for hedging 14 18 96 — 12 6 Settlement balances 2,297 — — — — — Loans to banks - amortised cost 5,600 1,245 — — 1 110 Loans to customers - amortised cost 47,507 46,718 65,138 58,680 81,544 88,155 Other financial assets (1) 4,019 5,919 12,592 10,791 11,855 5,774 Finance lease 48 366 840 671 895 545 183,974 54,266 78,666 70,142 94,307 94,590 Liabilities by contractual maturity Bank deposits (2) 11,217 1,078 3,241 5,038 — — Customer deposits 421,763 8,528 1,407 23 26 20 Settlement balance 5,545 — — — — — Derivatives held for hedging 36 (17) 94 3 64 (2) Other financial liabilities 4,716 8,144 15,558 11,470 7,358 254 Subordinated liabilities 73 685 4,387 3,444 923 562 Notes in circulation 2,655 — — — — — Lease liabilities 51 135 294 245 429 497 446,056 18,553 24,981 20,223 8,800 1,331 Guarantees and commitments notional amount Guarantees (3) 2,244 — — — — — Commitments (4) 121,922 — — — — — 124,166 — — — — — 0-3 months 3-12 months 1-3 years 3-5 years 5-10 years 10-20 years 2019 £m £m £m £m £m £m Assets by contractual maturity Cash and balances at central banks 80,993 — — — — — Derivatives held for hedging 33 7 63 103 56 42 Settlement balances 4,387 — — — — — Loans to banks - amortised cost* 6,524 1,032 5 — — — Loans to customers - amortised cost 48,793 36,108 70,957 51,667 66,453 79,174 Other financial assets (1) 4,619 6,644 16,287 9,857 15,766 5,081 Finance lease 72 289 920 646 802 653 145,421 44,080 88,232 62,273 83,077 84,950 Liabilities by contractual maturity Bank deposits 7,269 2,017 11,297 38 — — Customer deposits 358,359 8,773 2,105 22 23 17 Settlement balances 4,069 — — — — — Derivatives held for hedging 9 22 50 40 59 46 Other financial liabilities 4,810 7,602 11,849 13,935 9,426 328 Subordinated liabilities 21 541 3,295 5,270 327 1,700 Notes in circulation 2,109 — — — — — Lease liabilities 54 140 313 249 457 571 376,700 19,095 28,909 19,554 10,292 2,662 Guarantees and commitments notional amount Guarantees (3) 2,757 — — — — — Commitments (4) 117,228 — — — — — 119,985 — — — — — *2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details. Notes: (1) Other financial assets excludes equity shares. (2) 3 to 5 years includes £5.0 billion of Term Funding Scheme with additional incentives for Small and Medium-sized Enterprises participation which has been repaid early in January 2021. (3) NatWest Group is only called upon to satisfy a guarantee when the guaranteed party fails to meet its obligations. NatWest Group expects most guarantees it provides to expire unused. (4) NatWest Group has given commitments to provide funds to customers under undrawn formal facilities, credit lines and other commitments to lend subject to certain conditions being met by the counterparty. NatWest Group does not expect all facilities to be drawn, and some may lapse before drawdown.

Loan impairment provisions

Loan impairment provisions	12 Months Ended
Loan impairment provisions	Dec. 31, 2020
Loan impairment provisions
Loan impairment provisions	14 Loan impairment provisions Loan exposure and impairment metrics The table below summarises loans and related credit impairment measures within the scope of ECL framework. 2019* £m £m Loans - amortised cost Stage 1 287,124 302,367 Stage 2 78,917 27,868 Stage 3 6,358 6,598 Of which: individual 2,292 2,051 Of which: collective 4,066 4,547 372,399 336,833 ECL provisions (1) - Stage 1 519 322 - Stage 2 3,081 752 - Stage 3 2,586 2,718 Of which: individual 831 796 Of which: collective 1,755 1,922 6,186 3,792 ECL provision coverage (2,3) - Stage 1 (%) 0.18 0.11 - Stage 2 (%) 3.90 2.70 - Stage 3 (%) 40.67 41.19 1.66 1.13 Impairment losses ECL charge (4) 3,242 696 Stage 1 (121) (212) Stage 2 2,747 318 Stage 3 616 590 Of which: individual 194 303 Of which: collective 422 287 ECL loss rate - annualised (basis points) (3) 87 20 Amounts written off 937 792 Of which: individual 191 372 Of which: collective 746 420 *2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details. Notes: (1) Includes £6 million (2019 - £4 million) related to assets classified as FVOCI. (2) ECL provisions coverage is calculated as ECL provisions divided by loans – amortised cost and FVOCI. (3) ECL provisions coverage and ECL loss rates are calculated on third party loans and related ECL provisions and charge respectively. ECL loss rate is calculated as annualised third party ECL charge divided by loans - amortised cost and FVOCI. (4) Includes a £12 million charge (2019 - £2 million) related to other financial assets, of which£2 million (2019 - £1 million release) related to assets classified as FVOCI; and £28 million (2019 - nil) related to contingent liabilities. (5) The table shows gross loans only and excludes amounts that are outside the scope of the ECL framework. Refer to page 180 for Financial instruments within the scope of the IFRS 9 ECL framework for further details. Other financial assets within the scope of the IFRS 9 ECL framework were cash and balances at central banks totalling £122.8 billion (2019 - £79.2 billion) and debt securities of £53.8 billion (2019 – £59.4 billion). Credit risk enhancement and mitigation For information on Credit risk enhancement and mitigation held as security, refer to Risk and capital management – Credit risk enhancement and mitigation section. Critical accounting policy: Loan impairment provisions The loan impairment provisions have been established in accordance with IFRS 9. Accounting policy 13 sets out how the expected loss approach is applied. At 31 December 2020, customer loan impairment provisions amounted to £6,186 million (2019 - £3,792 million). A loan is impaired when there is objective evidence that the cash flows will not occur in the manner expected when the loan was advanced. Such evidence includes, changes in the credit rating of a borrower, the failure to make payments in accordance with the loan agreement, significant reduction in the value of any security, breach of limits or covenants, and observable data about relevant macroeconomic measures. The impairment loss is the difference between the carrying value of the loan and the present value of estimated future cash flows at the loan's original effective interest rate. The measurement of credit impairment under the IFRS expected loss model depends on management's assessment of any potential deterioration in the creditworthiness of the borrower, its modelling of expected performance and the application of economic forecasts. All three elements require judgments that are potentially significant to the estimate of impairment losses. For further information and sensitivity analysis, refer to Risk and capital management - Measurement uncertainty and ECL sensitivity analysis section. IFRS 9 ECL model design principles To meet IFRS 9 requirements, PD, LGD and EAD used in ECL calculations must be: · Unbiased - material regulatory conservatism has been removed to produce unbiased model estimates. · Point-in-time - recognise current economic conditions. · Forward-looking - incorporated into PD estimates and, where appropriate, EAD and LGD estimates. · For the life of the loan - all PD, LGD and EAD models produce term structures to allow a lifetime calculation for assets in Stage 2 and Stage 3. IFRS 9 requires that at each reporting date, an entity shall assess whether the credit risk on an account has increased significantly since initial recognition. Part of this assessment requires a comparison to be made between the current lifetime PD (i.e. the probability of default over the remaining lifetime at the reporting date) with the equivalent lifetime PD as determined at the date of initial recognition. The general approach for the IFRS 9 LGD models is to leverage corresponding Basel LGD models with bespoke adjustments to ensure estimates are unbiased and where relevant forward-looking. For wholesale, while conversion ratios in the historical data show temporal variations, these cannot be sufficiently explained by the CCI measure (unlike in the case of PD and some LGD models) and are presumed to be driven to a larger extent by exposure management practices. Therefore point-in-time best estimates measures for EAD are derived by estimating the regulatory model specification on a rolling five-year window. Approach for multiple economic scenarios (MES) The base scenario plays a greater part in the calculation of ECL than the approach to MES.

Other financial assets

Other financial assets	12 Months Ended
Other financial assets	Dec. 31, 2020
Other financial assets
Other financial assets	15 Other financial assets Debt securities Central and local government Other Equity Other UK US Other debt Total shares loans Total 2020 £m £m £m £m £m £m £m £m Mandatory fair value through profit or loss — — — 88 88 14 338 440 Fair value through other comprehensive income 17,458 11,742 6,802 8,591 44,593 294 15 44,902 Amortised cost 4,997 235 116 4,458 9,806 — — 9,806 Total 22,455 11,977 6,918 13,137 54,487 308 353 55,148 2019 Mandatory fair value through profit or loss — — — 305 305 45 365 715 Fair value through other comprehensive income 18,437 13,981 8,786 7,130 48,334 949 — 49,283 Amortised cost 5,411 242 120 5,681 11,454 — — 11,454 Total 23,848 14,223 8,906 13,116 60,093 994 365 61,452 Equity shares disposed during 2020 include SABB (£383 million), VISA Inc. (£186 million), and Vocalink (£16 million). Dividends on FVOCI equity shares include £5 million in relation to the equity holding in OTC Derivative Limited and £2 million for VISA Inc. Dividends received in relation to equity shares disposed during the year were £15 million in relation to NWG's equity holding in SABB.

Intangible assets

Intangible assets	12 Months Ended
Intangible assets	Dec. 31, 2020
Intangible assets
Intangible assets	16 Intangible assets 2020 2019 Goodwill Other (1) Total Goodwill Other (1) Total Cost £m £m £m £m £m £m At 1 January 9,980 2,293 12,273 18,164 2,024 20,188 Currency translation and other adjustments — (1) (1) (180) 2 (178) Acquisition of subsidiaries — — — 1 — 1 Additions — 348 348 — 380 380 Disposals and write-off of fully amortised assets (2) (41) (48) (89) (8,005) (113) (8,118) At 31 December 9,939 2,592 12,531 9,980 2,293 12,273 Accumulated amortisation and impairment At 1 January 4,373 1,278 5,651 12,558 1,014 13,572 Currency translation and other adjustments — 1 1 (180) 1 (179) Disposals and write-off of fully amortised assets (41) (26) (67) (8,005) (72) (8,077) Charge for the year — 282 282 — 291 291 Impairment of intangible assets — 9 9 — 44 44 At 31 December 4,332 1,544 5,876 4,373 1,278 5,651 Net book value at 31 December 5,607 1,048 6,655 5,607 1,015 6,622 Notes: (1) Principally internally generated software. (2) Write-off of fully amortised Goodwill for £8 billion in 2019 that arose on the acquisition of ABN AMRO Holding N.V.. Intangible assets other than goodwill are reviewed for indicators of impairment. In 2020 £9 million (2019 - £44 million) of previously capitalised software was impaired primarily as a result of software which is no longer expected to yield future economic benefit. NatWest Group’s goodwill acquired in business combinations analysed by reportable segment is in Note 4 Segmental analysis. It is reviewed annually at 31 December for impairment. No impairment was indicated at 31 December 2020 or 2019. Impairment testing involves the comparison of the carrying value of each cash-generating unit (CGU) with its recoverable amount. The carrying values of the segments reflect the equity allocations made by management which are consistent with NatWest Group’s capital targets. Recoverable amount is the higher of fair value less costs of disposal and value in use. Value in use is the present value of expected future cash flows from the CGU. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants. The recoverable amounts for all CGUs at 31 December 2020 were based on value in use, using management's latest five-year revenue and cost forecasts. These are discounted cash flow projections over five years. The forecast is then extrapolated in perpetuity using a long-term growth rate to compute a terminal value, which comprises the majority of the value in use. The long-term growth rates have been based on expected nominal growth of the CGUs. The pre-tax risk discount rates are based on those observed to be applied to businesses regarded as peers of the CGUs. Critical accounting policy: Goodwill Critical estimates Impairment testing involves a number of judgments. The key judgments are the five-year cash flow forecast, the long-term growth rate used to derive the terminal value, and the discount rate. Future value in use is primarily affected by changes in profitability, and changes in discount rate. Adverse changes could lead to value in use falling below carrying value. The most likely cause for this would be a failure to meet budgets, including cost targets, or external downgrades in the UK economy. The recoverable amount exceeds the carrying value for each CGU at 31 December 2020. Alternative scenarios applied to consider the recoverability of the Commercial Banking goodwill indicated that there were possibilities of partial / full impairment for worse economic outlooks or failure to meet income or cost forecasts. The conclusion that Commercial Banking goodwill was recoverable reflected the current ECL outlook and management plans for costs and revenues. An impairment of Commercial Banking goodwill is possible if there is a further economic deterioration or other negative effects on costs and revenues. The impact of reasonably possible changes to the more significant variables in the value in use calculations are presented below. This reflects the sensitivity of the VIU to each key assumption on its own. It is possible that more than one change may occur at the same time. Consequential impact of 1% Consequential impact of 5% Assumptions Recoverable adverse movement adverse movement Terminal Pre-tax Cost: amount exceeded Discount Terminal Forecast Forecast Goodwill growth rate discount rate income ratio (1) carrying value rate growth rate Income cost 31 December 2020 £bn % % % £bn £bn £bn £bn £bn Retail Banking 2.7 1.6 13.7 48.3 5.9 (1.8) (0.8) (2.0) (0.9) Commercial Banking 2.6 1.6 13.7 53.7 1.5 (1.5) (0.5) (1.8) (0.9) RBS International 0.3 1.6 12.1 42.7 1.1 (0.4) (0.2) (0.3) (0.1) 31 December 2019 Retail Banking 2.7 1.6 13.3 47.9 8.7 (2.2) (1.0) (2.1) (0.9) Commercial Banking 2.6 1.6 13.4 53.8 4.1 (1.8) (0.7) (2.1) (1.1) RBS International 0.3 1.6 12.0 37.5 2.1 (0.5) (0.3) (0.4) (0.1) Note: (1) Average Cost:income ratio % over the 5-year forecast period. The following table gives the percentage change in key assumptions that would reduce the headroom of CGUs to nil. 2020 2019 Terminal Pre-tax Forecast Forecast Terminal Pre-tax Forecast Forecast growth rate discount rate income cost growth rate discount rate income cost Change in key assumptions to reduce headroom to nil (%) % % % % % % % % Retail Banking (25.4) 6.2 (14.6) 33.9 (83.0) 8.5 (20.4) 48.0 Commercial Banking (4.0) 1.3 (4.1) 8.2 (16.4) 3.5 (9.8) 19.4 RBS International (10.8) 4.4 (18.6) 52.8 (44.2) 8.2 (28.1) 85.6

Other assets

Other assets	12 Months Ended
Other assets	Dec. 31, 2020
Other assets
Other assets	17 Other assets £m £m Interests in associates (1) 449 436 Property, plant and equipment 4,418 4,928 Pension schemes in net surplus (Note 5) 723 614 Prepayments 328 380 Accrued income 216 275 Tax recoverable 192 46 Deferred tax (Note 7) 901 1,011 Acceptances 272 268 Other 391 352 Other assets 7,890 8,310 Note: (1) Includes interest in Business Growth Fund £442 million (2019 - £424 million).

Other financial liabilities

Other financial liabilities	12 Months Ended
Other financial liabilities	Dec. 31, 2020
Other financial liabilities
Other financial liabilities	18 Other financial liabilities £m £m Customer deposits - designated as at fair value through profit or loss 796 — Debt securities in issue - designated as at fair value through profit or loss 1,607 2,258 - amortised cost 43,408 42,962 Total 45,811 45,220

Subordinated liabilities

Subordinated liabilities	12 Months Ended
Subordinated liabilities	Dec. 31, 2020
Subordinated liabilities
Subordinated liabilities	19 Subordinated liabilities £m £m Dated loan capital 8,530 7,775 Undated loan capital 1,287 2,058 Preference shares 145 146 9,962 9,979 Certain preference shares issued by the company are classified as liabilities; these securities remain subject to the capital maintenance rules of the Companies Act 2006. Capital New issue treatment £m £m NatWest Group plc US$750 million 3.754% dated notes 2029 Tier 2 — 577 £1,000 million 3.622% dated notes 2030 (callable between May 2025 to August 2025) Tier 2 996 — US$850 million 3.032% dated notes 2035 (callable November 2030) Tier 2 634 — 1,630 577 Redemptions NatWest Group plc €1,000 million 3.63% dated notes 2024 (callable March 2019) Tier 2 — 855 US$2,250 million 6.13% dated notes 2022 (partial redemption) Tier 2 499 — US$1,000 million 6.10% dated notes 2023 (partial redemption) Tier 2 358 — US$2,000 million 7.5% dated notes 2020 Tier 2 1,528 — US$762 million 7.648% undated notes (partial redemption) Ineligible 497 — 2,882 855 NatWest Markets Plc £35 million 5.5% fixed rate undated subordinated notes (callable December 2019) Tier 2 — 35 US$125.6 million floating rate notes 2020 Tier 2 97 — 97 35 NatWest Bank Plc SEK 90 million floating rate notes 2019 Tier 1 — 8 — 8 NWM N.V. and subsidiaries US$16 million floating rate notes 2019 Tier 2 — 10 US$71.8 million floating rate notes 2019 Tier 2 — 56 €250 million 4.70% notes 2019 Tier 2 — 145 US$650 million 6.425% undated notes 2043 (partial redemption) Ineligible 187 — €15 million 6.00% notes 2020 Tier 2 11 — 198 211

Other liabilities

Other liabilities	12 Months Ended
Other liabilities	Dec. 31, 2020
Other liabilities
Other liabilities	20 Other liabilities £m £m Lease liabilities (Note 22) 1,698 1,823 Provisions for liabilities and charges 1,852 2,677 Retirement benefit liabilities (Note 5) 121 119 Accruals 990 1,125 Deferred income 361 362 Current tax 63 132 Deferred tax (Note 7) 291 266 Acceptances 272 233 Other liabilities 740 801 6,388 7,538 Payment Other Litigation protection customer and other insurance(1) redress regulatory Other(2) Total Provisions for liabilities and charges £m £m £m £m £m At 1 January 1,156 314 426 781 2,677 Expected credit losses impairment charge — — — 83 83 Currency translation and other movements — 5 1 (2) 4 Charge to income statement 1 352 120 400 873 Releases to income statement (277) (55) (67) (178) (577) Provisions utilised (557) (190) (115) (346) (1,208) At 31 December 323 426 365 738 1,852 Notes: (1) The balance at 31 December 2020 includes provisions held in relation to offers made in 2019 and earlier years of £110 million. (2) Materially comprises provisions relating to property closures and restructuring costs. Critical accounting policy: Provisions for liabilities The key judgement is involved in determining whether a present obligation exists. There is often a high degree of uncertainty and judgement is based on the specific facts and circumstances relating to individual events in determining whether there is a present obligation. Judgement is also involved in estimation of the probability, timing and amount of any outflows. Where NatWest Group can look to another party such as an insurer to pay some or all of the expenditure required to settle a provision, any reimbursement is recognised when, and only when, it is virtually certain that it will be received. Estimates - Provisions are liabilities of uncertain timing or amount and are recognised when there is a present obligation as a result of a past event, the outflow of economic benefit is probable and the outflow can be estimated reliably. Any difference between the final outcome and the amounts provided will affect the reported results in the period when the matter is resolved. - - - - Background information for all material provisions is given in Note 26.

Leases

Leases	12 Months Ended
Leases	Dec. 31, 2020
Leases
Leases	22 Leases Lessee NatWest Group is party to lease contracts as lessee to support its operations. The following table provides information in respect of those lease contracts as lessee. £m £m Amounts recognised in consolidated income statement Interest payable (42) (44) Depreciation (1) (209) (224) Rental expense on short term leases (1) (4) Income from subleasing right of use assets 4 9 £m £m Amounts recognised on balance sheet Right of use assets included in property, plant and equipment (2) 955 1,162 Additions to right of use assets 80 135 Lease liabilities (3) (1,698) (1,823) The total cash outflow for leases is £220 million (2019: £222 million), including payment of principal amount of £179 million (2019: £181 million) which are included in the operating activities in cash flow statement. Notes: (1) Includes impairment of right of use assets of £89 million (2019: £86 million). (2) Includes right of use asset for plant and equipment of £8 million (2019: £23 million) and depreciation of £2 million (2019: £5 million). (3) Contractual cashflows of lease liabilities is shown in Note 13. Lessor A cting as a lessor, NatWest Group provides asset finance to its customers. It purchases plant, equipment and intellectual property, renting them to customers under lease arrangements that, depending on their terms, qualify as either operating or finance leases. £m £m Amounts included in consolidated income statement Finance leases Finance income on the net investment in leases 289 314 Operating leases Gross Lease income 168 165 Depreciation (145) (138) Net lease income 23 27 £m £m Amount receivable under finance leases Within 1 year 3,231 3,388 1 to 2 years 2,288 2,229 2 to 3 years 1,638 1,733 3 to 4 years 959 758 4 to 5 years 509 682 After 5 years 1,735 1,758 Lease payments total 10,360 10,548 Unguaranteed residual values (232) (215) Future drawdowns (22) (30) Unearned income (1,081) (1,196) Present value of lease payments 9,025 9,107 Impairments (196) (110) Net investment in finance leases 8,829 8,997 The following tables show undiscounted lease receivables from operating leases: £m £m Amounts receivable under operating leases Within 1 year 143 154 1 to 2 years 112 123 2 to 3 years 79 83 3 to 4 years 34 48 4 to 5 years 14 17 After 5 years 11 12 Total 393 437 Nature of operating lease assets on the balance sheet £m £m Transportation 327 334 Cars and light commercial vehicles 28 24 Other 245 295 600 653 Investment properties are leased out on operating lease for £840 million (2019: £949 million) and had lease income for £60 million (2019: £76 million). The following table shows undiscounted lease receivables from Investment properties: £m £m Amounts receivable under investment properties Within 1 year 67 113 1 to 2 years 127 156 2 to 3 years 54 128 3 to 4 years 76 55 4 to 5 years 88 98 After 5 years 142 179 Total 554 729

Structured entities

Structured entities	12 Months Ended
Structured entities	Dec. 31, 2020
Structured entities
Structured entities	23 Structured entities A structured entity (SE) is an entity that has been designed such that voting or similar rights are not the dominant factor in deciding who controls the entity, for example, when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. SEs are usually established for a specific, limited purpose. They do not carry out a business or trade and typically have no employees. They take a variety of legal forms - trusts, partnerships and companies - and fulfil many different functions. As well as being a key element of securitisations, SEs are also used in fund management activities in order to segregate custodial duties from the provision of fund management advice. Consolidated structured entities Securitisations In a securitisation, assets, or interests in a pool of assets, are transferred generally to an SE which then issues liabilities to third party investors. The majority of securitisations are supported through liquidity facilities or other credit enhancements. NatWest Group arranges securitisations to facilitate client transactions and undertakes own asset securitisations to sell or to fund portfolios of financial assets. NatWest Group also acts as an underwriter and depositor in securitisation transactions in both client and proprietary transactions. NatWest Group involvement in client securitisations takes a number of forms. It may: sponsor or administer a securitisation programme; provide liquidity facilities or programme-wide credit enhancement; and purchase securities issued by the vehicle. Other credit risk transfer securitisations NatWest Group also transfers credit risk on originated loans and mortgages without the transfer of assets to an SE. As part of this, NatWest Group enters into credit derivative and financial guarantee contracts with consolidated SEs. At 31 December 2020, debt securities in issue by such SEs (and held by third parties) were £772 million (2019 - £673 million). The associated loans and mortgages at 31 December 2020 were £10,027 million (2019 - £9,001 million). At 31 December, ECL in relation to non-defaulted assets was reduced by £183 million (2019 - £29 million) as a result of financial guarantee contracts with consolidated SEs. Covered debt programme Group companies have assigned loans to customers and debt investments to bankruptcy remote limited liability partnerships to provide security for issues of debt securities. NatWest Group retains all of the risks and rewards of these assets and continues to recognise them. The partnerships are consolidated by NatWest Group and the related covered bonds included within other financial liabilities. At 31 December 2020, £10,758 million (2019 - £9,630 million) of loans to customers and £318 million (2019 - £280 million) of debt investments provided security for debt securities in issue and other borrowing of £4,105 million (2019 - £7,241 million). Lending of own issued securities NatWest Group has issued, retained, and lent debt securities under securities lending arrangements. Under standard terms in the UK and US markets, the recipient has an unrestricted right to sell or repledge collateral, subject to returning equivalent securities on maturity of the transaction. NatWest Group retains all of the risks and rewards of own issued liabilities lent under such arrangements and does not recognise them. At 31 December 2020, £1,893 million secured and nil unsecured (2019 - £1,704 million secured, £424 million unsecured) of own issued liabilities have been retained and lent under securities lending arrangements. At 31 December 2020, £2,029 million (2019 - £1,745 million) of loans and other debt instruments provided security for secured own issued liabilities that have been retained and lent under securities lending arrangements. Unconsolidated structured entities NatWest Group's interest in unconsolidated structured entities is analysed below. 2020 2019 Asset backed Investment Asset backed Investment securitisation funds securitisation funds vehicles and other Total vehicles and other Total £m £m £m £m £m £m Trading assets and derivatives Trading assets 319 46 365 760 52 812 Derivative assets 441 16 457 196 24 220 Derivative liabilities (319) (21) (340) (154) (4) (158) Total 441 41 482 802 72 874 Non trading assets Loans to customers 1,400 497 1,897 1,544 636 2,180 Other financial assets 3,892 170 4,062 5,373 107 5,480 Total 5,292 667 5,959 6,917 743 7,660 Liquidity facilities/loan commitments 1,482 204 1,686 1,619 297 1,916 Maximum exposure 7,215 912 8,127 9,338 1,112 10,450

Asset transfers

Asset transfers	12 Months Ended
Asset transfers	Dec. 31, 2020
Asset transfers
Asset transfers	24 Asset transfers Transfers that do not qualify for derecognition NatWest Group enters into securities repurchase, lending and total return transactions in accordance with normal market practice which includes the provision of additional collateral if necessary. Under standard terms in the UK and US markets, the recipient has an unrestricted right to sell or repledge collateral, subject to returning equivalent securities on settlement of the transaction. Securities sold under repurchase transactions and transactions with the substance of securities repurchase agreements are not derecognised if NatWest Group retains substantially all the risks and rewards of ownership. The fair value (and carrying value) of securities transferred under such transactions included on the balance sheet, are set out below. All of these securities could be sold or repledged by the holder. The following assets have failed derecognition (1) £m £m Trading assets 20,526 23,247 Loans to banks - amortised cost 5 — Loans to customers - amortised cost 39 — Other financial assets 11,542 4,269 32,112 27,516 Note: (1) Associated liabilities were £31,932 million (2019 - £27,342 million). Assets pledged as collateral NatWest Group pledges collateral with its counterparties in respect of derivative liabilities and bank and stock borrowings. Assets pledged against liabilities £m £m Trading assets 28,728 27,918 Loans to banks - amortised cost 49 39 Loans to customers - amortised cost 15,939 17,920 Other financial assets (1) 4,966 4,688 49,682 50,565 Note : (1) Includes assets pledged for pension derivatives and stock borrowings. Own asset securitisations In own-asset securitisations, the pool of assets held by the SE is either originated by NatWest Group, or (in the case of whole loan programmes) purchased from third parties. The table below analyses the asset categories for those own-asset securitisations where the transferred assets continue to be recorded on NatWest Group's balance sheet. 2020 2019 Debt securities in issue Debt securities in issue Held by third Held by NatWest Held by third Held by Assets parties Group(1) Total Assets parties NatWest Group (1) Total Asset type £m £m £m £m £m £m £m £m Mortgages - RoI 1,921 243 1,848 2,091 2,221 468 1,917 2,385 Cash deposits 146 156 — — — 2,067 2,377 Note: (1) Debt securities retained by NatWest Group may be pledged with central banks.

Capital resources

Capital resources	12 Months Ended
Capital resources	Dec. 31, 2020
Capital resources
Capital resources	25 Capital resources The minimum requirement for own funds is set out under the Capital Requirements Regulation on a legal entity and consolidated basis . Transitional arrangements on the phasing in of end-point capital resources are set by the relevant regulatory authority. The capital resources under the PRA transitional basis for NatWest Group are set out below. PRA transitional basis £m £m Shareholders’ equity (excluding non-controlling interests) Shareholders’ equity 43,860 43,547 Preference shares - equity (494) (496) Other equity instruments (4,999) (4,058) 38,367 38,993 Regulatory adjustments and deductions Own credit (1) (118) Defined benefit pension fund adjustment (579) (474) Cash flow hedging reserve (229) (35) Deferred tax assets (760) (757) Prudential valuation adjustments (286) (431) Goodwill and other intangible assets (6,182) (6,622) Expected losses less impairments — (167) Foreseeable ordinary and special dividends (364) (968) Foreseeable charges (266) (365) Adjustment under IFRS 9 transitional arrangements 1,747 Other regulatory adjustments — (2) (6,920) (9,939) CET1 capital 31,447 29,054 Additional Tier 1 (AT1) capital Qualifying instruments and related share premium 4,983 4,051 Qualifying instruments and related share premium subject to phase out 690 1,366 Qualifying instruments issued by subsidiaries and held by third parties subject to phase out 140 140 AT1 capital 5,813 5,557 Tier 1 capital 37,260 34,611 Qualifying Tier 2 capital Qualifying instruments and related share premium 4,882 4,867 Qualifying instruments issued by subsidiaries and held by third parties 1,191 1,345 Other regulatory adjustments 400 — Tier 2 capital 6,473 6,212 Total regulatory capital 43,733 40,823 It is NatWest Group policy to maintain a strong capital base, to expand it as appropriate and to utilise it efficiently throughout its activities to optimise the return to shareholders while maintaining a prudent relationship between the capital base and the underlying risks of the business. In carrying out this policy, NatWest Group has regard to the supervisory requirements of the PRA. The PRA uses capital ratios as a measure of capital adequacy in the UK banking sector, comparing a bank’s capital resources with its risk-weighted assets (the assets and off-balance sheet exposures are ‘weighted’ to reflect the inherent credit and other risks); by international agreement, the Pillar 1 capital ratios should be not less than 8% with a Common Equity Tier 1 component of not less than 4.5%. NatWest Group has complied with the PRA’s capital requirements throughout the year. A number of subsidiaries and sub-groups within NatWest Group, principally banking entities, are subject to various individual regulatory capital requirements in the UK and overseas. Furthermore, the payment of dividends by subsidiaries and the ability of members of NatWest Group to lend money to other members of NatWest Group may be subject to restrictions such as local regulatory or legal requirements, the availability of reserves and financial and operating performance.

Memorandum items

Memorandum items	12 Months Ended
Memorandum items	Dec. 31, 2020
Memorandum items
Memorandum items	26 Memorandum items Contingent liabilities and commitments The More than More than 1 year but 3 years but Less than less than less than Over 1 year 3 years 5 years 5 years £m £m £m £m £m £m Guarantees 1,044 308 159 733 2,244 2,757 Other contingent liabilities 1,219 491 42 569 2,321 2,478 Standby facilities, credit lines and other commitments 62,794 27,476 26,483 7,414 124,167 119,760 Contingent liabilities and commitments 65,057 28,275 26,684 8,716 128,732 124,995 Note: (1) The maturity of contingent liabilities and commitment is based on the expiry of the agreement between NatWest Group and the customer. Banking commitments and contingent obligations, which have been entered into on behalf of customers and for which there are corresponding obligations from customers, are not included in assets and liabilities. NatWest Group’s maximum exposure to credit loss, in the event of its obligation crystallising and all counterclaims, collateral or security proving valueless, is represented by the contractual nominal amount of these instruments included in the table above. These commitments and contingent obligations are subject to NatWest Group’s normal credit approval processes. Guarantees – NatWest Group gives guarantees on behalf of customers. A financial guarantee represents an irrevocable undertaking that NatWest Group will meet a customer’s specified obligations to third party if the customer fails to do so. The maximum amount that NatWest Group could be required to pay under a guarantee is its principal amount as disclosed in the table above. NatWest Group expects most guarantees it provides to expire unused. Other contingent liabilities - these include standby letters of credit, supporting customer debt issues and contingent liabilities relating to customer trading activities such as those arising from performance and customs bonds, warranties and indemnities. Standby facilities and credit lines - under a loan commitment, NatWest Group agrees to make funds available to a customer in the future. Loan commitments, which are usually for a specified term, may be unconditionally cancellable or may persist, provided all conditions in the loan facility are satisfied or waived. Commitments to lend include commercial standby facilities and credit lines, liquidity facilities to commercial paper conduits and unutilised overdraft facilities. Other commitments - these include documentary credits, which are commercial letters of credit providing for payment by NatWest Group to a named beneficiary against presentation of specified documents, forward asset purchases, forward deposits placed and undrawn note issuance and revolving underwriting facilities, and other short-term trade related transactions. Contractual obligations for future expenditure not provided for in the accounts The following table shows contractual obligations for future expenditure not provided for in the accounts at the year end. £m £m Capital expenditure on property, plant and equipment 20 Contracts to purchase goods or services (1) 614 634 Note : (1) Of which due within 1 year: £267 million (2019 - £285 million). Trustee and other fiduciary activities In its capacity as trustee or other fiduciary role, NatWest Group may hold or place assets on behalf of individuals, trusts, companies, pension schemes and others. The assets and their income are not included in NatWest Group’s financial statements. NatWest Group earned fee income of £245 million (2019 - £250 million; 2018 - £257 million) from these activities. The Financial Services Compensation Scheme The Financial Services Compensation Scheme (FSCS), the UK’s statutory fund of last resort for customers of authorised financial services firms, pays compensation if a firm is unable to meet its obligations. The FSCS funds compensation for customers by raising management expenses levies and compensation levies on the industry. In relation to protected deposits, each deposit-taking institution contributes towards these levies in proportion to their share of total protected deposits on 31 December of the year preceding the scheme year (which runs from 1 April to 31 March), subject to annual maxima set by the Prudential Regulation Authority. In addition, the FSCS has the power to raise levies on a firm that has ceased to participate in the scheme and is in the process of ceasing to be authorised for the costs that it would have been liable to pay had the FSCS made a levy in the financial year it ceased to be a participant in the scheme. Litigation and regulatory matters NatWest Group plc and certain members of NatWest Group are party to legal proceedings and involved in regulatory matters, including as the subject of investigations and other regulatory and governmental action ('Matters') in the United Kingdom (UK), the United States (US), the European Union (EU) and other jurisdictions. NatWest Group recognises a provision for a liability in relation to these Matters when it is probable that an outflow of economic benefits will be required to settle an obligation resulting from past events, and a reliable estimate can be made of the amount of the obligation. In many of these Matters, it is not possible to determine whether any loss is probable, or to estimate reliably the amount of any loss, either as a direct consequence of the relevant proceedings and regulatory matters or as a result of adverse impacts or restrictions on NatWest Group's reputation, businesses and operations. Numerous legal and factual issues may need to be resolved, including through potentially lengthy discovery and document production exercises and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before a liability can reasonably be estimated for any claim. NatWest Group cannot predict if, how, or when such claims will be resolved or what the eventual settlement, damages, fine, penalty or other relief, if any, may be, particularly for claims that are at an early stage in their development or where claimants seek substantial or indeterminate damages. There are situations where NatWest Group may pursue an approach that in some instances leads to a settlement agreement. This may occur in order to avoid the expense, management distraction or reputational implications of continuing to contest liability, or in order to take account of the risks inherent in defending claims or regulatory matters, even for those Matters for which NatWest Group believes it has credible defences and should prevail on the merits. The uncertainties inherent in all such Matters affect the amount and timing of any potential outflows for both Matters with respect to which provisions have been established and other contingent liabilities. The future outflow of resources in respect of any Matter may ultimately prove to be substantially greater than or less than the aggregate provision that NatWest Group has recognised. Where (and as far as) liability cannot be reasonably estimated, no provision has been recognised. NatWest Group expects that in future periods, additional provisions, settlement amounts and customer redress payments will be necessary, in amounts that are expected to be substantial in some instances. For a discussion of certain risks associated with NatWest Group’s litigation and regulatory matters (including investigations and customer redress programmes), see the Risk Factor relating to legal, regulatory and governmental actions and investigations set out on page 364 . Litigation Residential mortgage-backed securities (RMBS) litigation in the US NatWest Group companies continue to defend RMBS-related claims in the US in which plaintiffs allege that certain disclosures made in connection with the relevant offerings of RMBS contained materially false or misleading statements and/or omissions regarding the underwriting standards pursuant to which the mortgage loans underlying the RMBS were issued. The remaining RMBS lawsuits against NatWest Group companies consist of cases filed by the Federal Deposit Insurance Corporation and the State of New Mexico that together involve the issuance of less than US$400 million of RMBS issued primarily from 2005 to 2007. In addition, NWMSI previously agreed to settle a purported RMBS class action entitled New Jersey Carpenters Health Fund v. Novastar Mortgage Inc. et al. for US$55.3 million. This was paid into escrow pending court approval of the settlement, which was granted in March 2019, but which is now the subject of an appeal by a class member who does not want to participate in the settlement. London Interbank Offered Rate (LIBOR) and other rates litigation NWM Plc and certain other members of NatWest Group, including NatWest Group plc, are defendants in a number of class actions and individual claims pending in the United States District Court for the Southern District of New York (SDNY) with respect to the setting of LIBOR and certain other benchmark interest rates. The complaints allege that certain members of NatWest Group and other panel banks violated various federal laws, including the US commodities and antitrust laws, and state statutory and common law, as well as contracts, by manipulating LIBOR and prices of LIBOR-based derivatives in various markets through various means. Several class actions relating to USD LIBOR, as well as more than two dozen non-class actions concerning USD LIBOR, are part of a co-ordinated proceeding in the SDNY. In December 2016, the SDNY held that it lacks personal jurisdiction over NWM Plc with respect to certain claims. As a result of that and other decisions, all NatWest Group companies have been dismissed from each of the USD LIBOR-related class actions (including class actions on behalf of over-the-counter plaintiffs, exchange-based purchaser plaintiffs, bondholder plaintiffs, and lender plaintiffs), but seven non-class cases in the co-ordinated proceeding remain pending against NatWest Group defendants. The dismissal of NatWest Group companies for lack of personal jurisdiction is the subject of a pending appeal to the United States Court of Appeals for the Second Circuit. In March 2020, NatWest Group companies finalised a settlement resolving the class action on behalf of bondholder plaintiffs (those who held bonds issued by non-defendants on which interest was paid from 2007 to 2010 at a rate expressly tied to USD LIBOR). The amount of the settlement (which was covered by an existing provision) has been paid into escrow pending court approval of the settlement. Among the non-class claims dismissed by the SDNY in December 2016 were claims that the Federal Deposit Insurance Corporation (FDIC) had asserted on behalf of certain failed US banks. In July 2017, the FDIC, on behalf of 39 failed US banks, commenced substantially similar claims against NatWest Group companies and others in the High Court of Justice of England and Wales. The action alleges that the defendants breached English and European competition law, as well as asserting common law claims of fraud under US law. In addition, there are two class actions relating to JPY LIBOR and Euroyen TIBOR. The first class action, which relates to Euroyen TIBOR futures contracts, was dismissed by the SDNY in September 2020 on legal grounds, and the plaintiffs have commenced an appeal to the United States Court of Appeals for the Second Circuit. The second class action, which relates to other derivatives allegedly tied to JPY LIBOR and Euroyen TIBOR, is the subject of a motion to dismiss that remains pending in the SDNY. In addition to the above, five other class action complaints were filed against NatWest Group companies in the SDNY, each relating to a different reference rate. The SDNY dismissed all claims against NWM Plc in the case relating to Euribor for lack of personal jurisdiction in February 2017. The SDNY dismissed, for various reasons, the case relating to the Singapore Interbank Offered Rate and Singapore Swap Offer Rate in July 2019, the case relating to Pound Sterling LIBOR in August 2019, and the case relating to Swiss Franc LIBOR in September 2019. Plaintiffs are appealing each of these four dismissals to the United States Court of Appeals for the Second Circuit. In the class action relating to Swiss Franc LIBOR, NWM Plc and the plaintiffs reached a settlement in principle in February 2021. The amount of the settlement, which remains subject to final documentation and court approval, is covered by an existing provision. In the fifth class action, which relates to the Australian Bank Bill Swap Reference Rate, the SDNY in February 2020 declined to dismiss the amended complaint as against NWM Plc and certain other defendants, but dismissed it as to other members of NatWest Group (including NatWest Group plc). The claims against non-dismissed defendants (including NWM Plc) are now proceeding in discovery. NWM Plc was also named as a defendant in a motion to certify a class action relating to LIBOR in the Tel Aviv District Court in Israel. NWM Plc filed a motion for cancellation of service, which was granted in July 2020. The claimants appealed that decision and in November 2020 the appeal was refused and the claim dismissed by the Appellate Court. The claim could in future be recommenced depending on the outcome of a separate case under appeal to Israel's Supreme Court. In January 2019, a class action antitrust complaint was filed in the SDNY alleging that the defendants (USD ICE LIBOR panel banks and affiliates) have conspired to suppress USD ICE LIBOR from 2014 to the present by submitting incorrect information to ICE about their borrowing costs. The NatWest Group defendants are NatWest Group plc, NWM Plc, NWMSI and NWB Plc. The defendants made a motion to dismiss this case, which was granted by the court in March 2020. Plaintiffs’ appeal of the dismissal is pending in the United States Court of Appeals for the Second Circuit. In August 2020, a complaint was filed in the United States District Court for the Northern District of California by several United States consumer borrowers against the USD ICE LIBOR panel banks and their affiliates, alleging that the normal process of setting USD ICE LIBOR amounts to illegal price-fixing, and also that banks in the United States have illegally agreed to use LIBOR as a component of price in variable consumer loans. The NatWest Group defendants are NatWest Group plc, NWM Plc, NWMSI and NWB Plc. The plaintiffs seek damages and to prevent the enforcement of LIBOR-based instruments through injunction. Defendants have filed a motion to transfer the matter to federal court in New York and will seek dismissal. FX litigation NWM Plc, NWMSI and / or NatWest Group plc are defendants in several cases relating to NWM Plc's foreign exchange (FX) business, each of which is pending before the same federal judge in the SDNY. In 2015, NWM Plc paid US$255 million to settle the consolidated antitrust class action on behalf of persons who entered into over-the-counter FX transactions with defendants or who traded FX instruments on exchanges. That settlement received final court approval in August 2018. In November 2018, some members of the settlement class who opted out of the settlement filed their own non-class complaint in the SDNY asserting antitrust claims against NWM Plc, NWMSI and other banks. Those opt-out claims are proceeding in discovery. In December 2018, some of the same claimants, as well as others, filed proceedings in the High Court of Justice of England and Wales, asserting competition claims against NWM Plc and several other banks. The claim was served in April 2019. One other FX-related class action, on behalf of ‘consumers and end-user businesses’, is proceeding in the SDNY against NWM Plc and others. Plaintiffs have filed a motion for class certification, which defendants are opposing. The 2020 settlement of another class action, on behalf of ‘indirect purchasers’ of FX instruments (which plaintiffs define as persons who transacted FX instruments with retail foreign exchange dealers that transacted directly with defendant banks), received final court approval in November 2020. NWM Plc has paid the settlement in that case (which was covered by an existing provision). In May 2019, a cartel class action was filed in the Federal Court of Australia against NWM Plc and four other banks on behalf of persons who bought or sold currency through FX spots or forwards between 1 January 2008 and 15 October 2013 with a total transaction value exceeding AUS $0.5 million. The claimant has alleged that the banks, including NWM Plc, contravened Australian competition law by sharing information, coordinating conduct, widening spreads and manipulating FX rates for certain currency pairs during this period. NatWest Group plc has been named in the action as an 'other cartel participant', but is not a respondent. The claim was served in June 2019. The claimant sought permission to amend its claim to strengthen its claim of alleged breaches of competition law, but this was refused by the court in the form sought by the claimant. The claimant now seeks a further opportunity to amend its claim. In July and December 2019, two separate applications seeking opt-out collective proceedings orders were filed in the UK Competition Appeal Tribunal against NatWest Group plc, NWM Plc and other banks. Both applications have been brought on behalf of persons who, between 18 December 2007 and 31 January 2013, entered into a relevant FX spot or outright forward transaction in the EEA with a relevant financial institution or on an electronic communications network. A hearing to determine class certification and which of the applications should be permitted to represent the class is scheduled to take place in July 2021. In November 2020, proceedings were issued in the High Court of Justice of England and Wales against NWM Plc by a claimant who seeks an account of profits or damages in respect of alleged historic FX trading misconduct. The claimant has also issued similar proceedings against a number of other banks. The claim against NWM Plc makes allegations of fraud, deceit and dishonesty, as well as breaches of contract, fiduciary duties, duties of confidence and other matters, in respect of FX services provided by NWM Plc during the period 2006 to 2010. NWM Plc awaits service of the claim. Two motions to certify FX-related class actions were filed in the Tel Aviv District Court in Israel in September and October 2018, and were subsequently consolidated into one motion. The consolidated motion, which names The Royal Bank of Scotland plc (now NWM Plc) as the defendant, was served on NWM Plc in May 2020. NWM Plc has filed a motion for cancellation of service. Certain other foreign exchange transaction related claims have been or may be threatened. NatWest Group cannot predict whether any of these claims will be pursued, but expects that some may. Government securities antitrust litigation NWMSI and certain other US broker-dealers are defendants in a consolidated antitrust class action pending in the SDNY on behalf of persons who transacted in US Treasury securities or derivatives based on such instruments, including futures and options. The plaintiffs allege that defendants rigged the US Treasury securities auction bidding process to deflate prices at which they bought such securities and colluded to increase the prices at which they sold such securities to plaintiffs. The defendants’ motion to dismiss this matter remains pending. Class action antitrust claims commenced in March 2019 are pending in the SDNY against NWM Plc, NWMSI and other banks in respect of Euro-denominated bonds issued by European central banks (EGBs). The complaint alleges a conspiracy among dealers of EGBs to widen the bid-ask spreads they quoted to customers, thereby increasing the prices customers paid for the EGBs or decreasing the prices at which customers sold the bonds. The class consists of those who purchased or sold EGBs in the US between 2007 and 2012. The defendants filed a motion to dismiss this matter, which was granted by the court in respect of NWM Plc and NWMSI in July 2020, subject to plaintiffs attempting to remedy the pleading deficiencies identified by the court through an amended complaint. Swaps antitrust litigation NWM Plc and other members of NatWest Group, including NatWest Group plc, as well as a number of other interest rate swap dealers, are defendants in several cases pending in the SDNY alleging violations of the US antitrust laws in the market for interest rate swaps. There is a consolidated class action complaint on behalf of persons who entered into interest rate swaps with the defendants, as well as non-class action claims by three swap execution facilities (TeraExchange, Javelin, and trueEx). The plaintiffs allege that the swap execution facilities would have successfully established exchange-like trading of interest rate swaps if the defendants had not unlawfully conspired to prevent that from happening through boycotts and other means. Discovery in these cases is complete, and the plaintiffs' motion for class certification remains pending. In addition, in June 2017, TeraExchange filed a complaint against NatWest Group companies, including NatWest Group plc, as well as a number of other credit default swap dealers, in the SDNY. TeraExchange alleges it would have established exchange-like trading of credit default swaps if the defendant dealers had not engaged in an unlawful antitrust conspiracy. In October 2018, the court dismissed all claims against NatWest Group companies. Odd lot corporate bond trading antitrust litigation NWMSI is the subject of a class action antitrust complaint filed in the SDNY against NWMSI and several other securities dealers. The complaint alleges that, from August 2006 to the present, the defendants conspired artificially to widen spreads for odd lots of corporate bonds bought or sold in the United States secondary market and to boycott electronic trading platforms that would have allegedly promoted pricing competition in the market for such bonds. Defendants filed a motion to dismiss the operative complaint in this matter in December 2020. Madoff NWM N.V. is a defendant in two actions filed by Irving Picard, as trustee for the bankruptcy estates of Bernard L. Madoff and Bernard L. Madoff Investment Securities LLC, in bankruptcy court in New York. In both cases, the trustee alleges that certain transfers received by NWM N.V. amounted to fraudulent conveyances that should be clawed back for the benefit of the Madoff estate. In the primary action, filed in December 2010, the trustee is seeking to clawback a total of US$276.3 million in redemptions that NWM N.V. allegedly received from certain Madoff feeder funds and certain swap counterparties. In March 2020, the bankruptcy court denied the trustee's request for leave to amend its complaint to include additional allegations against NWM N.V., holding that, even with the proposed amendments, the complaint would fail as a matter of law to state a valid claim against NWM N.V. The trustee has commenced an appeal of the bankruptcy court's decision, which has been stayed pending the result of appeals in different proceedings, against different defendants, that involve similar issues. In the second action, filed in October 2011, the trustee seeks to recover an additional US$21.8 million. This action has been stayed pending the result of the appeal in the primary action. Interest rate hedging products and similar litigation NatWest Group continues to deal with a small number of active litigation claims in the UK relating to the alleged mis-selling of interest rate hedging products. Separately, NWM Plc is defending claims filed in France by two French local authorities relating to structured interest rate swaps. The plaintiffs allege, among other things, that the swaps are void for being illegal transactions, that they were mis-sold, and that information / advisory duties were breached. One of the claims is being appealed to the Supreme Court and the other has been remitted from the Supreme Court to the Court of Appeal for reconsideration of one aspect. NWM N.V. was a defendant in the latter case but has been dismissed from the proceedings. EUA trading litigation HMRC issued a tax assessment in 2012 against NatWest Group plc for approximately £86 million regarding a value-added-tax (VAT) matter in relation to the trading of European Union Allowances (EUAs) by a joint venture subsidiary in 2009. NatWest Group plc has lodged an appeal, which is due to be heard in June 2021, before the First-tier Tribunal (Tax), a specialist tax tribunal, challenging the assessment (the 'Tax Dispute'). In the event that the assessment is upheld, interest and costs would be payable, and a penalty of up to 100 per cent of the VAT held to have been legitimately denied by HMRC could also be levied. Separately, NWM Plc was a named defendant in civil proceedings before the High Court of Justice of England and Wales brought in 2015 by ten companies (all in liquidation) (the 'Liquidated Companies') and their respective liquidators (together, 'the Claimants'). The Liquidated Companies previously traded in EUAs in 2009 and were alleged to be defaulting traders within (or otherwise connected to) the EUA supply chains forming the subject of the Tax Dispute. The Claimants claimed approximately £71.4 million plus interest and costs and alleged that NWM Plc dishonestly assisted the directors of the Liquidated Companies in the breach of their statutory duties and/or knowingly participated in the carrying on of the business of the Liquidated Companies with intent to defraud creditors. The trial in that matter concluded in July 2018 and judgment was issued in March 2020. The court held that NWM Plc and Mercuria Energy Europe Trading Limited were liable for dishonestly assisting and knowingly being a party to fraudulent trading during a seven business day period in 2009. In October 2020, the High Court quantified damages against NWM Plc at £45 million plus interest and costs, and permitted it to appeal to the Court of Appeal. The appeal hearing is due to take place in March 2021. Offshoring VAT assessments HMRC issued protective tax assessments in 2018 against NatWest Group plc totalling £143 million relating to unpaid VAT in respect of the UK branches of two NatWest Group companies registered in India. NatWest Group formally requested reconsideration by HMRC of their assessments, and this process was completed in November 2020. HMRC upheld their original decision and, as a result, NatWest Group plc lodged an appeal with the Tax Tribunal and an application for judicial review with the High Court of Justice of England and Wales, both in December 2020. In order to lodge the appeal with the Tax Tribunal, NatWest Group plc was required to pay the £143 million to HMRC, and payment was made on 16 December 2020. US Anti-Terrorism Act litigation NWB Plc is defending lawsuits filed in the United States District Court for the Eastern District of New York by a number of US nationals (or their estates, survivors, or heirs) who were victims of terrorist attacks in Israel. The plaintiffs allege that NWB Plc is liable for damages arising from those attacks pursuant to the US Anti-Terrorism Act because NWB Plc previously maintained bank accounts and transferred funds for the Palestine Relief & Development Fund, an organisation which plaintiffs allege solicited funds for Hamas, the alleged perpetrator of the attacks. In October 2017, the trial court dismissed claims against NWB Plc with respect to two of the 18 terrorist attacks at issue. In March 2018, the trial court granted a request by NWB Plc for leave to file a renewed summary judgment motion in respect of the remaining claims, and in March 2019, the court granted summary judgment in favour of NWB Plc. The plaintiffs’ appeal of the judgment to the United States Court of Appeals for the Second Circuit is pending. NWM N.V. and certain other financial institutions are defendants in several actions pending in the United States District Courts for the Eastern and Southern Districts of New York, filed by a number of US nationals (or their estates, survivors, or heirs), most of whom are or were US military personnel, who were killed or injured in attacks in Iraq between 2003 and 2011. NWM Plc is also a defendant in some of these cases. The attacks at issue in the cases were allegedly perpetrated by Hezbollah and certain Iraqi terror cells allegedly funded by the Islamic Republic of Iran. According to the plaintiffs’ allegations, the defendants are liable for damages arising from the attacks because they allegedly conspired with Iran and certain Iranian banks to assist Iran in transferring money to Hezbollah and the Iraqi terror cells, in violation of the US Anti-Terrorism Act, by agreeing to engage in ‘stripping’ of transactions initiated by the Iranian banks so that the Iranian nexus to the transactions would not be detected. The first of these actions was filed in the United States District Court for the Eastern District of New York in November 2014. In September 2019, the district court dismissed the case, finding that the claims were deficient for several reasons, including lack of sufficient allegations as to the alleged conspiracy and causation. The plaintiffs are appealing the decision to the United States Court of Appeals for the Second Circuit. Another action, filed in the SDNY in 2017, was dismissed in March 2019 on similar grounds, but remains subject to appeal to the United States Court of Appeals for the Second Circuit. Other follow-on actions that are substantially similar to the two that have now been dismissed are pending in the same courts. Securities underwriting litigation NWMSI is an underwriter defendant in several securities class actions in the US in which plaintiffs generally allege that an issuer of public debt or equity securities, as well as the underwriters of the securities (including NWMSI), are liable to purchasers for misrepresentations and omissions made in connection with the offering of such securities. Regulatory matters (including investigations and customer redress programmes) NatWest Group's businesses and financial condition can be affected by the actions of various governmental and regulatory authorities in the UK, the US, the EU and elsewhere. NatWest Group has engaged, and will continue to engage, in discussions with relevant governmental and regulatory authorities, including in the UK, the US, the EU and elsewhere, on an ongoing and regular basis, and in response to informal and formal inquiries or investigations, regarding operational, systems and control evaluations and issues including those related to compliance with applicable laws and regulations, including consumer protection, investment advice, business conduct, competition/anti-trust, VAT recovery, anti-bribery, anti-money laundering and sanctions regimes. The NatWest Markets business in particular has been providing, and continues to provide, information regarding a variety of matters, including, for example, offering of securities, the setting of benchmark rates and related derivatives trading, conduct in the foreign exchange market, product mis-selling and various issues relating to the issuance, underwriting, and sales and trading of fixed-income securities, including structured products and government securities, some of which have resulted, and others of which may result, in investigations or proceedings. Any matters discussed or identified during such discussions and inquiries may result in, among other things, further inquiry or investigation, other action being taken by governmental and regulatory authorities, increased costs being incurred by NatWest Group, remediation of systems and controls, public or private censure, restriction of NatWest Group's business activities and/or fines. Any of the events or circumstances mentioned in this paragraph or below could have a material adverse effect on NatWest Group, its business, authorisations and licences, reputation, results of operations or the price of securities issued by it, or lead to material additional provisions being taken. NatWest Group is co-operating fully with the matters described below. Investigations US investigations relating to fixed-income securities In the US, NatWest Group companies have in recent years been involved in investigations relating to, among other things, issuance, underwriting and trading in RMBS and other mortgage-backed securities and collateralised debt obligations (CDOs). Investigations

Analysis of the net investment

Analysis of the net investment in business interests and intangible assets	12 Months Ended
	Dec. 31, 2020
Analysis of the net investment in business interests and intangible assets
Analysis of the net investment in business interests and intangible assets	27 Analysis of the net investment in business interests and intangible assets Acquisitions and disposals £m £m £m Fair value given for businesses acquired(1) — (55) (113) Additional investment in associates (40) — (9) Net outflow of cash in respect of acquisitions (40) (55) (122) Sale of interests in associates 27 — — Net assets sold 288 351 — Profit on disposal 3 — — Net inflow of cash in respect of disposals 318 351 — Dividends received from associates — — 5 Cash expenditure on intangible assets (348) (380) (364) Net outflow of cash (70) (84) (481) Note: (1) 2019 includes the purchase of Free agent.

Analysis of changes in financin

Analysis of changes in financing during the year	12 Months Ended
Analysis of changes in financing during the year	Dec. 31, 2020
Analysis of changes in financing during the year
Analysis of changes in financing during the year	28 Analysis of changes in financing during the year Share capital, share premium, and paid-in equity Subordinated liabilities MRELs £m £m £m £m £m £m £m £m £m At 1 January 17,246 17,134 16,910 9,979 10,535 12,722 19,249 16,821 9,202 Issue of ordinary shares — 17 144 — — — — — — Issue of paid in equity 2,218 — — — — — — — — Issue of subordinated liabilities — — — 1,631 577 — — — — Redemption of subordinated liabilities — — — (3,502) (1,108) (2,258) — — — Interest on subordinated liabilities — — — (510) (533) (566) — — — Issue of MRELs — — — — — — 1,309 3,640 6,996 Maturity/redemption of MRELs — — — — — — (2) (1,285) (83) Interest on MRELs — — — — — — (671) (428) (237) Net cash inflow/(outflow) from financing 2,218 17 144 (2,381) (1,064) (2,824) 636 1,927 6,676 Ordinary shares issued 52 95 80 — — — — — — Effects of foreign exchange — — — (234) (315) 419 (514) (683) 587 Changes in fair value of subordinated liabilities/MRELs — — — 133 317 (243) 829 539 (59) AT1 reclassification to subordinated liabilities (1,277) — — 1,632 — — — — — Loss on sale of MRELs and subordinated liabilities — — — 324 — — — — — Interest on subordinated liabilities/MRELs — — — 509 506 461 673 645 415 At 31 December 18,239 17,246 17,134 9,962 9,979 10,535 20,873 19,249 16,821

Analysis of cash and cash equiv

Analysis of cash and cash equivalents	12 Months Ended
Analysis of cash and cash equivalents	Dec. 31, 2020
Analysis of cash and cash equivalents
Analysis of cash and cash equivalents	29 Analysis of cash and cash equivalents £m £m £m At 1 January - cash 80,993 91,368 100,724 - cash equivalents 19,595 17,568 21,881 100,588 108,936 122,605 Net cash outflow 38,611 (8,348) (13,669) At 31 December 139,199 100,588 108,936 Comprising: Cash and balances at central banks 124,489 80,993 91,368 Trading assets 9,220 12,578 11,610 Other financial assets 173 459 40 Loans to banks - amortised cost (1) 5,317 6,558 5,918 Cash and cash equivalents 139,199 100,588 108,936 Note: (1) Includes cash collateral posted with bank counterparties in respect of derivative liabilities of £7,592 million (2019 - £7,570 million; 2018 - £7,302 million). Certain members of NatWest Group are required by law or regulation to maintain balances with the central banks in the jurisdictions in which they operate. Natwest Markets N.V. had mandatory reserve deposits with De Nederlandsche Bank N.V. of €81 million (2019 - €47 million).

Directors and key management re

Directors and key management remuneration	12 Months Ended
Directors and key management remuneration	Dec. 31, 2020
Directors' and key management remuneration
Directors' and key management remuneration	30 Directors' and key management remuneration Directors' remuneration £000 £000 Non-executive Directors 1,708 1,881 Chairman and executive directors- emoluments 4,349 4,783 6,057 6,664 Amounts receivable under long-term incentive plans and share option plans 609 741 Total 6,666 7,405 No directors accrued benefits under defined benefit schemes or defined contribution schemes during 2020 and 2019. The executive directors may participate in the company's long-term incentive plans, executive share option and sharesave schemes and details of their interests in the company's shares arising from their participation are given in the directors' remuneration report. Details of the remuneration received by each director are also given in the directors' remuneration report. Compensation of key management The aggregate remuneration of directors and other members of key management during the year was as follows: £000 £000 Short-term benefits 18,718 22,067 Post-employment benefits 474 401 Share-based payments 3,249 2,435 22,441 24,903 Key management comprises members of the NatWest Group plc and NWH Ltd Boards, members of the NatWest Group plc and NWH Ltd Executive Committees, and the Chief Executives of NatWest Markets Plc and RBS International (Holdings) Limited. This is on the basis that these individuals have been identified as Persons Discharging Managerial Responsibilities of NatWest Group plc under the new governance structure.

Transactions with directors and

Transactions with directors and key management	12 Months Ended
Transactions with directors and key management	Dec. 31, 2020
Transactions with directors and key management
Transactions with directors and key management	31 Transactions with directors and key management At 31 December 2020, amounts outstanding in relation to transactions, arrangements and agreements entered into by authorised institutions in NatWest Group, as defined in UK legislation, were £1,329,102 in respect of loans to five persons who were directors of the company at any time during the financial period. For the purposes of IAS 24 ‘Related Party Disclosures’, key management comprise directors of the company and Persons Discharging Managerial Responsibilities (PDMRs) of NatWest Group plc. The captions in the NatWest Group's primary financial statements include the following amounts attributable, in aggregate, to key management: £000 £000 Loans to customers - amortised cost 5,165 1,662 Customer deposits 45,747 37,727 Key management have banking relationships with NatWest Group entities which are entered into in the normal course of business and on substantially the same terms, including interest rates and security, as for comparable transactions with other persons of a similar standing or, where applicable, with other employees. These transactions did not involve more than the normal risk of repayment or present other unfavourable features.

Related parties

Related parties	12 Months Ended
Related parties	Dec. 31, 2020
Related parties
Related parties	32 Related parties UK Government The UK Government through HM Treasury is the ultimate controlling party of The NatWest Group plc. The UK government's shareholding is managed by UK Government Investments Limited, a company wholly owned by the UK Government. As a result the UK Government and UK Government controlled bodies are related parties of the Group. At 31 December 2020, HM Treasury’s holding in the company’s ordinary shares was 61.9%. NatWest Group enters into transactions with many of these bodies. Transactions include the payment of: taxes – principally UK corporation tax (Note 7) and value added tax; national insurance contributions; local authority rates; and regulatory fees and levies (including the bank levy (Note 3) and FSCS levies (Note 26) - together with banking transactions such as loans and deposits undertaken in the normal course of banker-customer relationships. Bank of England facilities NatWest Group may participate in a number of schemes operated by the Bank of England in the normal course of business. Members of NatWest Group that are UK authorised institutions are required to maintain non-interest bearing (cash ratio) deposits with the Bank of England amounting to 0.368% of their average eligible liabilities in excess of £600 million. They also have access to Bank of England reserve accounts: sterling current accounts that earn interest at the Bank of England Base Rate. NatWest Group provides guarantees for certain subsidiary liabilities to the Bank of England. Other related parties (a) In their roles as providers of finance, NatWest Group companies provide development and other types of capital support to businesses. These investments are made in the normal course of business. In some instances, the investment may extend to ownership or control over 20% or more of the voting rights of the investee company. However, these investments are not considered to give rise to transactions of a materiality requiring disclosure under IAS 24. (b) NatWest Group recharges NatWest Group Pension Fund with the cost of administration services incurred by it. The amounts involved are not material to NatWest Group. (c) In accordance with IAS 24, transactions or balances between NatWest Group entities that have been eliminated on consolidation are not reported. (d) The captions in the primary financial statements of the parent company include amounts attributable to subsidiaries. These amounts have been disclosed in aggregate in the relevant notes to the financial statements.

Post balance sheet events

Post balance sheet events	12 Months Ended
Post balance sheet events	Dec. 31, 2020
Post balance sheet events
Post balance sheet events	33 Post balance sheet events NatWest Group has announced a phased withdrawal from the Republic of Ireland and has entered into a non-binding Memorandum of Understanding (‘MOU’) with Allied Irish Banks, p.l.c. for the sale of a c.€4bn portfolio of performing commercial loans. The potential sale contemplated by the MoU remains subject to due diligence, further negotiation and agreement of final terms and definitive documentation, as well as obtaining regulatory and other approvals and satisfying other conditions. The proposed sale may not be concluded on the terms contemplated in the MoU, or at all. No estimate of any financial effect of the potential transaction can be made at the date of approval of these accounts. On 18 February 2021, NatWest Group reached final agreement with the Official Receiver in relation to a portfolio of historical PPI claims. NatWest Group carried adequate provision for this outcome and there is no further charge/release as a result. Other than as disclosed in the accounts, there have been no other significant events between 31 December 2020 and the date of approval of these accounts which would require a change or additional disclosure.

Consolidating financial informa

Consolidating financial information	12 Months Ended
Consolidating financial information	Dec. 31, 2020
Consolidating financial information
Consolidating financial information	34 Consolidating financial information NatWest Markets Plc ('NWM Plc') is a wholly owned subsidiary of NatWest Group plc and was able to offer and sell certain securities in the US from time to time pursuant to a registration statement on Form F-3 filed with the SEC with a full and unconditional guarantee from NatWest Group plc. Adoption of Rule 13-01 of Regulation S-X NatWest Group has early adopted the amendments to Rule 3-10 and new Rule 13-01 for simplifying financial and non-financial disclosures of the guarantor and issuer, as issued by the SEC on 2 March 2020. NatWest Markets Plc utilises an exception provided in Rule 3-10 of Regulation S-X, and therefore does not file its financial statements with the SEC. In accordance with the requirements to qualify for the exception, presented below is condensed consolidating financial information for: · NatWest Group plc on a stand-alone basis as guarantor; and · NatWest Markets Plc on a stand-alone basis as issuer. NatWest Group fully and unconditionally guarantees payment in full to the holders of securities or debt securities issued by NWM plc. The guarantees will be on a senior basis. Regulation S-X requires a company to account for its investments in subsidiary undertakings using the equity method, which would increase the results for the period of NatWest Group plc and decrease NWM Plc in the information below by £9.201 million and £48 million respectively for the year ended 31 December 2020 (increase £811 million and increase £148 million, respectively, for the year ended 31 December 2019). The net assets of NatWest Group plc would be decreased and NWM Plc increased in the information below by £579 million and £236 million respectively at 31 December 2020 (decreased by £10,240 million and increased by £276 million respectively at 31 December 2019). Income statement NatWest Group plc NWM Plc For the year ended 31 December 2020 £m £m Net interest income (478) (31) Non-interest income (9,142) 953 Total income (9,620) 922 Operating expenses (69) (1,110) Impairment losses (9) (17) Operating (loss) before tax (9,698) (205) Tax credit/(charge) 125 (7) Loss for the year (9,573) (212) Attributable to: Ordinary shareholders (9,954) (280) Preference shareholders 26 — Paid-in equity holders 355 68 Non-controlling interests — — (9,573) (212) NatWest Group plc NWM Plc For the year ended 31 December 2019 £m £m Net interest income (628) (127) Non-interest income 3,467 815 Total income 2,839 688 Operating expenses (42) (1,101) Impairment releases 2 50 Operating profit/(loss) before tax 2,799 (363) Tax (charge)/credit (71) 94 Profit/(loss) for the year 2,728 (269) Attributable to: Ordinary shareholders 2,322 (329) Preference shareholders 39 — Paid-in equity holders 367 60 Non-controlling interests — — 2,728 (269) NatWest Group plc NWM Plc For the year ended 31 December 2018 £m £m Net interest income (368) (239) Non-interest income 2,794 1,002 Total income 2,426 763 Operating expenses (85) (1,262) Impairment releases 1 89 Operating profit/(loss) before tax 2,342 (410) Tax credit 149 51 Profit/(loss) from continuing operations 2,491 (359) Profit/(loss) from discontinued operations, net of tax — 54 Profit/(loss) for the year 2,491 (305) Attributable to: Ordinary shareholders 1,954 (305) Preference shareholders 182 — Paid-in equity holders 355 — Non-controlling interests — — 2,491 (305) Balance sheet NatWest Group plc NWM Plc At 31 December 2020 £m £m Assets Cash and balances at central banks — 11,736 Trading assets — 52,169 Derivatives 1,580 164,104 Settlement balances — 1,084 Loans to banks - amortised cost — 701 Loans to customers - amortised cost — 7,477 Amount due from holding company and fellow subsidiaries 26,910 7,606 Other financial assets 579 8,043 Investment in group undertakings 2,600 Other assets 117 562 Total assets 75,415 256,082 Liabilities Bank deposits — 1,762 Customer deposits — 1,469 Amount due to holding company and fellow subsidiaries 723 16,189 Settlement balances — 604 Trading liabilities — 56,916 Derivatives 1,102 153,754 Other financial liabilities 21,056 15,370 Subordinated liabilities 7,944 — Other liabilities 151 866 Total liabilities 30,976 246,930 Owners' equity 44,439 9,152 Non-controlling interests — — Total equity 44,439 9,152 Total liabilities and equity 75,415 256,082 Balance sheet NatWest Group plc NWM Plc At 31 December 2019 £m £m Assets Cash and balances at central banks — 9,953 Trading assets — 57,768 Derivatives 979 147,458 Settlement balances — 3,353 Loans to banks - amortised cost — 238 Loans to customers - amortised cost — 6,910 Amount due from holding company and fellow subsidiaries 25,018 7,145 Other financial assets 277 11,636 Investment in group undertakings 55,808 2,905 Other assets 1 687 Total assets 82,083 248,053 Liabilities Bank deposits — 2,038 Customer deposits — 2,247 Amount due to holding company and fellow subsidiaries 439 16,858 Settlement balances — 2,648 Trading liabilities — 53,576 Derivatives 711 142,390 Other financial liabilities 19,331 17,470 Subordinated liabilities 7,647 — Other liabilities 168 1,195 Total liabilities 28,296 238,422 Owners’ equity 53,787 9,631 Non-controlling interests — — Total equity 53,787 9,631 Total liabilities and equity 82,083 248,053 Trust preferred securities NatWest Group has issued trust preferred securities through trusts 100% owned by NatWest Group (through partnership interests held by RBSG Capital Corporation and NatWest Group), which meet the definition of a finance subsidiary in Regulation S-X, Rule 3-10. The securities represent undivided beneficial interests in the assets of the trusts, which consist of partnership preferred securities representing non-cumulative perpetual preferred limited partnership interests issued by Delaware limited partnerships. NatWest Group plc has provided subordinated guarantees for the benefit of the holders of the trust preferred securities and the partnership preferred securities. Under the terms of the guarantees, NatWest Group has fully and unconditionally guaranteed on a subordinated basis, payments on such trust preferred securities and partnership preferred securities, to the extent they are due to be paid and have not been paid by, or on behalf of, the trusts and the partnerships, as the case may be. Following implementation of IFRS 10 the trusts are no longer consolidated by NatWest Group. For those securities that were classified as subordinated liabilities, NatWest Group’s outstanding instruments with the trusts are classified as subordinated liabilities.

Accounting policies (Policies)

Accounting policies (Policies)	12 Months Ended
Accounting policies (Policies)	Dec. 31, 2020
Accounting policies
Presentation of accounts	1. Presentation of accounts The accounts, set out on pages 257 to 325, including these accounting policies on pages 263 to 267, and the audited sections of the Business review: Risk and capital management on pages 161 to 249, are prepared on a going concern basis (see the Report of the directors, page 157) and in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 and also with International Financial Reporting Standards as issued by International Accounting Standard Board. The significant accounting policies and related judgments are set out below. NatWest Group plc is incorporated in the UK and registered in Scotland. Its accounts are presented in accordance with the Companies Act 2006. The accounts are presented in the functional currency, pounds sterling. With the exception of certain financial instruments as described in Accounting policies 12 and 20 and investment property, the accounts are presented on a historical cost basis. Accounting policy changes effective 1 January 2020 Amendments to IFRS 3 Business Combinations (IFRS 3) - Changes to the definition of a business The IASB amended IFRS 3 to provide additional guidance on the definition of a business. The amendment aims to help entities when determining whether a transaction should be accounted for as a business combination or as an asset acquisition. The amendments are in line with current accounting policy and therefore did not affect the accounts. Definition of material – Amendments to IAS 1 – Presentation of Financial Statements (IAS 1) and IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8) The IASB clarified the definition of ‘material’ and aligned the definition of material used in the Conceptual Framework and in other IFRS standards. The amendments clarify that materiality will depend on the nature or magnitude of information. Under the amended definition of materiality, an entity will need to assess whether the information, either individually or in combination with other information, is material in the context of the accounts. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. NatWest Group’s definition and application of materiality is in line with the definition in the amendments. Interest Rate Benchmark Reform (IBOR reform) Phase 1 amendments to IFRS 9 and IAS 39 The IASB issued 'Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)' as a first reaction to the potential effects the IBOR reform could have on financial reporting. The amendments focused on hedge accounting and allow hedge relationships affected by the IBOR reform to be accounted for as continuing hedges. Amendments are effective for annual reporting periods beginning on or after 1 January 2020 with early application permitted. NatWest Group early adopted these amendments for the annual period ending on 31 December 2019. Interest Rate Benchmark Reform (IBOR reform) Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Phase 2 of the IASB’s IBOR project (published in August 2020) addresses the wider accounting issues arising from the IBOR reform. The amendments are effective for annual reporting periods beginning on or after 1 January 2021 with early application permitted. As NatWest Group early adopted these amendments for the annual period ending on 31 December 2020, which have been endorsed by the EU and UK in January 2021, NatWest Group has applied International Accounting Standards, which have been adopted for use within the UK. NatWest Group’s IBOR transition program remains on-track and key milestones have been met. Conversion from rates subject to reform to alternative risk-free rates (RFRs) is expected to increase as RFR-based products become more widely available and key market-driven conversion events occur. Reclassification of balances held with central banks The definitions of central banks and the classification of amounts that are held in cash and balances at central banks and loans to banks - amortised cost have been refined. Amounts not subject to mandatory or term deposit restrictions that are held with central banks are now classified as Cash and balances with central banks, irrespective of jurisdiction. Amounts that are subject to mandatory restrictions or time deposit restrictions of more than 24 hours are classified as Loans to banks - amortised cost. Previously, this also included amounts subject to restrictions of less than 24 hours. This change resulted in a £5.0 billion increase in Cash and balances at central banks and a corresponding reduction in Loans to banks - amortised cost at 31 December 2020, and a balance sheet reclassification from Loans to banks - amortised cost to Cash and balances at central banks of £3.1 billion at 31 December 2019 (1 January 2019 - £2.5 billion). These did not impact the consolidated cash flow statement.
Basis of consolidation	2. Basis of consolidation The consolidated accounts incorporate the financial statements of NatWest Group plc and entities (including certain structured entities) that give access to variable returns and that are controlled by NatWest Group. Control is assessed by reference to our ability to enforce our will on the other entity, typically through voting rights. All intergroup balances, transactions, income and expenses are eliminated on consolidation. The consolidated accounts are prepared under uniform accounting policies.
Revenue recognition	3. Revenue recognition Interest income or expense relates to financial instruments measured at amortised cost and debt instruments classified as fair value through OCI using the effective interest rate method, the effective part of any related accounting hedging instruments, and finance lease income recognised at a constant periodic rate of return before tax on the net investment on the lease. Negative effective interest accruing to financial assets is presented in interest payable. Other interest relating to financial instruments measured at fair value is recognised as part of the movement in fair value. Fees in respect of services are recognised as the right to consideration accrues through the performance of each distinct service obligation to the customer. The arrangements are generally contractual and the cost of providing the service is incurred as the service is rendered. The price is usually fixed and always determinable.
Assets held for sale	4. Assets held for sale A non-current asset (or disposal group) is classified as held for sale if NatWest Group will recover its carrying amount principally through a sale transaction rather than through continuing use and is measured at the lower of its carrying amount or fair value less cost to sell.
Employee benefits	5. Employee benefits Short-term employee benefits, such as salaries, paid absences, and other benefits are accounted for on an accruals basis over the period in which the employees provide the related services. Employees may receive variable compensation satisfied by cash, by debt instruments issued by NatWest Group or by NatWest Group plc shares. NatWest Group operates a number of share-based compensation schemes under which it awards NatWest Group plc shares and share options to its employees. Such awards are generally subject to vesting conditions. Variable compensation that is settled in cash or debt instruments is charged to profit or loss on a straight-line basis over the vesting period, taking account of forfeiture and clawback criteria. Contributions to defined contribution pension schemes are recognised in profit or loss as employee service costs accrue. For defined benefit pension schemes, the net of the recognisable scheme assets and obligations is reported in the balance sheet. The defined benefit obligation is measured on an actuarial basis. The charge to profit or loss for pension costs (mainly the service cost and the net interest on the net defined benefit asset or liability) is recognised in operating expenses. Actuarial gains and losses (i.e. gains and/or losses on re-measuring the net defined benefit asset or liability) are recognised in other comprehensive income in full in the period in which they arise. The difference between scheme assets and scheme liabilities, the net defined benefit asset or liability, is recognised in the balance sheet subject to the asset celling test which requires the net defined benefit surplus to be limited to the present value of any economic benefits available to NatWest Group in the form of refunds from the plan or reduced contributions to it.
Intangible assets and goodwill	6. Intangible assets and goodwill Intangible assets acquired by NatWest Group are stated at cost less accumulated amortisation and impairment losses. Amortisation is charged to profit or loss over the assets’ estimated useful economic lives using methods that best reflect the pattern of economic benefits and is included in Depreciation and amortisation. These estimated useful economic lives are: Computer software 3 to 12 years Other acquired intangibles 5 to 10 years Expenditure on internally generated goodwill and brands is written-off as incurred. Direct costs relating to the development of internal-use computer software are capitalised once technical feasibility and economic viability have been established. These costs include payroll, the costs of materials and services, and directly attributable overheads. Capitalisation of costs ceases when the software is capable of operating as intended. During and after development, accumulated costs are reviewed for impairment against the benefits that the software is expected to generate. Costs incurred prior to the establishment of technical feasibility and economic viability are expensed as incurred, as are all training costs and general overheads. The costs of licences to use computer software that are expected to generate economic benefits beyond one year are also capitalised. Goodwill on the acquisition of a subsidiary is the excess of the fair value of the consideration transferred, the fair value of any existing interest in the subsidiary and the amount of any non-controlling interest measured either at fair value or at its share of the subsidiary’s net assets over the net fair value of the subsidiary’s identifiable assets, liabilities and contingent liabilities. Goodwill is measured at initial cost less any subsequent impairment losses. The gain or loss on the disposal of a subsidiary includes the carrying value of any related goodwill.
Foreign currencies	cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For the purposes of impairment testing, goodwill acquired in a business combination is allocated to each of NatWest Group's cash-generating units or groups of cash-generating units expected to benefit from the combination. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less cost to sell or its value in use. Value in use is the present value of future cash flows from the asset or cash-generating unit discounted at a rate that reflects market interest rates adjusted for risks specific to the asset or cash-generating unit that have not been taken into account in estimating future cash flows. An impairment loss is recognised if the recoverable amount of an intangible or tangible asset is less than its carrying value. The carrying value of the asset is reduced by the amount of the loss and a charge recognised in profit or loss. A reversal of an impairment loss on intangible assets (excluding goodwill) or property, plant and equipment can be recognised when an increase in service potential arises provided the increased carrying value is not greater than it would have been had no impairment loss been recognised. Impairment losses on goodwill are not reversed. 8. Foreign currencies Transactions in foreign currencies are recorded in the functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the relevant functional currency at the foreign exchange rates ruling at the balance sheet date. Foreign exchange differences arising on the settlement of foreign currency transactions and from the translation of monetary assets and liabilities are reported in income from trading activities except for differences arising on cash flow hedges and hedges of net investments in foreign operations (see Accounting policy 20). Non-monetary items denominated in foreign currencies that are stated at fair value are translated into the relevant functional currency at the foreign exchange rates ruling at the dates the values are determined. Translation differences arising on non-monetary items measured at fair value are recognised in profit or loss except for differences arising on non-monetary financial assets classified as fair value through OCI, for example equity shares, which are recognised in other comprehensive income unless the asset is the hedged item in a fair value hedge. Assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into sterling at foreign exchange rates ruling at the balance sheet date. Income and expenses of foreign operations are translated into sterling at average exchange rates unless these do not approximate to the foreign exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on the translation of a foreign operation are recognised in other comprehensive income. The amount accumulated in equity is reclassified from equity to profit or loss on disposal of a foreign operation.
Leases	9. Leases As lessor Finance lease contracts are those which transfer substantially all the risks and rewards of ownership of an asset to a customer. All other contracts with customers to lease assets are classified as operating leases. Loans to customers include finance lease receivables measured at the net investment in the lease, comprising the minimum lease payments and any unguaranteed residual value discounted at the interest rate implicit in the lease. Interest receivable includes finance lease income recognised at a constant periodic rate of return before tax on the net investment. Unguaranteed residual values are subject to regular review; if there is a reduction in their value, income allocation is revised and any reduction in respect of amounts accrued is recognised immediately. Rental income from operating leases is recognised in other operating income on a straight-line basis over the lease term unless another systematic basis better represents the time pattern of the asset’s use. Operating lease assets are included within Property, plant and equipment and depreciated over their useful lives. As lessee On entering a new lease contract, NatWest Group recognises a right of use asset and a lease liability to pay future rentals. The liability is measured at the present value of future lease payments discounted at the applicable incremental borrowing rate. The right of use asset is depreciated over the shorter of the term of the lease and the useful economic life, subject to review for impairment. Short term and low value leased assets are expensed on a systematic basis.
Provisions and contingent liabilities	10. Provisions and contingent liabilities NatWest Group recognises a provision for a present obligation resulting from a past event when it is more likely than not that it will be required to transfer economic benefits to settle the obligation and the amount of the obligation can be estimated reliably. Provision is made for restructuring costs, including the costs of redundancy, when NatWest Group has a constructive obligation to restructure. An obligation exists when NatWest Group has a detailed formal plan for the restructuring and has raised a valid expectation in those affected by starting to implement the plan or by announcing its main features. NatWest Group recognises any onerous cost of the present obligation under a contract as a provision. An onerous cost is the unavoidable cost of meeting NatWest Group’s contractual obligations that exceed the expected economic benefits. When NatWest Group vacates a leasehold property, the right of use asset would be tested for impairment and a provision may be recognised for the ancillary contractual occupancy costs, such as rates. Contingent liabilities are possible obligations arising from past events, whose existence will be confirmed only by uncertain future events, or present obligations arising from past events that are not recognised because either an outflow of economic benefits is not probable or the amount of the obligation cannot be reliably measured. Contingent liabilities are not recognised but information about them is disclosed unless the possibility of any outflow of economic benefits in settlement is remote.
Tax	11. Tax Income tax expense or income, comprising current tax and deferred tax, is recorded in the income statement except income tax on items recognised outside profit or loss which is credited or charged to other comprehensive income. The tax consequences of servicing equity instruments are recognised in the income statement. Current tax is income tax payable or recoverable in respect of the taxable profit or loss for the year arising in profit or loss, other comprehensive income or equity. Provision is made for current tax at rates enacted, or substantively enacted, at the balance sheet date. Deferred tax is the tax expected to be payable or recoverable in respect of temporary differences between the carrying amount of an asset or liability for accounting purposes and the carrying amount for tax purposes. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent their recovery is probable. Deferred tax is not recognised on temporary differences that arise from initial recognition of an asset or a liability in a transaction (other than a business combination) that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is calculated using tax rates expected to apply in the periods when the assets will be realised or the liabilities settled, based on tax rates and laws enacted, or substantively enacted, at the balance sheet date. Deferred tax assets and liabilities are offset where NatWest Group has a legally enforceable right to offset and where they relate to income taxes levied by the same taxation authority either on an individual NatWest Group company or on NatWest Group companies in the same tax group that intend, in future periods, to settle current tax liabilities and assets on a net basis or on a gross basis simultaneously. Accounting for taxes is judgmental and carries a degree of uncertainty because tax law is subject to interpretation, which might be questioned by the relevant tax authority. NatWest Group recognises the most likely current and deferred tax liability or asset, assessed for uncertainty using consistent judgments and estimates. Current and deferred tax assets are only recognised where their recovery is deemed probable, and current and deferred tax liabilities are recognised at the amount that represents the best estimate of the probable outcome having regard to their acceptance by the tax authorities.
Financial instruments	12. Financial instruments Financial instruments are classified either by product, by business model or by reference to the IFRS default classification. Classification by product relies on specific designation criteria which are applicable to certain classes of financial assets or circumstances where accounting mismatches would otherwise arise. Classification by business model reflects how NatWest Group manages its financial assets to generate cash flows. A business model assessment determines if cash flows result from holding financial assets to collect the contractual cash flows, from selling those financial assets, or both. The product classifications apply to financial assets that are either designated at fair value through profit or loss (DFV), or to equity investments designated as at fair value through other comprehensive income (FVOCI). Financial assets may also be irrevocably designated at fair value through profit or loss upon initial recognition if such designation eliminates, or significantly reduces, accounting mismatch. In all other instances, fair value through profit or loss (MFVTPL) is the default classification and measurement category for financial assets. Regular way purchases of financial assets classified as amortised cost are recognised on the settlement date; all other regular way transactions in financial assets are recognised on the trade date. Business model assessment of assets is made at portfolio level, being the level at which they are managed to achieve a predefined business objective. This is expected to result in the most consistent classification of assets because it aligns with the stated objectives of the portfolio, its risk management, manager’s remuneration and the ability to monitor sales of assets from a portfolio. Financial assets which are managed under a ‘held to collect’ business model, and have contractual cash flows that comprise solely payments of principal and interest are measured at amortised cost. Other financial assets which are managed under a business model of both ‘held to collect and sell’ and have contractual cash flows comprising solely of payments of principal and interest are measured at fair value through other comprehensive income (‘FVOCI’). The contractual terms of a facility; any leverage features; prepayment and extension terms; and triggers that might reset the effective rate of interest; are considered in determining whether cash flows comprise solely payments of principal and interest. All financial instruments are measured at fair value on initial recognition. All liabilities not subsequently measured at fair value are measured at amortised cost.
Impairment	13. Impairment: expected credit losses (ECL) At each balance sheet date each financial asset or portfolio of loans measured at amortised cost or at fair value through other comprehensive income, issued financial guarantee and loan commitment is assessed for impairment and presented as impairments in the income statement. Loss allowances are forward-looking, based on 12 month ECL where there has not been a significant increase in credit risk rating, otherwise allowances are based on lifetime expected losses. ECL are a probability-weighted estimate of credit losses. The probability is determined by the risk of default which is applied to the cash flow estimates. In the absence of a change in credit rating, allowances are recognised when there is a reduction in the net present value of expected cash flows. On a significant increase in credit risk, allowances are recognised without a change in the expected cash flows, although typically expected cash flows do change also; and ECL are adjusted from 12 month to lifetime expectations. Judgement is exercised as follows: · Models – in certain low default portfolios, Basel parameter estimates are also applied for IFRS 9. · Non-modelled portfolios , mainly in Private Banking, RBSI and Lombard, use a standardised capital requirement under Basel II. Under IFRS 9, they have bespoke treatments for the identification of significant increase in credit risk. Benchmark PDs, EADs and LGDs are reviewed annually for appropriateness. The ECL calculation is based on expected future cash flows, which is typically applied at a portfolio level. · Multiple economic scenarios (MES) – the central, or base, scenario is most critical to the ECL calculation, independent of the method used to generate a range of alternative outcomes and their probabilities. · Significant increase in credit risk - IFRS 9 requires that at each reporting date, an entity shall assess whether the credit risk on an account has increased significantly since initial recognition. Part of this assessment requires a comparison to be made between the current lifetime PD (i.e. the current probability of default over the remaining lifetime) with the equivalent lifetime PD as determined at the date of initial recognition. On restructuring a financial asset without causing derecognition of the original asset, the revised cash flows are used in re-estimating the credit loss. Where restructuring causes derecognition of the original financial asset, the fair value of the replacement asset is used as the closing cash flow of the original asset. Where, in the course of the orderly realisation of a loan, it is exchanged for equity shares or property, the exchange is accounted for as the sale of the loan and the acquisition of equity securities or investment property. Where NatWest Group’s interest in equity shares following the exchange is such that NatWest Group controls an entity, that entity is consolidated. Impaired loans are written off and therefore derecognised from the balance sheet when NatWest Group concludes that there is no longer any realistic prospect of recovery of part, or all, of the loan. For loans that are individually assessed for impairment, the timing of the write-off is determined on a case by case basis. Such loans are reviewed regularly and write-off will be prompted by bankruptcy, insolvency, renegotiation and similar events. The typical time frames from initial impairment to write-off for NatWest Group’s collectively-assessed portfolios are: · Retail mortgages: write-off usually occurs within five years, or earlier, when an account is closed, but can be longer where the customer engages constructively, · Credit cards: the irrecoverable amount is typically written off after twelve arrears cycles or at four years post default any remaining amounts outstanding are written off, · Overdrafts and other unsecured loans: write-off occurs within six years, · Commercial loans: write-offs are determined in the light of individual circumstances; and Business loans are generally written off within five years.
Financial guarantee contracts	14. Financial guarantee contracts Under a financial guarantee contract, NatWest Group, in return for a fee, undertakes to meet a customer’s obligations under the terms of a debt instrument if the customer fails to do so. A financial guarantee is recognised as a liability; initially at fair value and, if not designated as at fair value through profit or loss, subsequently at the higher of its initial value less cumulative amortisation and any provision under the contract measured in accordance with Accounting policy 13. Amortisation is calculated to recognise fees receivable in profit or loss over the period of the guarantee.
Loan commitments	15. Loan commitments Provision is made for ECL on loan commitments, other than those classified as held-for-trading. Syndicated loan commitments in excess of the level of lending under the commitment approved for retention by NatWest Group are classified as held-for-trading and measured at fair value through profit or loss.
Derecognition	16. Derecognition A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired or when it has been transferred and the transfer qualifies for derecognition. Conversely, an asset is not derecognised by a contract under which NatWest Group retains substantially all the risks and rewards of ownership. If substantially all the risks and rewards have been neither retained nor transferred, NatWest Group does not derecognise an asset over which it has retained control but limits its recognition to the extent of its continuing involvement. A financial liability is removed from the balance sheet when the obligation is discharged, or is cancelled, or expires.
Sale and repurchase transactions	17. Sale and repurchase transactions Securities subject to a sale and repurchase agreement under which substantially all the risks and rewards of ownership are retained by NatWest Group continue to be shown on the balance sheet and the sale proceeds recorded as a financial liability. Securities acquired in a reverse sale and repurchase transaction under which NatWest Group is not exposed to substantially all the risks and rewards of ownership are not recognised on the balance sheet and the consideration paid is recorded as a financial asset. Sale and repurchase transactions that are not accounted for at fair value through profit or loss are measured at amortised cost. The difference between the consideration paid or received and the repurchase or resale price is treated as interest and recognised in interest income or interest expense over the life of the transaction.
Netting	18. Netting Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, NatWest Group currently has a legally enforceable right to set off the recognised amounts and it intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. NatWest Group is party to a number of arrangements, including master netting agreements, that give it the right to offset financial assets and financial liabilities, but where it does not intend to settle the amounts net or simultaneously, the assets and liabilities concerned are presented gross.
Capital instruments	19. Capital instruments NatWest Group classifies a financial instrument that it issues as a liability if it is a contractual obligation to deliver cash or another financial asset, or to exchange financial assets or financial liabilities on potentially unfavourable terms and as equity if it evidences a residual interest in the assets of NatWest Group after the deduction of liabilities. The components of a compound financial instrument issued by NatWest Group are classified and accounted for separately as financial assets, financial liabilities or equity as appropriate. Incremental costs and related tax that are directly attributable to an equity transaction are deducted from equity. The consideration for any ordinary shares of NatWest Group plc purchased by NatWest Group (treasury shares) is deducted from equity. On the cancellation of treasury shares their nominal value is removed from equity and any excess of consideration over nominal value is treated in accordance with the capital maintenance provisions of the Companies Act 2006. On the sale or re-issue of treasury shares the consideration received and related tax are credited to equity, net of any directly attributable incremental costs.
Derivatives and hedging	20. Derivatives and hedging Derivative financial instruments are initially recognised, and subsequently measured, at fair value. NatWest Group’s approach to determining the fair value of financial instruments is set out in the Critical accounting policies section and key sources of estimation uncertainty entitled Fair value - financial instruments; further details are given in Notes 10 and 12 to the accounts. A derivative embedded in a financial liability contract is accounted for as a stand-alone derivative if its economic characteristics are not closely related to the economic characteristics of the host contract; unless the entire contract is measured at fair value with changes in fair value recognised in profit or loss. Gains and losses arising from changes in the fair value of derivatives that are not the hedging instrument in a qualifying hedge are recognised as they arise in profit or loss. Gains and losses are recorded in Income from trading activities except for gains and losses on those derivatives that are managed together with financial instruments designated at fair value; these gains and losses are included in Other operating income. NatWest Group enters into three types of hedge relationship: hedges of changes in the fair value of a recognised asset or liability or unrecognised firm commitment (fair value hedges); hedges of the variability in cash flows from a recognised asset or liability or a highly probable forecast transaction (cash flow hedges); and hedges of the net investment in a foreign operation (net investment hedges). Hedge relationships are formally designated and documented at inception in line with the requirements of IAS 39 Financial instruments - Recognition and measurement . The documentation identifies the hedged item, the hedging instrument and details of the risk that is being hedged and the way in which effectiveness will be assessed at inception and during the period of the hedge. If the hedge is not highly effective in offsetting changes in fair values or cash flows attributable to the hedged risk, consistent with the documented risk management strategy, hedge accounting is discontinued. Hedge accounting is also discontinued if NatWest Group revokes the designation of a hedge relationship. Fair value hedge - in a fair value hedge, the gain or loss on the hedging instrument is recognised in profit or loss. The gain or loss on the hedged item attributable to the hedged risk is recognised in profit or loss and, where the hedged item is measured at amortised cost, adjusts the carrying amount of the hedged item. Hedge accounting is discontinued if the hedge no longer meets the criteria for hedge accounting; or if the hedging instrument expires or is sold, terminated or exercised; or if hedge designation is revoked. If the hedged item is one for which the effective interest rate method is used, any cumulative adjustment is amortised to profit or loss over the life of the hedged item using a recalculated effective interest rate. Cash flow hedge - in a cash flow hedge, the effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income and the ineffective portion in profit or loss. When the forecast transaction results in the recognition of a financial asset or financial liability, the cumulative gain or loss is reclassified from equity to profit or loss in the same periods in which the hedged forecast cash flows affect profit or loss. Otherwise the cumulative gain or loss is removed from equity and recognised in profit or loss at the same time as the hedged transaction. Hedge accounting is discontinued if the hedge no longer meets the criteria for hedge accounting; if the hedging instrument expires or is sold, terminated or exercised; if the forecast transaction is no longer expected to occur; or if hedge designation is revoked. On the discontinuation of hedge accounting (except where a forecast transaction is no longer expected to occur), the cumulative unrealised gain or loss is reclassified from equity to profit or loss when the hedged cash flows occur or, if the forecast transaction results in the recognition of a financial asset or financial liability, when the hedged forecast cash flows affect profit or loss. Where a forecast transaction is no longer expected to occur, the cumulative unrealised gain or loss is reclassified from equity to profit or loss immediately. Hedge of net investment in a foreign operation - In the hedge of a net investment in a foreign operation, the portion of foreign exchange differences arising on the hedging instrument determined to be an effective hedge is recognised in other comprehensive income. Any ineffective portion is recognised in profit or loss. Non-derivative financial liabilities as well as derivatives may be the hedging instrument in a net investment hedge. On disposal or partial disposal of a foreign operation, the amount accumulated in equity is reclassified from equity to profit or loss.
Associates and joint ventures	21. Associates and joint ventures An associate is an entity over which NatWest Group has significant influence. A joint venture is one which it controls jointly with other parties. Investments in associates and interests in joint ventures are recognised using the equity method. They are stated initially at cost, including attributable goodwill, and subsequently adjusted for post-acquisition changes in NatWest Group’s share of net assets.
Cash and cash equivalents	22. Cash and cash equivalents In the cash flow statement, cash and cash equivalents comprises cash and deposits with banks with an original maturity of less than three months together with short-term highly liquid investments that are readily convertible to known amounts of cash and subject to insignificant risk of change in value.
Shares in Group entities	23. Shares in Group entities NatWest Group plc’s investments in its subsidiaries are stated at cost less any impairment.
Critical accounting policies and key sources of estimation uncertainty	Critical accounting policies and key sources of estimation uncertainty The reported results of NatWest Group are sensitive to the accounting policies, assumptions and estimates that underlie the preparation of its accounts. UK company law and IFRS require the directors, in preparing NatWest Group's accounts, to select suitable accounting policies, apply them consistently and make judgements and estimates that are reasonable and prudent. In the absence of an applicable standard or interpretation, IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’, requires management to develop and apply an accounting policy that results in relevant and reliable information in the light of the requirements and guidance in IFRS dealing with similar and related issues and the IASB's ’Conceptual Framework for Financial Reporting’. The judgements and assumptions involved in NatWest Group's accounting policies that are considered by the Board to be the most important to the portrayal of its financial condition are discussed below. The use of estimates, assumptions or models that differ from those adopted by NatWest Group would affect its reported results . During 2020, estimation uncertainty has been affected by the COVID-19 pandemic. The COVID-19 pandemic has continued to cause significant economic and social disruption during 2020. Key financial estimates are based on management's latest five-year revenue and cost forecasts. Measurement of goodwill, deferred tax and expected credit losses are highly sensitive to reasonably possible changes in those anticipated conditions. Other reasonably possible assumptions about the future include a prolonged financial effect of the COVID-19 pandemic on the economy of the UK and other countries. Changes in judgements and assumptions could result in a material adjustment to those estimates in the next reporting periods. Consideration of this source of estimation uncertainty has been set out in the notes below (as applicable). Critical accounting policy Note Deferred tax Fair value - financial instruments Loan impairment provisions Goodwill Provisions for liabilities and charges
Future accounting developments	Future accounting developments International Financial Reporting Standards COVID-19 amendments on lease modifications - Amendments to IFRS 16 - Leases (IFRS 16) The IASB published 'amendments to IFRS 16 covering COVID-19-Related Rent Concessions'. These provide lessees with an exemption from assessing whether a COVID-19 related rent concession is a lease modification. The amendment is effective for annual reporting periods beginning on or after 1 June 2020. The effect of the amendment on NatWest Group's accounts is immaterial and will be adopted from 1 January 2021. Other new standards and amendments that are effective for annual periods beginning after 1 January 2022, with earlier application permitted, are set out below. Effective 1 January 2022 · Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37). · Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16). · Reference to Conceptual Framework (Amendments to IFRS 3). · Classification of Liabilities as Current or Non-current (Amendments to IAS 1). · Fees in the “10 per cent” test for Derecognition of Financial Liabilities (Amendments to IFRS 9). Effective 1 January 2023 · IFRS 17 Insurance Contracts (Amendments to IFRS 17 Insurance Contracts). NatWest Group is assessing the effect of adopting these standards and amendments on its financial statements but do not expect the effect to be material.

Accounting policies (Tables)

Accounting policies (Tables)	12 Months Ended
Accounting policies (Tables)	Dec. 31, 2020
Accounting policies
Schedule of estimated useful economic lives	Computer software 3 to 12 years Other acquired intangibles 5 to 10 years

Net interest income (Tables)

Net interest income (Tables)	12 Months Ended
Net interest income (Tables)	Dec. 31, 2020
Net interest income
Schedule of Net interest income	£m £m £m Balances at central banks 90 321 358 Loans to banks - amortised cost 246 405 164 Loans to customers - amortised cost 9,252 9,795 9,993 Other financial assets 483 854 534 Interest receivable 10,071 Balances with banks 144 319 250 Customer deposits 911 1,256 849 Other financial liabilities 846 1,102 791 Subordinated liabilities 402 483 461 Internal funding of trading businesses 19 168 42 Interest payable 2,322 Net interest income 7,749 8,047 8,656

Non-interest income (Tables)

Non-interest income (Tables)	12 Months Ended
Non-interest income (Tables)	Dec. 31, 2020
Non-interest income
Schedule of Non-interest income	2 Non-interest income £m £m £m Net fees and commissions (1) 2,012 2,511 2,357 Income from trading activities Foreign exchange 569 448 643 Interest rate 541 532 695 Credit 3 32 45 Changes in fair value of own debt and derivative liabilities attributable to own credit risk - debt securities in issue (24) (60) 72 - derivative liabilities — (20) 20 Equities, commodities and other 36 — 32 1,125 932 1,507 Other operating income Loss on redemption of own debt (324) — — Operating lease and other rental income 232 250 256 Changes in the fair value of financial assets and liabilities designated at fair value through profit or loss (2) (54) (17) (26) Changes in fair value of other financial assets at fair value through profit or loss (3) 2 58 18 Hedge ineffectiveness 24 48 (65) (Loss)/profit on disposal of amortised cost assets (18) 42 44 Profit/(loss) on disposal of fair value through other comprehensive income assets 96 (22) 34 Profit on sale of property, plant and equipment 13 58 50 Share of (losses)/profits of associated entities (30) (14) 83 (Loss)/profit on disposal of subsidiaries and associates (4) (16) 2,224 (72) Other income (5, 6) (15) 136 560 (90) 2,763 882 3,047 6,206 4,746 Notes: (1) Refer to Note 4 for further analysis. (2) Including related derivatives. (3) Includes instruments that have failed SPPI testing under IFRS 9. (4) 2019 includes a gain of £444 million(€523 million), a legacy liability release of £256 million and an FX recycling gain of £290 million on completion of the Alawwal bank merger in June 2019; In 2019, £1,102 million of FX recycling gains arising on the liquidation of RFS Holdings BV and £67 million in relation to a capital repayment by UBI DAC. The recycling gains and capital repayment have been calculated using the step-by-step method in IFRIC 16 and by reference to the proportion of equity applied to the FX translation reserve. (5) Includes income from activities other than banking. 2018 includes insurance recoveries of £357 million. (6) 2020 includes £58 million loss on acquisition of a £3.0 billion prime UK mortgages portfolio from Metro Bank plc.

Operating expenses (Tables)

Operating expenses (Tables)	12 Months Ended
Operating expenses (Tables)	Dec. 31, 2020
Operating expenses
Schedule of operating expenses	£m £m £m Salaries 2,533 2,513 2,560 Bonus awards 232 299 225 Temporary and contract costs 258 401 442 Social security costs 320 300 307 Pension costs 342 303 - defined benefit schemes (see Note 5) 215 188 307 - defined contribution schemes 127 115 94 Other 238 202 187 Staff costs 3,923 4,018 4,122 Premises and equipment (1) 1,223 1,259 1,383 UK bank levy (2) 167 134 179 Depreciation and amortisation (3) 905 1,176 731 Other administrative expenses (4) 1,678 2,694 3,193 Administrative expenses 3,973 5,263 5,486 Impairment of other intangible assets 9 44 37 7,905 9,325 9,645 Notes: (1) 2020 includes cost of £144 million including accelerated depreciation of £71 million (2019 - £161 million including £40 million accelerated depreciation) in relation to the planned reduction of the property portfolio (2020 – freehold £1 million; leasehold £143 million; 2019 - freehold £4million; leasehold £157 million). (2) 2019 includes a rebate of £31 million relating to prior periods. (3) 2020 includes a £107 million charge relating to the reduction in property portfolio, leasehold £86 million and freehold £21 million (2019 - £287 million charge, leasehold £37 million and freehold £250 million). (4) Includes litigation and conduct costs, net of amounts recovered. Refer to Notes 20 and 26 for further details.
Schedule of employees in continuing operations	Retail Banking 17,200 19,600 21,300 Ulster Bank RoI 2,600 2,700 2,900 Commercial Banking 9,700 9,700 9,800 Private Banking 2,200 1,900 1,900 RBS International 1,500 1,600 1,600 NatWest Markets 2,100 5,000 4,500 Central items & other 24,600 22,400 23,400 Total 59,900 62,900 65,400 UK 42,500 44,600 46,600 USA 300 400 500 Europe 3,800 4,100 4,100 Rest of the World 13,300 13,800 14,200 Total 59,900 62,900 65,400
Schedule of share-based compensation	Award plan Eligible employees Nature of award Vesting conditions (1) Settlement Sharesave UK, Republic of Ireland, Channel Islands, Gibraltar and Isle of Man Option to buy shares under employee savings plan Continuing employment or leavers in certain circumstances 2021 to 2024 Deferred performance awards All Awards of ordinary shares Continuing employment or leavers in certain circumstances 2021 to 2027 Long-term incentives (2) Senior employees Awards of ordinary shares and conditional shares Continuing employment or leavers in certain circumstances and/or satisfaction of the pre-vest assessment and underpins 2021 to 2027 Notes: (1) All awards have vesting conditions and therefore some may not vest. (2) Long-term incentives include the Executive Share Option Plan, the Long-Term Incentive Plan and the Employee Share Plan.
Schedule of bonus awards	Change £m £m % Non-deferred cash awards (1) 35 40 (13) Total non-deferred bonus awards 35 40 (13) Deferred bond awards 111 184 (40) Deferred share awards 60 83 (28) Total deferred bonus awards 171 267 (36) Total bonus awards (2) 206 307 (33) Bonus awards as a % of operating profit before tax (3) (173) % 7 % Proportion of bonus awards that are deferred 83 % 87 % of which - deferred bond awards 65 % 69 % - deferred share awards 35 % 31 %
Schedule of reconciliation of bonus awards	Reconciliation of bonus awards to income statement charge £m £m £m Bonus awarded 206 307 335 Less: deferral of charge for amounts awarded for current year (77) (110) (130) Income statement charge for amounts awarded in current year 129 197 205 Add: current year charge for amounts deferred from prior years 114 127 86 Less: forfeiture of amounts deferred from prior years (11) (25) (66) Income statement charge for amounts deferred from prior years 103 102 20 Income statement charge for bonus awards (2) 232 299 225 Notes: (1) Cash awards are limited to £2,000 for all employees. (2) Excludes other performance related compensation. (3) Operating profit before tax and bonus expense.
Schedule of income statement charge expected to be taken for bonus awards	Actual Expected and beyond Year in which income statement charge is expected to be taken for deferred bonus awards £m £m £m £m £m Bonus awards deferred from 2018 and earlier 86 127 30 13 Bonus awards deferred from 2019 — — 84 12 Less: forfeiture of amounts deferred from prior years (66) (25) (11) — — Bonus awards for 2020 deferred — — — 58 20 102 103 83
Sharesave
Operating expenses
Schedule of share-based compensation	Sharesave 2020 2019 2018 Average Shares Average Shares Average Shares exercise price under option exercise price under option exercise price under option £ (million) £ (million) £ (million) At 1 January 2.01 84 2.18 75 2.38 60 Granted 1.12 35 1.78 25 1.89 28 Exercised 1.83 — 2.83 (4) 2.44 (4) Cancelled 2.20 (23) 2.25 (12) 2.46 (9) At 31 December 1.64 96 2.01 84 2.18 75
Deferred performance awards
Operating expenses
Schedule of share-based compensation	Deferred performance awards 2020 2019 2018 Value at Shares Value at Shares Value at Shares grant awarded grant awarded grant awarded £m (million) £m (million) £m (million) At 1 January 196 76 233 92 264 101 Granted 109 67 110 42 156 59 Forfeited (5) (2) (10) (4) (21) (8) Vested (131) (64) (137) (54) (166) (60) At 31 December 169 77 196 76 233 92
Long-term incentives
Operating expenses
Schedule of share-based compensation	Long-term incentives 2020 2019 2018 Value at Shares Options Value at Shares Options Value at Shares Options grant awarded over shares grant awarded over shares grant awarded over shares £m (million) (million) £m (million) (million) £m (million) (million) At 1 January 63 25 — 85 32 2 102 37 2 Granted 14 10 — 15 6 — 12 5 — Vested/exercised (17) (7) — (12) (4) — (5) (2) — Lapsed (10) (4) — (25) (9) (2) (24) (8) — At 31 December 50 24 — 63 25 — 85 32 2

Segmental analysis (Tables)

Segmental analysis (Tables)	12 Months Ended
Segmental analysis (Tables)	Dec. 31, 2020
Segmental analysis
Schedule of operating segments	Retail Ulster Commercial Private Central items Banking Bank RoI Banking Banking RBSI NWM & other (1) Total 2020 £m £m £m £m £m £m £m £m Net interest income 3,868 395 2,740 489 371 (57) (57) 7,749 Net fees and commissions 379 89 1,110 257 94 99 (16) 2,012 Other non-interest income (66) 26 108 17 32 1,081 (163) 1,035 Total income 4,181 510 3,958 763 497 1,123 (236) 10,796 Operating expenses (2,540) (486) (2,281) (447) (274) (1,294) 322 (7,000) Depreciation and amortisation — — (149) (8) (17) (16) (715) (905) Impairment losses (792) (250) (1,927) (100) (107) (40) (26) (3,242) Operating profit/(loss) 849 (226) (399) 208 99 (227) (655) (351) Retail Ulster Commercial Private Central items Banking Bank RoI Banking Banking RBSI NWM & other (1) Total 2019 £m £m £m £m £m £m £m £m Net interest income 4,130 400 2,842 521 478 (188) (136) 8,047 Net fees and commissions 696 109 1,312 226 106 85 (23) 2,511 Other non-interest income 40 58 164 30 26 1,445 1,932 3,695 Total income 4,866 567 4,318 777 610 1,342 1,773 14,253 Operating expenses (3,618) (552) (2,458) (482) (254) (1,406) 621 (8,149) Depreciation and amortisation — — (142) (4) (10) (12) (1,008) (1,176) Impairment losses (393) 34 (391) 6 (2) 51 (1) (696) Operating profit/(loss) 855 49 1,327 297 344 (25) 1,385 4,232 2018 Net interest income 4,283 444 2,855 518 466 112 (22) 8,656 Net fees and commissions 692 91 1,283 228 101 (33) (5) 2,357 Other non-interest income 79 75 464 29 27 1,363 352 2,389 Total income 5,054 610 4,602 775 594 1,442 325 13,402 Operating expenses (2,867) (583) (2,362) (476) (254) (1,589) (783) (8,914) Depreciation and amortisation — — (125) (2) (6) (15) (583) (731) Impairment losses (339) (15) (147) 6 2 92 3 (398) Operating profit/(loss) 1,848 12 1,968 303 336 (70) (1,038) 3,359 Note: (1) 2020 predominantly relates to interest receivable in Treasury; 2019 predominantly related to interest receivable in Treasury and strategic disposals in Functions and 2018 predominately related to interest receivable in Treasury. 2020 2019 2018 Inter Inter Inter External segment Total External segment Total External segment Total Total revenue (1) £m £m £m £m £m £m £m £m £m Retail Banking 5,386 39 5,425 6,161 62 6,223 6,188 63 6,251 Ulster Bank RoI 568 2 570 616 6 622 668 — 668 Commercial Banking 3,734 64 3,798 4,347 139 4,486 4,576 89 4,665 Private Banking 702 163 865 703 241 944 681 195 876 RBS International 505 3 508 639 19 658 506 148 654 NatWest Markets 1,984 13 1,997 2,516 558 3,074 1,882 916 2,798 Central items & other 961 (284) 677 3,447 (1,025) 2,422 2,155 (1,411) 744 Total 13,840 — 13,840 18,429 — 18,429 16,656 — 16,656 Note: (1) Total revenue comprises interest receivable, fees and commissions receivable, income from trading activities and other operating income. 2020 2019 2018 Inter Inter Inter External segment Total External segment Total External segment Total Total income £m £m £m £m £m £m £m £m £m Retail Banking 4,157 24 4,181 4,834 32 4,866 5,021 33 5,054 Ulster Bank RoI 516 (6) 510 562 5 567 613 (3) 610 Commercial Banking 4,065 (107) 3,958 4,814 (496) 4,318 5,079 (477) 4,602 Private Banking 700 63 763 631 146 777 655 120 775 RBS International 500 (3) 497 603 7 610 469 125 594 NatWest Markets 1,395 (272) 1,123 1,664 (322) 1,342 1,510 (68) 1,442 Central items & other (537) 301 (236) 1,145 628 1,773 55 270 325 Total 10,796 — 10,796 14,253 — 14,253 13,402 — 13,402 Retail Ulster Commercial Private RBS NatWest Central items Analysis of net fees and commissions Banking Bank RoI Banking Banking International Markets & other Total 2020 £m £m £m £m £m £m £m £m Fees and commissions receivable - Payment services 264 57 507 28 18 18 — 892 - Credit and debit card fees 299 21 129 9 2 — — 460 - Lending and financing 42 16 505 7 34 86 — 690 - Brokerage 54 1 — 6 1 93 — 155 - Investment management, trustee and fiduciary services (1) 3 2 1 225 38 2 — 271 - Underwriting fees — — — — — 183 — 183 - Other 1 — 82 26 3 4 (33) 83 Total 663 97 1,224 301 96 386 (33) 2,734 Fees and commissions payable (284) (8) (114) (44) (2) (287) 17 (722) Net fees and commissions 379 89 1,110 257 94 99 (16) 2,012 2019 Fees and commissions receivable - Payment services 292 61 659 33 27 24 — 1,096 - Credit and debit card fees 427 28 154 12 2 — — 623 - Lending and financing 356 16 510 3 36 85 — 1,006 - Brokerage 55 8 — 5 — 96 — 164 - Investment management, trustee and fiduciary services 44 3 3 186 41 1 — 278 - Underwriting fees — — — — — 170 — 170 - Other 2 5 90 27 2 69 (173) 22 Total 1,176 121 1,416 266 108 445 (173) 3,359 Fees and commissions payable (480) (12) (104) (40) (2) (360) 150 (848) Net fees and commissions 696 109 1,312 226 106 85 (23) 2,511 2018 Fees and commissions receivable - Payment services 227 34 556 33 25 3 — 878 - Credit and debit card fees 402 22 175 13 — — — 612 - Lending and financing 408 31 537 3 33 91 — 1,103 - Brokerage 62 6 — 5 — 85 — 158 - Investment management, trustee and fiduciary services 49 4 — 191 42 — — 286 - Underwriting fees 13 — 17 — — 144 — 174 - Other 2 1 60 16 2 67 (141) 7 Total 1,163 98 1,345 261 102 390 (141) 3,218 Fees and commissions payable (471) (7) (62) (33) (1) (423) 136 (861) Net fees and commissions 692 91 1,283 228 101 (33) (5) 2,357 Note: (1) Comparisons with prior periods are impacted by the transfer of the Private Client Advice business to Private Banking from 1 January 2020. 2020 2019 2018 Assets Liabilities Assets Liabilities Assets Liabilities £m £m £m £m £m £m Retail Banking 197,618 178,617 182,305 153,999 171,011 148,792 Ulster Bank RoI 26,620 22,993 25,385 21,012 25,193 21,189 Commercial Banking 187,413 174,251 165,399 140,863 166,478 139,804 Private Banking 26,206 32,457 23,304 28,610 21,983 28,554 RBS International 33,984 31,989 31,738 30,330 28,398 27,663 NatWest Markets 270,147 254,098 263,885 246,907 244,531 227,399 Central items & other 57,503 61,262 31,023 57,762 36,641 54,344 Total 799,491 755,667 723,039 679,483 694,235 647,745
Schedule of geographical segments	UK USA Europe RoW Total 2020 £m £m £m £m £m Total revenue 12,511 211 944 174 13,840 Interest receivable 9,479 — 570 22 10,071 Interest payable (2,163) — (158) (1) (2,322) Net fees and commissions 1,637 33 245 97 2,012 Income from trading activities 911 170 33 11 1,125 Other operating income (117) (22) 45 4 (90) Total income 9,747 181 735 133 10,796 Operating (loss)/profit before tax (193) (85) (161) 88 (351) Total assets 704,725 25,439 66,884 2,443 799,491 Total liabilities 686,500 26,932 41,018 1,217 755,667 Contingent liabilities and commitments 118,654 — 10,068 10 128,732 2019 Total revenue 16,925 228 1,148 128 18,429 Interest receivable 10,923 — 417 35 11,375 Interest payable (3,255) — (70) (3) (3,328) Net fees and commissions 2,191 37 211 72 2,511 Income from trading activities 727 148 49 8 932 Other operating income 2,305 13 436 9 2,763 Total income 12,891 198 1,043 121 14,253 Operating profit before tax 3,543 186 421 82 4,232 Total assets* 634,642 27,396 57,534 3,467 723,039 Total liabilities 613,151 31,715 33,539 1,078 679,483 Contingent liabilities and commitments 114,422 — 10,571 2 124,995 2018 Total revenue 15,351 300 838 167 16,656 Interest receivable 10,589 — 430 30 11,049 Interest payable (2,366) — (26) (1) (2,393) Net fees and commissions 2,183 12 102 60 2,357 Income from trading activities 1,308 124 68 7 1,507 Other operating income 467 119 229 67 882 Total income 12,181 255 803 163 13,402 Operating profit/(loss) before tax 3,805 (718) 150 122 3,359 Total assets 615,933 25,487 47,211 5,604 694,235 Total liabilities 588,185 31,329 27,183 1,048 647,745 Contingent liabilities and commitments 121,267 — 5,408 208 126,883 *2019 re-presented.

Pensions (Tables)

Pensions (Tables)	12 Months Ended
Pensions (Tables)	Dec. 31, 2020
Pensions
Major classes of plan assets as a percentage of total plan assets	Major classes of plan assets as a percentage of 2020 2019 total plan assets of the Main section Quoted Unquoted Total Quoted Unquoted Total % % % % % % Equities 3.9 4.6 8.5 3.9 4.8 8.7 Index linked bonds 49.4 — 49.4 47.8 — 47.8 Government bonds 6.2 — 6.2 9.3 — 9.3 Corporate and other bonds 11.8 5.0 16.8 11.6 5.0 16.6 Real estate — 4.2 4.2 — 4.8 4.8 Derivatives — 10.0 10.0 — 7.8 7.8 Cash and other assets — 4.9 4.9 — 5.0 5.0 71.3 28.7 100.0 72.6 27.4 100.0
Summary of derivative instruments	2020 2019 Notional Fair value Notional Fair value amounts Assets Liabilities amounts Assets Liabilities £bn £m £m £bn £m £m Inflation rate swaps 18 1,390 1,716 16 909 1,094 Interest rate swaps 68 11,197 6,215 57 6,407 2,992 Currency forwards 11 334 38 9 215 42 Equity and bond call options 1 169 1 1 122 — Equity and bond put options 3 1 19 5 3 1 Other 2 63 17 3 124 13
Changes in value of net pension liability	Main section All schemes Present value Asset Net Present value Asset Net Fair of defined ceiling/ pension Fair of defined ceiling/ pension value of benefit minimum (asset)/ value of benefit minimum (asset)/ plan assets obligation(1) funding (2) liability plan assets obligation(1) funding (2) liability Changes in value of net pension (asset)/liability £m £m £m £m £m £m £m £m At 1 January 2019 43,806 35,466 8,340 — 48,752 39,607 8,790 (355) Currency translation and other adjustments — — — — (85) (76) — 9 Income statement 1,245 1,156 242 153 1,374 1,307 255 188 Statement of comprehensive income 3,021 4,825 (1,696) 108 3,556 5,428 (1,730) 142 Contributions by employer 261 — — (261) 473 — — (473) Contributions by plan participants and other scheme members 10 10 — — 15 15 — — Liabilities extinguished upon settlement — — — — (188) (194) — (6) Benefits paid (1,788) (1,788) — — (1,972) (1,972) — — At 1 January 2020 46,555 39,669 6,886 — 51,925 44,115 7,315 (495) Currency translation and other adjustments — 4 — 4 92 71 — (21) Income statement Net interest expense 936 795 141 — 1,037 890 149 2 Current service cost — 156 — 156 — 208 — 208 Past service cost — 3 — 3 — 5 — 5 936 954 141 159 1,037 1,103 149 215 Statement of comprehensive income Return on plan assets excluding recognised interest income 5,486 — — (5,486) 6,027 — — (6,027) Experience gains and losses — (427) — (427) — (455) — (455) Effect of changes in actuarial financial assumptions — 5,419 — 5,419 — 5,974 — 5,974 Effect of changes in actuarial demographic assumptions — 138 — 138 — 185 — 185 Asset ceiling adjustments — — 426 426 — — 319 319 5,486 5,130 426 70 6,027 5,704 319 (4) Contributions by employer 233 — — (233) 296 — — (296) Contributions by plan participants and other scheme members 9 9 — — 14 14 — — Liabilities extinguished upon settlement — — — — (2) (3) — (1) Benefits paid (1,896) (1,896) — — (2,140) (2,140) — — At 31 December 2020 51,323 43,870 7,453 — 57,249 48,864 7,783 (602) Notes: (1) Defined benefit obligations are subject to annual valuation by independent actuaries. (2) NatWest Group recognises the net pension scheme surplus or deficit as a net asset or liability. In doing so, the funded status is adjusted to reflect any schemes with a surplus that NatWest Group may not be able to access, as well as any minimum funding requirement to pay in additional contributions. This is most relevant to the Main section, where the surplus is not recognised. Other NatWest Group schemes that this applies to include the Ulster Bank Limited scheme and the NatWest Markets section. (3) NatWest Group expects to make contributions to the Main section of £215 million in 2021. Additional contributions of up to £500 million will be paid to the Main section, should NatWest Group make distributions in 2021, in line with the ring-fencing agreement with the Trustee. All schemes Amounts recognised on the balance sheet £m £m Fund assets at fair value 57,249 51,925 Present value of fund liabilities 48,864 44,115 Funded status 8,385 7,810 Asset ceiling/minimum funding 7,783 7,315 602 495 Net pension asset/(liability) comprises £m £m Net assets of schemes in surplus (included in Other assets, Note 17) 723 614 Net liabilities of schemes in deficit (included in Other liabilities, Note 20) (121) (119) 602 495
Principal actuarial assumptions	Principal IAS 19 actuarial assumptions Principal assumptions of Main section % % 2017 triennial valuation Discount rate 1.4 2.1 Fixed interest swap yield curve plus 0.8% per annum Inflation assumption (RPI) 2.9 2.9 RPI swap yield curve Rate of increase in salaries 1.8 1.8 Rate of increase in deferred pensions 3.0 3.0 Rate of increase in pensions in payment 2.7 2.8 Modelled allowance for relevant caps and floors Lump sum conversion rate at retirement 20 20 % Longevity at age 60: years years Current pensioners Males 27.1 26.9 Females 29.0 28.7 Future pensioners, currently aged 40 Males 28.3 28.2 Females 30.4 30.2
Sensitivities of the present value of defined benefit obligations	(Decrease)/ (Decrease)/ Increase in increase in increase in net pension value of value of (obligations)/ assets liabilities assets 2020 £m £m £m 0.25% increase in interest rates/discount rate (2,585) (2,384) (201) 0.25% increase in inflation 2,204 1,603 601 0.25% increase in credit spreads (6) (2,384) 2,378 Longevity increase of one year — 1,930 (1,930) 0.25% additional rate of increase in pensions in payment — 1,608 (1,608) Increase in equity values of 10% (1) 454 — 454 2019 0.25% increase in interest rates/discount rate (2,330) (1,973) (357) 0.25% increase in inflation 1,923 1,394 529 0.25% increase in credit spreads (5) (1,973) 1,968 Longevity increase of one year — 1,706 (1,706) 0.25% additional rate of increase in pensions in payment — 1,326 (1,326) Increase in equity values of 10% (1) 430 — 430 Note: (1) Includes both quoted and private equity. The funded status is most sensitive to movements in credit spreads and longevity. The table below shows the combined change in the funded status of the Main section as a result of larger movements in these assumptions, assuming no changes in other assumptions. Change in life expectancies -2 years -1 years No change + 1 year + 2 years 2020 £bn £bn £bn £bn £bn Change in credit spreads +50 bps 7.8 6.1 4.5 2.9 1.3 No change 3.9 1.9 — (1.9) (3.9) -50 bps (0.6) (2.8) (5.1) (7.4) (9.7) 2019 Change in credit spreads +50 bps 6.9 5.4 3.9 2.3 0.8 No change 3.6 1.7 — (1.7) (3.6) -50 bps (0.2) (2.3) (4.4) (6.5) (8.7)
Different classes of scheme members proportions	Membership category % % Active members 14.2 13.6 Deferred members 50.9 49.7 Pensioners and dependants 34.9 36.7 100.0 100.0
History of defined benefit schemes	Main section All schemes History of defined benefit schemes £m £m £m £m £m £m £m £m £m £m Fair value of plan assets 51,323 46,555 43,806 44,652 43,824 57,249 51,925 48,752 49,746 49,229 Present value of plan obligations 43,870 39,669 35,466 37,937 38,851 48,864 44,115 39,607 42,378 43,990 Net surplus 7,453 6,886 8,340 6,715 4,973 8,385 7,810 9,145 7,368 5,239 Experience gains/(losses) on plan liabilities 427 275 (122) (107) 658 455 279 (81) (93) 794 Experience gains/(losses) on plan assets 5,486 3,021 (1,891) 1,580 8,562 6,027 3,556 (2,090) 1,728 9,254 Actual return on plan assets 6,422 4,266 (768) 2,735 9,872 7,064 4,930 (848) 3,013 10,708 Actual return on plan assets 13.8 % 9.7 % (1.7) % 6.2 % 32.2 % 13.6 % 10.1 % (1.7) % 6.1 % 30.9 %

Auditor's remuneration (Tables)

Auditor's remuneration (Tables)	12 Months Ended
Auditor's remuneration (Tables)	Dec. 31, 2020
Auditor's remuneration
Schedule of auditor's remuneration	£m £m £m Fees payable for : - the audit of NatWest Group’s annual accounts (1) 4.7 3.8 3.5 - the audit of NatWest Group plc’s subsidiaries (1) 30.6 25.7 27.5 - audit-related assurance services (1,2) 4.7 3.2 2.9 Total audit and audit-related assurance services fees 40.0 32.7 33.9 Other assurance services 0.6 1.2 1.3 Corporate finance services (3) 0.4 0.6 0.2 Total other services 1.0 1.8 1.5 Notes: (1) The 2020 audit fee was approved by the Group Audit Committee. At 31 December 2020, £23 million has been billed and paid in respect of the 2020 NatWest Group audit fees. (2) Comprises fees of £1.1 million (2019 - £1.1 million) in relation to reviews of interim financial information, £3.2 million (2019 - £1. 4 million) in respect of reports to NatWest Group’s regulators in the UK and overseas, and £0.4 million (2019 - £0.7 million) in relation to non-statutory audit opinions. (3) Comprises fees of £0.4 million (2019 - £0.6 million) in respect of work performed by the auditors as reporting accountants on debt and equity issuances undertaken by NatWest Group.

Tax (Tables)

Tax (Tables)	12 Months Ended
Tax (Tables)	Dec. 31, 2020
Tax
Schedule of current and deferred tax expense	£m £m £m Current tax Charge for the year (191) (673) (1,025) Over provision in respect of prior years 86 122 125 (105) (551) (900) Deferred tax Credit/(charge) for the year 251 38 (280) (Decrease)/increase in the carrying value of deferred tax assets in respect of UK and Ireland losses (139) 62 7 (Under)/over provision in respect of prior years (90) 19 (35) Tax charge for the year (83) (432) (1,208)
Schedule of reconciliation of actual tax charge from the expected tax charge	£m £m £m Expected tax credt/(charge) 67 (804) (638) Losses and temporary differences in year where no deferred tax asset recognised (27) (4) (55) Foreign profits taxed at other rates (20) 23 (8) Items not allowed for tax: - losses on disposals and write-downs (22) (71) (44) - UK bank levy (32) (26) (38) - regulatory and legal actions 14 (165) (203) - other disallowable items (70) (62) (63) Non-taxable items: - Alawwal bank merger gain disposal — 215 — - FX recycling on the liquidation of RFS Holdings — 279 — - other non-taxable items 28 80 47 Taxable foreign exchange movements (3) (1) (27) Losses brought forward and utilised 16 27 14 Increase/(decrease) in the carrying value of deferred tax assets in respect of: - UK losses 7 129 7 - Ireland losses (146) (67) — Banking surcharge (27) (199) (357) Tax on paid-in equity 61 73 67 UK tax rate change impact (1) 75 — — Adjustments in respect of prior years (2) (4) 141 90 Actual tax charge (83) (432) (1,208) Notes: (1) The Finance Bill 2020 amended the rate of UK corporation tax to 19% for the financial year beginning 1 April 2020. This reverses the rate reduction to 17% for the financial year beginning 1 April 2020 previously enacted. Deferred tax balances previously based on the lower rate have been restated accordingly. (2) Prior year tax adjustments incorporate refinements to tax computations made on submission and agreement with the tax authorities. Current taxation balances include provisions in respect of uncertain tax positions, in particular in relation to restructuring and other costs where the taxation treatment remains subject to agreement with the relevant tax authorities.
Schedule of deferred tax asset and liability	£m £m Deferred tax asset (901) (1,011) Deferred tax liability 291 266 Net deferred tax asset (610) (745)
Schedule of net deferred tax asset	Tax Accelerated losses capital Expense Financial carried Pension allowances provisions instruments forward Other Total £m £m £m £m £m £m £m At 1 January 2019 (528) 220 (159) 349 (936) 96 (958) Implementation of IFRS16 on 1 January 2019 — — — — — (60) (60) Acquisitions and disposals of subsidiaries (1) (1) — 18 — — 16 Charge/(credit) to income statement 28 (43) 41 (81) (28) (36) (119) Charge/(credit) to other comprehensive income 362 — — 30 — (20) 372 Currency translation and other adjustments — (4) — (1) 13 (4) 4 At 1 January 2020 (139) 172 (118) 315 (951) (24) (745) Charge/(credit) to income statement 15 (234) 33 114 55 (5) (22) Charge/(credit) to other comprehensive income 119 — — 51 — (7) 163 Currency translation and other adjustments 1 (2) — — (9) 4 (6) At 31 December 2020 (4) (64) (85) 480 (905) (32) (610)
Schedule of recognised deferred tax assets in respect of tax losses	£m £m UK tax losses carried forward - NWM Plc 62 75 - NWB Plc 592 530 - RBS plc 200 150 - Ulster Bank Limited 8 15 Total 862 770 Overseas tax losses carried forward UBI DAC 43 181 905 951

Earnings per share (Tables)

Earnings per share (Tables)	12 Months Ended
Earnings per share (Tables)	Dec. 31, 2020
Earnings per share
Schedule of earnings per share	£m £m £m Earnings (Loss)/Profit attributable to ordinary shareholders (753) 3,133 1,622 Weighted average number of shares (millions) Weighted average number of ordinary shares outstanding during the year 12,095 12,067 12,009 Effect of dilutive share options and convertible securities 23 35 52 Diluted weighted average number of ordinary shares outstanding during the year 12,118 12,102 12,061

Trading assets and liabilities

Trading assets and liabilities (Tables)	12 Months Ended
Trading assets and liabilities (Tables)	Dec. 31, 2020
Trading assets and liabilities
Schedule of trading assets and liabilities	Assets £m £m Loans Reverse repos 19,404 24,095 Collateral given 18,760 20,579 Other loans 1,611 1,947 Total loans 39,775 46,621 Securities Central and local government - UK 4,184 4,897 - US 5,149 5,458 - Other 16,436 14,902 Financial institutions and Corporate 3,446 4,867 Total securities 29,215 30,124 Total 68,990 76,745 Liabilities Deposits Repos 19,036 27,885 Collateral received 23,229 21,509 Other deposits 1,804 1,606 Total deposits 44,069 51,000 Debt securities in issue 1,408 1,762 Short positions 26,779 21,187 Total 72,256 73,949

Derivatives (Tables)

Derivatives (Tables)	12 Months Ended
Derivatives (Tables)	Dec. 31, 2020
Derivatives
Schedule of actual movements in the fair value of the hedged items attributable to the hedged risk	2020 2019 Notional Assets Liabilities Notional Assets Liabilities £bn £m £m £bn £m £m Exchange rate contracts 3,328 52,239 55,107 3,750 44,792 47,141 Interest rate contracts 10,703 114,115 105,214 11,293 104,957 99,331 Credit derivatives 15 161 376 17 280 359 Equity and commodity contracts 1 8 8 3 — 48 166,523 160,705 150,029 146,879
Schedule of derivatives held for hedging purposes	2020 2019 Changes in fair Changes in fair value used for value used for Notional Assets Liabilities hedge ineffectiveness (1) Notional Assets Liabilities hedge ineffectiveness (1) £bn £m £m £m £bn £m £m £m Fair value hedging Interest rate contracts 65.5 1,878 3,844 (875) 65.1 1,186 2,641 (585) Cash flow hedging Interest rate contracts 128.8 2,035 1,210 217 148.4 1,450 833 366 Exchange rate contracts 14.4 37 116 (52) 12.3 66 8 (59) Net investment hedging Exchange rate contracts 0.2 — 9 11 0.4 — 4 8 208.9 3,950 5,179 (699) 226.2 2,702 3,486 (270) IFRS netting (3,857) (5,049) — (2,500) (3,464) — 93 130 — 202 22 — Note: (1) The change in fair value used for hedge ineffectiveness includes instruments that were decrecognised in the year.
Schedule of notional of hedging instruments affected by interest rate benchmark reform (SONIA not subject to reform)	£bn £bn Fair value hedging - EURIBOR 13.6 11.1 - GBP LIBOR 11.2 13.6 - USD LIBOR 26.6 26.6 - Other CCY LIBOR 1.1 — Cash flow hedging - EURIBOR 5.2 3.4 - GBP LIBOR 51.7 47.2 - USD LIBOR 2.7 2.1
Schedule of period in which the hedging contracts ends	0-3 months 3-12 months 1-3 years 3-5 years 5-10 years 10-20 years 20+ years Total 2020 £bn £bn £bn £bn £bn £bn £bn £bn Fair value hedging Hedging assets - interest rate risk 1.2 2.3 6.3 7.4 8.9 5.1 4.2 35.4 Hedging liabilities - interest rate risk — 0.6 10.1 11.6 7.1 0.5 0.2 30.1 Cash flow hedging Hedging assets Interest rate risk 0.7 10.5 19.3 13.9 10.5 0.1 — 55.0 Average fixed interest rate (%) 1.28 1.22 1.51 1.06 0.92 3.12 — 1.23 Hedging liabilities Interest rate risk 1.6 28.9 36.8 3.4 2.4 0.7 — 73.8 Average fixed interest rate (%) 1.14 0.78 0.37 1.25 0.65 4.55 — 0.64 Hedging assets Exchange rate risk — — 1.0 0.2 — — — 1.2 Average JPY - € rate — — 120.21 — — — — 120.21 Average JPY - £ rate — — 133.31 132.89 — — — 132.93 Average JPY - $ rate — 107.53 107.06 109.70 — — — 107.44 Average USD - £ rate — — 1.22 — — — — 1.22 Hedging liabilities Exchange rate risk 0.1 5.5 4.4 1.5 1.7 — — 13.2 Average USD - £ rate — 1.32 1.33 1.56 1.38 — — 1.36 Average INR - £ rate 93.21 95.99 — — — — — 95.29 Net investment hedging Exchange rate risk 0.1 0.1 — — — — — 0.2 Principal currency hedges Average SEK - £ rate 11.15 12.56 — — — — — 11.53 Average DKK - £ rate 8.28 — — — — — — 8.28 Average NOK - £ rate 12.73 — — — — — — 12.73 2019 Fair value hedging Hedging assets - interest rate risk 0.6 1.6 8.1 5.5 12.5 4.4 4.3 37.0 Hedging liabilities - interest rate risk — 0.5 6.3 12.7 6.6 2.0 — 28.1 Cash flow hedging Hedging assets Interest rate risk 4.8 11.4 31.7 10.7 12.2 — — 70.8 Average fixed interest rate (%) 1.10 0.97 1.20 1.78 1.44 3.12 — 1.11 Hedging liabilities Interest rate risk 1.9 22.0 45.2 5.3 2.4 0.8 — 77.6 Average fixed interest rate (%) 0.83 1.01 0.87 1.32 1.12 4.31 — 0.98 Exchange rate risk — 1.9 6.2 3.1 1.1 — — 12.3 Average USD - £ rate — 1.56 1.30 1.30 1.44 — — 1.35 Average INR - £ rate — 88.64 94.01 — — — — 93.11 Net investment hedging Exchange rate risk 0.1 0.3 — — — — — 0.4 Principal currency hedges Average SEK - £ rate 12.27 12.10 — — — — — 12.21 Average DKK - £ rate 8.78 — — — — — — 8.78 Average NOK - £ rate 12.36 — — — — — — 12.36
Schedule of assets and liabilities subject to hedging derivatives	Impact on Changes in fair hedged items Carrying value Impact on value used as ceased to be of hedged hedged items a basis to adjusted for assets and included in determine hedging liabilities carrying value ineffectiveness (1) gains or losses 2020 £m £m £m £m Fair value hedging - interest rate Loans to banks and customers - amortised cost 7,947 1,242 323 77 Other financial assets - securities 34,665 2,254 1,568 — Total 42,612 3,496 1,891 77 Other financial liabilities - debt securities in issue 29,317 1,336 (746) — Subordinated liabilities 6,877 356 (268) 10 Total 36,194 1,692 (1,014) 10 Cash flow hedging - interest rate Loans to banks and customers - amortised cost 53,447 — (601) — Other financial assets - securities 2,616 — (16) — Total 56,063 — (617) — Cash flow hedging - interest rate Bank and customer deposits 72,880 — 409 — Other financial liabilities - debt securities in issue 1,014 — 13 — Cash flow hedging - exchange rate Other financial liabilities - debt securities in issue 9,582 — 52 — Total 83,476 — 474 — 2019 Fair value hedging - interest rate Loans to banks and customers - amortised cost 6,716 1,023 165 86 Other financial assets - securities 35,796 1,274 1,474 — Total 42,512 2,297 1,639 86 Other financial liabilities - debt securities in issue 26,811 830 (807) 30 Subordinated liabilities 5,398 (275) (222) 24 Total 32,209 555 (1,029) 54 Cash flow hedging - interest rate Loans to banks and customers - amortised cost 69,254 — (566) — Other financial assets - securities 2,275 — (16) — Total 71,529 — (582) — Cash flow hedging - interest rate Bank and customer deposits 75,837 — 225 — Other financial liabilities - debt securities in issue 1,009 — 14 — Cash flow hedging - exchange rate Other financial liabilities - debt securities in issue 12,264 — 59 — Total 89,110 — 298 — Note: (1) The change in fair value used for hedge ineffectiveness instruments derecognised in the year.
Schedule of risk exposures will be affected by interest rate benchmark reform (notional, fair value)	2020 2019(1) Hedged Hedged Notional adjustment Notional adjustment £bn £m £bn £m Fair value hedging - EURIBOR 15.1 27 12.7 93 - GBP LIBOR 11.4 1,178 13.9 1,211 - USD LIBOR 28.1 (427) 27.3 (303) - Other CCY LIBOR 1.1 1 0.8 — Cash flow hedging - EURIBOR 4.1 (76) 3.3 (46) - GBP LIBOR 10.5 (473) 9.6 (186) - USD LIBOR 2.7 (61) 2.0 5 - BOE Base rate (2) 40.7 (156) 37.5 (285) - ECB REFI rate (2) 1.2 — 0.1 — - SONIA (2) 0.6 4 0.1 — Notes: (1) (2)
Schedule of analysis of cash flow reserve and foreign exchange reserve	2020 2019 Cash flow Foreign exchange Cash flow Foreign exchange hedge reserve hedge reserve hedge reserve hedge reserve £m £m £m £m Continuing — — Interest rate risk 690 — 460 — Foreign exchange risk 27 (72) 56 (50) De-designated — — Interest rate (424) — (494) — Foreign exchange risk (1) (716) (2) (510) Total 292 (788) 20 (560) 2020 2019 Foreign Foreign Cash flow exchange hedge Cash flow exchange hedge hedge reserve reserve hedge reserve reserve £m £m £m £m Interest rate risk Amount recognised in equity 318 — 585 — Amount transferred from equity to net interest income (19) — (243) — Foreign exchange risk Amount recognised in equity 3 (57) (12) 83 Amount transferred from equity to net interest income (35) — (36) — Amount transferred from equity to non interest income — 2 — 2,752 Amount transferred from equity to operating expenses 4 — — — Total 271 (55) 294 2,835
Schedule of hedge ineffectiveness recognized in other operating income	£m £m £m Fair value hedging Gains on the hedged items attributable to the hedged risk 877 610 54 Losses on the hedging instruments (875) (585) (7) Fair value hedging ineffectiveness 2 25 47 Cash flow hedging - Interest rate risk 22 23 (112) Cash flow hedging ineffectiveness 22 23 (112) Total 24 48 (65)

Financial instruments - class_2

Financial instruments - classification (Tables)	12 Months Ended
Financial instruments - classification (Tables)	Dec. 31, 2020
Financial instruments
Schedule of classification for financial assets and liabilities	Amortised Other MFVTPL FVOCI cost assets Total Assets £m £m £m £m £m Cash and balances at central banks 124,489 124,489 Trading assets 68,990 68,990 Derivatives (1) 166,523 166,523 Settlement balances 2,297 2,297 Loans to banks - amortised cost (2) 6,955 6,955 Loans to customers - amortised cost (3) 360,544 360,544 Other financial assets 440 44,902 9,806 55,148 Intangible assets 6,655 6,655 Other assets 7,890 7,890 31 December 2020 235,953 44,902 504,091 14,545 799,491 Amortised Other MFVPL FVOCI cost assets Total £m £m £m £m £m Cash and balances at central banks* 80,993 80,993 Trading assets 76,745 76,745 Derivatives (1) 150,029 150,029 Settlement balances 4,387 4,387 Loans to banks - amortised cost* (2) 7,554 7,554 Loans to customers - amortised cost (3) 326,947 326,947 Other financial assets 715 49,283 11,454 61,452 Intangible assets 6,622 6,622 Other assets 8,310 8,310 31 December 2019 227,489 49,283 431,335 14,932 723,039 Held-for- Amortised Other trading DFV cost liabilities Total Liabilities £m £m £m £m £m Bank deposits (4) 20,606 20,606 Customer deposits 431,739 431,739 Settlement balances 5,545 5,545 Trading liabilities 72,256 72,256 Derivatives (1) 160,705 160,705 Other financial liabilities (5) 2,403 43,408 45,811 Subordinated liabilities 793 9,169 9,962 Notes in circulation 2,655 2,655 Other liabilities (6) 1,882 4,506 6,388 31 December 2020 232,961 3,196 515,004 4,506 755,667 Bank deposits (4) 20,493 20,493 Customer deposits 369,247 369,247 Settlement balances 4,069 4,069 Trading liabilities 73,949 73,949 Derivatives (1) 146,879 146,879 Other financial liabilities (5) 2,258 42,962 45,220 Subordinated liabilities 724 9,255 9,979 Notes in circulation 2,109 2,109 Other liabilities (6) 1,920 5,618 7,538 31 December 2019 220,828 2,982 450,055 5,618 679,483 *2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details. Notes: (1) Includes net hedging derivatives assets of £93 million (2019 - £202 million) and net hedging derivatives liabilities of £130 million (2019 - £22 million). (2) Includes items in the course of collection from other banks of £148 million (2019 - £50 million). (3) Includes finance lease receivables of £9,061 million (2019 – £9,212 million). (4) Includes items in the course of transmission to other banks of £12 million (2019 - £2 million). (5) The carrying amount of other customer accounts designated as at fair value through profit or loss is the same as the principal amount for both periods. No amounts have been recognised in the profit or loss for changes in credit risk associated with these liabilities as the changes are immaterial both during the period and cumulatively. (6) Includes lease liabilities of £1,698 million (2019 - £ 1,823 million ) held at amortised cost.
Schedule of financial assets and liabilities	NatWest Group's financial assets and liabilities include: £m £m Reverse repos Trading assets 19,404 24,095 Loans to banks - amortised cost 153 165 Loans to customers - amortised cost 25,011 10,649 Repos Bank deposits 6,470 2,597 Customer deposits 5,167 1,765 Trading liabilities 19,036 27,885
Schedule of financial assets and liabilities that are offset on the balance sheet	Instruments which can be offset Potential for offset not recognised by IFRS Effect of Net amount after Instruments master netting the effect of netting outside IFRS Balance and similar Cash Securities agreements and netting Balance Gross offset sheet agreements collateral collateral related collateral agreements sheet total 2020 £m £m £m £m £m £m £m £m £m Derivative assets 176,425 (10,807) 165,618 (137,086) (19,608) (5,053) 3,871 905 166,523 Derivative liabilities 171,614 (11,540) 160,074 (137,086) (15,034) (4,921) 3,033 631 160,705 Net position (1) 4,811 733 5,544 — (4,574) (132) 838 274 5,818 Trading reverse repos 43,908 (24,867) 19,041 (929) — (18,040) 72 363 19,404 Trading repos 42,203 (24,867) 17,336 (929) — (16,407) — 1,700 19,036 Net position 1,705 — 1,705 — — (1,633) 72 (1,337) 368 Non trading reverse repos 36,117 (10,953) 25,164 — — (25,164) — — 25,164 Non trading repos 22,590 (10,953) 11,637 — — (11,637) — — 11,637 Net position 13,527 — 13,527 — — (13,527) — — 13,527 2019 Derivative assets 158,850 (10,913) 147,937 (122,697) (18,685) (4,292) 2,263 2,092 150,029 Derivative liabilities 154,396 (11,724) 142,672 (122,697) (17,296) (1,276) 1,403 4,207 146,879 Net position (1) 4,454 811 5,265 — (1,389) (3,016) 860 (2,115) 3,150 Trading reverse repos 52,007 (28,720) 23,287 (562) — (22,364) 361 808 24,095 Trading repos 54,131 (28,720) 25,411 (562) — (24,849) — 2,474 27,885 Net position (2,124) — (2,124) — — 2,485 361 (1,666) (3,790) Non trading reverse repos 21,341 (10,527) 10,814 — — (10,814) — — 10,814 Non trading repos 14,889 (10,527) 4,362 — — (4,362) — — 4,362 Net position 6,452 — 6,452 — — (6,452) — — 6,452 Note: (1)
Schedule of IBOR related exposure by currency and nature of financial instruments	Balances not Rates subject to IBOR reform subject to Expected GBP LIBOR USD IBOR(1) EUR IBOR Other IBOR IBOR reform credit losses Total £m £m £m £m £m £m £m Trading assets 75 60 348 1 68,506 — 68,990 Loans to banks - amortised cost 23 82 101 — 6,751 (2) 6,955 Loans to customers - amortised cost 39,858 5,289 4,950 234 316,200 (5,987) 360,544 Other financial assets 2,847 303 370 71 51,568 (11) 55,148 Bank deposits — — — — 20,606 20,606 Customer deposits — — — 4 431,735 431,739 Trading liabilities 54 301 269 2 71,630 72,256 Other financial liabilities 1,116 9,792 5,902 146 28,856 45,812 Subordinated liabilities 8 1,286 438 — 8,230 9,962 Loan commitments (2) 25,616 9,228 7,176 682 79,220 121,922 Derivatives notional (£bn) 1,407.5 1,368.8 2,358.8 289.6 8,622.1 14,046.8 Notes: (1) USD LIBOR is now expected to convert to alternative risk free rates in mid-2023 subject to consultation. (2) Certain loan commitments are multi-currency facilities. Where these are fully undrawn, they are allocated to the principal currency of the facility. Where the facilities are partly drawn, the remaining loan commitment is allocated to the currency with the largest drawn amount.
Summary of issuance of certain capital instruments	£m US$1.15 billion 8% notes 734 US$2.65 billion 8.625% notes 2,046

Financial instruments - valua_2

Financial instruments - valuation (Tables)	12 Months Ended
Financial instruments - valuation (Tables)	Dec. 31, 2020
Financial instruments
Schedule of financial assets and liabilities at fair value by valuation hierarchy	2020 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total £m £m £m £m £m £m £m £m Assets Trading assets Loans — 39,550 225 — 46,172 449 46,621 Securities 21,535 7,599 81 20,865 8,704 555 30,124 Derivatives — 165,441 1,082 — 148,800 1,229 150,029 Other financial assets Loans — 185 168 — 307 58 365 Securities 35,972 8,850 167 41,044 8,326 263 49,633 Total financial assets held at fair value 57,507 221,625 1,723 61,909 212,309 2,554 276,772 Liabilities Trading liabilities Deposits — 44,062 7 — 50,944 56 51,000 Debt securities in issue — 1,408 — — 1,703 59 1,762 Short positions 19,045 7,734 — 15,565 5,622 — 21,187 Derivatives — 159,818 887 — 145,818 1,061 146,879 Other financial liabilities Debt securities in issue — 1,607 — — 2,117 141 2,258 Other deposits — 796 — — — — — Subordinated liabilities — 793 — — 724 — 724 Total financial liabilities held at fair value 19,045 216,218 894 15,565 206,928 1,317 223,810 Notes: (1) Transfers between levels are deemed to have occurred at the beginning of the quarter in which the instrument was transferred. There were no significant transfers between level 1 and level 2. (2) For an analysis of debt securities held at mandatory fair value through profit or loss by issuer as well as ratings and derivatives, by type and contract, refer to Risk and capital management – Credit risk. (3) The determination of an instrument’s level cannot be made at a global product level as a single product type can be in more than one level. For example, a single name corporate credit default swap could be in level 2 or level 3 depending on whether the reference counterparty’s obligations are liquid or illiquid.
Schedule of financial instruments valuation adjustments	Adjustment £m £m Funding – FVA 140 244 Credit – CVA 390 386 Bid – Offer 148 165 Product and deal specific 172 238 850 1,033
Schedule of valuation techniques for unobservable inputs of level 3 financial instruments	2020 2019 Financial instrument Valuation technique Unobservable inputs Units Low High Low High Trading assets and Other financial assets Loans Price-based Price % — 105 — 101 Discount cash flow Credit spreads bps 69 119 53 101 Discount cash flow Discount margin bps 51 226 — — Debt securities Price-based Price % — 232 — 246 Equity Shares Price-based Price GBP — 27,737 — 25,914 Market comparables Price % — 80 — 80 Discount cash flow Discount margin % 7 9 6 9 Net asset valuation Net asset value % 80 120 80 120 Trading liabilities and Other financial liabilities Deposits Price-based Price % — 100 — 98 Yield analysis Day count Number — — 65 95 Debt securities in issue Price-based Price CCY — — 44 JPY 146 EUR Derivative assets and liabilities Credit derivatives Credit derivative pricing Credit spreads bps 2 500 6 500 Correlation % (50) 95 (50) 80 Volatility % 27 80 27 80 Upfront points % — 100 — 99 Recovery rate % 10 40 10 40 Interest rate & FX Option pricing Correlation % (50) 100 (50) 99 derivatives Volatility % 17 60 19 70 Constant Prepayment Rate % 2 18 2 15 Mean Reversion % — 92 — 92 Basis volatility bps 15 21 — — Inflation volatility % 1 2 1 2 Inflation rate % 1 2 1 2 Equity derivatives Option pricing Correlation % (53) 87 (53) 87 Notes: (1) The table above presents the range of values for significant inputs used in the valuation of level 3 assets and liabilities. The range represents the highest and lowest values of the input parameters and therefore is not a measure of parameter uncertainty. Movements in the underlying input may have a favourable or unfavourable impact on the valuation depending on the particular terms of the contract and the exposure. For example, an increase in the credit spread of a bond would be favourable for the issuer but unfavourable for the note holder. Whilst NatWest Group indicates where it considers that there are significant relationships between the inputs, their inter-relationships will be affected by macro economic factors including interest rates, foreign exchange rates or equity index levels. (2) Credit spreads and discount margins: credit spreads and margins express the return required over a benchmark rate or index to compensate for the credit risk associated with a cash instrument. A higher credit spread would indicate that the underlying instrument has more credit risk associated with it. Consequently, investors require a higher yield to compensate for the higher risk. (3) Price and yield: There may be a range of prices used to value an instrument that may be a direct comparison of one instrument or portfolio with another or, movements in a more liquid instrument may be used to indicate the movement in the value of a less liquid instrument. The comparison may also be indirect in that adjustments are made to the price to reflect differences between the pricing source and the instrument being valued. (4) Recovery rate: reflects market expectations about the return of principal for a debt instrument or other obligations after a credit event or on liquidation. Recovery rates tend to move conversely to credit spreads. (5) Valuation: for private equity investments, values may be estimated by looking at past prices of similar stocks and from valuation statements where valuations are usually derived from earnings measures such as EBITDA or net asset value (NAV). Similarly for equity or bond fund investments, prices may be estimated from valuation or credit statements using NAV or similar measures. (6) Correlation: measures the degree by which two prices or other variables are observed to move together. If they move in the same direction there is positive correlation; if they move in opposite directions there is negative correlation. Correlations typically include relationships between: default probabilities of assets in a basket (a group of separate assets), exchange rates, interest rates and other financial variables. (7) Volatility: a measure of the tendency of a price to change with time. (8) Interest rate delta: these ranges represent the low/high marks on the relevant discounting curve. (9) Upfront points: where CDS contracts are standardised, the inherent spread of the trade may exceed the standard premium paid or received under the contract. Upfront points will compensate for the difference between the standard premium and the actual premium at the start of the contract. (10) Mean reversion: a measure of how much a rate reverts to its mean level. (11) Constant prepayment rate: the rate is used to reflect how fast a pool of assets pay down. (12) Day count: yield analysis on deposits are calculated using day count as an input, referring to the maturity of the deposit. (13) NatWest Group does not have any material liabilities measured at fair value that are issued with an inseparable third party credit enhancement.
Schedule financial instruments carried at fair value on the balance sheet by valuation sensitivities for level 3 balances	2020 2019 Level 3 Favourable Unfavourable Level 3 Favourable Unfavourable £m £m £m £m £m £m Assets Trading assets Loans 225 10 — 449 10 (10) Securities 81 — — 555 — — Derivatives 1,082 80 (80) Other financial assets Loans 168 20 (10) 58 — — Securities 167 30 (20) 263 80 (20) 1,723 140 (110) 2,554 270 (210) Liabilities Trading liabilities Deposits 7 — — 56 — — Debt securities in issue — — — 59 — — Derivatives 887 50 (40) 1,061 (90) Other financial liabilities - debt securities in issue — — — 141 10 (10) 894 50 (40) 1,317 110 (100)
Schedule of movement in level 3 assets and liabilities	2020 2019 Trading Other financial Total Total Trading Other financial Total Total assets (2) assets (3) assets liabilities assets (2) assets (3) assets liabilities £m £m £m £m £m £m £m £m At 1 January 2,233 321 2,554 1,317 2,657 643 3,300 1,957 Amounts recorded in the income statement (1) 127 (21) 106 (67) (418) (1) (419) 162 Amounts recorded in the statement of comprehensive income — 63 63 — — 86 86 — Level 3 transfers in 165 261 426 188 492 2 494 104 Level 3 transfers out (139) — (139) (368) (857) (59) (916) (588) Issuances — — — — — — — 46 Purchases 441 164 605 127 1,121 15 1,136 532 Settlements (293) (153) (446) (59) (218) (38) (256) (429) Sales (1,148) (301) (1,449) (245) (541) (326) (867) (466) Foreign exchange and other adjustments 2 1 3 1 (3) (1) (4) (1) At 31 December 1,388 335 1,723 894 2,233 321 2,554 1,317 Amounts recorded in the income statement in respect of balances held at year end - unrealised 129 (22) 107 (68) (421) 8 (413) 110 Notes: (1) There were £194 million net gain on trading assets and liabilities (2019 - £596 million losses) recorded in income from trading activities. Net losses on other instruments of £21 million (2019 – £15 million gain) were recorded in other operating income and interest income as appropriate. (2) Trading assets comprise assets held at fair value in trading portfolios. (3) Other financial assets comprise fair value through other comprehensive income, designated as at fair value through profit or loss and other fair value through profit or loss.
Schedule of carrying value and fair value of financial instruments carried at amortised cost on the balance sheet	Items where fair value approximates Carrying Fair value hierarchy level carrying value value Fair value Level 1 Level 2 Level 3 2020 £bn £bn £bn £bn £bn £bn Financial assets Cash and balances at central banks 124.5 — — — — — Settlement balances 2.3 — — — — — Loans to banks 0.1 6.9 6.9 — 3.8 3.1 Loans to customers — 360.5 359.2 — 25.2 334.0 Other financial assets - securities — 9.8 10.1 5.9 1.2 3.0 Financial liabilities Bank deposits 4.4 16.2 16.2 — 11.3 4.9 Customer deposits 371.7 60.0 60.1 — 10.1 50.0 Settlement balances 5.5 — — — — — Other financial liabilities - debt securities in issue — 43.4 44.6 — 34.7 9.9 Subordinated liabilities — 9.2 9.8 — 9.7 0.1 Notes in circulation 2.7 — — — — — 2019 Financial assets Cash and balances at central banks* 81.0 — — — — — Settlement balances 4.4 — — — — — Loans to banks* — 7.6 7.6 — 4.3 3.3 Loans to customers — 326.9 324.0 — 11.0 313.0 Other financial assets - securities — 11.5 11.6 5.9 2.8 2.9 Financial liabilities Bank deposits 4.1 16.4 16.5 — 12.2 4.3 Customer deposits 312.4 56.8 56.9 — 7.5 49.4 Settlement balances 4.1 — — — — — Other financial liabilities - debt securities in issue — 43.0 43.7 — 38.5 5.2 Subordinated liabilities — 9.3 10.0 — 9.9 0.1 Notes in circulation 2.1 — — — — — *2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Financial Instruments - matur_2

Financial Instruments - maturity analysis (Tables)	12 Months Ended
Financial Instruments - maturity analysis (Tables)	Dec. 31, 2020
Financial instruments
Schedule of residual maturity of financial instruments	2020 2019 Less than More than Less than More than 12 months 12 months Total 12 months 12 months Total £m £m £m £m £m £m Assets Cash and balances at central banks* 124,489 — 124,489 80,993 — 80,993 Trading assets 42,037 26,953 68,990 51,825 24,920 76,745 Derivatives 46,244 120,279 166,523 40,798 109,231 150,029 Settlement balances 2,297 — 2,297 4,387 — 4,387 Loans to banks - amortised cost* 6,835 120 6,955 7,541 13 7,554 Loans to customers - amortised cost 87,531 273,013 360,544 77,742 249,205 326,947 Other financial assets 8,901 46,247 55,148 10,187 51,265 61,452 Liabilities Bank deposits (1) 12,315 8,291 20,606 9,286 11,207 20,493 Customer deposits 430,283 1,456 431,739 367,098 2,149 369,247 Settlement balances 5,545 — 5,545 4,069 — 4,069 Trading liabilities 45,037 27,219 72,256 53,047 20,902 73,949 Derivatives 47,361 113,344 160,705 41,276 105,603 146,879 Other financial liabilities 12,403 33,408 45,811 11,915 33,305 45,220 Subordinated liabilities 365 9,597 9,962 160 9,819 9,979 Notes in circulation 2,655 — 2,655 2,109 — 2,109 Lease liabilities 185 1,513 1,698 194 1,629 1,823 *2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details. Note: (1)
Schedule of undiscounted cash flows payable by contractual maturity	0-3 months 3-12 months 1-3 years 3-5 years 5-10 years 10-20 years 2020 £m £m £m £m £m £m Assets by contractual maturity Cash and balances at central banks 124,489 — — — — — Derivatives held for hedging 14 18 96 — 12 6 Settlement balances 2,297 — — — — — Loans to banks - amortised cost 5,600 1,245 — — 1 110 Loans to customers - amortised cost 47,507 46,718 65,138 58,680 81,544 88,155 Other financial assets (1) 4,019 5,919 12,592 10,791 11,855 5,774 Finance lease 48 366 840 671 895 545 183,974 54,266 78,666 70,142 94,307 94,590 Liabilities by contractual maturity Bank deposits (2) 11,217 1,078 3,241 5,038 — — Customer deposits 421,763 8,528 1,407 23 26 20 Settlement balance 5,545 — — — — — Derivatives held for hedging 36 (17) 94 3 64 (2) Other financial liabilities 4,716 8,144 15,558 11,470 7,358 254 Subordinated liabilities 73 685 4,387 3,444 923 562 Notes in circulation 2,655 — — — — — Lease liabilities 51 135 294 245 429 497 446,056 18,553 24,981 20,223 8,800 1,331 Guarantees and commitments notional amount Guarantees (3) 2,244 — — — — — Commitments (4) 121,922 — — — — — 124,166 — — — — — 0-3 months 3-12 months 1-3 years 3-5 years 5-10 years 10-20 years 2019 £m £m £m £m £m £m Assets by contractual maturity Cash and balances at central banks* 80,993 — — — — — Derivatives held for hedging 33 7 63 103 56 42 Settlement balances 4,387 — — — — — Loans to banks - amortised cost* 6,524 1,032 5 — — — Loans to customers - amortised cost 48,793 36,108 70,957 51,667 66,453 79,174 Other financial assets (1) 4,619 6,644 16,287 9,857 15,766 5,081 Finance lease 72 289 920 646 802 653 145,421 44,080 88,232 62,273 83,077 84,950 Liabilities by contractual maturity Bank deposits 7,269 2,017 11,297 38 — — Customer deposits 358,359 8,773 2,105 22 23 17 Settlement balances 4,069 — — — — — Derivatives held for hedging 9 22 50 40 59 46 Other financial liabilities 4,810 7,602 11,849 13,935 9,426 328 Subordinated liabilities 21 541 3,295 5,270 327 1,700 Notes in circulation 2,109 — — — — — Lease liabilities 54 140 313 249 457 571 376,700 19,095 28,909 19,554 10,292 2,662 Guarantees and commitments notional amount Guarantees (3) 2,757 — — — — — Commitments (4) 117,228 — — — — — 119,985 — — — — — *2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details. Notes: (1) Other financial assets excludes equity shares. (2) 3 to 5 years includes £5.0 billion of Term Funding Scheme with additional incentives for Small and Medium-sized Enterprises participation which has been repaid early in January 2021. (3) NatWest Group is only called upon to satisfy a guarantee when the guaranteed party fails to meet its obligations. NatWest Group expects most guarantees it provides to expire unused. (4) NatWest Group has given commitments to provide funds to customers under undrawn formal facilities, credit lines and other commitments to lend subject to certain conditions being met by the counterparty. NatWest Group does not expect all facilities to be drawn, and some may lapse before drawdown.

Loan impairment provisions (Tab

Loan impairment provisions (Tables)	12 Months Ended
Loan impairment provisions (Tables)	Dec. 31, 2020
Loan impairment provisions
Schedule of loan exposure and impairment metrics	2019* £m £m Loans - amortised cost Stage 1 287,124 302,367 Stage 2 78,917 27,868 Stage 3 6,358 6,598 Of which: individual 2,292 2,051 Of which: collective 4,066 4,547 372,399 336,833 ECL provisions (1) - Stage 1 519 322 - Stage 2 3,081 752 - Stage 3 2,586 2,718 Of which: individual 831 796 Of which: collective 1,755 1,922 6,186 3,792 ECL provision coverage (2,3) - Stage 1 (%) 0.18 0.11 - Stage 2 (%) 3.90 2.70 - Stage 3 (%) 40.67 41.19 1.66 1.13 Impairment losses ECL charge (4) 3,242 696 Stage 1 (121) (212) Stage 2 2,747 318 Stage 3 616 590 Of which: individual 194 303 Of which: collective 422 287 ECL loss rate - annualised (basis points) (3) 87 20 Amounts written off 937 792 Of which: individual 191 372 Of which: collective 746 420 *2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details. Notes: (1) Includes £6 million (2019 - £4 million) related to assets classified as FVOCI. (2) ECL provisions coverage is calculated as ECL provisions divided by loans – amortised cost and FVOCI. (3) ECL provisions coverage and ECL loss rates are calculated on third party loans and related ECL provisions and charge respectively. ECL loss rate is calculated as annualised third party ECL charge divided by loans - amortised cost and FVOCI. (4) Includes a £12 million charge (2019 - £2 million) related to other financial assets, of which£2 million (2019 - £1 million release) related to assets classified as FVOCI; and £28 million (2019 - nil) related to contingent liabilities. (5) The table shows gross loans only and excludes amounts that are outside the scope of the ECL framework. Refer to page 180 for Financial instruments within the scope of the IFRS 9 ECL framework for further details. Other financial assets within the scope of the IFRS 9 ECL framework were cash and balances at central banks totalling £122.8 billion (2019 - £79.2 billion) and debt securities of £53.8 billion (2019 – £59.4 billion).

Other financial assets (Tables)

Other financial assets (Tables)	12 Months Ended
Other financial assets (Tables)	Dec. 31, 2020
Other financial assets
Schedule of other financial assets	Debt securities Central and local government Other Equity Other UK US Other debt Total shares loans Total 2020 £m £m £m £m £m £m £m £m Mandatory fair value through profit or loss — — — 88 88 14 338 440 Fair value through other comprehensive income 17,458 11,742 6,802 8,591 44,593 294 15 44,902 Amortised cost 4,997 235 116 4,458 9,806 — — 9,806 Total 22,455 11,977 6,918 13,137 54,487 308 353 55,148 2019 Mandatory fair value through profit or loss — — — 305 305 45 365 715 Fair value through other comprehensive income 18,437 13,981 8,786 7,130 48,334 949 — 49,283 Amortised cost 5,411 242 120 5,681 11,454 — — 11,454 Total 23,848 14,223 8,906 13,116 60,093 994 365 61,452

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
Intangible assets (Tables)	Dec. 31, 2020
Intangible assets
Schedule of Intangible assets	2020 2019 Goodwill Other (1) Total Goodwill Other (1) Total Cost £m £m £m £m £m £m At 1 January 9,980 2,293 12,273 18,164 2,024 20,188 Currency translation and other adjustments — (1) (1) (180) 2 (178) Acquisition of subsidiaries — — — 1 — 1 Additions — 348 348 — 380 380 Disposals and write-off of fully amortised assets (2) (41) (48) (89) (8,005) (113) (8,118) At 31 December 9,939 2,592 12,531 9,980 2,293 12,273 Accumulated amortisation and impairment At 1 January 4,373 1,278 5,651 12,558 1,014 13,572 Currency translation and other adjustments — 1 1 (180) 1 (179) Disposals and write-off of fully amortised assets (41) (26) (67) (8,005) (72) (8,077) Charge for the year — 282 282 — 291 291 Impairment of intangible assets — 9 9 — 44 44 At 31 December 4,332 1,544 5,876 4,373 1,278 5,651 Net book value at 31 December 5,607 1,048 6,655 5,607 1,015 6,622 Notes: (1) Principally internally generated software. (2) Write-off of fully amortised Goodwill for £8 billion in 2019 that arose on the acquisition of ABN AMRO Holding N.V..
Schedule of key assumptions applied in calculating the recoverable amount and sensitivities to changes in those assumptions for Commercial Banking	Consequential impact of 1% Consequential impact of 5% Assumptions Recoverable adverse movement adverse movement Terminal Pre-tax Cost: amount exceeded Discount Terminal Forecast Forecast Goodwill growth rate discount rate income ratio (1) carrying value rate growth rate Income cost 31 December 2020 £bn % % % £bn £bn £bn £bn £bn Retail Banking 2.7 1.6 13.7 48.3 5.9 (1.8) (0.8) (2.0) (0.9) Commercial Banking 2.6 1.6 13.7 53.7 1.5 (1.5) (0.5) (1.8) (0.9) RBS International 0.3 1.6 12.1 42.7 1.1 (0.4) (0.2) (0.3) (0.1) 31 December 2019 Retail Banking 2.7 1.6 13.3 47.9 8.7 (2.2) (1.0) (2.1) (0.9) Commercial Banking 2.6 1.6 13.4 53.8 4.1 (1.8) (0.7) (2.1) (1.1) RBS International 0.3 1.6 12.0 37.5 2.1 (0.5) (0.3) (0.4) (0.1)

Other assets (Tables)

Other assets (Tables)	12 Months Ended
Other assets (Tables)	Dec. 31, 2020
Other assets
Schedule of other assets	£m £m Interests in associates (1) 449 436 Property, plant and equipment 4,418 4,928 Pension schemes in net surplus (Note 5) 723 614 Prepayments 328 380 Accrued income 216 275 Tax recoverable 192 46 Deferred tax (Note 7) 901 1,011 Acceptances 272 268 Other 391 352 Other assets 7,890 8,310 Note: Includes interest in Business Growth Fund £442 million (2019 - £424 million).

Other financial liabilities (Ta

Other financial liabilities (Tables)	12 Months Ended
Other financial liabilities (Tables)	Dec. 31, 2020
Other financial liabilities
Schedule of other financial liabilities	£m £m Customer deposits - designated as at fair value through profit or loss 796 — Debt securities in issue - designated as at fair value through profit or loss 1,607 2,258 - amortised cost 43,408 42,962 Total 45,811 45,220

Subordinated liabilities (Table

Subordinated liabilities (Tables)	12 Months Ended
Subordinated liabilities (Tables)	Dec. 31, 2020
Subordinated liabilities
Schedule of subordinated liabilities	£m £m Dated loan capital 8,530 7,775 Undated loan capital 1,287 2,058 Preference shares 145 146 9,962 9,979
Schedule of issuances and redemptions	Capital New issue treatment £m £m NatWest Group plc US$750 million 3.754% dated notes 2029 Tier 2 — 577 £1,000 million 3.622% dated notes 2030 (callable between May 2025 to August 2025) Tier 2 996 — US$850 million 3.032% dated notes 2035 (callable November 2030) Tier 2 634 — 1,630 577 Redemptions NatWest Group plc €1,000 million 3.63% dated notes 2024 (callable March 2019) Tier 2 — 855 US$2,250 million 6.13% dated notes 2022 (partial redemption) Tier 2 499 — US$1,000 million 6.10% dated notes 2023 (partial redemption) Tier 2 358 — US$2,000 million 7.5% dated notes 2020 Tier 2 1,528 — US$762 million 7.648% undated notes (partial redemption) Ineligible 497 — 2,882 855 NatWest Markets Plc £35 million 5.5% fixed rate undated subordinated notes (callable December 2019) Tier 2 — 35 US$125.6 million floating rate notes 2020 Tier 2 97 — 97 35 NatWest Bank Plc SEK 90 million floating rate notes 2019 Tier 1 — 8 — 8 NWM N.V. and subsidiaries US$16 million floating rate notes 2019 Tier 2 — 10 US$71.8 million floating rate notes 2019 Tier 2 — 56 €250 million 4.70% notes 2019 Tier 2 — 145 US$650 million 6.425% undated notes 2043 (partial redemption) Ineligible 187 — €15 million 6.00% notes 2020 Tier 2 11 — 198 211

Other liabilities (Tables)

Other liabilities (Tables)	12 Months Ended
Other liabilities (Tables)	Dec. 31, 2020
Other liabilities
Schedule of other liabilities	£m £m Lease liabilities (Note 22) 1,698 1,823 Provisions for liabilities and charges 1,852 2,677 Retirement benefit liabilities (Note 5) 121 119 Accruals 990 1,125 Deferred income 361 362 Current tax 63 132 Deferred tax (Note 7) 291 266 Acceptances 272 233 Other liabilities 740 801 6,388 7,538
Schedule for provisions for liabilities and charges	Payment Other Litigation protection customer and other insurance(1) redress regulatory Other(2) Total Provisions for liabilities and charges £m £m £m £m £m At 1 January 1,156 314 426 781 2,677 Expected credit losses impairment charge — — — 83 83 Currency translation and other movements — 5 1 (2) 4 Charge to income statement 1 352 120 400 873 Releases to income statement (277) (55) (67) (178) (577) Provisions utilised (557) (190) (115) (346) (1,208) At 31 December 323 426 365 738 1,852 Notes: (1) The balance at 31 December 2020 includes provisions held in relation to offers made in 2019 and earlier years of £110 million. (2) Materially comprises provisions relating to property closures and restructuring costs.

Share capital and other equity

Share capital and other equity (Tables)	12 Months Ended
Share capital and other equity (Tables)	Dec. 31, 2020
Share capital and other equity
Schedule of allotted, called up and fully paid shares	Number of shares Allotted, called up and fully paid £m £m 000s 000s Ordinary shares of £1 12,129 12,094 12,129,165 12,093,909 Non-cumulative preference shares of US$0.01 (1) — — 10 10 Cumulative preference shares of £1 1 1 900 900 Note: (1) No shares were redeemed in 2020 or 2019.
Schedule of movement in allotted, called up and fully paid ordinary shares	Number of Movement in allotted, called up and fully paid ordinary shares £m shares - 000s At 1 January 2019 12,049 12,048,605 Shares issued 45 45,304 At 1 January 2020 12,094 12,093,909 Shares issued 35 35,256 At 31 December 2020 12,129 12,129,165
Schedule of non-cumulative preference shares	Number of shares Redemption Redemption Non-cumulative preference shares classified as equity in issue Interest rate date on or after price per share Shares of US$0.01 - Series U 10,130 floating 29 September 2017 US$100,000 Note: (1) Preference shares where distributions are discretionary are classified as equity.
Schedule of other equity instruments	£m £m £m Additional Tier 1 notes US$2.0 billion 7.5% notes callable August 2020 (1) — 1,277 1,277 US$1.15 billion 8% notes callable August 2025 (1) 734 734 734 US$2.65 billion 8.625% notes callable August 2021 (2) 2,047 2,047 2,047 US$1.5 billion 6.000% notes callable December 2025 - June 2026 (3) 1,220 — — GBP£1.0 billion 5.125% notes callable May - November 2027 (4) 998 — — 4,999 4,058 4,058 Notes: (1) Issued in August 2015. In the event of conversion, converted into ordinary shares at a price of $3.606 nominal per £1 share. (2) Issued in August 2016. In the event of conversion, converted into ordinary shares at a price of $2.284 nominal per £1 share. (3) Issued in June 2020. In the event of conversion, converted into ordinary shares at a price of £1.754 (translated at applicable exchange rate) per £1 share. (4) Issued in November 2020. In the event of conversion, converted into ordinary shares at a price of £1.754 nominal per £1 share.

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Dec. 31, 2020
Leases
Schedule of amounts recognized in consolidated income and balance sheet	£m £m Amounts recognised in consolidated income statement Interest payable (42) (44) Depreciation (1) (209) (224) Rental expense on short term leases (1) (4) Income from subleasing right of use assets 4 9 £m £m Amounts recognised on balance sheet Right of use assets included in property, plant and equipment (2) 955 1,162 Additions to right of use assets 80 135 Lease liabilities (3) (1,698) (1,823) The total cash outflow for leases is £220 million (2019: £222 million), including payment of principal amount of £179 million (2019: £181 million) which are included in the operating activities in cash flow statement. Notes: (1) Includes impairment of right of use assets of £89 million (2019: £86 million). (2) Includes right of use asset for plant and equipment of £8 million (2019: £23 million) and depreciation of £2 million (2019: £5 million). (3) Contractual cashflows of lease liabilities is shown in Note 13.
Schedule of amounts included in consolidated income statement for lessor leases	£m £m Amounts included in consolidated income statement Finance leases Finance income on the net investment in leases 289 314 Operating leases Gross Lease income 168 165 Depreciation (145) (138) Net lease income 23 27
Schedule of amount receivable under finance leases	£m £m Amount receivable under finance leases Within 1 year 3,231 3,388 1 to 2 years 2,288 2,229 2 to 3 years 1,638 1,733 3 to 4 years 959 758 4 to 5 years 509 682 After 5 years 1,735 1,758 Lease payments total 10,360 10,548 Unguaranteed residual values (232) (215) Future drawdowns (22) (30) Unearned income (1,081) (1,196) Present value of lease payments 9,025 9,107 Impairments (196) (110) Net investment in finance leases 8,829 8,997
Schedule of undiscounted lease receipts from operating leases	£m £m Amounts receivable under operating leases Within 1 year 143 154 1 to 2 years 112 123 2 to 3 years 79 83 3 to 4 years 34 48 4 to 5 years 14 17 After 5 years 11 12 Total 393 437
Schedule of nature of operating lease assets on the balance sheet	Nature of operating lease assets on the balance sheet £m £m Transportation 327 334 Cars and light commercial vehicles 28 24 Other 245 295 600 653
Schedule of undiscounted lease receipts from investment properties	£m £m Amounts receivable under investment properties Within 1 year 67 113 1 to 2 years 127 156 2 to 3 years 54 128 3 to 4 years 76 55 4 to 5 years 88 98 After 5 years 142 179 Total 554 729

Structured entities (Tables)

Structured entities (Tables)	12 Months Ended
Structured entities (Tables)	Dec. 31, 2020
Structured entities
Schedule of RBS's interest in unconsolidated structured entities	2020 2019 Asset backed Investment Asset backed Investment securitisation funds securitisation funds vehicles and other Total vehicles and other Total £m £m £m £m £m £m Trading assets and derivatives Trading assets 319 46 365 760 52 812 Derivative assets 441 16 457 196 24 220 Derivative liabilities (319) (21) (340) (154) (4) (158) Total 441 41 482 802 72 874 Non trading assets Loans to customers 1,400 497 1,897 1,544 636 2,180 Other financial assets 3,892 170 4,062 5,373 107 5,480 Total 5,292 667 5,959 6,917 743 7,660 Liquidity facilities/loan commitments 1,482 204 1,686 1,619 297 1,916 Maximum exposure 7,215 912 8,127 9,338 1,112 10,450

Asset transfers (Tables)

Asset transfers (Tables)	12 Months Ended
Asset transfers (Tables)	Dec. 31, 2020
Asset transfers
Schedule of Assets subject to securities repurchase agreements or security lending transactions	The following assets have failed derecognition (1) £m £m Trading assets 20,526 23,247 Loans to banks - amortised cost 5 — Loans to customers - amortised cost 39 — Other financial assets 11,542 4,269 32,112 27,516 Note: (1) Associated liabilities were £31,932 million (2019 - £27,342 million).
Schedule of assets pledged as collateral	Assets pledged against liabilities £m £m Trading assets 28,728 27,918 Loans to banks - amortised cost 49 39 Loans to customers - amortised cost 15,939 17,920 Other financial assets (1) 4,966 4,688 49,682 50,565 Note : (1) Includes assets pledged for pension derivatives and stock borrowings.
Schedule of analysis of asset categories for those own-asset securitisations where the transferred assets continue to be recorded on NatWest Group's balance sheet	2020 2019 Debt securities in issue Debt securities in issue Held by third Held by NatWest Held by third Held by Assets parties Group(1) Total Assets parties NatWest Group (1) Total Asset type £m £m £m £m £m £m £m £m Mortgages - RoI 1,921 243 1,848 2,091 2,221 468 1,917 2,385 Cash deposits 146 156 — — — 2,067 2,377 Note: (1) Debt securities retained by NatWest Group may be pledged with central banks.

Capital resources (Tables)

Capital resources (Tables)	12 Months Ended
Capital resources (Tables)	Dec. 31, 2020
Capital resources
Schedule of regulatory capital	PRA transitional basis £m £m Shareholders’ equity (excluding non-controlling interests) Shareholders’ equity 43,860 43,547 Preference shares - equity (494) (496) Other equity instruments (4,999) (4,058) 38,367 38,993 Regulatory adjustments and deductions Own credit (1) (118) Defined benefit pension fund adjustment (579) (474) Cash flow hedging reserve (229) (35) Deferred tax assets (760) (757) Prudential valuation adjustments (286) (431) Goodwill and other intangible assets (6,182) (6,622) Expected losses less impairments — (167) Foreseeable ordinary and special dividends (364) (968) Foreseeable charges (266) (365) Adjustment under IFRS 9 transitional arrangements 1,747 Other regulatory adjustments — (2) (6,920) (9,939) CET1 capital 31,447 29,054 Additional Tier 1 (AT1) capital Qualifying instruments and related share premium 4,983 4,051 Qualifying instruments and related share premium subject to phase out 690 1,366 Qualifying instruments issued by subsidiaries and held by third parties subject to phase out 140 140 AT1 capital 5,813 5,557 Tier 1 capital 37,260 34,611 Qualifying Tier 2 capital Qualifying instruments and related share premium 4,882 4,867 Qualifying instruments issued by subsidiaries and held by third parties 1,191 1,345 Other regulatory adjustments 400 — Tier 2 capital 6,473 6,212 Total regulatory capital 43,733 40,823

Memorandum items (Tables)

Memorandum items (Tables)	12 Months Ended
Memorandum items (Tables)	Dec. 31, 2020
Memorandum items
Schedule of contingent liabilities and commitments	More than More than 1 year but 3 years but Less than less than less than Over 1 year 3 years 5 years 5 years £m £m £m £m £m £m Guarantees 1,044 308 159 733 2,244 2,757 Other contingent liabilities 1,219 491 42 569 2,321 2,478 Standby facilities, credit lines and other commitments 62,794 27,476 26,483 7,414 124,167 119,760 Contingent liabilities and commitments 65,057 28,275 26,684 8,716 128,732 124,995 Note: (1) The maturity of contingent liabilities and commitment is based on the expiry of the agreement between NatWest Group and the customer.
Schedule of contractual obligations for future expenditure not provided for in the accounts	£m £m Capital expenditure on property, plant and equipment 20 Contracts to purchase goods or services (1) 614 634 Note : (1) Of which due within 1 year: £267 million (2019 - £285 million).

Analysis of the net investmen_2

Analysis of the net investment in business interests and intangible assets (Tables)	12 Months Ended
	Dec. 31, 2020
Analysis of the net investment in business interests and intangible assets
Schedule of the analysis of the net investment in business interests and intangible assets	27 Analysis of the net investment in business interests and intangible assets Acquisitions and disposals £m £m £m Fair value given for businesses acquired(1) — (55) (113) Additional investment in associates (40) — (9) Net outflow of cash in respect of acquisitions (40) (55) (122) Sale of interests in associates 27 — — Net assets sold 288 351 — Profit on disposal 3 — — Net inflow of cash in respect of disposals 318 351 — Dividends received from associates — — 5 Cash expenditure on intangible assets (348) (380) (364) Net outflow of cash (70) (84) (481) Note: (1) 2019 includes the purchase of Free agent.

Analysis of changes in financ_2

Analysis of changes in financing during the year (Tables)	12 Months Ended
Analysis of changes in financing during the year (Tables)	Dec. 31, 2020
Analysis of changes in financing during the year
Schedule of the analysis of changes in financing during the year	Share capital, share premium, and paid-in equity Subordinated liabilities MRELs £m £m £m £m £m £m £m £m £m At 1 January 17,246 17,134 16,910 9,979 10,535 12,722 19,249 16,821 9,202 Issue of ordinary shares — 17 144 — — — — — — Issue of paid in equity 2,218 — — — — — — — — Issue of subordinated liabilities — — — 1,631 577 — — — — Redemption of subordinated liabilities — — — (3,502) (1,108) (2,258) — — — Interest on subordinated liabilities — — — (510) (533) (566) — — — Issue of MRELs — — — — — — 1,309 3,640 6,996 Maturity/redemption of MRELs — — — — — — (2) (1,285) (83) Interest on MRELs — — — — — — (671) (428) (237) Net cash inflow/(outflow) from financing 2,218 17 144 (2,381) (1,064) (2,824) 636 1,927 6,676 Ordinary shares issued 52 95 80 — — — — — — Effects of foreign exchange — — — (234) (315) 419 (514) (683) 587 Changes in fair value of subordinated liabilities/MRELs — — — 133 317 (243) 829 539 (59) AT1 reclassification to subordinated liabilities (1,277) — — 1,632 — — — — — Loss on sale of MRELs and subordinated liabilities — — — 324 — — — — — Interest on subordinated liabilities/MRELs — — — 509 506 461 673 645 415 At 31 December 18,239 17,246 17,134 9,962 9,979 10,535 20,873 19,249 16,821

Analysis of cash and cash equ_2

Analysis of cash and cash equivalents (Tables)	12 Months Ended
Analysis of cash and cash equivalents (Tables)	Dec. 31, 2020
Analysis of cash and cash equivalents
Schedule of the analysis of cash and cash equivalents	£m £m £m At 1 January - cash 80,993 91,368 100,724 - cash equivalents 19,595 17,568 21,881 100,588 108,936 122,605 Net cash outflow 38,611 (8,348) (13,669) At 31 December 139,199 100,588 108,936 Comprising: Cash and balances at central banks 124,489 80,993 91,368 Trading assets 9,220 12,578 11,610 Other financial assets 173 459 40 Loans to banks - amortised cost (1) 5,317 6,558 5,918 Cash and cash equivalents 139,199 100,588 108,936 Note: (1) Includes cash collateral posted with bank counterparties in respect of derivative liabilities of £7,592 million (2019 - £7,570 million; 2018 - £7,302 million).

Directors and key management _2

Directors and key management remuneration (Tables)	12 Months Ended
Directors and key management remuneration (Tables)	Dec. 31, 2020
Directors' and key management remuneration
Schedule of directors' remuneration	Directors' remuneration £000 £000 Non-executive Directors 1,708 1,881 Chairman and executive directors- emoluments 4,349 4,783 6,057 6,664 Amounts receivable under long-term incentive plans and share option plans 609 741 Total 6,666 7,405
Schedule of compensation of key management	£000 £000 Short-term benefits 18,718 22,067 Post-employment benefits 474 401 Share-based payments 3,249 2,435 22,441 24,903

Transactions with directors a_2

Transactions with directors and key management (Tables)	12 Months Ended
Transactions with directors and key management (Tables)	Dec. 31, 2020
Transactions with directors and key management
Schedule of transactions with directors and key management	£000 £000 Loans to customers - amortised cost 5,165 1,662 Customer deposits 45,747 37,727

Consolidating financial infor_2

Consolidating financial information (Tables)	12 Months Ended
Consolidating financial information (Tables)	Dec. 31, 2020
Consolidating financial information
Schedule of Summarised financial information	Income statement NatWest Group plc NWM Plc For the year ended 31 December 2020 £m £m Net interest income (478) (31) Non-interest income (9,142) 953 Total income (9,620) 922 Operating expenses (69) (1,110) Impairment losses (9) (17) Operating (loss) before tax (9,698) (205) Tax credit/(charge) 125 (7) Loss for the year (9,573) (212) Attributable to: Ordinary shareholders (9,954) (280) Preference shareholders 26 — Paid-in equity holders 355 68 Non-controlling interests — — (9,573) (212) NatWest Group plc NWM Plc For the year ended 31 December 2019 £m £m Net interest income (628) (127) Non-interest income 3,467 815 Total income 2,839 688 Operating expenses (42) (1,101) Impairment releases 2 50 Operating profit/(loss) before tax 2,799 (363) Tax (charge)/credit (71) 94 Profit/(loss) for the year 2,728 (269) Attributable to: Ordinary shareholders 2,322 (329) Preference shareholders 39 — Paid-in equity holders 367 60 Non-controlling interests — — 2,728 (269) NatWest Group plc NWM Plc For the year ended 31 December 2018 £m £m Net interest income (368) (239) Non-interest income 2,794 1,002 Total income 2,426 763 Operating expenses (85) (1,262) Impairment releases 1 89 Operating profit/(loss) before tax 2,342 (410) Tax credit 149 51 Profit/(loss) from continuing operations 2,491 (359) Profit/(loss) from discontinued operations, net of tax — 54 Profit/(loss) for the year 2,491 (305) Attributable to: Ordinary shareholders 1,954 (305) Preference shareholders 182 — Paid-in equity holders 355 — Non-controlling interests — — 2,491 (305) Balance sheet NatWest Group plc NWM Plc At 31 December 2020 £m £m Assets Cash and balances at central banks — 11,736 Trading assets — 52,169 Derivatives 1,580 164,104 Settlement balances — 1,084 Loans to banks - amortised cost — 701 Loans to customers - amortised cost — 7,477 Amount due from holding company and fellow subsidiaries 26,910 7,606 Other financial assets 579 8,043 Investment in group undertakings 2,600 Other assets 117 562 Total assets 75,415 256,082 Liabilities Bank deposits — 1,762 Customer deposits — 1,469 Amount due to holding company and fellow subsidiaries 723 16,189 Settlement balances — 604 Trading liabilities — 56,916 Derivatives 1,102 153,754 Other financial liabilities 21,056 15,370 Subordinated liabilities 7,944 — Other liabilities 151 866 Total liabilities 30,976 246,930 Owners' equity 44,439 9,152 Non-controlling interests — — Total equity 44,439 9,152 Total liabilities and equity 75,415 256,082 Balance sheet NatWest Group plc NWM Plc At 31 December 2019 £m £m Assets Cash and balances at central banks — 9,953 Trading assets — 57,768 Derivatives 979 147,458 Settlement balances — 3,353 Loans to banks - amortised cost — 238 Loans to customers - amortised cost — 6,910 Amount due from holding company and fellow subsidiaries 25,018 7,145 Other financial assets 277 11,636 Investment in group undertakings 55,808 2,905 Other assets 1 687 Total assets 82,083 248,053 Liabilities Bank deposits — 2,038 Customer deposits — 2,247 Amount due to holding company and fellow subsidiaries 439 16,858 Settlement balances — 2,648 Trading liabilities — 53,576 Derivatives 711 142,390 Other financial liabilities 19,331 17,470 Subordinated liabilities 7,647 — Other liabilities 168 1,195 Total liabilities 28,296 238,422 Owners’ equity 53,787 9,631 Non-controlling interests — — Total equity 53,787 9,631 Total liabilities and equity 82,083 248,053

Accounting policies (Details)

Accounting policies (Details) £ in Billions	Jan. 01, 2019GBP (£)	Dec. 31, 2020GBP (£)item	Dec. 31, 2019GBP (£)
Disclosure of initial application of standards or interpretations [line items]
Increase in cash and balances at central banks		£ 5
Decrease in loans to banks, amortised cost		£ 5
Reclassification from loans to banks, amortised cost to cash and balances at central banks	£ 2.5		£ 3.1
Derivatives and hedging
Number of types of hedges \| item		3
Credit cards
Financial assets carried at amortised cost
Write off period		4 years
Accounting developments
Number of arrear cycles after which the financial asset is written off \| item		12
Financial Asset Writeoff Period		4 years
Minimum \| Computer software
Intangible assets and goodwill
Estimated useful economic lives		3 years
Minimum \| Other acquired intangibles
Intangible assets and goodwill
Estimated useful economic lives		5 years
Maximum \| Retail mortgages
Financial assets carried at amortised cost
Write off period		5 years
Accounting developments
Financial Asset Writeoff Period		5 years
Maximum \| Overdrafts and other unsecured loans
Financial assets carried at amortised cost
Write off period		6 years
Accounting developments
Financial Asset Writeoff Period		6 years
Maximum \| Business loans
Financial assets carried at amortised cost
Write off period		5 years
Accounting developments
Financial Asset Writeoff Period		5 years
Maximum \| Computer software
Intangible assets and goodwill
Estimated useful economic lives		12 years
Maximum \| Other acquired intangibles
Intangible assets and goodwill
Estimated useful economic lives		10 years

Net interest income (Details)

Net interest income (Details) - GBP (£) £ in Millions	12 Months Ended
Net interest income (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net interest income
Balances at central banks	£ 90	£ 321	£ 358
Loans to banks - amortised cost	9,252	9,795	9,993
Loans to customers - amortised cost	246	405	164
Other financial assets	483	854	534
Interest receivable	10,071	11,375	11,049
Balances with banks	144	319	250
Customer deposits	911	1,256	849
Other financial liabilities	846	1,102	791
Subordinated liabilities	402	483	461
Internal funding of trading businesses	19	168	42
Interest payable	2,322	3,328	2,393
Net interest income	£ 7,749	£ 8,047	£ 8,656

Non-interest income (Details)

Non-interest income (Details) € in Millions, £ in Millions	1 Months Ended		12 Months Ended
Non-interest income (Details) € in Millions, £ in Millions	Jun. 30, 2019EUR (€)	Jun. 30, 2019GBP (£)	Dec. 31, 2020GBP (£)	Dec. 31, 2019GBP (£)	Dec. 31, 2018GBP (£)
Fees and commissions receivable
Net fees and commissions			£ 2,012	£ 2,511	£ 2,357
Income from trading activities
Foreign exchange			569	448	643
Interest rate			541	532	695
Credit			3	32	45
Changes in fair value of own debt and derivative liabilities attributable to own credit risk
- debt securities in issue			(24)	(60)	72
- derivative liabilities				(20)	20
Equity, commodities and other			36		32
Income from trading activities			1,125	932	1,507
Loss on redemption of own debt			(324)
Operating lease and other rental income			232	250	256
Changes in the fair value of financial assets and liabilities designated at fair value through profit or loss			(54)	(17)	(26)
Changes in fair value of other financial assets fair value through profit or loss			2	58	18
Hedge ineffectiveness			24	48	(65)
(Loss)/profit on disposal of amortised cost assets			(18)	42	44
Profit/(loss) on disposal of fair value through other comprehensive income assets			96	(22)	34
Profit on sale of property, plant and equipment			13	58	50
Share of (losses)/profits of associated entities			(30)	(14)	83
(Loss)/profit on disposal of subsidiaries and associates			(16)	2,224	(72)
Other income			(15)	136	560
Other operating income			(90)	2,763	882
Non-interest income			3,047	6,206	4,746
Insurance recoveries					£ 357
Notional amount of financial assets			179	£ 181
UK mortgages portfolio
Changes in fair value of own debt and derivative liabilities attributable to own credit risk
Loss on acquisition of financial assets			58
Notional amount of financial assets			£ 3,000
RFS Holdings
Changes in fair value of own debt and derivative liabilities attributable to own credit risk
Gains on disposals of investments		£ 1,102
UBI DAC
Changes in fair value of own debt and derivative liabilities attributable to own credit risk
Capital repayment		67
Alawwal bank merger
Changes in fair value of own debt and derivative liabilities attributable to own credit risk
(Loss)/profit on disposal of subsidiaries and associates	€ 523	444
Legacy liability release amount		256
Gains on disposals of investments		290
Foreign exchange reserve \| RFS Holdings
Changes in fair value of own debt and derivative liabilities attributable to own credit risk
Gains on disposals of investments		1,102
Foreign exchange reserve \| Alawwal bank merger
Changes in fair value of own debt and derivative liabilities attributable to own credit risk
(Loss)/profit on disposal of subsidiaries and associates		£ 290

Operating expenses (Details)

Operating expenses (Details) - GBP (£) £ in Millions	12 Months Ended
Operating expenses (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of terms and conditions of share-based payment arrangement [line items]
Salaries	£ 2,533	£ 2,513	£ 2,560
Bonus awards	232	299	225
Temporary and contract costs	258	401	442
Social security costs	320	300	307
Pension costs	342	303	401
- defined benefit schemes (see Note 5)	215	188	307
- defined contribution schemes	127	115	94
Other	238	202	187
Staff costs	3,923	4,018	4,122
Premises and equipment	1,223	1,259	1,383
UK bank levy	167	134	179
Depreciation and amortisation	905	1,176	731
Other administrative expenses	1,678	2,694	3,193
Administrative expenses	3,973	5,263	5,486
Impairment of other intangible assets	9	44	37
Operating expenses	7,905	9,325	£ 9,645
Property impairment	144	161
Accelerated depreciation	71	40
Prior period rebate		31
Charge relating to reduction in property portfolio, included in depreciation and amortization	107	287
Freehold
Disclosure of terms and conditions of share-based payment arrangement [line items]
Property impairment	1	4
Charge relating to reduction in property portfolio, included in depreciation and amortization	21	250
Leasehold
Disclosure of terms and conditions of share-based payment arrangement [line items]
Property impairment	143	157
Charge relating to reduction in property portfolio, included in depreciation and amortization	£ 86	£ 37

Operating expenses - Continuing

Operating expenses - Continuing operations (Details) - employee	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Number and average number of employees
Average number of employees	61,400	64,200	67,600
Temporary employees	3,200	4,100	4,000
Number of employees	59,900	62,900	65,400
UK
Number and average number of employees
Number of employees	42,500	44,600	46,600
USA
Number and average number of employees
Number of employees	300	400	500
Europe
Number and average number of employees
Number of employees	3,800	4,100	4,100
Rest of the World
Number and average number of employees
Number of employees	13,300	13,800	14,200
Operating segment \| Retail Banking
Number and average number of employees
Number of employees	17,200	19,600	21,300
Operating segment \| Ulster Bank RoI
Number and average number of employees
Number of employees	2,600	2,700	2,900
Operating segment \| Commercial Banking
Number and average number of employees
Number of employees	9,700	9,700	9,800
Operating segment \| Private Banking
Number and average number of employees
Number of employees	2,200	1,900	1,900
Operating segment \| RBS International
Number and average number of employees
Number of employees	1,500	1,600	1,600
Operating segment \| NatWest Markets
Number and average number of employees
Number of employees	2,100	5,000	4,500
Operating segment \| Central items & other
Number and average number of employees
Number of employees	24,600	22,400	23,400

Operating expenses - Share-base

Operating expenses - Share-based payments (Details) £ / shares in Units, £ in Millions, shares in Millions, Options in Millions, Option in Millions, EquityInstruments in Millions	12 Months Ended
	Dec. 31, 2020GBP (£)OptionsEquityInstruments£ / shares	Dec. 31, 2019GBP (£)OptionEquityInstruments£ / sharesshares	Dec. 31, 2018GBP (£)OptionsEquityInstruments£ / sharesshares	Dec. 31, 2021shares
Sharesave
Average exercise price
At 1 January \| £ / shares	£ 2.01	£ 2.18	£ 2.38
Granted \| £ / shares	1.12	1.78	1.89
Exercised \| £ / shares	1.83	2.83	2.44
Cancelled \| £ / shares	2.20	2.25	2.46
At 31 December \| £ / shares	£ 1.64	£ 2.01	£ 2.18
Shares under option
At 1 January	84	75	60
Granted	35	25	28
Exercised		(4)	(4)
Cancelled	(23)	(12)	(9)
At 31 December	96	84	75
Options exercisable, vesting period	6 months
Options exercisable	6.3	3.2	4.9
Exercise price of outstanding share options \| £ / shares	£ 1.57	£ 2.49	£ 2.13
Weighted average remaining contractual life of outstanding share options	2 years 3 months 18 days	2 years 8 months 12 days	2 years 10 months 24 days
Fair value of options granted	£ 8	£ 11	£ 21
Sharesave \| Minimum
Shares under option
Exercise price of outstanding share options \| £ / shares	£ 1.12	£ 1.68	£ 1.68
Sharesave \| Maximum
Shares under option
Exercise price of outstanding share options \| £ / shares	£ 2.27	£ 2.91	£ 3.43
Deferred performance awards
Value at grant
At 1 January	£ 196	£ 233	£ 264
Granted	109	110	156
Forfeited	(5)	(10)	(21)
Vested	(131)	(137)	(166)
At 31 December	£ 169	£ 196	£ 233
Shares awarded
At 1 January (in shares) \| EquityInstruments	76	92	101
Granted (in shares) \| EquityInstruments	67	42	59
Forfeited (in shares) \| EquityInstruments	(2)	(4)	(8)
Vested/exercised (in shares) \| EquityInstruments	(64)	(54)	(60)
At 31 December (in shares) \| EquityInstruments	77	76	92
Long-term incentives
Value at grant
At 1 January	£ 63	£ 85	£ 102
Granted	14	15	12
Vested	(17)	(12)	(5)
Lapsed	(10)	(25)	(24)
At 31 December	£ 50	£ 63	£ 85
Shares awarded
At 1 January (in shares) \| EquityInstruments	25	32	37
Granted (in shares) \| EquityInstruments	10	6	5
Vested/exercised (in shares) \| EquityInstruments	(7)	(4)	(2)
Lapsed (in shares) \| EquityInstruments	(4)	(9)	(8)
At 31 December (in shares) \| EquityInstruments	24	25	32
Options over shares
At 1 January (in shares) \| shares		2	2
Lapsed (in shares) \| shares		(2)
At 31 December (in shares) \| shares			2
Market value of awards vested and exercised	£ 13	£ 10	£ 5
Vested options over shares exercisable \| shares		0	2	0

Operating expenses - Bonus awar

Operating expenses - Bonus awards (Details) - GBP (£)	12 Months Ended
Operating expenses - Bonus awards (Details) - GBP (£)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating expenses
Total Bonus awards	£ 206,000,000	£ 307,000,000	£ 335,000,000
Bonus awards as a % of operating profit before tax	(173.00%)	7.00%
Proportion of bonus awards that are deferred	83.00%	87.00%
Cash awards	£ 2,000
Bonus awards
Operating expenses
Total Bonus awards	£ 206,000,000	£ 307,000,000
Change %	(33.00%)
Total non-deferred bonus awards
Operating expenses
Total Bonus awards	£ 35,000,000	40,000,000
Change %	(13.00%)
Non-deferred cash awards
Operating expenses
Total Bonus awards	£ 35,000,000	40,000,000
Change %	(13.00%)
Total deferred bonus awards
Operating expenses
Total Bonus awards	£ 171,000,000	267,000,000
Change %	(36.00%)
Deferred bond awards
Operating expenses
Total Bonus awards	£ 111,000,000	£ 184,000,000
Change %	(40.00%)
Proportion of bonus awards that are deferred	65.00%	69.00%
Deferred share awards
Operating expenses
Total Bonus awards	£ 60,000,000	£ 83,000,000
Change %	(28.00%)
Proportion of bonus awards that are deferred	35.00%	31.00%

Operating expenses - Bonus aw_2

Operating expenses - Bonus awards reconciliation (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating expenses
Bonus Awards	£ 206	£ 307	£ 335
Less: deferral of charge for amounts awarded for current year	(77)	(110)	(130)
Income statement charge for amounts awarded in current year	129	197	205
Add: current year charge for amounts deferred from prior years	114	127	86
Less: forfeiture of amounts deferred from prior years	(11)	(25)	(66)
Income statement charge for amounts deferred from prior years	103	102	20
Income statement charge for bonus awards	£ 232	£ 299	£ 225

Operating expenses - Bonus aw_3

Operating expenses - Bonus awards - Actual and Expected (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating expenses
Bonus awards deferred from 2018 and earlier	£ 30	£ 127	£ 86
Bonus awards deferred from 2019	84
Less: forfeiture of amounts deferred from prior years	(11)	(25)	(66)
Income statement charge for amounts deferred from prior years	103	£ 102	£ 20
Within 1 year
Operating expenses
Bonus awards deferred from 2018 and earlier	13
Bonus awards deferred from 2019	12
Bonus awards for 2020 deferred	58
Income statement charge for amounts deferred from prior years	83
More than 12 months
Operating expenses
Bonus awards deferred from 2018 and earlier	7
Bonus awards deferred from 2019	10
Bonus awards for 2020 deferred	19
Income statement charge for amounts deferred from prior years	£ 36

Segmental analysis - Operating

Segmental analysis - Operating profit/(loss) before tax (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segmental analysis
Net interest income	£ 7,749	£ 8,047	£ 8,656
Net fees and commissions	2,012	2,511	2,357
Other non-interest income	1,035	3,695	2,389
Total income	10,796	14,253	13,402
Operating expenses	(7,000)	(8,149)	(8,914)
Depreciation and amortisation	(905)	(1,176)	(731)
Impairment losses	(3,242)	(696)	(398)
Operating profit/(loss)	(351)	4,232	3,359
Retail Banking
Segmental analysis
Net interest income	3,868	4,130	4,283
Net fees and commissions	379	696	692
Other non-interest income	(66)	40	79
Total income	4,181	4,866	5,054
Operating expenses	(2,540)	(3,618)	(2,867)
Impairment losses	(792)	(393)	(339)
Operating profit/(loss)	849	855	1,848
Ulster Bank RoI
Segmental analysis
Net interest income	395	400	444
Net fees and commissions	89	109	91
Other non-interest income	26	58	75
Total income	510	567	610
Operating expenses	(486)	(552)	(583)
Impairment losses	(250)	34	(15)
Operating profit/(loss)	(226)	49	12
Commercial Banking
Segmental analysis
Net interest income	2,740	2,842	2,855
Net fees and commissions	1,110	1,312	1,283
Other non-interest income	108	164	464
Total income	3,958	4,318	4,602
Operating expenses	(2,281)	(2,458)	(2,362)
Depreciation and amortisation	(149)	(142)	(125)
Impairment losses	(1,927)	(391)	(147)
Operating profit/(loss)	(399)	1,327	1,968
Private Banking
Segmental analysis
Net interest income	489	521	518
Net fees and commissions	257	226	228
Other non-interest income	17	30	29
Total income	763	777	775
Operating expenses	(447)	(482)	(476)
Depreciation and amortisation	(8)	(4)	(2)
Impairment losses	(100)	6	6
Operating profit/(loss)	208	297	303
RBS International
Segmental analysis
Net interest income	371	478	466
Net fees and commissions	94	106	101
Other non-interest income	32	26	27
Total income	497	610	594
Operating expenses	(274)	(254)	(254)
Depreciation and amortisation	(17)	(10)	(6)
Impairment losses	(107)	(2)	2
Operating profit/(loss)	99	344	336
NatWest Markets
Segmental analysis
Net interest income	(57)	(188)	112
Net fees and commissions	99	85	(33)
Other non-interest income	1,081	1,445	1,363
Total income	1,123	1,342	1,442
Operating expenses	(1,294)	(1,406)	(1,589)
Depreciation and amortisation	(16)	(12)	(15)
Impairment losses	(40)	51	92
Operating profit/(loss)	(227)	(25)	(70)
Central items and other
Segmental analysis
Net interest income	(57)	(136)	(22)
Net fees and commissions	(16)	(23)	(5)
Other non-interest income	(163)	1,932	352
Total income	(236)	1,773	325
Operating expenses	322	621	(783)
Depreciation and amortisation	(715)	(1,008)	(583)
Impairment losses	(26)	(1)	3
Operating profit/(loss)	£ (655)	£ 1,385	£ (1,038)

Segmental analysis - Total reve

Segmental analysis - Total revenue (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segmental analysis
Revenue	£ 13,840	£ 18,429	£ 16,656
Retail Banking
Segmental analysis
Revenue	5,425	6,223	6,251
Ulster Bank RoI
Segmental analysis
Revenue	570	622	668
Commercial Banking
Segmental analysis
Revenue	3,798	4,486	4,665
Private Banking
Segmental analysis
Revenue	865	944	876
RBS International
Segmental analysis
Revenue	508	658	654
NatWest Markets
Segmental analysis
Revenue	1,997	3,074	2,798
Central items and other
Segmental analysis
Revenue	677	2,422	744
Operating segment
Segmental analysis
Revenue	13,840	18,429	16,656
Operating segment \| Retail Banking
Segmental analysis
Revenue	5,386	6,161	6,188
Operating segment \| Ulster Bank RoI
Segmental analysis
Revenue	568	616	668
Operating segment \| Commercial Banking
Segmental analysis
Revenue	3,734	4,347	4,576
Operating segment \| Private Banking
Segmental analysis
Revenue	702	703	681
Operating segment \| RBS International
Segmental analysis
Revenue	505	639	506
Operating segment \| NatWest Markets
Segmental analysis
Revenue	1,984	2,516	1,882
Operating segment \| Central items and other
Segmental analysis
Revenue	961	3,447	2,155
Inter segment \| Retail Banking
Segmental analysis
Revenue	39	62	63
Inter segment \| Ulster Bank RoI
Segmental analysis
Revenue	2	6
Inter segment \| Commercial Banking
Segmental analysis
Revenue	64	139	89
Inter segment \| Private Banking
Segmental analysis
Revenue	163	241	195
Inter segment \| RBS International
Segmental analysis
Revenue	3	19	148
Inter segment \| NatWest Markets
Segmental analysis
Revenue	13	558	916
Inter segment \| Central items and other
Segmental analysis
Revenue	£ (284)	£ (1,025)	£ (1,411)

Segmental analysis - Net fees a

Segmental analysis - Net fees and commissions (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fees and commissions receivable
Payment services	£ 892	£ 1,096	£ 878
Credit and debit card fees	460	623	612
Lending and financing	690	1,006	1,103
Brokerage	155	164	158
Investment management, trustee and fiduciary services	271	278	286
Underwriting fees	183	170	174
Other	83	22	7
Total	2,734	3,359	3,218
Fees and commissions payable	(722)	(848)	(861)
Net fees and commissions	2,012	2,511	2,357
Retail Banking
Fees and commissions receivable
Payment services	264	292	227
Credit and debit card fees	299	427	402
Lending and financing	42	356	408
Brokerage	54	55	62
Investment management, trustee and fiduciary services	3	44	49
Underwriting fees			13
Other	1	2	2
Total	663	1,176	1,163
Fees and commissions payable	(284)	(480)	(471)
Net fees and commissions	379	696	692
Ulster Bank RoI
Fees and commissions receivable
Payment services	57	61	34
Credit and debit card fees	21	28	22
Lending and financing	16	16	31
Brokerage	1	8	6
Investment management, trustee and fiduciary services	2	3	4
Other		5	1
Total	97	121	98
Fees and commissions payable	(8)	(12)	(7)
Net fees and commissions	89	109	91
Commercial Banking
Fees and commissions receivable
Payment services	507	659	556
Credit and debit card fees	129	154	175
Lending and financing	505	510	537
Investment management, trustee and fiduciary services	1	3
Underwriting fees			17
Other	82	90	60
Total	1,224	1,416	1,345
Fees and commissions payable	(114)	(104)	(62)
Net fees and commissions	1,110	1,312	1,283
Private Banking
Fees and commissions receivable
Payment services	28	33	33
Credit and debit card fees	9	12	13
Lending and financing	7	3	3
Brokerage	6	5	5
Investment management, trustee and fiduciary services	225	186	191
Other	26	27	16
Total	301	266	261
Fees and commissions payable	(44)	(40)	(33)
Net fees and commissions	257	226	228
RBS International
Fees and commissions receivable
Payment services	18	27	25
Credit and debit card fees	2	2
Lending and financing	34	36	33
Brokerage	1
Investment management, trustee and fiduciary services	38	41	42
Other	3	2	2
Total	96	108	102
Fees and commissions payable	(2)	(2)	(1)
Net fees and commissions	94	106	101
NatWest Markets
Fees and commissions receivable
Payment services	18	24	3
Lending and financing	86	85	91
Brokerage	93	96	85
Investment management, trustee and fiduciary services	2	1
Underwriting fees	183	170	144
Other	4	69	67
Total	386	445	390
Fees and commissions payable	(287)	(360)	(423)
Net fees and commissions	99	85	(33)
Central items and other
Fees and commissions receivable
Other	(33)	(173)	(141)
Total	(33)	(173)	(141)
Fees and commissions payable	17	150	136
Net fees and commissions	£ (16)	£ (23)	£ (5)

Segmental analysis - Total inco

Segmental analysis - Total income (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segmental analysis
Total income	£ 10,796	£ 14,253	£ 13,402
Retail Banking
Segmental analysis
Total income	4,181	4,866	5,054
Ulster Bank RoI
Segmental analysis
Total income	510	567	610
Commercial Banking
Segmental analysis
Total income	3,958	4,318	4,602
Private Banking
Segmental analysis
Total income	763	777	775
RBS International
Segmental analysis
Total income	497	610	594
NatWest Markets
Segmental analysis
Total income	1,123	1,342	1,442
Central items and other
Segmental analysis
Total income	(236)	1,773	325
Operating segment
Segmental analysis
Total income	10,796	14,253	13,402
Operating segment \| Retail Banking
Segmental analysis
Total income	4,157	4,834	5,021
Operating segment \| Ulster Bank RoI
Segmental analysis
Total income	516	562	613
Operating segment \| Commercial Banking
Segmental analysis
Total income	4,065	4,814	5,079
Operating segment \| Private Banking
Segmental analysis
Total income	700	631	655
Operating segment \| RBS International
Segmental analysis
Total income	500	603	469
Operating segment \| NatWest Markets
Segmental analysis
Total income	1,395	1,664	1,510
Operating segment \| Central items and other
Segmental analysis
Total income	(537)	1,145	55
Inter segment \| Retail Banking
Segmental analysis
Total income	24	32	33
Inter segment \| Ulster Bank RoI
Segmental analysis
Total income	(6)	5	(3)
Inter segment \| Commercial Banking
Segmental analysis
Total income	(107)	(496)	(477)
Inter segment \| Private Banking
Segmental analysis
Total income	63	146	120
Inter segment \| RBS International
Segmental analysis
Total income	(3)	7	125
Inter segment \| NatWest Markets
Segmental analysis
Total income	(272)	(322)	(68)
Inter segment \| Central items and other
Segmental analysis
Total income	£ 301	£ 628	£ 270

Segmental analysis - Assets and

Segmental analysis - Assets and liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]	Dec. 31, 2018
Segmental analysis
Assets	£ 799,491	£ 723,039	[1]	£ 694,235		£ 694,235
Liabilities	755,667	679,483	[1]	£ 647,745		647,745
Retail Banking
Segmental analysis
Assets	197,618	182,305				171,011
Liabilities	178,617	153,999				148,792
Ulster Bank RoI
Segmental analysis
Assets	26,620	25,385				25,193
Liabilities	22,993	21,012				21,189
Commercial Banking
Segmental analysis
Assets	187,413	165,399				166,478
Liabilities	174,251	140,863				139,804
Private Banking
Segmental analysis
Assets	26,206	23,304				21,983
Liabilities	32,457	28,610				28,554
RBS International
Segmental analysis
Assets	33,984	31,738				28,398
Liabilities	31,989	30,330				27,663
NatWest Markets
Segmental analysis
Assets	270,147	263,885				244,531
Liabilities	254,098	246,907				227,399
Central items and other
Segmental analysis
Assets	57,503	31,023				36,641
Liabilities	£ 61,262	£ 57,762				£ 54,344

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Segmental analysis - Goodwill (

Segmental analysis - Goodwill (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Analysis of goodwill
Carrying value of goodwill	£ 5,607
Retail Banking
Analysis of goodwill
Carrying value of goodwill	2,692
Commercial and Private Banking (CPB)
Analysis of goodwill
Carrying value of goodwill		£ 2,600
Commercial Banking
Analysis of goodwill
Carrying value of goodwill	2,606
Private Banking
Analysis of goodwill
Carrying value of goodwill	9
RBS International
Analysis of goodwill
Carrying value of goodwill	£ 300	£ 300

Segmental analysis - Geographic

Segmental analysis - Geographical segments (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019		Dec. 31, 2018	Jan. 01, 2019	[1]
Geographical segments
Total revenue	£ 13,840	£ 18,429		£ 16,656
Interest receivable	10,071	11,375		11,049
Interest payable	(2,322)	(3,328)		(2,393)
Net fees and commissions	2,012	2,511		2,357
Income from trading activities	1,125	932		1,507
Other operating income	(90)	2,763		882
Total income	10,796	14,253		13,402
Operating (loss)/profit before tax	(351)	4,232		3,359
Total assets	799,491	723,039	[1]	694,235	£ 694,235
Total liabilities	755,667	679,483	[1]	647,745	£ 647,745
Contingent liabilities and commitments	128,732	124,995		126,883
UK
Geographical segments
Total revenue	12,511	16,925		15,351
Interest receivable	9,479	10,923		10,589
Interest payable	(2,163)	(3,255)		(2,366)
Net fees and commissions	1,637	2,191		2,183
Income from trading activities	911	727		1,308
Other operating income	(117)	2,305		467
Total income	9,747	12,891		12,181
Operating (loss)/profit before tax	(193)	3,543		3,805
Total assets	704,725	634,642		615,933
Total liabilities	686,500	613,151		588,185
Contingent liabilities and commitments	118,654	114,422		121,267
USA
Geographical segments
Total revenue	211	228		300
Net fees and commissions	33	37		12
Income from trading activities	170	148		124
Other operating income	(22)	13		119
Total income	181	198		255
Operating (loss)/profit before tax	(85)	186		(718)
Total assets	25,439	27,396		25,487
Total liabilities	26,932	31,715		31,329
Europe
Geographical segments
Total revenue	944	1,148		838
Interest receivable	570	417		430
Interest payable	(158)	(70)		(26)
Net fees and commissions	245	211		102
Income from trading activities	33	49		68
Other operating income	45	436		229
Total income	735	1,043		803
Operating (loss)/profit before tax	(161)	421		150
Total assets	66,884	57,534		47,211
Total liabilities	41,018	33,539		27,183
Contingent liabilities and commitments	10,068	10,571		5,408
RoW
Geographical segments
Total revenue	174	128		167
Interest receivable	22	35		30
Interest payable	(1)	(3)		(1)
Net fees and commissions	97	72		60
Income from trading activities	11	8		7
Other operating income	4	9		67
Total income	133	121		163
Operating (loss)/profit before tax	88	82		122
Total assets	2,443	3,467		5,604
Total liabilities	1,217	1,078		1,048
Contingent liabilities and commitments	£ 10	£ 2		£ 208

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Pensions (Details)

Pensions (Details)	12 Months Ended
Pensions (Details)	Dec. 31, 2020trustee
Pensions
Portion of final pensionable salary, considered for pension	1.67%
Maximum number of years of service for pension	40 years
Maximum annual salary inflation	2.00%
Main Scheme
Pensions
Number of nominated trustee directors	4
Number of appointed trustee directors	6

Pensions - Investment strategy

Pensions - Investment strategy (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]
Pensions
Notional amount	£ 179	£ 181
Fair value of assets	166,523	150,029	[1]	£ 133,349
Fair value of liabilities	160,705	146,879	[1]	£ 128,897
Inflation rate swaps
Pensions
Notional amount	18,000	16,000
Fair value of assets	1,390	909
Fair value of liabilities	1,716	1,094
Interest rate swaps
Pensions
Notional amount	68,000	57,000
Fair value of assets	11,197	6,407
Fair value of liabilities	6,215	2,992
Currency forwards
Pensions
Notional amount	11,000	9,000
Fair value of assets	334	215
Fair value of liabilities	38	42
Equity and bond call options
Pensions
Notional amount	1,000	1,000
Fair value of assets	169	122
Fair value of liabilities	1
Equity and bond put options
Pensions
Notional amount	3,000	5,000
Fair value of assets	1	3
Fair value of liabilities	19	1
Other
Pensions
Notional amount	2,000	3,000
Fair value of assets	63	124
Fair value of liabilities	£ 17	£ 13
Main Scheme
Pensions
Percentage of total plan assets	90.00%	90.00%
Equities	8.50%	8.70%
Index-linked bonds	49.40%	47.80%
Government bonds	6.20%	9.30%
Corporate and other bonds	16.80%	16.60%
Real estate	4.20%	4.80%
Derivatives	10.00%	7.80%
Cash and other assets	4.90%	5.00%
Total	100.00%	100.00%
Percentage of collateral	104.00%
Maximum percentage of indirect investment by trustees	5.00%
Main Scheme \| Swap
Pensions
Notional amount	£ 88,000	£ 75,000
Fair value of assets	£ 4,706	£ 3,340
Quoted
Pensions
Equities	3.90%	3.90%
Index-linked bonds	49.40%	47.80%
Government bonds	6.20%	9.30%
Corporate and other bonds	11.80%	11.60%
Total	71.30%	72.60%
Unquoted
Pensions
Equities	4.60%	4.80%
Corporate and other bonds	5.00%	5.00%
Real estate	4.20%	4.80%
Derivatives	10.00%	7.80%
Cash and other assets	4.90%	5.00%
Total	28.70%	27.40%

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Pensions - Changes in value of

Pensions - Changes in value of net pension (assets)/liability (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pensions
Balance at beginning of year	£ (495)	£ (355)
Currency translation and other adjustments	(21)	9
Net interest expense	2
Current service cost	208
Past service cost	5
Income statement	215	188
Return on plan assets excluding recognised interest income	(6,027)	(3,556)	£ 2,090	£ (1,728)	£ (9,254)
Experience gains and losses	(455)	(279)	81	93	(794)
Effect of changes in actuarial financial assumptions	5,974
Effect of changes in actuarial demographic assumptions	185
Asset ceiling adjustments	319
Statement of comprehensive income	(4)	142
Contributions by employer	(296)	(473)
Liabilities extinguished upon settlement	(1)	(6)
Balance at end of year	(602)	(495)	(355)
Main Scheme
Pensions
Currency translation and other adjustments	4
Current service cost	156
Past service cost	3
Income statement	159	153
Return on plan assets excluding recognised interest income	(5,486)	(3,021)	1,891	(1,580)	(8,562)
Experience gains and losses	(427)	(275)	122	£ 107	£ (658)
Effect of changes in actuarial financial assumptions	5,419
Effect of changes in actuarial demographic assumptions	138
Asset ceiling adjustments	426
Statement of comprehensive income	70	108
Contributions by employer	(233)	(261)
Expected contributions to scheme in 2021	215
Maximum expected additional contributions to scheme in 2021	500
Fair value of plan assets
Pensions
Balance at beginning of year	51,925	48,752
Currency translation and other adjustments	92	(85)
Net interest expense	1,037
Income statement	1,037	1,374
Return on plan assets excluding recognised interest income	6,027
Statement of comprehensive income	6,027	3,556
Contributions by employer	296	473
Contributions by plan participants and other scheme members	14	15
Liabilities extinguished upon settlement	(2)	(188)
Benefits paid	(2,140)	(1,972)
Balance at end of year	57,249	51,925	48,752
Fair value of plan assets \| Main Scheme
Pensions
Balance at beginning of year	46,555	43,806
Net interest expense	936
Income statement	936	1,245
Return on plan assets excluding recognised interest income	5,486
Statement of comprehensive income	5,486	3,021
Contributions by employer	233	261
Contributions by plan participants and other scheme members	9	10
Benefits paid	(1,896)	(1,788)
Balance at end of year	51,323	46,555	43,806
Present value of defined benefit obligation
Pensions
Balance at beginning of year	44,115	39,607
Currency translation and other adjustments	71	(76)
Net interest expense	890
Current service cost	208
Past service cost	5
Income statement	1,103	1,307
Experience gains and losses	(455)
Effect of changes in actuarial financial assumptions	5,974
Effect of changes in actuarial demographic assumptions	185
Statement of comprehensive income	5,704	5,428
Contributions by plan participants and other scheme members	14	15
Liabilities extinguished upon settlement	(3)	(194)
Benefits paid	(2,140)	(1,972)
Balance at end of year	48,864	44,115	39,607
Present value of defined benefit obligation \| Main Scheme
Pensions
Balance at beginning of year	39,669	35,466
Currency translation and other adjustments	4
Net interest expense	795
Current service cost	156
Past service cost	3
Income statement	954	1,156
Experience gains and losses	(427)
Effect of changes in actuarial financial assumptions	5,419
Effect of changes in actuarial demographic assumptions	138
Statement of comprehensive income	5,130	4,825
Contributions by plan participants and other scheme members	9	10
Benefits paid	(1,896)	(1,788)
Balance at end of year	43,870	39,669	35,466
Asset ceiling/minimum funding
Pensions
Balance at beginning of year	7,315	8,790
Net interest expense	149
Income statement	149	255
Asset ceiling adjustments	319
Statement of comprehensive income	319	(1,730)
Balance at end of year	7,783	7,315	8,790
Asset ceiling/minimum funding \| Main Scheme
Pensions
Balance at beginning of year	6,886	8,340
Net interest expense	141
Income statement	141	242
Asset ceiling adjustments	426
Statement of comprehensive income	426	(1,696)
Balance at end of year	£ 7,453	£ 6,886	£ 8,340

Pensions - Amounts in the Finan

Pensions - Amounts in the Financial statements (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pensions
Fund assets at fair value	£ 57,249	£ 51,925	£ 48,752	£ 49,746	£ 49,229
Present value of fund liabilities	48,864	44,115	39,607	42,378	43,990
Funded status	8,385	7,810	9,145	£ 7,368	£ 5,239
Net assets of schemes in surplus	723	614
Net liabilities of schemes in deficit	(121)	(119)
Retirement benefit liability	602	495	355
Asset ceiling/minimum funding
Pensions
Retirement benefit liability	£ (7,783)	£ (7,315)	£ (8,790)

Pensions - Funding and contribu

Pensions - Funding and contributions by the Group and most significant assumptions used for the Main Scheme (Details) - GBP (£) £ in Millions	1 Months Ended	12 Months Ended
	Oct. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pensions
Amount of impact of guaranteed minimum pension equalisation		£ 169	£ 141
Main Scheme
Pensions
Period of funding valuations (in years)		3 years
Funding level, as percent					96.00%
Pension liabilities					£ 47,000
Deficit					£ 2,000
Cash payment	£ 2,000
Average cost (as a percent)	44.00%
Amount of impact of guaranteed minimum pension equalisation				£ 102
Main Scheme \| Principal IAS 19 actuarial assumptions
Pensions
Discount rate		1.40%	2.10%
Inflation assumption (RPI)		2.90%	2.90%
Rate of increase in salaries		1.80%	1.80%
Rate of increase in deferred pensions		3.00%	3.00%
Rate of increase in pensions in payment		2.70%	2.80%
Proportion of pension converted to a cash lump sum at retirement		20.00%	20.00%
Longevity at age 60 for current pensioners (years), males		27 years 1 month 6 days	26 years 10 months 24 days
Longevity at age 60 for current pensioners (years), females		29 years	28 years 8 months 12 days
Longevity at age 60 for future pensioners currently aged 40 (years), males		28 years 3 months 18 days	28 years 2 months 12 days
Longevity at age 60 for future pensioners currently aged 40 (years), females		30 years 4 months 24 days	30 years 2 months 12 days
Main Scheme \| Triennial valuation 2017
Pensions
Discount rate spread				0.80%
Proportion of pension converted to a cash lump sum at retirement			18.00%
Longevity at age 60 for current pensioners (years), males			28 years 1 month 6 days
Longevity at age 60 for current pensioners (years), females			29 years 8 months 12 days
Longevity at age 60 for future pensioners currently aged 40 (years), males			29 years 3 months 18 days
Longevity at age 60 for future pensioners currently aged 40 (years), females			31 years 6 months

Pensions - Sensitivities of the

Pensions - Sensitivities of the present value of defined benefit obligation (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Pensions
Weighted average duration of defined benefit obligation	22 years	21 years
Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.50%	0.50%
Decrease in actuarial assumption (as a percent)	0.50%	0.50%
Active members	14.20%	13.60%
Deferred members	50.90%	49.70%
Pensioners and dependants	34.90%	36.70%
Total proportions to the different classes of scheme	100.00%	100.00%
Discount rate \| Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.25%	0.25%
(Decrease)/ increase in value of assets	£ (2,585)	£ (2,330)
(Decrease)/ increase in value of liabilities	(2,384)	(1,973)
Increase in net pension assets/ (obligations)	£ (201)	£ (357)
Inflation \| Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.25%	0.25%
(Decrease)/ increase in value of assets	£ 2,204	£ 1,923
(Decrease)/ increase in value of liabilities	1,603	1,394
Increase in net pension assets/ (obligations)	£ 601	£ 529
Credit spreads \| Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.25%	0.25%
(Decrease)/ increase in value of assets	£ (6)	£ (5)
(Decrease)/ increase in value of liabilities	(2,384)	(1,973)
Increase in net pension assets/ (obligations)	£ 2,378	1,968
Credit spreads \| Actuarial assumption of longevity, decrease by 2 years \| Main Scheme
Pensions
Actuarial assumption of longevity decrease	2 years
Increase in net pension assets/ (obligations)	£ 7,800	6,900
Net pension assets/obligations, assuming no change in one of the actuarial assumption	3,900	3,600
Increase(decrease) in net pension assets/obligations, assuming decrease in one of the actuarial assumption	£ (600)	(200)
Credit spreads \| Actuarial assumption of longevity, decrease by 1 year \| Main Scheme
Pensions
Actuarial assumption of longevity decrease	1 year
Increase in net pension assets/ (obligations)	£ 6,100	5,400
Net pension assets/obligations, assuming no change in one of the actuarial assumption	1,900	1,700
Increase(decrease) in net pension assets/obligations, assuming decrease in one of the actuarial assumption	(2,800)	(2,300)
Credit spreads \| Actuarial assumption of longevity, no change \| Main Scheme
Pensions
Increase in net pension assets/ (obligations)	4,500	3,900
Increase(decrease) in net pension assets/obligations, assuming decrease in one of the actuarial assumption	£ (5,100)	(4,400)
Credit spreads \| Actuarial assumption of longevity, increase by 1 year \| Main Scheme
Pensions
Actuarial assumption of longevity increase	1 year
Increase in net pension assets/ (obligations)	£ 2,900	2,300
Net pension assets/obligations, assuming no change in one of the actuarial assumption	(1,900)	(1,700)
Increase(decrease) in net pension assets/obligations, assuming decrease in one of the actuarial assumption	£ (7,400)	(6,500)
Credit spreads \| Actuarial assumption of longevity, increase by 1 year \| Main Scheme
Pensions
Actuarial assumption of longevity increase	2 years
Increase in net pension assets/ (obligations)	£ 1,300	800
Net pension assets/obligations, assuming no change in one of the actuarial assumption	(3,900)	(3,600)
Increase(decrease) in net pension assets/obligations, assuming decrease in one of the actuarial assumption	£ (9,700)	£ (8,700)
Longevity increase \| Main Scheme
Pensions
Actuarial assumption of longevity increase	1 year	1 year
(Decrease)/ increase in value of liabilities	£ 1,930	£ 1,706
Increase in net pension assets/ (obligations)	£ (1,930)	£ (1,706)
Pension increase \| Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.25%	0.25%
(Decrease)/ increase in value of liabilities	£ 1,608	£ 1,326
Increase in net pension assets/ (obligations)	£ (1,608)	£ (1,326)
Equity values \| Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	10.00%	10.00%
(Decrease)/ increase in value of assets	£ 454	£ 430
Increase in net pension assets/ (obligations)	£ 454	£ 430

Pensions - History of defined b

Pensions - History of defined benefit schemes (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pensions
Fair value of plan assets	£ 57,249	£ 51,925	£ 48,752	£ 49,746	£ 49,229
Present value of plan obligations	48,864	44,115	39,607	42,378	43,990
Funded status	8,385	7,810	9,145	7,368	5,239
Experience gains/(losses) on plan liabilities	455	279	(81)	(93)	794
Experience gains/(losses) on plan assets	6,027	3,556	(2,090)	1,728	9,254
Actual return on plan assets	£ 7,064	£ 4,930	£ (848)	£ 3,013	£ 10,708
Actual return on plan assets - %	13.60%	10.10%	(1.70%)	6.10%	30.90%
Main Scheme
Pensions
Fair value of plan assets	£ 51,323	£ 46,555	£ 43,806	£ 44,652	£ 43,824
Present value of plan obligations	43,870	39,669	35,466	37,937	38,851
Funded status	7,453	6,886	8,340	6,715	4,973
Experience gains/(losses) on plan liabilities	427	275	(122)	(107)	658
Experience gains/(losses) on plan assets	5,486	3,021	(1,891)	1,580	8,562
Actual return on plan assets	£ 6,422	£ 4,266	£ (768)	£ 2,735	£ 9,872
Actual return on plan assets - %	13.80%	9.70%	(1.70%)	6.20%	32.20%

Auditor's remuneration (Details

Auditor's remuneration (Details) - GBP (£) £ in Millions	12 Months Ended
Auditor's remuneration (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Auditor's remuneration
Fees payable for the audit of NatWest Group's annual accounts	£ 4.7	£ 3.8	£ 3.5
Fees payable for the audit of NatWest Group plc's subsidiaries	30.6	25.7	27.5
Fees payable for audit-related assurance services	4.7	3.2	2.9
Total audit and audit-related assurance services fees	40	32.7	33.9
Other assurance services	0.6	1.2	1.3
Corporate finance services	0.4	0.6	0.2
Total other services	1	1.8	£ 1.5
Audit fees paid	23
Fees for review of interim financial information	1.1	1.1
Fees for reports to the regulatory	3.2	1.4
Fees for non-statutory audit opinions	0.4	0.7
Fees for the auditors as reporting accountants on debt and equity issuances	£ 0.4	£ 0.6

Tax - Tax charge (Details)

Tax - Tax charge (Details) - GBP (£) £ in Millions	12 Months Ended
Tax - Tax charge (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current tax:
Charge for the year	£ (191)	£ (673)	£ (1,025)
Over provision in respect of prior years	86	122	125
Total current tax	(105)	(551)	(900)
Deferred tax:
Credit/(charge) for the year	251	38	(280)
(Decrease)/increase in the carrying value of deferred tax assets in respect of UK and Ireland losses	(139)	62	7
(Under)/over provision in respect of prior years	(90)	19	(35)
Tax charge for the year	£ (83)	£ (432)	£ (1,208)

Tax - Reconciliation (Details)

Tax - Reconciliation (Details) - GBP (£) £ in Millions	12 Months Ended
Tax - Reconciliation (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Tax reconciliation
UK corporation tax	19.00%	19.00%	19.00%
Reverses rate reduction	17.00%
Expected tax credit/(charge)	£ 67	£ (804)	£ (638)
Losses and temporary differences in period where no deferred tax assets recognised	(27)	(4)	(55)
Foreign profits taxed at other rates	(20)	23	(8)
losses on disposals and write-downs	(22)	(71)	(44)
UK bank levy	(32)	(26)	(38)
regulatory and legal actions	14	(165)	(203)
other disallowable items	(70)	(62)	(63)
Alawwal bank merger gain on disposal		215
FX recycling on the liquidation of RFS Holdings		279
other non-taxable items	28	80	47
Taxable foreign exchange movements	(3)	(1)	(27)
Losses brought forward and utilised	16	27	14
Banking surcharge	(27)	(199)	(357)
Tax on paid-in equity	61	73	67
UK tax rate change impact	75
Adjustments in respect of prior periods	(4)	141	90
Tax charge for the year	(83)	(432)	(1,208)
UK
Tax reconciliation
Increase/(decrease) in the carrying value of deferred tax assets in respect of:	7	129	£ 7
Ireland
Tax reconciliation
Increase/(decrease) in the carrying value of deferred tax assets in respect of:	£ (146)	£ (67)

Tax - Asset and liability (Deta

Tax - Asset and liability (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Deferred tax
Deferred tax assets	£ (901)	£ (1,011)
Deferred tax liability	291	266
Net deferred tax asset	£ (610)	£ (745)	£ (958)

Tax - Net deferred tax asset (D

Tax - Net deferred tax asset (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of net deferred tax asset
At 1 January	£ (745)	£ (958)
Implementation of IFRS 16 on 1 January 2019		(60)
Acquisitions and disposals of subsidiaries		16
Charge/(credit) to income statement	(22)	(119)
Charge/(credit) to other comprehensive income	163	372
Currency translation and other adjustments	(6)	4
At 31 December	(610)	(745)
Pension
Reconciliation of net deferred tax asset
At 1 January	(139)	(528)
Acquisitions and disposals of subsidiaries		(1)
Charge/(credit) to income statement	15	28
Charge/(credit) to other comprehensive income	119	362
Currency translation and other adjustments	1
At 31 December	(4)	(139)
Accelerated capital allowances
Reconciliation of net deferred tax asset
At 1 January	172	220
Acquisitions and disposals of subsidiaries		(1)
Charge/(credit) to income statement	(234)	(43)
Currency translation and other adjustments	(2)	(4)
At 31 December	(64)	172
Provisions
Reconciliation of net deferred tax asset
At 1 January	(118)	(159)
Charge/(credit) to income statement	33	41
At 31 December	(85)	(118)
Fair value of financial instruments
Reconciliation of net deferred tax asset
At 1 January	315	349
Acquisitions and disposals of subsidiaries		18
Charge/(credit) to income statement	114	(81)
Charge/(credit) to other comprehensive income	51	30
Currency translation and other adjustments		(1)
At 31 December	480	315
Total losses carried forward
Reconciliation of net deferred tax asset
At 1 January	(951)	(936)
Charge/(credit) to income statement	55	(28)
Currency translation and other adjustments	(9)	13
At 31 December	(905)	(951)
Other
Reconciliation of net deferred tax asset
At 1 January	(24)	96
Implementation of IFRS 16 on 1 January 2019		(60)
Charge/(credit) to income statement	(5)	(36)
Charge/(credit) to other comprehensive income	(7)	(20)
Currency translation and other adjustments	4	(4)
At 31 December	£ (32)	£ (24)

Tax - Tax losses (Details)

Tax - Tax losses (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Unused tax losses
Deferred tax assets	£ 901	£ 1,011
NWM Plc
Unused tax losses
Deferred tax assets	62	75
NWB Plc
Unused tax losses
Deferred tax assets	592
RBS plc
Unused tax losses
Deferred tax assets	200
Total losses carried forward
Unused tax losses
Deferred tax assets	905	951
Total losses carried forward \| UK
Unused tax losses
Deferred tax assets	862	770
Total losses carried forward \| UK \| NWM Plc
Unused tax losses
Deferred tax assets	62	75
Total losses carried forward \| UK \| NWB Plc
Unused tax losses
Deferred tax assets	592	530
Total losses carried forward \| UK \| RBS plc
Unused tax losses
Deferred tax assets	200	150
Total losses carried forward \| UK \| Ulster Bank
Unused tax losses
Deferred tax assets	8	15
Total losses carried forward \| Ireland \| Ulster Bank
Unused tax losses
Deferred tax assets	£ 43	£ 181

Tax - Other (Details)

Tax - Other (Details) - GBP (£) £ in Millions	12 Months Ended
Tax - Other (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Deferred tax:
Deferred tax asset	£ 901	£ 1,011
UK corporation tax	19.00%	19.00%	19.00%
Loss for the year	£ 434	£ (3,800)	£ (2,151)
Deferred tax liabilities	291	266
Deferred tax assets that have not been recognised	4,965	4,653	5,118
Tax losses and other temporary differences carried forward	25,091	23,555	25,597
Deferred tax liabilities that have not been recognised	242	262	£ 257
UK tax rate change impact	75
within 5 years
Deferred tax:
Tax losses and other temporary differences carried forward	714
After 5 years
Deferred tax:
Tax losses and other temporary differences carried forward	4,496
Total losses carried forward
Deferred tax:
Deferred tax asset	£ 905	951
UK
Deferred tax:
Limit of offset of losses carried forward (as a percent)	25.00%
Banking surcharge rate	8.00%
Tax losses carried forward	£ 862	770
UK \| Total losses carried forward
Deferred tax:
Deferred tax asset	862	770
NWM Plc
Deferred tax:
Deferred tax asset	62	75
Loss for the year	325
Amount of decrease in deferred tax asset	22
UK tax rate change impact	9
NWM Plc \| UK \| Total losses carried forward
Deferred tax:
Deferred tax asset	62	75
NWB Plc
Deferred tax:
Deferred tax asset	592
Loss for the year	3,117
NWB Plc \| UK \| Total losses carried forward
Deferred tax:
Deferred tax asset	592	530
RBS plc
Deferred tax:
Deferred tax asset	200
Loss for the year	1,053
Tax losses carried forward	4,242
RBS plc \| UK \| Total losses carried forward
Deferred tax:
Deferred tax asset	200	150
Ulster Bank \| UK \| Total losses carried forward
Deferred tax:
Deferred tax asset	8	15
Ulster Bank \| Ireland \| Total losses carried forward
Deferred tax:
Deferred tax asset	43	£ 181
UBI DAC
Deferred tax:
Deferred tax asset	43
Loss for the year	342
Tax losses carried forward	9,071
Deferred tax asset utilised to reduce current tax expense	£ 146

Earnings per share (Details)

Earnings per share (Details) - GBP (£) £ in Millions, shares in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings per share
(Loss)/Profit attributable to ordinary shareholders	£ (753)	£ 3,133	£ 1,622
Weighted average number of shares
Weighted average number of ordinary shares outstanding during the year	12,095	12,067	12,009
Effect of dilutive share options and convertible securities	23	35	52
Diluted weighted average number of ordinary shares outstanding during the year	12,118	12,102	12,061

Trading assets and liabilitie_2

Trading assets and liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Loans
Reverse repos	£ 19,404	£ 24,095
Collateral given	18,760	20,579
Other loans	1,611	1,947
Total loans	39,775	46,621
Securities
Financial institutions and corporate	3,446	4,867
Total securities	29,215	30,124
Total	68,990	76,745
Deposits
Repos	19,036	27,885
Collateral received	23,229	21,509
Other deposits	1,804	1,606
Total deposits	44,069	51,000
Debt securities in issue	1,408	1,762
Short positions	26,779	21,187
Total	72,256	73,949
UK
Securities
Central and local government securities	4,184	4,897
USA
Securities
Central and local government securities	5,149	5,458
Other
Securities
Central and local government securities	£ 16,436	£ 14,902

Derivatives - fair value of the

Derivatives - fair value of the hedging derivative (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019		Dec. 31, 2018	Jan. 01, 2019	[1]
Fair value of the hedging derivative
Notional amount of financial assets	£ 179	£ 181
Derivative financial assets	166,523	150,029	[1]		£ 133,349
Derivative financial liabilities	160,705	146,879	[1]		£ 128,897
Derivatives
Fair value of the hedging derivative
Derivative financial liabilities	130	22
Fair value hedging
Fair value of the hedging derivative
Changes in fair value used for hedge ineffectiveness	877	610		£ 54
IFRS netting \| Derivatives
Fair value of the hedging derivative
Derivative financial liabilities	(5,049)	(3,464)
Derivatives before IFRS netting
Fair value of the hedging derivative
Notional amount of financial assets	208,900	226,200
Changes in fair value used for hedge ineffectiveness	(699)	(270)
Derivatives before IFRS netting \| Derivatives
Fair value of the hedging derivative
Derivative financial liabilities	5,179	3,486
Interest rate swaps \| Fair value hedging
Fair value of the hedging derivative
Notional amount of financial assets	65,500	65,100
Derivative financial assets	1,878	1,186
Changes in fair value used for hedge ineffectiveness	(875)	(585)
Interest rate swaps \| Fair value hedging \| Derivatives
Fair value of the hedging derivative
Derivative financial liabilities	3,844	2,641
Interest rate swaps \| Cash flow hedging
Fair value of the hedging derivative
Notional amount of financial assets	128,800	148,400
Derivative financial assets	2,035	1,450
Changes in fair value used for hedge ineffectiveness	217	366
Interest rate swaps \| Cash flow hedging \| Derivatives
Fair value of the hedging derivative
Derivative financial liabilities	1,210	833
Derivatives
Fair value of the hedging derivative
Derivative financial assets	93	202
Derivatives \| IFRS netting \| Derivatives
Fair value of the hedging derivative
Derivative financial assets	(3,857)	(2,500)
Derivatives \| Derivatives before IFRS netting
Fair value of the hedging derivative
Derivative financial assets	3,950	2,702
Exchange rate contracts
Fair value of the hedging derivative
Notional amount of financial assets	3,328,000	3,750,000
Derivative financial assets	52,239	44,792
Derivative financial liabilities	55,107	47,141
Exchange rate contracts \| Cash flow hedging
Fair value of the hedging derivative
Notional amount of financial assets	14,400	12,300
Changes in fair value used for hedge ineffectiveness	(52)	(59)
Exchange rate contracts \| Cash flow hedging \| Derivatives
Fair value of the hedging derivative
Derivative financial liabilities	116	8
Exchange rate contracts \| Net investment hedging
Fair value of the hedging derivative
Notional amount of financial assets	200	400
Changes in fair value used for hedge ineffectiveness	11	8
Exchange rate contracts \| Net investment hedging \| Derivatives
Fair value of the hedging derivative
Derivative financial liabilities	9	4
Exchange rate contracts \| Derivatives \| Cash flow hedging
Fair value of the hedging derivative
Derivative financial assets	37	66
Interest rate contracts
Fair value of the hedging derivative
Notional amount of financial assets	10,703,000	11,293,000
Derivative financial assets	114,115	104,957
Derivative financial liabilities	105,214	99,331
Credit derivatives
Fair value of the hedging derivative
Notional amount of financial assets	15,000	17,000
Derivative financial assets	161	280
Derivative financial liabilities	376	359
Equity and commodity contracts
Fair value of the hedging derivative
Notional amount of financial assets	1,000	3,000
Derivative financial assets	8
Derivative financial liabilities	£ 8	£ 48

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Derivatives - Notional of hedgi

Derivatives - Notional of hedging instruments affected by interest rate benchmark reform (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about hedging instruments [line items]
Notional amount hedging instruments affected by interest rate benchmark reform	£ 179	£ 181
Interest rate contracts
Disclosure of detailed information about hedging instruments [line items]
Notional amount hedging instruments affected by interest rate benchmark reform	10,703,000	11,293,000
Fair value hedging \| EUR IBOR
Disclosure of detailed information about hedging instruments [line items]
Notional amount hedging instruments affected by interest rate benchmark reform	13,600	11,100
Fair value hedging \| GBP LIBOR
Disclosure of detailed information about hedging instruments [line items]
Notional amount hedging instruments affected by interest rate benchmark reform	11,200	13,600
Fair value hedging \| USD IBOR
Disclosure of detailed information about hedging instruments [line items]
Notional amount hedging instruments affected by interest rate benchmark reform	26,600	26,600
Fair value hedging \| Other CCY
Disclosure of detailed information about hedging instruments [line items]
Notional amount hedging instruments affected by interest rate benchmark reform	1,100
Cash flow hedging \| EUR IBOR
Disclosure of detailed information about hedging instruments [line items]
Notional amount hedging instruments affected by interest rate benchmark reform	5,200	3,400
Cash flow hedging \| GBP LIBOR
Disclosure of detailed information about hedging instruments [line items]
Notional amount hedging instruments affected by interest rate benchmark reform	51,700	47,200
Cash flow hedging \| USD IBOR
Disclosure of detailed information about hedging instruments [line items]
Notional amount hedging instruments affected by interest rate benchmark reform	£ 2,700	£ 2,100

Derivatives - Impact of the acc

Derivatives - Impact of the accumulated amount of fair hedge adjustments (Details) £ in Millions	12 Months Ended
	Dec. 31, 2020GBP (£)$ / £	Dec. 31, 2020GBP (£)¥ / $	Dec. 31, 2020GBP (£)¥ / £	Dec. 31, 2020GBP (£)¥ / €	Dec. 31, 2020GBP (£)kr / £	Dec. 31, 2020GBP (£)kr / £	Dec. 31, 2020GBP (£)kr / £	Dec. 31, 2020GBP (£)$ / ლ	Dec. 31, 2020GBP (£)₨ / £	Dec. 31, 2020GBP (£)	Dec. 31, 2020GBP (£)	Dec. 31, 2019GBP (£)kr / £	Dec. 31, 2019GBP (£)kr / £	Dec. 31, 2019GBP (£)kr / £	Dec. 31, 2019GBP (£)$ / ლ	Dec. 31, 2019GBP (£)₨ / £	Dec. 31, 2019GBP (£)	Dec. 31, 2019GBP (£)
Derivatives
Financial assets.	£ 799,491	£ 799,491	£ 799,491	£ 799,491	£ 799,491	£ 799,491	£ 799,491	£ 799,491	£ 799,491	£ 799,491	£ 799,491	£ 723,039	£ 723,039	£ 723,039	£ 723,039	£ 723,039	£ 723,039	£ 723,039
Currency swaps \| GBP LIBOR
Derivatives
Financial assets.	5,200	5,200	5,200	5,200	5,200	5,200	5,200	5,200	5,200	5,200	5,200
Currency swaps \| USD IBOR
Derivatives
Financial assets.	98,500	98,500	98,500	98,500	98,500	98,500	98,500	98,500	98,500	98,500	98,500
Currency swaps \| EUR IBOR
Derivatives
Financial assets.	5,100	5,100	5,100	5,100	5,100	5,100	5,100	5,100	5,100	5,100	5,100
Currency swaps \| Other IBOR
Derivatives
Financial assets.	2,200	2,200	2,200	2,200	2,200	2,200	2,200	2,200	2,200	2,200	2,200
Basis swaps \| GBP LIBOR
Derivatives
Financial assets.	97,000	97,000	97,000	97,000	97,000	97,000	97,000	97,000	97,000	97,000	97,000
Basis swaps \| USD IBOR
Derivatives
Financial assets.	81,000	81,000	81,000	81,000	81,000	81,000	81,000	81,000	81,000	81,000	81,000
Basis swaps \| EUR IBOR
Derivatives
Financial assets.	49,000	49,000	49,000	49,000	49,000	49,000	49,000	49,000	49,000	49,000	49,000
Basis swaps \| Other IBOR
Derivatives
Financial assets.	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000
Other CCY \| Currency swaps \| GBP LIBOR
Derivatives
Financial assets.	300	300	300	300	300	300	300	300	300	300	300
Other CCY \| Currency swaps \| USD IBOR
Derivatives
Financial assets.	47,400	47,400	47,400	47,400	47,400	47,400	47,400	47,400	47,400	47,400	47,400
Other CCY \| Currency swaps \| EUR IBOR
Derivatives
Financial assets.	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000
Other CCY \| Currency swaps \| Other IBOR
Derivatives
Financial assets.	300	300	300	300	300	300	300	300	300	300	300
Derivatives
Derivatives
Financial assets.	166,523	166,523	166,523	166,523	166,523	166,523	166,523	166,523	166,523	166,523	166,523	150,029	150,029	150,029	150,029	150,029	150,029	150,029
Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	30,100	30,100	30,100	30,100	30,100	30,100	30,100	30,100	30,100	30,100	30,100	77,600	77,600	77,600	77,600	77,600	£ 77,600	77,600
Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge liabilities adjustments																	0.98%
0-3 months \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments												1,900	1,900	1,900	1,900	1,900	£ 1,900	1,900
0-3 months \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge liabilities adjustments																	0.83%
3-12 months \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	600	600	600	600	600	600	600	600	600	600	600	22,000	22,000	22,000	22,000	22,000	£ 22,000	22,000
3-12 months \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge liabilities adjustments																	1.01%
More than 1 year but less than 3 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	10,100	10,100	10,100	10,100	10,100	10,100	10,100	10,100	10,100	10,100	10,100	45,200	45,200	45,200	45,200	45,200	£ 45,200	45,200
More than 1 year but less than 3 years \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge liabilities adjustments																	0.87%
More than 3 years but less than 5 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	11,600	11,600	11,600	11,600	11,600	11,600	11,600	11,600	11,600	11,600	11,600	5,300	5,300	5,300	5,300	5,300	£ 5,300	5,300
More than 3 years but less than 5 years \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge liabilities adjustments																	1.32%
5-10 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	7,100	7,100	7,100	7,100	7,100	7,100	7,100	7,100	7,100	7,100	7,100	2,400	2,400	2,400	2,400	2,400	£ 2,400	2,400
5-10 years \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge liabilities adjustments																	1.12%
10-20 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	500	500	500	500	500	500	500	500	500	500	500	800	800	800	800	800	£ 800	800
10-20 years \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge liabilities adjustments																	4.31%
20+ years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	200	200	200	200	200	200	200	200	200	200	200
Fair value hedging
Derivatives
Carrying value of hedged liabilities	36,194	36,194	36,194	36,194	36,194	36,194	36,194	36,194	36,194	36,194	36,194	32,209	32,209	32,209	32,209	32,209	£ 32,209	32,209
Impact on hedged items included in carrying value, liabilities	1,692	1,692	1,692	1,692	1,692	1,692	1,692	1,692	1,692	1,692	1,692	555	555	555	555	555	555	555
Changes in fair value used for hedge ineffectiveness											(1,014)							(1,029)
Impact on hedged items ceased to be adjusted for hedging gains or losses, liabilities	10	10	10	10	10	10	10	10	10	10	10	54	54	54	54	54	54	54
Fair value hedging \| Other financial liabilities
Derivatives
Carrying value of hedged liabilities	29,317	29,317	29,317	29,317	29,317	29,317	29,317	29,317	29,317	29,317	29,317	26,811	26,811	26,811	26,811	26,811	26,811	26,811
Impact on hedged items included in carrying value, liabilities	1,336	1,336	1,336	1,336	1,336	1,336	1,336	1,336	1,336	1,336	1,336	830	830	830	830	830	830	830
Changes in fair value used for hedge ineffectiveness											(746)							(807)
Impact on hedged items ceased to be adjusted for hedging gains or losses, liabilities												30	30	30	30	30	30	30
Fair value hedging \| Subordinated liabilities
Derivatives
Carrying value of hedged liabilities	6,877	6,877	6,877	6,877	6,877	6,877	6,877	6,877	6,877	6,877	6,877	5,398	5,398	5,398	5,398	5,398	5,398	5,398
Impact on hedged items included in carrying value, liabilities	356	356	356	356	356	356	356	356	356	356	356	(275)	(275)	(275)	(275)	(275)	(275)	(275)
Changes in fair value used for hedge ineffectiveness											(268)							(222)
Impact on hedged items ceased to be adjusted for hedging gains or losses, liabilities	10	10	10	10	10	10	10	10	10	10	10	24	24	24	24	24	24	24
Fair value hedging \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	35,400	35,400	35,400	35,400	35,400	35,400	35,400	35,400	35,400	35,400	35,400	37,000	37,000	37,000	37,000	37,000	37,000	37,000
Carrying value of hedged assets	42,612	42,612	42,612	42,612	42,612	42,612	42,612	42,612	42,612	42,612	42,612	42,512	42,512	42,512	42,512	42,512	42,512	42,512
Impact on hedged items included in carrying value, assets	3,496	3,496	3,496	3,496	3,496	3,496	3,496	3,496	3,496	3,496	3,496	2,297	2,297	2,297	2,297	2,297	2,297	2,297
Changes in fair value used for hedge ineffectiveness											1,891							1,639
Impact on hedged items ceased to be adjusted for hedging gains or losses, assets	77	77	77	77	77	77	77	77	77	77	77	86	86	86	86	86	86	86
Fair value hedging \| Interest rate contracts \| Loans to banks and customers
Derivatives
Carrying value of hedged assets	7,947	7,947	7,947	7,947	7,947	7,947	7,947	7,947	7,947	7,947	7,947	6,716	6,716	6,716	6,716	6,716	6,716	6,716
Impact on hedged items included in carrying value, assets	1,242	1,242	1,242	1,242	1,242	1,242	1,242	1,242	1,242	1,242	1,242	1,023	1,023	1,023	1,023	1,023	1,023	1,023
Changes in fair value used for hedge ineffectiveness											323							165
Impact on hedged items ceased to be adjusted for hedging gains or losses, assets	77	77	77	77	77	77	77	77	77	77	77	86	86	86	86	86	86	86
Fair value hedging \| Interest rate contracts \| Other financial assets - Securities
Derivatives
Carrying value of hedged liabilities												35,796	35,796	35,796	35,796	35,796	35,796	35,796
Impact on hedged items included in carrying value, assets												1,274	1,274	1,274	1,274	1,274	1,274	1,274
Changes in fair value used for hedge ineffectiveness																		1,474
Fair value hedging \| Interest rate contracts \| Other financial assets
Derivatives
Carrying value of hedged assets	34,665	34,665	34,665	34,665	34,665	34,665	34,665	34,665	34,665	34,665	34,665
Impact on hedged items included in carrying value, assets	2,254	2,254	2,254	2,254	2,254	2,254	2,254	2,254	2,254	2,254	2,254
Changes in fair value used for hedge ineffectiveness											1,568
Fair value hedging \| Average fixed interest rate
Derivatives
Accumulated amount of fair hedge adjustments												28,100	28,100	28,100	28,100	28,100	28,100	28,100
Fair value hedging \| 0-3 months \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	600	600	600	600	600	600	600
Fair value hedging \| 3-12 months \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	2,300	2,300	2,300	2,300	2,300	2,300	2,300	2,300	2,300	2,300	2,300	1,600	1,600	1,600	1,600	1,600	1,600	1,600
Fair value hedging \| 3-12 months \| Average fixed interest rate
Derivatives
Accumulated amount of fair hedge adjustments												500	500	500	500	500	500	500
Fair value hedging \| More than 1 year but less than 3 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	6,300	6,300	6,300	6,300	6,300	6,300	6,300	6,300	6,300	6,300	6,300	8,100	8,100	8,100	8,100	8,100	8,100	8,100
Fair value hedging \| More than 1 year but less than 3 years \| Average fixed interest rate
Derivatives
Accumulated amount of fair hedge adjustments												6,300	6,300	6,300	6,300	6,300	6,300	6,300
Fair value hedging \| More than 3 years but less than 5 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	5,500	5,500	5,500	5,500	5,500	5,500	5,500
Fair value hedging \| More than 3 years but less than 5 years \| Average fixed interest rate
Derivatives
Accumulated amount of fair hedge adjustments												12,700	12,700	12,700	12,700	12,700	12,700	12,700
Fair value hedging \| 5-10 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	8,900	8,900	8,900	8,900	8,900	8,900	8,900	8,900	8,900	8,900	8,900	12,500	12,500	12,500	12,500	12,500	12,500	12,500
Fair value hedging \| 5-10 years \| Average fixed interest rate
Derivatives
Accumulated amount of fair hedge adjustments												6,600	6,600	6,600	6,600	6,600	6,600	6,600
Fair value hedging \| 10-20 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	5,100	5,100	5,100	5,100	5,100	5,100	5,100	5,100	5,100	5,100	5,100	4,400	4,400	4,400	4,400	4,400	4,400	4,400
Fair value hedging \| 10-20 years \| Average fixed interest rate
Derivatives
Accumulated amount of fair hedge adjustments												2,000	2,000	2,000	2,000	2,000	2,000	2,000
Fair value hedging \| 20+ years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	£ 4,200	£ 4,200	£ 4,200	£ 4,200	4,200	4,200	4,200	£ 4,200	£ 4,200	4,200	£ 4,200	4,300	4,300	4,300	£ 4,300	£ 4,300	4,300	4,300
Cash flow hedging
Derivatives
Average foreign exchange rate	1.22	107.44	132.93	120.21				1.36	95.29		1,200				1.35	93.11
Carrying value of hedged liabilities	£ 73,800	£ 73,800	£ 73,800	£ 73,800	73,800	73,800	73,800	£ 73,800	£ 73,800	73,800	£ 73,800
Cash flow hedging \| Other financial liabilities
Derivatives
Carrying value of hedged liabilities	1,014	1,014	1,014	1,014	1,014	1,014	1,014	1,014	1,014	1,014	1,014
Changes in fair value used for hedge ineffectiveness											13
Cash flow hedging \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000	70,800	70,800	70,800	£ 70,800	£ 70,800	70,800	70,800
Carrying value of hedged assets	56,063	56,063	56,063	56,063	56,063	56,063	56,063	56,063	56,063	56,063	56,063
Carrying value of hedged liabilities												71,529	71,529	71,529	71,529	71,529	71,529	71,529
Changes in fair value used for hedge ineffectiveness											(617)							(582)
Cash flow hedging \| Interest rate contracts \| Bank and customer deposits
Derivatives
Carrying value of hedged liabilities	72,880	72,880	72,880	72,880	72,880	72,880	72,880	72,880	72,880	72,880	72,880	75,837	75,837	75,837	75,837	75,837	75,837	75,837
Changes in fair value used for hedge ineffectiveness											409							225
Cash flow hedging \| Interest rate contracts \| Other financial liabilities
Derivatives
Carrying value of hedged liabilities												1,009	1,009	1,009	1,009	1,009	1,009	1,009
Changes in fair value used for hedge ineffectiveness																		14
Cash flow hedging \| Interest rate contracts \| Loans to banks and customers
Derivatives
Carrying value of hedged assets	53,447	53,447	53,447	53,447	53,447	53,447	53,447	53,447	53,447	53,447	53,447	69,254	69,254	69,254	69,254	69,254	69,254	69,254
Changes in fair value used for hedge ineffectiveness											(601)							(566)
Cash flow hedging \| Interest rate contracts \| Other financial assets - Securities
Derivatives
Carrying value of hedged assets	2,616	2,616	2,616	2,616	2,616	2,616	2,616	2,616	2,616	£ 2,616	2,616	2,275	2,275	2,275	2,275	2,275	£ 2,275	2,275
Changes in fair value used for hedge ineffectiveness											(16)							(16)
Cash flow hedging \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge adjustments										1.23%							1.11%
Percentage of accumulated amount of fair hedge liabilities adjustments										0.64%
Cash flow hedging \| Exchange rate risk
Derivatives
Accumulated amount of fair hedge adjustments	13,200	13,200	13,200	13,200	13,200	13,200	13,200	13,200	13,200	£ 13,200	13,200	12,300	12,300	12,300	12,300	12,300	£ 12,300	12,300
Carrying value of hedged liabilities	83,476	83,476	83,476	83,476	83,476	83,476	83,476	83,476	83,476	83,476	83,476	89,110	89,110	89,110	89,110	89,110	89,110	89,110
Changes in fair value used for hedge ineffectiveness											474							298
Cash flow hedging \| Exchange rate risk \| Other financial liabilities
Derivatives
Carrying value of hedged liabilities	9,582	9,582	9,582	9,582	9,582	9,582	9,582	9,582	£ 9,582	9,582	9,582	12,264	12,264	12,264	12,264	12,264	12,264	12,264
Changes in fair value used for hedge ineffectiveness											52
Impact on hedged items ceased to be adjusted for hedging gains or losses, assets												59	59	59	59	59	59	59
Cash flow hedging \| 0-3 months
Derivatives
Average foreign exchange rate \| ₨ / £									93.21
Carrying value of hedged liabilities	1,600	1,600	1,600	1,600	1,600	1,600	1,600	1,600	£ 1,600	1,600	1,600
Cash flow hedging \| 0-3 months \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	700	700	700	700	700	700	700	700	700	£ 700	700	4,800	4,800	4,800	£ 4,800	£ 4,800	£ 4,800	4,800
Cash flow hedging \| 0-3 months \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge adjustments										1.28%							1.10%
Percentage of accumulated amount of fair hedge liabilities adjustments										1.14%
Cash flow hedging \| 0-3 months \| Exchange rate risk
Derivatives
Accumulated amount of fair hedge adjustments	100	£ 100	100	100	100	100	100	£ 100	£ 100	£ 100	100
Cash flow hedging \| 3-12 months
Derivatives
Average foreign exchange rate		107.53						1.32	95.99						1.56	88.64
Carrying value of hedged liabilities	28,900	£ 28,900	28,900	28,900	28,900	28,900	28,900	£ 28,900	£ 28,900	28,900	28,900
Cash flow hedging \| 3-12 months \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	10,500	10,500	10,500	10,500	10,500	10,500	10,500	10,500	10,500	£ 10,500	10,500	11,400	11,400	11,400	£ 11,400	£ 11,400	£ 11,400	11,400
Cash flow hedging \| 3-12 months \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge adjustments										1.22%							0.97%
Percentage of accumulated amount of fair hedge liabilities adjustments										0.78%
Cash flow hedging \| 3-12 months \| Exchange rate risk
Derivatives
Accumulated amount of fair hedge adjustments	£ 5,500	£ 5,500	£ 5,500	£ 5,500	5,500	5,500	5,500	£ 5,500	5,500	£ 5,500	£ 5,500	1,900	1,900	1,900	£ 1,900	£ 1,900	£ 1,900	1,900
Cash flow hedging \| More than 1 year but less than 3 years
Derivatives
Average foreign exchange rate	1.22	107.06	133.31	120.21				1.33			1,000				1.30	94.01
Carrying value of hedged liabilities	£ 36,800	£ 36,800	£ 36,800	£ 36,800	36,800	36,800	36,800	£ 36,800	36,800	36,800	£ 36,800
Cash flow hedging \| More than 1 year but less than 3 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	19,300	19,300	19,300	19,300	19,300	19,300	19,300	19,300	19,300	£ 19,300	19,300	31,700	31,700	31,700	£ 31,700	£ 31,700	£ 31,700	31,700
Cash flow hedging \| More than 1 year but less than 3 years \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge adjustments										1.51%							1.20%
Percentage of accumulated amount of fair hedge liabilities adjustments										0.37%
Cash flow hedging \| More than 1 year but less than 3 years \| Exchange rate risk
Derivatives
Accumulated amount of fair hedge adjustments	4,400	£ 4,400	£ 4,400	4,400	4,400	4,400	4,400	£ 4,400	4,400	£ 4,400	£ 4,400	6,200	6,200	6,200	£ 6,200	6,200	£ 6,200	6,200
Cash flow hedging \| More than 3 years but less than 5 years
Derivatives
Average foreign exchange rate		109.70	132.89					1.56			200				1.30
Carrying value of hedged liabilities	3,400	£ 3,400	£ 3,400	3,400	3,400	3,400	3,400	£ 3,400	3,400	3,400	£ 3,400
Cash flow hedging \| More than 3 years but less than 5 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	13,900	13,900	13,900	13,900	13,900	13,900	13,900	13,900	13,900	£ 13,900	13,900	10,700	10,700	10,700	£ 10,700	10,700	£ 10,700	10,700
Cash flow hedging \| More than 3 years but less than 5 years \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge adjustments										1.06%							1.78%
Percentage of accumulated amount of fair hedge liabilities adjustments										1.25%
Cash flow hedging \| More than 3 years but less than 5 years \| Exchange rate risk
Derivatives
Accumulated amount of fair hedge adjustments	1,500	1,500	1,500	1,500	1,500	1,500	1,500	£ 1,500	1,500	£ 1,500	1,500	3,100	3,100	3,100	£ 3,100	3,100	£ 3,100	3,100
Cash flow hedging \| 5-10 years
Derivatives
Average foreign exchange rate \| $ / ლ								1.38							1.44
Carrying value of hedged liabilities	2,400	2,400	2,400	2,400	2,400	2,400	2,400	£ 2,400	2,400	2,400	2,400
Cash flow hedging \| 5-10 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	10,500	10,500	10,500	10,500	10,500	10,500	10,500	10,500	10,500	£ 10,500	10,500	12,200	12,200	12,200	£ 12,200	12,200	£ 12,200	12,200
Cash flow hedging \| 5-10 years \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge adjustments										0.92%							1.44%
Percentage of accumulated amount of fair hedge liabilities adjustments										0.65%
Cash flow hedging \| 5-10 years \| Exchange rate risk
Derivatives
Accumulated amount of fair hedge adjustments	1,700	1,700	1,700	1,700	1,700	1,700	1,700	1,700	1,700	£ 1,700	1,700	£ 1,100	£ 1,100	£ 1,100	1,100	1,100	£ 1,100	1,100
Cash flow hedging \| 10-20 years
Derivatives
Carrying value of hedged liabilities	700	700	700	700	700	700	700	700	700	700	700
Cash flow hedging \| 10-20 years \| Interest rate contracts
Derivatives
Accumulated amount of fair hedge adjustments	100	100	100	100	£ 100	£ 100	£ 100	100	100	£ 100	100
Cash flow hedging \| 10-20 years \| Average fixed interest rate
Derivatives
Percentage of accumulated amount of fair hedge adjustments										3.12%							3.12%
Percentage of accumulated amount of fair hedge liabilities adjustments										4.55%
Net investment hedging \| Average fixed interest rate
Derivatives
Average foreign exchange rate					11.53	12.73	8.28					12.21	12.36	8.78
Net investment hedging \| Exchange rate risk
Derivatives
Accumulated amount of fair hedge adjustments	200	200	200	200	£ 200	£ 200	£ 200	200	200	£ 200	200	£ 400	£ 400	£ 400	400	400	£ 400	400
Net investment hedging \| 0-3 months \| Average fixed interest rate
Derivatives
Average foreign exchange rate					11.15	12.73	8.28					12.27	12.36	8.78
Net investment hedging \| 0-3 months \| Exchange rate risk
Derivatives
Accumulated amount of fair hedge adjustments	100	100	100	100	£ 100	£ 100	£ 100	100	100	100	100	£ 100	£ 100	£ 100	100	100	100	100
Net investment hedging \| 3-12 months \| Average fixed interest rate
Derivatives
Average foreign exchange rate \| kr / £					12.56							12.10
Net investment hedging \| 3-12 months \| Exchange rate risk
Derivatives
Accumulated amount of fair hedge adjustments	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 300	£ 300	£ 300	£ 300	£ 300	£ 300	£ 300

Derivatives - Risk exposures th

Derivatives - Risk exposures that will be affected by interest rate benchmark reform (Details) - Interest rate contracts - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Fair value hedging \| EURIBOR
Disclosure of detailed information about hedged items [line items]
Notional amount	£ 15,100	£ 12,700
Hedged adjustment	27	93
Fair value hedging \| GBP LIBOR
Disclosure of detailed information about hedged items [line items]
Notional amount	11,400	13,900
Hedged adjustment	1,178	1,211
Fair value hedging \| USD IBOR
Disclosure of detailed information about hedged items [line items]
Notional amount	28,100	27,300
Hedged adjustment	(427)	(303)
Fair value hedging \| Other IBOR
Disclosure of detailed information about hedged items [line items]
Notional amount	1,100	800
Hedged adjustment	1
Cash flow hedging \| EURIBOR
Disclosure of detailed information about hedged items [line items]
Notional amount	4,100	3,300
Hedged adjustment	(76)	(46)
Cash flow hedging \| GBP LIBOR
Disclosure of detailed information about hedged items [line items]
Notional amount	10,500	9,600
Hedged adjustment	(473)	(186)
Cash flow hedging \| USD IBOR
Disclosure of detailed information about hedged items [line items]
Notional amount	2,700	2,000
Hedged adjustment	(61)	5
Cash flow hedging \| BOE Base rate
Disclosure of detailed information about hedged items [line items]
Notional amount	40,700	37,500
Hedged adjustment	(156)	(285)
Cash flow hedging \| ECB REFI rate
Disclosure of detailed information about hedged items [line items]
Notional amount	1,200	100
Cash flow hedging \| SONIA
Disclosure of detailed information about hedged items [line items]
Notional amount	600	£ 100
Hedged adjustment	£ 4

Derivatives - Analysis of cash

Derivatives - Analysis of cash flow reserve and foreign exchange reserve (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about hedged items [line items]
Continuing cash flow hedge reserve	£ 292	£ 20
Continuing foreign exchange hedge reserve	(788)	(560)
Cash flow reserve	271	294
Foreign exchange hedge reserve	(55)	2,835
Foreign exchange hedge reserve, amount transferred from equity to operation expenses	4
Interest rate contracts
Disclosure of detailed information about hedged items [line items]
De-designated cash flow hedge reserve	(424)	(494)
Cash flow reserve	690	460
Cash flow hedge reserve, amount recognised in equity	318	585
Cash flow hedge reserve, amount transferred from equity to net interest income	(19)	(243)
Exchange rate risk
Disclosure of detailed information about hedged items [line items]
Continuing cash flow hedge reserve	27	56
Continuing foreign exchange hedge reserve	(72)	(50)
Cash flow reserve	(1)	(2)
Foreign exchange hedge reserve	(716)	(510)
Cash flow hedge reserve, amount recognised in equity	3	(12)
Cash flow hedge reserve, amount transferred from equity to net interest income	(57)	83
Foreign exchange hedge reserve, amount transferred from equity to net interest income	(35)	(36)
Foreign exchange hedge reserve, amount transferred from equity to non interest income	£ 2	£ 2,752

Derivatives - Hedge ineffective

Derivatives - Hedge ineffectiveness recognised (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of detailed information about hedged items
Hedging ineffectiveness	£ 24	£ 48	£ (65)
Fair value hedging
Disclosure of detailed information about hedged items
Gains/(losses) on the hedged items attributable to the hedged risk	877	610	54
(Losses)/gains on the hedging instruments	(875)	(585)	(7)
Hedging ineffectiveness	2	25	47
Cash flow hedging
Disclosure of detailed information about hedged items
Hedging ineffectiveness	22	23	(112)
Cash flow hedging \| Interest rate contracts
Disclosure of detailed information about hedged items
Hedging ineffectiveness	£ 22	£ 23	£ (112)

Financial instruments - class_3

Financial instruments - classification - Assets (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]	Dec. 31, 2018
Financial instruments
Assets	£ 799,491	£ 723,039	[1]	£ 694,235		£ 694,235
Financial Assets	799,491	723,039
Cash and balances at central banks
Financial instruments
Financial Assets	124,489	80,993
Trading assets
Financial instruments
Financial Assets	68,990	76,745
Derivatives
Financial instruments
Net hedging derivative assets	93	202
Financial Assets	166,523	150,029
Settlement balances
Financial instruments
Financial Assets	2,297	4,387
Loans to banks - amortised cost
Financial instruments
Items in course of collection from other banks		50
Financial Assets	6,955	7,554
Loans to customers - amortised cost
Financial instruments
Financial Assets	360,544	326,947
Other financial assets
Financial instruments
Financial Assets	55,148	61,452
Other
Financial instruments
Financial Assets	6,655	6,622
Other assets
Financial instruments
Financial Assets	7,890	8,310
Financial Assets and Liabilities, Category
Financial instruments
Assets	14,545
Other financial assets
Financial instruments
Assets		14,932
Other financial assets \| Other
Financial instruments
Assets	6,655	6,622
Other financial assets \| Other assets
Financial instruments
Assets	7,890	8,310
More than 12 months \| Trading assets
Financial instruments
Financial Assets	26,953	24,920
More than 12 months \| Derivatives
Financial instruments
Financial Assets	120,279	109,231
More than 12 months \| Other financial assets
Financial instruments
Financial Assets	46,247	51,265
Within 1 year \| Cash and balances at central banks
Financial instruments
Financial Assets	124,489	80,993
Within 1 year \| Trading assets
Financial instruments
Financial Assets	42,037	51,825
Within 1 year \| Derivatives
Financial instruments
Financial Assets	46,244	40,798
Within 1 year \| Settlement balances
Financial instruments
Financial Assets	2,297	4,387
Within 1 year \| Other financial assets
Financial instruments
Financial Assets	8,901	10,187
MFVPL \| Trading assets
Financial instruments
Financial Assets	68,990	76,745
MFVPL \| Derivatives
Financial instruments
Financial Assets	166,523	150,029
MFVPL \| Other financial assets
Financial instruments
Financial Assets	440	715
MFVPL \| Financial Assets and Liabilities, Category
Financial instruments
Financial Assets	235,953	227,489
FVOCI \| Other financial assets
Financial instruments
Financial Assets	44,902	49,283
FVOCI \| Financial Assets and Liabilities, Category
Financial instruments
Financial Assets	44,902	49,283
Amortised cost \| Cash and balances at central banks
Financial instruments
Financial Assets	124,489	80,993
Amortised cost \| Settlement balances
Financial instruments
Financial Assets	2,297	4,387
Amortised cost \| Loans to banks - amortised cost
Financial instruments
Financial Assets	6,955	7,554
Amortised cost \| Loans to customers - amortised cost
Financial instruments
Financial Assets	360,544	326,947
Amortised cost \| Other financial assets
Financial instruments
Financial Assets	9,806	11,454
Amortised cost \| Financial Assets and Liabilities, Category
Financial instruments
Financial Assets	£ 504,091	£ 431,335

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Financial instruments - class_4

Financial instruments - classification - Liabilities (Details) - GBP (£)	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]	Dec. 31, 2018
Financial instruments
Liabilities	£ 755,667,000,000	£ 679,483,000,000	[1]	£ 647,745,000,000		£ 647,745,000,000
Financial Liabilities	755,667,000,000	679,483,000,000
Finance lease receivable	9,061,000,000	9,212,000,000
Lease liabilities	1,698,000,000	1,823,000,000
Bank deposits
Financial instruments
Financial Liabilities	20,606,000,000	20,493,000,000
Items in course of transmission to other banks	12,000,000	2,000,000
Customer deposits
Financial instruments
Financial Liabilities	431,739,000,000	369,247,000,000
Settlement balances
Financial instruments
Financial Liabilities	5,545,000,000	4,069,000,000
Trading liabilities
Financial instruments
Financial Liabilities	72,256,000,000	73,949,000,000
Derivatives
Financial instruments
Financial Liabilities	160,705,000,000	146,879,000,000
Net hedging derivative liabilities	130,000,000	22,000,000
Other financial liabilities
Financial instruments
Financial Liabilities	45,811,000,000	45,220,000,000
Subordinated liabilities
Financial instruments
Financial Liabilities	9,962,000,000	9,979,000,000
Notes in circulation
Financial instruments
Financial Liabilities	2,655,000,000	2,109,000,000
Other liabilities
Financial instruments
Financial Liabilities	6,388,000,000	7,538,000,000
Amount recognised in profit or loss for changes in credit risk	0	0
Loans to banks - amortised cost
Financial instruments
Items in course of transmission to other banks	148,000,000
Financial Assets and Liabilities, Category
Financial instruments
Liabilities	4,506,000,000	5,618,000,000
Financial Assets and Liabilities, Category \| Other liabilities
Financial instruments
Liabilities		5,618,000,000
Other liabilities \| Other liabilities
Financial instruments
Liabilities	4,506,000,000
Held-for-trading \| Trading liabilities
Financial instruments
Financial Liabilities	72,256,000,000	73,949,000,000
Held-for-trading \| Derivatives
Financial instruments
Financial Liabilities	160,705,000,000	146,879,000,000
Held-for-trading \| Financial Assets and Liabilities, Category
Financial instruments
Financial Liabilities	232,961,000,000	220,828,000,000
DFV \| Other financial liabilities
Financial instruments
Financial Liabilities	2,403,000,000	2,258,000,000
DFV \| Subordinated liabilities
Financial instruments
Financial Liabilities	793,000,000	724,000,000
DFV \| Financial Assets and Liabilities, Category
Financial instruments
Financial Liabilities	3,196,000,000	2,982,000,000
Amortised cost
Financial instruments
Financial Liabilities	515,004,000,000	450,055,000,000
Amortised cost \| Bank deposits
Financial instruments
Financial Liabilities	20,606,000,000	20,493,000,000
Amortised cost \| Customer deposits
Financial instruments
Financial Liabilities	431,739,000,000	369,247,000,000
Amortised cost \| Settlement balances
Financial instruments
Financial Liabilities	5,545,000,000	4,069,000,000
Amortised cost \| Other financial liabilities
Financial instruments
Financial Liabilities	43,408,000,000	42,962,000,000
Amortised cost \| Subordinated liabilities
Financial instruments
Financial Liabilities	9,169,000,000	9,255,000,000
Amortised cost \| Notes in circulation
Financial instruments
Financial Liabilities	2,655,000,000	2,109,000,000
Amortised cost \| Other liabilities
Financial instruments
Financial Liabilities	1,882,000,000	£ 1,920,000,000
Balances not subject to IBOR reform \| Other financial liabilities
Financial instruments
Financial Liabilities	28,856,000,000
Balances not subject to IBOR reform \| Subordinated Liabilities
Financial instruments
Financial Liabilities	8,230,000,000
EUR IBOR \| Other financial liabilities
Financial instruments
Financial Liabilities	5,902,000,000
EUR IBOR \| Subordinated Liabilities
Financial instruments
Financial Liabilities	438,000,000
GBP LIBOR \| Other financial liabilities
Financial instruments
Financial Liabilities	1,116,000,000
GBP LIBOR \| Subordinated Liabilities
Financial instruments
Financial Liabilities	8,000,000
IBOR reform \| Other financial liabilities
Financial instruments
Financial Liabilities	45,812,000,000
IBOR reform \| Subordinated Liabilities
Financial instruments
Financial Liabilities	9,962,000,000
Other IBOR \| Other financial liabilities
Financial instruments
Financial Liabilities	146,000,000
USD IBOR \| Other financial liabilities
Financial instruments
Financial Liabilities	9,792,000,000
USD IBOR \| Subordinated Liabilities
Financial instruments
Financial Liabilities	£ 1,286,000,000

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Financial instruments - class_5

Financial instruments - classification - Gains and losses (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Financial instruments
Financial Assets	£ 799,491	£ 723,039
Financial Liabilities	755,667	679,483
IBOR reform
Financial instruments
Derivatives notional	14,046.8
IBOR reform \| Designated as at fair value through profit or loss
Financial instruments
Derivatives notional	121,922
IBOR reform \| Subordinated Liabilities
Financial instruments
Financial Liabilities	9,962
GBP LIBOR
Financial instruments
Derivatives notional	1,407.5
GBP LIBOR \| Designated as at fair value through profit or loss
Financial instruments
Derivatives notional	25,616
GBP LIBOR \| Subordinated Liabilities
Financial instruments
Financial Liabilities	8
USD IBOR
Financial instruments
Derivatives notional	1,368.8
USD IBOR \| Designated as at fair value through profit or loss
Financial instruments
Derivatives notional	9,228
USD IBOR \| Subordinated Liabilities
Financial instruments
Financial Liabilities	1,286
EUR IBOR
Financial instruments
Derivatives notional	2,358.8
EUR IBOR \| Designated as at fair value through profit or loss
Financial instruments
Derivatives notional	7,176
EUR IBOR \| Subordinated Liabilities
Financial instruments
Financial Liabilities	438
Other IBOR
Financial instruments
Derivatives notional	289.6
Other IBOR \| Designated as at fair value through profit or loss
Financial instruments
Derivatives notional	682
Balances not subject to IBOR reform
Financial instruments
Derivatives notional	8,622.1
Balances not subject to IBOR reform \| Designated as at fair value through profit or loss
Financial instruments
Derivatives notional	79,220
Balances not subject to IBOR reform \| Subordinated Liabilities
Financial instruments
Financial Liabilities	8,230
Bank deposits
Financial instruments
Financial Liabilities	6,470	2,597
Bank deposits \| IBOR reform
Financial instruments
Financial Liabilities	20,606
Bank deposits \| Balances not subject to IBOR reform
Financial instruments
Financial Liabilities	20,606
Customer deposits
Financial instruments
Financial Liabilities	5,167	1,765
Customer deposits \| IBOR reform
Financial instruments
Financial Liabilities	431,739
Customer deposits \| Other IBOR
Financial instruments
Financial Liabilities	4
Customer deposits \| Balances not subject to IBOR reform
Financial instruments
Financial Liabilities	431,735
Trading liabilities
Financial instruments
Financial Liabilities	19,036	27,885
Trading liabilities \| IBOR reform
Financial instruments
Financial Liabilities	72,256
Trading liabilities \| GBP LIBOR
Financial instruments
Financial Liabilities	54
Trading liabilities \| USD IBOR
Financial instruments
Financial Liabilities	301
Trading liabilities \| EUR IBOR
Financial instruments
Financial Liabilities	269
Trading liabilities \| Other IBOR
Financial instruments
Financial Liabilities	2
Trading liabilities \| Balances not subject to IBOR reform
Financial instruments
Financial Liabilities	71,630
Other financial liabilities
Financial instruments
Financial Liabilities	45,811	45,220
Other financial liabilities \| IBOR reform
Financial instruments
Financial Liabilities	45,812
Other financial liabilities \| GBP LIBOR
Financial instruments
Financial Liabilities	1,116
Other financial liabilities \| USD IBOR
Financial instruments
Financial Liabilities	9,792
Other financial liabilities \| EUR IBOR
Financial instruments
Financial Liabilities	5,902
Other financial liabilities \| Other IBOR
Financial instruments
Financial Liabilities	146
Other financial liabilities \| Balances not subject to IBOR reform
Financial instruments
Financial Liabilities	28,856
Trading assets
Financial instruments
Financial Assets	19,404	24,095
Trading assets \| IBOR reform
Financial instruments
Financial Assets	68,990
Trading assets \| GBP LIBOR
Financial instruments
Financial Assets	75
Trading assets \| USD IBOR
Financial instruments
Financial Assets	60
Trading assets \| EUR IBOR
Financial instruments
Financial Assets	348
Trading assets \| Other IBOR
Financial instruments
Financial Assets	1
Trading assets \| Balances not subject to IBOR reform
Financial instruments
Financial Assets	68,506
Loans to banks - amortised cost
Financial instruments
Financial Assets	153	165
Loans to banks - amortised cost \| IBOR reform
Financial instruments
Financial Assets	6,955
Loans to banks - amortised cost \| GBP LIBOR
Financial instruments
Financial Assets	23
Loans to banks - amortised cost \| USD IBOR
Financial instruments
Financial Assets	82
Loans to banks - amortised cost \| EUR IBOR
Financial instruments
Financial Assets	101
Loans to banks - amortised cost \| Balances not subject to IBOR reform
Financial instruments
Financial Assets	6,751
Loans to banks - amortised cost \| Expected Credit Losses
Financial instruments
Financial Assets	(2)
Loans to customers - amortised cost
Financial instruments
Financial Assets	25,011	£ 10,649
Loans to customers - amortised cost \| IBOR reform
Financial instruments
Financial Assets	360,544
Loans to customers - amortised cost \| GBP LIBOR
Financial instruments
Financial Assets	39,858
Loans to customers - amortised cost \| USD IBOR
Financial instruments
Financial Assets	5,289
Loans to customers - amortised cost \| EUR IBOR
Financial instruments
Financial Assets	4,950
Loans to customers - amortised cost \| Other IBOR
Financial instruments
Financial Assets	234
Loans to customers - amortised cost \| Balances not subject to IBOR reform
Financial instruments
Financial Assets	316,200
Loans to customers - amortised cost \| Expected Credit Losses
Financial instruments
Financial Assets	(5,987)
Other financial assets \| IBOR reform
Financial instruments
Financial Assets	55,148
Other financial assets \| GBP LIBOR
Financial instruments
Financial Assets	2,847
Other financial assets \| USD IBOR
Financial instruments
Financial Assets	303
Other financial assets \| EUR IBOR
Financial instruments
Financial Assets	370
Other financial assets \| Other IBOR
Financial instruments
Financial Assets	71
Other financial assets \| Balances not subject to IBOR reform
Financial instruments
Financial Assets	51,568
Other financial assets \| Expected Credit Losses
Financial instruments
Financial Assets	£ (11)

Financial Instruments - class_6

Financial Instruments - classification - Offsetable assets and liabilities (Details) £ in Millions	Dec. 31, 2020$ / shares	Dec. 31, 2020GBP (£)	Dec. 31, 2019GBP (£)
Instruments which can be offset
IFRS offset		£ 733	£ 811
Potential for offset not recognised by IFRS
Financial Assets		799,491	723,039
Non-cumulative preference shares of US$0.01
Potential for offset not recognised by IFRS
Par value per share \| $ / shares	$ 0.01
Derivatives
Instruments which can be offset
Gross		4,811	4,454
IFRS offset		733	811
Balance sheet		5,544	5,265
Potential for offset not recognised by IFRS
Cash collateral		(4,574)	(1,389)
Other financial collateral		(132)	(3,016)
Net amount after the effect of netting arrangements and related collateral		838	860
Instruments outside netting arrangements		274	(2,115)
Balance sheet total		5,818	3,150
Trading reverse repos/repos
Instruments which can be offset
Gross		1,705	(2,124)
Balance sheet		1,705	(2,124)
Potential for offset not recognised by IFRS
Other financial collateral		(1,633)	2,485
Net amount after the effect of netting arrangements and related collateral		72	361
Instruments outside netting arrangements		(1,337)	(1,666)
Balance sheet total		368	(3,790)
Non trading reverse repos / repos
Instruments which can be offset
Gross		13,527	6,452
Balance sheet		13,527	6,452
Potential for offset not recognised by IFRS
Other financial collateral		(13,527)	(6,452)
Balance sheet total		13,527	6,452
Currency swaps \| GBP LIBOR
Potential for offset not recognised by IFRS
Financial Assets		5,200
Currency swaps \| GBP LIBOR \| USD
Potential for offset not recognised by IFRS
Financial Assets		2,000
Currency swaps \| GBP LIBOR \| Euro
Potential for offset not recognised by IFRS
Financial Assets		2,900
Currency swaps \| GBP LIBOR \| Other CCY
Potential for offset not recognised by IFRS
Financial Assets		300
Currency swaps \| USD IBOR
Potential for offset not recognised by IFRS
Financial Assets		98,500
Currency swaps \| USD IBOR \| GBP
Potential for offset not recognised by IFRS
Financial Assets		231,700
Currency swaps \| USD IBOR \| Euro
Potential for offset not recognised by IFRS
Financial Assets		85,800
Currency swaps \| USD IBOR \| Other CCY
Potential for offset not recognised by IFRS
Financial Assets		47,400
Currency swaps \| EUR IBOR
Potential for offset not recognised by IFRS
Financial Assets		5,100
Currency swaps \| EUR IBOR \| GBP
Potential for offset not recognised by IFRS
Financial Assets		2,300
Currency swaps \| EUR IBOR \| USD
Potential for offset not recognised by IFRS
Financial Assets		1,800
Currency swaps \| EUR IBOR \| Other CCY
Potential for offset not recognised by IFRS
Financial Assets		1,000
Currency swaps \| Other IBOR
Potential for offset not recognised by IFRS
Financial Assets		2,200
Currency swaps \| Other IBOR \| USD
Potential for offset not recognised by IFRS
Financial Assets		1,200
Currency swaps \| Other IBOR \| Euro
Potential for offset not recognised by IFRS
Financial Assets		700
Currency swaps \| Other IBOR \| Other CCY
Potential for offset not recognised by IFRS
Financial Assets		300
Basis swaps \| GBP LIBOR
Potential for offset not recognised by IFRS
Financial Assets		97,000
Basis swaps \| USD IBOR
Potential for offset not recognised by IFRS
Financial Assets		81,000
Basis swaps \| EUR IBOR
Potential for offset not recognised by IFRS
Financial Assets		49,000
Basis swaps \| Other IBOR
Potential for offset not recognised by IFRS
Financial Assets		10,000
Derivatives
Instruments which can be offset
Gross		171,614	154,396
IFRS offset		(11,540)	(11,724)
Balance sheet		160,074	142,672
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements		(137,086)	(122,697)
Cash collateral		(15,034)	(17,296)
Other financial collateral		(4,921)	(1,276)
Net amount after the effect of netting arrangements and related collateral		3,033	1,403
Instruments outside netting arrangements		631	4,207
Balance sheet total		160,705	146,879
Trading repos
Instruments which can be offset
Gross		42,203	54,131
IFRS offset		(24,867)	(28,720)
Balance sheet		17,336	25,411
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements		(929)	(562)
Other financial collateral		(16,407)	(24,849)
Instruments outside netting arrangements		1,700	2,474
Balance sheet total		19,036	27,885
Non trading repos
Instruments which can be offset
Gross		22,590	14,889
IFRS offset		(10,953)	(10,527)
Balance sheet		11,637	4,362
Potential for offset not recognised by IFRS
Other financial collateral		(11,637)	(4,362)
Balance sheet total		11,637	4,362
Derivatives
Instruments which can be offset
Gross		176,425	158,850
IFRS offset		(10,807)	(10,913)
Balance sheet		165,618	147,937
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements		(137,086)	(122,697)
Cash collateral		(19,608)	(18,685)
Other financial collateral		(5,053)	(4,292)
Net amount after the effect of netting arrangements and related collateral		3,871	2,263
Instruments outside netting arrangements		905	2,092
Balance sheet total		166,523	150,029
Potential for offset not recognised by IFRS
Financial Assets		166,523	150,029
Trading reverse repos
Instruments which can be offset
Gross		43,908	52,007
IFRS offset		(24,867)	(28,720)
Balance sheet		19,041	23,287
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements		(929)	(562)
Other financial collateral		(18,040)	(22,364)
Net amount after the effect of netting arrangements and related collateral		72	361
Instruments outside netting arrangements			808
Balance sheet total			24,095
Potential for offset not recognised by IFRS
Instruments outside netting arrangements		363
Balance sheet total		19,404
Non trading reverse repos
Instruments which can be offset
Gross		36,117	21,341
IFRS offset		(10,953)	(10,527)
Balance sheet		25,164	10,814
Potential for offset not recognised by IFRS
Other financial collateral		(25,164)	(10,814)
Balance sheet total		£ 25,164	£ 10,814

Financial Instruments - class_7

Financial Instruments - classification - IBOR reform (Details) £ in Millions	Dec. 31, 2020$ / shares	Dec. 31, 2020GBP (£)	Dec. 31, 2019GBP (£)
Disclosure of Financial Assets and Liabilities [Line Items]
Financial Liabilities		£ 755,667	£ 679,483
Series U, Non-cumulative preference shares of US$0.01
Disclosure of Financial Assets and Liabilities [Line Items]
Financial Liabilities		494
Par value per share \| $ / shares	$ 0.01
US$1.15 billion 8% notes
Disclosure of Financial Assets and Liabilities [Line Items]
Financial Liabilities		734
US$2.65 billion 8.625% notes
Disclosure of Financial Assets and Liabilities [Line Items]
Financial Liabilities		£ 2,046

Financial instruments - valua_3

Financial instruments - valuation - hierarchy of assets (Details) - Recurring - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair value of assets
Assets	£ 280,855	£ 276,772
Loans
Fair value of assets
Assets	39,775	46,621
Securities
Fair value of assets
Assets	29,215	30,124
Derivatives
Fair value of assets
Assets	166,523	150,029
Other loans
Fair value of assets
Assets	353	365
Securities
Fair value of assets
Assets	44,989	49,633
Level 1
Fair value of assets
Assets	57,507	61,909
Level 1 \| Securities
Fair value of assets
Assets	21,535	20,865
Level 1 \| Securities
Fair value of assets
Assets	35,972	41,044
Level 2
Fair value of assets
Assets	221,625	212,309
Level 2 \| Loans
Fair value of assets
Assets	39,550	46,172
Level 2 \| Securities
Fair value of assets
Assets	7,599	8,704
Level 2 \| Derivatives
Fair value of assets
Assets	165,441	148,800
Level 2 \| Other loans
Fair value of assets
Assets	185	307
Level 2 \| Securities
Fair value of assets
Assets	8,850	8,326
Level 3
Fair value of assets
Assets	1,723	2,554	£ 3,300
Level 3 \| Loans
Fair value of assets
Assets	225	449
Level 3 \| Securities
Fair value of assets
Assets	81	555
Level 3 \| Derivatives
Fair value of assets
Assets	1,082	1,229
Level 3 \| Other loans
Fair value of assets
Assets	168	58
Level 3 \| Securities
Fair value of assets
Assets	£ 167	£ 263

Financial instruments - valua_4

Financial instruments - valuation - hierarchy of liabilities (Details) - Recurring - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair value of liabilities
Liabilities	£ 236,157	£ 223,810
Deposits
Fair value of liabilities
Liabilities	44,069	51,000
Debt securities in issue
Fair value of liabilities
Liabilities	1,408	1,762
Short positions
Fair value of liabilities
Liabilities	26,779	21,187
Derivatives
Fair value of liabilities
Liabilities	160,705	146,879
Other financial liabilities - Debt securities in issue
Fair value of liabilities
Liabilities	1,607	2,258
Other deposits
Fair value of liabilities
Liabilities	796
Subordinated liabilities
Fair value of liabilities
Liabilities	793	724
Level 1
Fair value of liabilities
Liabilities	19,045	15,565
Level 1 \| Short positions
Fair value of liabilities
Liabilities	19,045	15,565
Level 2
Fair value of liabilities
Liabilities	216,218	206,928
Level 2 \| Deposits
Fair value of liabilities
Liabilities	44,062	50,944
Level 2 \| Debt securities in issue
Fair value of liabilities
Liabilities	1,408	1,703
Level 2 \| Short positions
Fair value of liabilities
Liabilities	7,734	5,622
Level 2 \| Derivatives
Fair value of liabilities
Liabilities	159,818	145,818
Level 2 \| Other financial liabilities - Debt securities in issue
Fair value of liabilities
Liabilities	1,607	2,117
Level 2 \| Other deposits
Fair value of liabilities
Liabilities	796
Level 2 \| Subordinated liabilities
Fair value of liabilities
Liabilities	793	724
Level 3
Fair value of liabilities
Liabilities	894	1,317	£ 1,957
Level 3 \| Deposits
Fair value of liabilities
Liabilities	7	56
Level 3 \| Debt securities in issue
Fair value of liabilities
Liabilities		59
Level 3 \| Derivatives
Fair value of liabilities
Liabilities	£ 887	1,061
Level 3 \| Other financial liabilities - Debt securities in issue
Fair value of liabilities
Liabilities		£ 141

Financial instruments - valua_5

Financial instruments - valuation - Adjustments (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Adjustments
Funding - FVA	£ 140	£ 244
Credit - CVA	390	386
Bid - Offer	148	165
Product and deal specific	172	238
Financial instruments valuation adjustments	850	1,033
Designated as at fair value through profit or loss
Product and deal specific
Net (gains) carried forward	63	88
Net gains deferred	75	183
Net gains recognized in the income statement	£ 100	£ 154

Financial instruments - valua_6

Financial instruments - valuation - Valuation techniques (Details) - Recurring - Level 3	12 Months Ended
	Dec. 31, 2020GBP (£)	Dec. 31, 2019JPY (¥)item	Dec. 31, 2019EUR (€)item	Dec. 31, 2019GBP (£)item
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, assets	£ 140,000,000			£ 270,000,000
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, assets	110,000,000			210,000,000
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, liabilities	40,000,000			100,000,000
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, liabilities	£ 50,000,000			£ 110,000,000
Basis points of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	21
Basis Points of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	15
Loans
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of reasonably possible increase in unobservable input, assets	226.00%
Percentage of reasonably possible decrease in unobservable input, assets	51.00%
Loans \| Price-based \| Price
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of reasonably possible increase in unobservable input, assets	105.00%	101.00%	101.00%	101.00%
Loans \| Market comparables \| Credit spreads
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of reasonably possible increase in unobservable input, assets	1.19%	1.01%	1.01%	1.01%
Percentage of reasonably possible decrease in unobservable input, assets	0.69%	0.53%	0.53%	0.53%
Secured \| Price-based \| Price
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of reasonably possible increase in unobservable input, assets	232.00%	246.00%	246.00%	246.00%
Equity shares \| Price-based \| Price
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of reasonably possible increase in unobservable input, assets	80.00%	80.00%	80.00%	80.00%
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, assets	£ 27,737			£ 25,914
Equity shares \| Valuation \| Discount factor
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of reasonably possible increase in unobservable input, assets	9.00%	9.00%	9.00%	9.00%
Percentage of reasonably possible decrease in unobservable input, assets	7.00%	6.00%	6.00%	6.00%
Equity shares \| Valuation \| Fund NAV
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of reasonably possible increase in unobservable input, assets	120.00%	120.00%	120.00%	120.00%
Percentage of reasonably possible decrease in unobservable input, assets	80.00%	80.00%	80.00%	80.00%
Deposits \| Price-based \| Price
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of reasonably possible increase in unobservable input, liabilities		98.00%	98.00%	98.00%
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, liabilities	£ 100
Deposits \| Yield analysis \| Day count
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Increase (decrease) in the fair value measurement increase of liabilities, Number \| item		95	95	95
Increase (decrease) in the fair value measurement decrease of liabilities, Number \| item		65	65	65
Debt securities in issue \| Price-based \| Price
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, liabilities \| €			€ 146
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, liabilities \| ¥		¥ 44
Credit derivatives \| DCF based on recoveries \| Credit spreads
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	5.00%	5.00%	5.00%	5.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	0.02%	0.06%	0.06%	0.06%
Credit derivatives \| Option pricing model \| Correlation
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	95.00%	80.00%	80.00%	80.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	(50.00%)	(50.00%)	(50.00%)	(50.00%)
Credit derivatives \| Option pricing model \| Volatility
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	80.00%	80.00%	80.00%	80.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	27.00%	27.00%	27.00%	27.00%
Credit derivatives \| Option pricing model \| Upfront points
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	100.00%	99.00%	99.00%	99.00%
Credit derivatives \| Option pricing model \| Recovery rate
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	40.00%	40.00%	40.00%	40.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	10.00%	10.00%	10.00%	10.00%
Interest rate & FX derivatives \| Inflation volatility
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	2.00%	2.00%	2.00%	2.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	1.00%	1.00%	1.00%	1.00%
Interest rate & FX derivatives \| Inflation rate
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	2.00%	2.00%	2.00%	2.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	1.00%	1.00%	1.00%	1.00%
Interest rate & FX derivatives \| Option pricing model \| Correlation
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	100.00%	99.00%	99.00%	99.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	(50.00%)	(50.00%)	(50.00%)	(50.00%)
Interest rate & FX derivatives \| Option pricing model \| Volatility
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	60.00%	70.00%	70.00%	70.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	17.00%	19.00%	19.00%	19.00%
Interest rate & FX derivatives \| Option pricing model \| Constant Prepayment Rate
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	18.00%	15.00%	15.00%	15.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	2.00%	2.00%	2.00%	2.00%
Interest rate & FX derivatives \| Option pricing model \| Mean Reversal
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	92.00%	92.00%	92.00%	92.00%
Equity derivatives \| Option pricing model \| Correlation
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Percentage of Reasonably Possible Increase In Unobservable Input, Assets and Liabilities	87.00%	87.00%	87.00%	87.00%
Percentage of Reasonably Possible Decrease In Unobservable Input, Assets and Liabilities	(53.00%)	(53.00%)	(53.00%)	(53.00%)

Financial instruments - valua_7

Financial instruments - valuation - Level 3 Sensitivities of Assets (Details) - Recurring - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair value of assets
Assets	£ 280,855	£ 276,772
Loans
Fair value of assets
Assets	39,775	46,621
Securities
Fair value of assets
Assets	29,215	30,124
Derivatives
Fair value of assets
Assets	166,523	150,029
Other loans
Fair value of assets
Assets	353	365
Securities
Fair value of assets
Assets	44,989	49,633
Level 3
Fair value of assets
Assets	1,723	2,554	£ 3,300
Sensitivity favourable	140	270
Sensitivity unfavourable	(110)	(210)
Level 3 \| Loans
Fair value of assets
Assets	225	449
Sensitivity favourable	10	10
Sensitivity unfavourable		(10)
Level 3 \| Securities
Fair value of assets
Assets	81	555
Level 3 \| Derivatives
Fair value of assets
Assets	1,082	1,229
Sensitivity favourable	80	180
Sensitivity unfavourable	(80)	(180)
Level 3 \| Other loans
Fair value of assets
Assets	168	58
Sensitivity favourable	20
Sensitivity unfavourable	(10)
Level 3 \| Securities
Fair value of assets
Assets	167	263
Sensitivity favourable	30	80
Sensitivity unfavourable	£ (20)	£ (20)

Financial instruments - valua_8

Financial instruments - valuation - Level 3 Sensitivities of Liabilities (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair value of liabilities
Specified Target Level Of Certainty For Unobservable Inputs	90.00%
Recurring
Fair value of liabilities
Liabilities	£ 236,157	£ 223,810
Recurring \| Deposits
Fair value of liabilities
Liabilities	44,069	51,000
Recurring \| Debt securities in issue
Fair value of liabilities
Liabilities	1,408	1,762
Recurring \| Derivatives
Fair value of liabilities
Liabilities	160,705	146,879
Recurring \| Other financial liabilities - Debt securities in issue
Fair value of liabilities
Liabilities	1,607	2,258
Recurring \| Level 3
Fair value of liabilities
Liabilities	894	1,317	£ 1,957
Sensitivity favourable	50	110
Sensitivity unfavourable	(40)	(100)
Recurring \| Level 3 \| Deposits
Fair value of liabilities
Liabilities	7	56
Recurring \| Level 3 \| Debt securities in issue
Fair value of liabilities
Liabilities		59
Recurring \| Level 3 \| Derivatives
Fair value of liabilities
Liabilities	887	1,061
Sensitivity favourable	50	100
Sensitivity unfavourable	£ (40)	(90)
Recurring \| Level 3 \| Other financial liabilities - Debt securities in issue
Fair value of liabilities
Liabilities		141
Sensitivity favourable		10
Sensitivity unfavourable		£ (10)

Financial instruments - valua_9

Financial instruments - valuation - Movement in Level 3 portfolios - Assets (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Level 3 \| Other
Movement in level 3 assets
Amounts recorded in the income statement		£ 15
Recurring
Movement in level 3 assets
At 1 January	£ 276,772
At 31 December	280,855	276,772
Recurring \| Level 3
Movement in level 3 assets
At 1 January	2,554	3,300
Amounts recorded in the income statement	106	(419)
Amounts recorded in the statement of comprehensive income	63	86
Level 3 transfers in	426	494
Level 3 transfers out	(139)	(916)
Purchases	605	1,136
Settlements	(446)	(256)
Sales	(1,449)	(867)
Foreign exchange and other adjustments	3	(4)
At 31 December	1,723	2,554
Amounts recorded in the income statement in respect of balances held at year end - unrealised	107	(413)
Recurring \| Level 3 \| Trading assets
Movement in level 3 assets
At 1 January	2,233	2,657
Amounts recorded in the income statement	127	(418)
Level 3 transfers in	165	492
Level 3 transfers out	(139)	(857)
Purchases	441	1,121
Settlements	(293)	(218)
Sales	(1,148)	(541)
Foreign exchange and other adjustments	2	(3)
At 31 December	1,388	2,233
Amounts recorded in the income statement in respect of balances held at year end - unrealised	129	(421)
Recurring \| Level 3 \| Other financial assets
Movement in level 3 assets
At 1 January	321	643
Amounts recorded in the income statement	(21)	(1)
Amounts recorded in the statement of comprehensive income	63	86
Level 3 transfers in	261	2
Level 3 transfers out		(59)
Purchases	164	15
Settlements	(153)	(38)
Sales	(301)	(326)
Foreign exchange and other adjustments	1	(1)
At 31 December	335	321
Amounts recorded in the income statement in respect of balances held at year end - unrealised	(22)	8
Continuing operations \| Level 3 \| Held-for-trading
Movement in level 3 assets
Amounts recorded in the income statement	194	(596)
Continuing operations \| Level 3 \| Other financial assets
Movement in level 3 assets
Amounts recorded in the income statement	£ (21)	£ 15

Financial instruments - valu_10

Financial instruments - valuation - Movement in Level 3 portfolios - Liabilities (Details) - Recurring - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Movement in level 3 liabilities
Liabilities at beginning of period	£ 223,810
Liabilities at end of period	236,157	£ 223,810
Level 3
Movement in level 3 liabilities
Liabilities at beginning of period	1,317	1,957
Amounts recorded in the income statement	(67)	162
Level 3 transfers in	188	104
Level 3 transfers out	(368)	(588)
Issuances		46
Purchases	127	532
Settlements	(59)	(429)
Sales	(245)	(466)
Foreign exchange and other adjustments	1	(1)
Liabilities at end of period	894	1,317
Amounts recorded in the income statement in respect of balances held at year end - unrealised	£ (68)	£ 110

Financial instruments - valu_11

Financial instruments - valuation - Assets at Amortised Cost (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Fair value of assets
Other financial assets - securities	£ 799,491	£ 723,039
Cash and balances at central banks
Fair value of assets
Other financial assets - securities	124,489	80,993
Loans to banks - amortised cost
Fair value of assets
Other financial assets - securities	6,955	7,554
Loans to customers - amortised cost
Fair value of assets
Other financial assets - securities	360,544	326,947
Items where fair values approximates carrying value \| Cash and balances at central banks
Fair value of assets
Other financial assets - securities	124,500	81,000
Items where fair values approximates carrying value \| Settlement balances
Fair value of assets
Other financial assets - securities	2,300	4,400
Items where fair values approximates carrying value \| Loans to banks - amortised cost
Fair value of assets
Other financial assets - securities	100
Carrying value \| Loans to banks - amortised cost
Fair value of assets
Other financial assets - securities	6,900	7,600
Carrying value \| Loans to customers - amortised cost
Fair value of assets
Other financial assets - securities	360,500	326,900
Carrying value \| Other financial assets
Fair value of assets
Other financial assets - securities	9,800	11,500
Fair value \| Loans to banks - amortised cost
Fair value of assets
Other financial assets - securities	6,900	7,600
Fair value \| Loans to banks - amortised cost \| Level 2
Fair value of assets
Other financial assets - securities	3,800	4,300
Fair value \| Loans to banks - amortised cost \| Level 3
Fair value of assets
Other financial assets - securities	3,100	3,300
Fair value \| Loans to customers - amortised cost
Fair value of assets
Other financial assets - securities	359,200	324,000
Fair value \| Loans to customers - amortised cost \| Level 2
Fair value of assets
Other financial assets - securities	25,200	11,000
Fair value \| Loans to customers - amortised cost \| Level 3
Fair value of assets
Other financial assets - securities	334,000	313,000
Fair value \| Other financial assets
Fair value of assets
Other financial assets - securities	10,100	11,600
Fair value \| Other financial assets \| Level 1
Fair value of assets
Other financial assets - securities	5,900	5,900
Fair value \| Other financial assets \| Level 2
Fair value of assets
Other financial assets - securities	1,200	2,800
Fair value \| Other financial assets \| Level 3
Fair value of assets
Other financial assets - securities	£ 3,000	£ 2,900

Financial instruments - valu_12

Financial instruments - valuation - Liabilities at Amortised Cost (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Fair value of liabilities
Carrying value, Financial liabilities	£ 755,667	£ 679,483
Bank deposits
Fair value of liabilities
Carrying value, Financial liabilities	20,606	20,493
Customer deposits
Fair value of liabilities
Carrying value, Financial liabilities	431,739	369,247
Settlement balances
Fair value of liabilities
Carrying value, Financial liabilities	5,545	4,069
Subordinated liabilities
Fair value of liabilities
Carrying value, Financial liabilities	9,962	9,979
Notes in circulation
Fair value of liabilities
Carrying value, Financial liabilities	2,655	2,109
Items where fair values approximates carrying value \| Bank deposits
Fair value of liabilities
Carrying value, Financial liabilities	4,400	4,100
Items where fair values approximates carrying value \| Customer deposits
Fair value of liabilities
Carrying value, Financial liabilities	371,700	312,400
Items where fair values approximates carrying value \| Settlement balances
Fair value of liabilities
Carrying value, Financial liabilities	5,500	4,100
Items where fair values approximates carrying value \| Notes in circulation
Fair value of liabilities
Carrying value, Financial liabilities	2,700	2,100
Carrying value \| Bank deposits
Fair value of liabilities
Carrying value, Financial liabilities	16,200	16,400
Carrying value \| Customer deposits
Fair value of liabilities
Carrying value, Financial liabilities	60,000	56,800
Carrying value \| Debt securities in issue
Fair value of liabilities
Carrying value, Financial liabilities	43,400	43,000
Carrying value \| Subordinated liabilities
Fair value of liabilities
Carrying value, Financial liabilities	9,200	9,300
Fair value \| Bank deposits
Fair value of liabilities
Fair value, Financial liabilities	16,200	16,500
Fair value \| Bank deposits \| Level 2
Fair value of liabilities
Fair value, Financial liabilities	11,300	12,200
Fair value \| Bank deposits \| Level 3
Fair value of liabilities
Fair value, Financial liabilities	4,900	4,300
Fair value \| Customer deposits
Fair value of liabilities
Fair value, Financial liabilities	60,100	56,900
Fair value \| Customer deposits \| Level 2
Fair value of liabilities
Fair value, Financial liabilities	10,100	7,500
Fair value \| Customer deposits \| Level 3
Fair value of liabilities
Fair value, Financial liabilities	50,000	49,400
Fair value \| Debt securities in issue
Fair value of liabilities
Fair value, Financial liabilities	44,600	43,700
Fair value \| Debt securities in issue \| Level 2
Fair value of liabilities
Fair value, Financial liabilities	34,700	38,500
Fair value \| Debt securities in issue \| Level 3
Fair value of liabilities
Fair value, Financial liabilities	9,900	5,200
Fair value \| Subordinated liabilities
Fair value of liabilities
Fair value, Financial liabilities	9,800	10,000
Fair value \| Subordinated liabilities \| Level 2
Fair value of liabilities
Fair value, Financial liabilities	9,700	9,900
Fair value \| Subordinated liabilities \| Level 3
Fair value of liabilities
Fair value, Financial liabilities	£ 100	£ 100

Financial Instruments - matur_3

Financial Instruments - maturity analysis - Residual Maturity (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Financial instruments
Financial Assets	£ 799,491	£ 723,039
Financial Liabilities	755,667	679,483
Bank deposits
Financial instruments
Financial Liabilities	20,606	20,493
Customer accounts
Financial instruments
Financial Liabilities	431,739	369,247
Settlement balances
Financial instruments
Financial Liabilities	5,545	4,069
Trading liabilities
Financial instruments
Financial Liabilities	72,256	73,949
Derivatives
Financial instruments
Financial Liabilities	160,705	146,879
Other financial liabilities
Financial instruments
Financial Liabilities	45,811	45,220
Subordinated liabilities
Financial instruments
Financial Liabilities	9,962	9,979
Notes in circulation
Financial instruments
Financial Liabilities	2,655	2,109
Lease liabilities
Financial instruments
Financial Liabilities	1,698	1,823
Within 1 year \| Bank deposits
Financial instruments
Financial Liabilities	12,315	9,286
Within 1 year \| Customer accounts
Financial instruments
Financial Liabilities	430,283	367,098
Within 1 year \| Settlement balances
Financial instruments
Financial Liabilities	5,545	4,069
Within 1 year \| Trading liabilities
Financial instruments
Financial Liabilities	45,037	53,047
Within 1 year \| Derivatives
Financial instruments
Financial Liabilities	47,361	41,276
Within 1 year \| Other financial liabilities
Financial instruments
Financial Liabilities	12,403	11,915
Within 1 year \| Subordinated liabilities
Financial instruments
Financial Liabilities	365	160
Within 1 year \| Notes in circulation
Financial instruments
Financial Liabilities	2,655	2,109
Within 1 year \| Lease liabilities
Financial instruments
Financial Liabilities	185	194
More than 12 months \| Bank deposits
Financial instruments
Financial Liabilities	8,291	11,207
More than 12 months \| Bank Deposits - Term Funding Scheme \| Early repayment of obligations
Financial instruments
Financial Liabilities	5,000
More than 12 months \| Customer accounts
Financial instruments
Financial Liabilities	1,456	2,149
More than 12 months \| Trading liabilities
Financial instruments
Financial Liabilities	27,219	20,902
More than 12 months \| Derivatives
Financial instruments
Financial Liabilities	113,344	105,603
More than 12 months \| Other financial liabilities
Financial instruments
Financial Liabilities	33,408	33,305
More than 12 months \| Subordinated liabilities
Financial instruments
Financial Liabilities	9,597	9,819
More than 12 months \| Lease liabilities
Financial instruments
Financial Liabilities	1,513	1,629
Cash and balances at central banks
Financial instruments
Financial Assets	124,489	80,993
Cash and balances at central banks \| Within 1 year
Financial instruments
Financial Assets	124,489	80,993
Trading assets
Financial instruments
Financial Assets	68,990	76,745
Trading assets \| Within 1 year
Financial instruments
Financial Assets	42,037	51,825
Trading assets \| More than 12 months
Financial instruments
Financial Assets	26,953	24,920
Derivatives
Financial instruments
Financial Assets	166,523	150,029
Derivatives \| Within 1 year
Financial instruments
Financial Assets	46,244	40,798
Derivatives \| More than 12 months
Financial instruments
Financial Assets	120,279	109,231
Settlement balances
Financial instruments
Financial Assets	2,297	4,387
Settlement balances \| Within 1 year
Financial instruments
Financial Assets	2,297	4,387
Loans to banks - amortised cost
Financial instruments
Financial Assets	6,955	7,554
Loans to banks - amortised cost \| Within 1 year
Financial instruments
Financial Assets	6,835	7,541
Loans to banks - amortised cost \| More than 12 months
Financial instruments
Financial Assets	120	13
Loans to customers - amortised cost
Financial instruments
Financial Assets	360,544	326,947
Loans to customers - amortised cost \| Within 1 year
Financial instruments
Financial Assets	87,531	77,742
Loans to customers - amortised cost \| More than 12 months
Financial instruments
Financial Assets	273,013	249,205
Other financial assets
Financial instruments
Financial Assets	55,148	61,452
Other financial assets \| Within 1 year
Financial instruments
Financial Assets	8,901	10,187
Other financial assets \| More than 12 months
Financial instruments
Financial Assets	£ 46,247	£ 51,265

Financial Instruments - matur_4

Financial Instruments - maturity analysis - Contractual Maturity (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Financial instruments
Contractual maturity period for undiscounted cash flows	20 years
Threshold period for principal amounts of financial liabilities to be excluded from contractual maturity for cash outflows	20 years
Threshold period for interest payments of financial liabilities to be excluded from contractual maturity for cash outflows	20 years
Financial Assets	£ 799,491	£ 723,039
Financial Liabilities	755,667	679,483
0-3 months \| Financial assets
Financial instruments
Undiscounted cash flows, assets	183,974	145,421
0-3 months \| Cash and balances at central banks
Financial instruments
Undiscounted cash flows, assets	124,489	80,993
0-3 months \| Settlement balances
Financial instruments
Undiscounted cash flows, assets	2,297	4,387
0-3 months \| Loans to banks - amortised cost
Financial instruments
Undiscounted cash flows, assets	5,600	6,524
0-3 months \| Other financial assets
Financial instruments
Undiscounted cash flows, assets	4,019	4,619
0-3 months \| Loans to customers - amortised cost
Financial instruments
Undiscounted cash flows, assets	47,507	48,793
0-3 months \| Finance lease
Financial instruments
Undiscounted cash flows, assets	48	72
0-3 months \| Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	14	33
0-3 months \| Financial liabilities
Financial instruments
Undiscounted cash flows, liabilities	446,056	376,700
0-3 months \| Bank deposits
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	11,217	7,269
0-3 months \| Settlement balances
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	5,545	4,069
0-3 months \| Other financial liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	4,716	4,810
0-3 months \| Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	73	21
0-3 months \| Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	421,763	358,359
0-3 months \| Notes in circulation
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	2,655	2,109
0-3 months \| Lessee liabilities
Financial instruments
Undiscounted cash flows, derivative financial liabilities		54
0-3 months \| Lease liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	51
0-3 months \| Derivatives held for hedging
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities		9
Undiscounted cash flows, derivative financial liabilities	36
0-3 months \| Guarantees and Commitments
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	124,166	119,985
0-3 months \| Guarantees
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	2,244	2,757
0-3 months \| Commitments
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	121,922	117,228
3-12 months \| Financial assets
Financial instruments
Undiscounted cash flows, assets	54,266	44,080
3-12 months \| Loans to banks - amortised cost
Financial instruments
Undiscounted cash flows, assets	1,245	1,032
3-12 months \| Other financial assets
Financial instruments
Undiscounted cash flows, assets	5,919	6,644
3-12 months \| Loans to customers - amortised cost
Financial instruments
Undiscounted cash flows, assets	46,718	36,108
3-12 months \| Finance lease
Financial instruments
Undiscounted cash flows, assets	366	289
3-12 months \| Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	18	7
3-12 months \| Financial liabilities
Financial instruments
Undiscounted cash flows, liabilities	18,553	19,095
3-12 months \| Bank deposits
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	1,078	2,017
3-12 months \| Other financial liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	8,144	7,602
3-12 months \| Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	685	541
3-12 months \| Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	8,528	8,773
3-12 months \| Lessee liabilities
Financial instruments
Undiscounted cash flows, derivative financial liabilities		140
3-12 months \| Lease liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	135
3-12 months \| Derivatives held for hedging
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities		22
Undiscounted cash flows, derivative financial liabilities	(17)
More than 1 year but less than 3 years \| Financial assets
Financial instruments
Undiscounted cash flows, assets	78,666	88,232
More than 1 year but less than 3 years \| Loans to banks - amortised cost
Financial instruments
Undiscounted cash flows, assets		5
More than 1 year but less than 3 years \| Other financial assets
Financial instruments
Undiscounted cash flows, assets	12,592	16,287
More than 1 year but less than 3 years \| Loans to customers - amortised cost
Financial instruments
Undiscounted cash flows, assets	65,138	70,957
More than 1 year but less than 3 years \| Finance lease
Financial instruments
Undiscounted cash flows, assets	840	920
More than 1 year but less than 3 years \| Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	96	63
More than 1 year but less than 3 years \| Financial liabilities
Financial instruments
Undiscounted cash flows, liabilities	24,981	28,909
More than 1 year but less than 3 years \| Bank deposits
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	3,241	11,297
More than 1 year but less than 3 years \| Other financial liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	15,558	11,849
More than 1 year but less than 3 years \| Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	4,387	3,295
More than 1 year but less than 3 years \| Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	1,407	2,105
More than 1 year but less than 3 years \| Lessee liabilities
Financial instruments
Undiscounted cash flows, derivative financial liabilities		313
More than 1 year but less than 3 years \| Lease liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	294
More than 1 year but less than 3 years \| Derivatives held for hedging
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities		50
Undiscounted cash flows, derivative financial liabilities	94
More than 3 years but less than 5 years \| Financial assets
Financial instruments
Undiscounted cash flows, assets	70,142	62,273
More than 3 years but less than 5 years \| Other financial assets
Financial instruments
Undiscounted cash flows, assets	10,791	9,857
More than 3 years but less than 5 years \| Loans to customers - amortised cost
Financial instruments
Undiscounted cash flows, assets	58,680	51,667
More than 3 years but less than 5 years \| Finance lease
Financial instruments
Undiscounted cash flows, assets	671	646
More than 3 years but less than 5 years \| Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets		103
More than 3 years but less than 5 years \| Financial liabilities
Financial instruments
Undiscounted cash flows, liabilities	20,223	19,554
More than 3 years but less than 5 years \| Bank deposits
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	5,038	38
More than 3 years but less than 5 years \| Other financial liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	11,470	13,935
More than 3 years but less than 5 years \| Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	3,444	5,270
More than 3 years but less than 5 years \| Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	23	22
More than 3 years but less than 5 years \| Lessee liabilities
Financial instruments
Undiscounted cash flows, derivative financial liabilities		249
More than 3 years but less than 5 years \| Lease liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	245
More than 3 years but less than 5 years \| Derivatives held for hedging
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities		40
Undiscounted cash flows, derivative financial liabilities	3
5-10 years \| Financial assets
Financial instruments
Undiscounted cash flows, assets	94,307	83,077
5-10 years \| Loans to banks - amortised cost
Financial instruments
Undiscounted cash flows, assets	1
5-10 years \| Other financial assets
Financial instruments
Undiscounted cash flows, assets	11,855	15,766
5-10 years \| Loans to customers - amortised cost
Financial instruments
Undiscounted cash flows, assets	81,544	66,453
5-10 years \| Finance lease
Financial instruments
Undiscounted cash flows, assets	895	802
5-10 years \| Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	12	56
5-10 years \| Financial liabilities
Financial instruments
Undiscounted cash flows, liabilities	8,800	10,292
5-10 years \| Other financial liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	7,358	9,426
5-10 years \| Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	923	327
5-10 years \| Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	26	23
5-10 years \| Lessee liabilities
Financial instruments
Undiscounted cash flows, derivative financial liabilities		457
5-10 years \| Lease liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	429
5-10 years \| Derivatives held for hedging
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities		59
Undiscounted cash flows, derivative financial liabilities	64
10-20 years \| Financial assets
Financial instruments
Undiscounted cash flows, assets	94,590	84,950
10-20 years \| Loans to banks - amortised cost
Financial instruments
Undiscounted cash flows, assets	110
10-20 years \| Other financial assets
Financial instruments
Undiscounted cash flows, assets	5,774	5,081
10-20 years \| Loans to customers - amortised cost
Financial instruments
Undiscounted cash flows, assets	88,155	79,174
10-20 years \| Finance lease
Financial instruments
Undiscounted cash flows, assets	545	653
10-20 years \| Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	6	42
10-20 years \| Financial liabilities
Financial instruments
Undiscounted cash flows, liabilities	1,331	2,662
10-20 years \| Other financial liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	254	328
10-20 years \| Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	562	1,700
10-20 years \| Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	20	17
10-20 years \| Lessee liabilities
Financial instruments
Undiscounted cash flows, derivative financial liabilities		571
10-20 years \| Lease liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	497
10-20 years \| Derivatives held for hedging
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities		46
Undiscounted cash flows, derivative financial liabilities	(2)
Held-for-trading \| Financial Assets and Liabilities, Category \| Financial liabilities
Financial instruments
Financial Liabilities	232,800	220,800
Designated as at fair value through profit or loss \| Financial Assets and Liabilities, Category \| Financial assets
Financial instruments
Financial Assets	235,900	£ 227,300
Early repayment of obligations \| More than 3 years but less than 5 years \| Bank Deposits - Term Funding Scheme
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	£ 5,000

Loan impairment provisions (Det

Loan impairment provisions (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loan impairment provisions
Financial Assets	£ 799,491	£ 723,039
ECL provisions	£ 6,186	£ 3,792
ECL provision coverage (in percentage)	1.66%	1.13%
ECL charge	£ 3,242	£ 696
ECL loss rate - annualised (basis points)	87.00%	20.00%
Amounts written off	£ 937	£ 792
Contingent liabilities [member]
Loan impairment provisions
ECL charge	28	0
Other financial assets
Loan impairment provisions
Financial Assets	55,148	61,452
ECL charge	12	2
FVOCI
Loan impairment provisions
ECL provisions	6	4
FVOCI \| Other financial assets
Loan impairment provisions
Financial Assets	44,902	49,283
ECL charge	2	1
Loans and advances
Loan impairment provisions
Financial Assets	372,399	336,833
Cash at central banks \| Other financial assets
Loan impairment provisions
Financial Assets	122,800	79,200
Secured \| Other financial assets
Loan impairment provisions
Financial Assets	53,800	59,400
Business loans
Loan impairment provisions
ECL provisions		6,186	£ 3,792
Stage 1
Loan impairment provisions
ECL provisions	£ 519	£ 322
ECL provision coverage (in percentage)	0.18%	0.11%
ECL charge	£ (121)	£ (212)
Stage 1 \| Loans and advances
Loan impairment provisions
Financial Assets	287,124	302,367
Stage 2
Loan impairment provisions
ECL provisions	£ 3,081	£ 752
ECL provision coverage (in percentage)	3.90%	2.70%
ECL charge	£ 2,747	£ 318
Stage 2 \| Loans and advances
Loan impairment provisions
Financial Assets	78,917	27,868
Stage 3
Loan impairment provisions
ECL provisions	£ 2,586	£ 2,718
ECL provision coverage (in percentage)	40.67%	41.19%
ECL charge	£ 616	£ 590
Stage 3 \| Loans and advances
Loan impairment provisions
Financial Assets	6,358	6,598
Of which: individual
Loan impairment provisions
ECL provisions	831	796
ECL charge	194	303
Amounts written off	191	372
Of which: individual \| Loans and advances
Loan impairment provisions
Financial Assets	2,292	2,051
Of which: collective
Loan impairment provisions
ECL provisions	1,755	1,922
ECL charge	422	287
Amounts written off	746	420
Of which: collective \| Loans and advances
Loan impairment provisions
Financial Assets	£ 4,066	£ 4,547

Other financial assets (Details

Other financial assets (Details) - GBP (£) £ in Millions	12 Months Ended
Other financial assets (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	£ 29,215	£ 30,124
Other financial assets.	55,148	61,452	[1]	£ 59,485
VISA
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Other financial assets disposed off	186
SABB
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Other financial assets disposed off	383
Vocalink
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Other financial assets disposed off	16
Equity shares
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Other financial assets.	308	994
Equity shares \| SABB
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Dividend income	15
Other loans
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Other financial assets.	353	365
MFVPL
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	88	305
Other financial assets.	440	715
MFVPL \| Other debt
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	88	305
MFVPL \| Equity shares
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Other financial assets.	14	45
MFVPL \| Other loans
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Other financial assets.	338	365
FVOCI
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	44,593	48,334
Other financial assets.	44,902	49,283
FVOCI \| Central and local government \| UK
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	17,458	18,437
FVOCI \| Central and local government \| USA
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	11,742	13,981
FVOCI \| Central and local government \| Other
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	6,802	8,786
FVOCI \| Other debt
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	8,591	7,130
FVOCI \| Equity shares
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Other financial assets.	294	949
Dividend income	5
FVOCI \| Other loans
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Other financial assets.	15
Amortised cost
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	9,806	11,454
Other financial assets.	9,806	11,454
Amortised cost \| Central and local government \| UK
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	4,997	5,411
Amortised cost \| Central and local government \| USA
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	235	242
Amortised cost \| Central and local government \| Other
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	116	120
Amortised cost \| Other debt
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	4,458	5,681
Secured
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	54,487	60,093
Secured \| Central and local government \| UK
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	22,455	23,848
Secured \| Central and local government \| USA
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	11,977	14,223
Secured \| Central and local government \| Other
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	6,918	8,906
Secured \| Other debt
DisclosureOfDetailedInformationAboutHedgingInstrumentsLineItems
Debt instruments held	£ 13,137	£ 13,116

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Intangible assets (Details)

Intangible assets (Details) - GBP (£) £ in Millions		12 Months Ended
Intangible assets (Details) - GBP (£) £ in Millions		Dec. 31, 2020	Dec. 31, 2019		Dec. 31, 2018
Intangible assets
At beginning of period	[1]	£ 6,622
Impairment of goodwill and other intangible assets		9	£ 44		£ 37
At end of period		6,655	6,622	[1]
Cost
Intangible assets
At beginning of period		12,273	20,188
Currency translation and other adjustments		(1)	(178)
Acquisition of subsidiaries			1
Additions		348	380
Disposals and write-off of fully amortised assets		(89)	(8,118)
At end of period		12,531	12,273		20,188
Accumulated amortisation and impairment
Intangible assets
At beginning of period		(5,651)	(13,572)
Currency translation and other adjustments		(1)	179
Disposals and write-off of fully amortised assets		67	8,077
Charge for the year		(282)	(291)
Impairment of goodwill and other intangible assets		(9)	(44)
At end of period		(5,876)	(5,651)		(13,572)
Goodwill
Intangible assets
At beginning of period		5,607
Disposals and write-off of fully amortised assets			8,000
At end of period		5,607	5,607
Goodwill \| Cost
Intangible assets
At beginning of period		9,980	18,164
Currency translation and other adjustments			(180)
Acquisition of subsidiaries			1
Disposals and write-off of fully amortised assets		(41)	(8,005)
At end of period		9,939	9,980		18,164
Goodwill \| Accumulated amortisation and impairment
Intangible assets
At beginning of period		(4,373)	(12,558)
Currency translation and other adjustments			180
Disposals and write-off of fully amortised assets		41	8,005
At end of period		(4,332)	(4,373)		(12,558)
Other
Intangible assets
Impairment to goodwill		9	44
Other \| Internally generated software
Intangible assets
At beginning of period		1,015
At end of period		1,048	1,015
Other \| Internally generated software \| Cost
Intangible assets
At beginning of period		2,293	2,024
Currency translation and other adjustments		(1)	2
Additions		348	380
Disposals and write-off of fully amortised assets		(48)	(113)
At end of period		2,592	2,293		2,024
Other \| Internally generated software \| Accumulated amortisation and impairment
Intangible assets
At beginning of period		(1,278)	(1,014)
Currency translation and other adjustments		(1)	(1)
Disposals and write-off of fully amortised assets		26	72
Charge for the year		(282)	(291)
Impairment of goodwill and other intangible assets		(9)	(44)
At end of period		£ (1,544)	£ (1,278)		£ (1,014)

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Intangible assets - Assumptions

Intangible assets - Assumptions (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of information for cash-generating units
Goodwill	£ 5,607
Forecast period for average cost:income ratio	5 years
Commercial Banking
Disclosure of information for cash-generating units
Goodwill	£ 2,606
Terminal growth rate	1.60%
Pre-tax discount rate	13.70%
Recoverable amount exceeded carrying value	£ 1,500
Pre-tax discount rate (in amount)	(1,500)
Terminal growth rate (in amount)	(500)
Forecast income (in amounts)	(1,800)
Forecast cost	£ (900)
Cost Income Ratio	53.70%
Commercial and Private Banking (CPB)
Disclosure of information for cash-generating units
Goodwill		£ 2,600
Terminal growth rate		1.60%
Pre-tax discount rate		13.40%
Recoverable amount exceeded carrying value		£ 4,100
Pre-tax discount rate (in amount)		(1,800)
Terminal growth rate (in amount)		(700)
Forecast income (in amounts)		(2,100)
Forecast cost		£ (1,100)
Cost Income Ratio		53.80%
Retail & Business Banking
Disclosure of information for cash-generating units
Goodwill		£ 2,700
Terminal growth rate		1.60%
Pre-tax discount rate		13.30%
Recoverable amount exceeded carrying value		£ 8,700
Pre-tax discount rate (in amount)		(2,200)
Terminal growth rate (in amount)		(1,000)
Forecast income (in amounts)		(2,100)
Forecast cost		£ (900)
Cost Income Ratio		47.90%
Retail Banking
Disclosure of information for cash-generating units
Goodwill	£ 2,692
Terminal growth rate	1.60%
Pre-tax discount rate	13.70%
Recoverable amount exceeded carrying value	£ 5,900
Pre-tax discount rate (in amount)	(1,800)
Terminal growth rate (in amount)	(800)
Forecast income (in amounts)	(2,000)
Forecast cost	£ (900)
Cost Income Ratio	48.30%
RBS International
Disclosure of information for cash-generating units
Goodwill	£ 300	£ 300
Terminal growth rate	1.60%	1.60%
Pre-tax discount rate	12.10%	12.00%
Recoverable amount exceeded carrying value	£ 1,100	£ 2,100
Pre-tax discount rate (in amount)	(400)	(500)
Terminal growth rate (in amount)	(200)	(300)
Forecast income (in amounts)	(300)	(400)
Forecast cost	£ (100)	£ (100)
Cost Income Ratio	42.70%	37.50%

Intangible assets - Changes to

Intangible assets - Changes to key assumptions (Details)	12 Months Ended
Intangible assets - Changes to key assumptions (Details)	Dec. 31, 2020	Dec. 31, 2019
Commercial Banking
Disclosure of information for cash-generating units
Terminal growth rate	1.60%
Pre-tax discount rate	13.70%
Retail Banking
Disclosure of information for cash-generating units
Terminal growth rate	1.60%
Pre-tax discount rate	13.70%
RBS International
Disclosure of information for cash-generating units
Terminal growth rate	1.60%	1.60%
Pre-tax discount rate	12.10%	12.00%
change to reduce headroom CGUs to nil \| Commercial Banking
Disclosure of information for cash-generating units
Terminal growth rate	(4.00%)	(16.40%)
Pre-tax discount rate	1.30%	3.50%
Forecast income	(4.10%)	(9.80%)
Forecost cost	8.2	19.4
change to reduce headroom CGUs to nil \| Retail Banking
Disclosure of information for cash-generating units
Terminal growth rate	(25.40%)	(83.00%)
Pre-tax discount rate	6.20%	8.50%
Forecast income	(14.60%)	(20.40%)
Forecost cost	33.9	48
change to reduce headroom CGUs to nil \| RBS International
Disclosure of information for cash-generating units
Terminal growth rate	(10.80%)	(44.20%)
Pre-tax discount rate	4.40%	8.20%
Forecast income	(18.60%)	(28.10%)
Forecost cost	52.8	85.6

Other assets (Details)

Other assets (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]
Other assets
Interests in associates (1)	£ 449	£ 436
Property, plant and equipment	4,418	4,928
Pension schemes in net surplus (Note 5)	723	614
Prepayments	328	380
Accrued income	216	275
Tax recoverable	192	46
Deferred tax (Note 7)	901	1,011
Acceptances	272	268
Other	391	352
Total other assets	7,890	8,310	[1]	£ 9,805
Business Growth Fund
Other assets
Interests in associates (1)	£ 442	£ 424

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Other financial liabilities (De

Other financial liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]
Disclosure of financial liabilities
Total	£ 45,811	£ 45,220	[1]	£ 39,732
Designated as at fair value through profit or loss \| Customer accounts
Disclosure of financial liabilities
Total	796
Designated as at fair value through profit or loss \| Debt securities in issue
Disclosure of financial liabilities
Total	1,607	2,258
Amortised cost \| Debt securities in issue
Disclosure of financial liabilities
Total	£ 43,408	£ 42,962

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Subordinated liabilities (Detai

Subordinated liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]
Subordinated liabilities
Dated loan capital	£ 8,530	£ 7,775
Undated loan capital	1,287	2,058
Preference shares	145	146
Total subordinated liabilities	£ 9,962	£ 9,979	[1]	£ 10,535

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Subordinated liabilities - Rede

Subordinated liabilities - Redemption (Details) $ in Thousands, € in Millions, £ in Millions, kr in Millions	12 Months Ended
	Dec. 31, 2020GBP (£)	Dec. 31, 2019GBP (£)	Dec. 31, 2020USD ($)	Dec. 31, 2020EUR (€)	Dec. 31, 2020GBP (£)	Dec. 31, 2019SEK (kr)	Dec. 31, 2019USD ($)	Dec. 31, 2019EUR (€)	Dec. 31, 2019GBP (£)
Subordinated liabilities
Notional amount of financial assets					£ 179				£ 181
NatWest Group plc, US$750 million 3.754% dated notes 2029
Subordinated liabilities
Notional amount of financial assets \| $			$ 750,000				$ 750,000
Interest rate			3.754%	3.754%	3.754%	3.754%	3.754%	3.754%	3.754%
Issue of subordinated liabilities		£ 577
NatWest Group plc, 1,000 million 3.622% dated notes 2030
Subordinated liabilities
Notional amount of financial assets					£ 1,000				£ 1,000
Interest rate			3.622%	3.622%	3.622%	3.622%	3.622%	3.622%	3.622%
Issue of subordinated liabilities	£ 996
NatWest Group plc, US$850 million 3.032% dated notes 2035
Subordinated liabilities
Notional amount of financial assets \| $			$ 850,000
Interest rate			3.032%	3.032%	3.032%
Issue of subordinated liabilities	634
NatWest Group plc
Subordinated liabilities
Redemption of subordinated liabilities	2,882	855
Issue of subordinated liabilities	1,630	577
NatWest Group plc, 1,000 million 3.63% dated notes 2024 (callable March 2019)
Subordinated liabilities
Notional amount of financial assets \| €				€ 1,000				€ 1,000
Interest rate			3.63%	3.63%	3.63%	3.63%	3.63%	3.63%	3.63%
Redemption of subordinated liabilities		855
NatWest Group plc, US$2,250 million 6.13% dated notes 2022 (partial redemption)
Subordinated liabilities
Notional amount of financial assets \| $			$ 2,250,000				$ 2,250,000
Interest rate			6.13%	6.13%	6.13%	6.13%	6.13%	6.13%	6.13%
Redemption of subordinated liabilities	499
NatWest Group plc, US$1,000 million 6.10% dated notes 2023 (partial redemption)
Subordinated liabilities
Notional amount of financial assets \| $			$ 1,000,000				$ 1,000,000
Interest rate			6.10%	6.10%	6.10%	6.10%	6.10%	6.10%	6.10%
Redemption of subordinated liabilities	358
NatWest Group plc, US$2,000 million 7.5% dated notes 2020
Subordinated liabilities
Notional amount of financial assets \| $			$ 2,000,000				$ 2,000,000
Interest rate			7.50%	7.50%	7.50%	7.50%	7.50%	7.50%	7.50%
Redemption of subordinated liabilities	1,528
NatWest Group plc, US$762 million 7.648% undated notes (partial redemption)
Subordinated liabilities
Notional amount of financial assets \| $			$ 762,000				$ 762,000
Interest rate			7.648%	7.648%	7.648%	7.648%	7.648%	7.648%	7.648%
Redemption of subordinated liabilities	497
Natwest Markets Plc 35 million 5.5% undated subordinated notes (callable December 2019)
Subordinated liabilities
Notional amount of financial assets					£ 35				£ 35
Interest rate			5.50%	5.50%	5.50%	5.50%	5.50%	5.50%	5.50%
Redemption of subordinated liabilities		35
NatWest Markets Plc US$125.6 million floating rate notes 2020
Subordinated liabilities
Notional amount of financial assets \| $			$ 125,600				$ 125,600
Redemption of subordinated liabilities	97
NatWest Plc
Subordinated liabilities
Redemption of subordinated liabilities		8
NatWest Plc SEK 90mn floating rate notes 2019
Subordinated liabilities
Notional amount of financial assets \| kr						kr 90
Redemption of subordinated liabilities		8
NWM Plc
Subordinated liabilities
Redemption of subordinated liabilities	97	35
NWM N.V. and subsidiaries US$16 million floating rate notes 2019
Subordinated liabilities
Notional amount of financial assets \| $			16,000				16,000
Redemption of subordinated liabilities		10
NWM N.V. and Subsidiaries US$71.8 million floating rate notes 2019
Subordinated liabilities
Notional amount of financial assets \| $			$ 71,800				$ 71,800
Redemption of subordinated liabilities		56
NWM N.V. and subsidiaries Euro 250 million 4.70% notes 2019
Subordinated liabilities
Notional amount of financial assets \| €				€ 250				€ 250
Interest rate			4.70%	4.70%	4.70%	4.70%	4.70%	4.70%	4.70%
Redemption of subordinated liabilities		145
NWM N.V. and subsidiaries, US$650 million 6.425% Undated notes 2043 (partial redemption)
Subordinated liabilities
Notional amount of financial assets \| $			$ 650,000				$ 650,000
Interest rate			6.425%	6.425%	6.425%	6.425%	6.425%	6.425%	6.425%
Redemption of subordinated liabilities	187
NWM N.V. and Subsidiaries 15 million 6.00% floating rate notes 2020
Subordinated liabilities
Notional amount of financial assets \| €				€ 15				€ 15
Interest rate			6.00%	6.00%	6.00%	6.00%	6.00%	6.00%	6.00%
NWM N.V. and subsidiaries, 15 million floating rate notes 2020
Subordinated liabilities
Redemption of subordinated liabilities	11
NWM S NV and subsidiaries
Subordinated liabilities
Redemption of subordinated liabilities	£ 198	£ 211

Other liabilities (Details)

Other liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]
Other liabilities
Lease liabilities (Note 22)	£ 1,698	£ 1,823
Provisions for liabilities and charges	1,852	2,677
Retirement benefit liabilities (Note 5)	121	119
Accruals	990	1,125
Deferred income	361	362
Current tax	63	132
Deferred tax (Note 7)	291	266
Acceptances	272	233
Other liabilities	740	801
Total other liabilities	£ 6,388	£ 7,538	[1]	£ 6,802

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Other liabilities - Provision f

Other liabilities - Provision for liabilities and charges (Details) £ in Millions	12 Months Ended
	Dec. 31, 2020GBP (£)
Provisions for liabilities and charges
Balance at beginning of the period	£ 2,677
ECL impairment charge	83
Currency translation and other movements	4
Charge to income statement	873
Release to income statement	(577)
Provisions utilised	(1,208)
Balance at end of the period	1,852
Payment protection insurance
Provisions for liabilities and charges
Balance at beginning of the period	1,156
Charge to income statement	1
Release to income statement	(277)
Provisions utilised	(557)
Balance at end of the period	323
Prior Year Provisions	110
Other customer redress
Provisions for liabilities and charges
Balance at beginning of the period	314
Currency translation and other movements	5
Charge to income statement	352
Release to income statement	(55)
Provisions utilised	(190)
Balance at end of the period	426
Litigation and other regulatory proceedings
Provisions for liabilities and charges
Balance at beginning of the period	426
Currency translation and other movements	1
Charge to income statement	120
Release to income statement	(67)
Provisions utilised	(115)
Balance at end of the period	365
Other
Provisions for liabilities and charges
Balance at beginning of the period	781
ECL impairment charge	83
Currency translation and other movements	(2)
Charge to income statement	400
Release to income statement	(178)
Provisions utilised	(346)
Balance at end of the period	£ 738

Share capital and other equit_2

Share capital and other equity (Details) £ / shares in Units, shares in Thousands, £ in Millions	12 Months Ended
	Dec. 31, 2020$ / sharesshares	Dec. 31, 2020GBP (£)£ / sharesshares	Dec. 31, 2019GBP (£)£ / sharesshares		Jan. 01, 2019GBP (£)	[1]	Dec. 31, 2018GBP (£)£ / shares
Share capital
Value of shares \| £		£ 43,824	£ 43,556	[1]	£ 46,490		£ 46,490
Ordinary shares
Share capital
Value of shares \| £		£ 12,129	£ 12,094				£ 12,049
Number of shares		12,129,165	12,093,909
Par value per share \| £ / shares		£ 1	£ 1				£ 1
Non-cumulative preference shares of US$0.01
Share capital
Number of shares		10	10
Par value per share \| $ / shares	$ 0.01
Shares redeemed	0
Cumulative preference shares of 1
Share capital
Value of shares \| £		£ 1	£ 1
Number of shares		900	900
Par value per share \| £ / shares		£ 1	£ 1

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Share capital and other equit_3

Share capital and other equity - Movement in shares (Details) - GBP (£) shares in Thousands, £ in Millions	12 Months Ended
	Dec. 31, 2020		Dec. 31, 2019
Value of shares
At 1 January	£ 43,556	[1]	£ 46,490
At 31 December	43,824		43,556	[1]
Ordinary shares
Value of shares
At 1 January	12,094		12,049
Shares issued	35		45
At 31 December	£ 12,129		£ 12,094
Number of shares
At 1 January	12,093,909		12,048,605
Shares issued	35,256		45,304
At 31 December	12,129,165		12,093,909

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Share capital and other equit_4

Share capital and other equity - Ordinary shares (Details) - GBP (£) £ / shares in Units, shares in Thousands, £ in Millions	12 Months Ended			36 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020
Share capital
Dividends paid		£ 0
Ordinary shares
Share capital
Authorized share capital	£ 0			£ 0
Authorized share capital granted	£ 604,695,460			£ 604,695,460
Number of shares issued	12,129,165	12,093,909		12,129,165
Percentage of increase in the issued share capital				0.43%
Shares issued in connection with employee share plans	35,000			35,000
Par value	£ 1	£ 1	£ 1	£ 1
Interim dividend paid		£ 241	£ 241
Interim dividend per share		£ 0.02	£ 0.02
Final dividend per share	£ 3	0.03	£ 0.035
Special dividend per share		£ 0.12
Special dividend paid		£ 1,449	£ 0
Dividends paid	£ 364	364	422
Special dividend declared		£ 606	£ 904
Special dividend declared per share		£ 0.05	£ 0.075

Share capital and other equit_5

Share capital and other equity - Non-cumulative preference shares (Details) - Series U, Non-cumulative preference shares of US$0.01	Dec. 31, 2020$ / sharesshares
Share capital
Par value	$ 0.01
Number of shares \| shares	10,130
Redemption price per share	$ 100,000

Share capital and other equit_6

Share capital and other equity - Paid-in equity (Details) £ / shares in Units, $ / shares in Units, £ in Millions, $ in Millions	Dec. 31, 2020USD ($)$ / shares	Dec. 31, 2020GBP (£)£ / shares	Dec. 31, 2019USD ($)	Dec. 31, 2019GBP (£)		Jan. 01, 2019GBP (£)	[1]	Dec. 31, 2018USD ($)	Dec. 31, 2018GBP (£)	Dec. 31, 2017GBP (£)
Borrowings
Equity		£ 43,824		£ 43,556	[1]	£ 46,490			£ 46,490
Notional amount of financial assets		£ 179		181
CET1 ratio (as a percent)	7.00%	7.00%
Minimum CET1 ration below which all outstanding Instruments will be converted into ordinary shares at a fixed price	7.00%	7.00%
Paid-in equity
Borrowings
Equity		£ 4,999		4,058					4,058	£ 4,058
Paid-in equity \| Additional tier 1 note callable August, 2020, USD
Borrowings
Equity				1,277					1,277
Notional amount of financial assets \| $	$ 2,000
Interest rate	7.50%	7.50%
Conversion rate \| $ / shares	$ 3.606
Par value \| £ / shares		£ 1
Paid-in equity \| Additional tier 1 note callable August, 2025, USD
Borrowings
Equity		£ 734		734					734
Notional amount of financial assets \| $	$ 1,150
Interest rate	8.00%	8.00%
Paid-in equity \| Additional tier 1 note callable August, 2021, USD
Borrowings
Equity		£ 2,047		£ 2,047					£ 2,047
Notional amount of financial assets \| $	$ 2,650
Interest rate	8.625%	8.625%
Conversion rate \| $ / shares	$ 2.284
Par value \| £ / shares		£ 1
Paid-in equity \| Additional tier 1 note callable December 2025 - June, 2026, USD
Borrowings
Equity		£ 1,220
Notional amount of financial assets \| $	$ 1,500		$ 1,500					$ 1,500
Interest rate	6.00%	6.00%	6.00%	6.00%				6.00%	6.00%
Conversion rate \| $ / shares	$ 1.754
Par value \| £ / shares		£ 1
Paid-in equity \| Additional tier1 note callable May - November 2027, GBP
Borrowings
Equity		£ 998
Conversion rate \| £ / shares		£ 1.754
Par value \| £ / shares		£ 1

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Share capital and other equit_7

Share capital and other equity - Reserves (Details) - Share awards and options - Own shares held - £ / shares shares in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Own shares held	16	15
Par value	£ 1
Own shares acquired	42
Delivery of own shares held	41

Leases - Lessee Leases - Amount

Leases - Lessee Leases - Amounts recognised in consolidated income statement (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of quantitative information about right-of-use assets [line items]
Interest payable	£ (42)	£ (44)
Depreciation	(209)	(224)
Rental expense on short term leases	(1)	(4)
Income from subleasing right-of-use assets	4	9
Operating lease asset	955	1,162
Additions to right of use assets	80	135
Lease liabilities	(1,698)	(1,823)
Total cash outflow for leases	220	222
Notional amount of financial assets	179	181
Impairment of right of use assets	89	86
Plant and equipment
Disclosure of quantitative information about right-of-use assets [line items]
Operating lease asset	8	23
Accumulated depreciation	£ 2	£ 5

Leases - Lessor Leases - Amount

Leases - Lessor Leases - Amounts recognised in consolidated income statement (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Amounts included in consolidated income statement for finance leases
Finance income on the net investment in leases	£ 289	£ 314
Amounts included in consolidated income statement for operating leases
Gross Lease income	168	165
Depreciation	(145)	(138)
Net lease income	£ 23	£ 27

Leases - Lessor Leases - Amou_2

Leases - Lessor Leases - Amount receivable under finance leases (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Disclosure of maturity analysis of finance lease payments receivable [line items]
Lease payments total	£ 10,360	£ 10,548
Unguaranteed residual values	(232)	(215)
Future drawdowns	(22)	(30)
Unearned income	(1,081)	(1,196)
Present value of lease payments	9,025	9,107
Impairments	(196)	(110)
Net investment in finance lease	8,829	8,997
Within 1 year
Disclosure of maturity analysis of finance lease payments receivable [line items]
Lease payments total	3,231	3,388
1 to 2 years
Disclosure of maturity analysis of finance lease payments receivable [line items]
Lease payments total	2,288	2,229
2 to 3 years
Disclosure of maturity analysis of finance lease payments receivable [line items]
Lease payments total	1,638	1,733
3 to 4 years
Disclosure of maturity analysis of finance lease payments receivable [line items]
Lease payments total	959	758
4 to 5 years
Disclosure of maturity analysis of finance lease payments receivable [line items]
Lease payments total	509	682
After 5 years
Disclosure of maturity analysis of finance lease payments receivable [line items]
Lease payments total	£ 1,735	£ 1,758

Leases - Lessor Leases - Undisc

Leases - Lessor Leases - Undiscounted lease receipts from operating leases and investment properties (Details) € in Millions, £ in Millions	12 Months Ended
	Dec. 31, 2020GBP (£)	Dec. 31, 2019GBP (£)	Dec. 31, 2020EUR (€)	Dec. 31, 2020GBP (£)	Dec. 31, 2019EUR (€)	Dec. 31, 2019GBP (£)
Disclosure of maturity analysis of operating lease payments [line items]
Undiscounted operating lease payments to be received				£ 393		£ 437
Amounts receivable under investment properties \| €			€ 554		€ 729
Investment properties leased out on operating lease	£ 840	£ 949
Investment properties lease income	£ 60	£ 76
Within 1 year
Disclosure of maturity analysis of operating lease payments [line items]
Undiscounted operating lease payments to be received				143		154
Amounts receivable under investment properties \| €			67		113
1 to 2 years
Disclosure of maturity analysis of operating lease payments [line items]
Undiscounted operating lease payments to be received				112		123
Amounts receivable under investment properties \| €			127		156
2 to 3 years
Disclosure of maturity analysis of operating lease payments [line items]
Undiscounted operating lease payments to be received				79		83
Amounts receivable under investment properties \| €			54		128
3 to 4 years
Disclosure of maturity analysis of operating lease payments [line items]
Undiscounted operating lease payments to be received				34		48
Amounts receivable under investment properties \| €			76		55
4 to 5 years
Disclosure of maturity analysis of operating lease payments [line items]
Undiscounted operating lease payments to be received				14		17
Amounts receivable under investment properties \| €			88		98
After 5 years
Disclosure of maturity analysis of operating lease payments [line items]
Undiscounted operating lease payments to be received				£ 11		£ 12
Amounts receivable under investment properties \| €			€ 142		€ 179

Leases - Lessor Leases - Nature

Leases - Lessor Leases - Nature of operating lease assets on the balance sheet (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [Line Items]
Operating lease asset	£ 955	£ 1,162
Transportation
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [Line Items]
Operating lease asset	327	334
Cars and light commercial vehicles
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [Line Items]
Operating lease asset	28	24
Other
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [Line Items]
Operating lease asset	245	295
Total assets under operating leases
Disclosure Of Finance Lease And Operating Lease By Lessor IAS 17 [Line Items]
Operating lease asset	£ 600	£ 653

Structured entities - Own asset

Structured entities - Own asset securitisations (Details) € in Millions, £ in Millions	Dec. 31, 2020EUR (€)	Dec. 31, 2020GBP (£)	Dec. 31, 2019EUR (€)	Dec. 31, 2019GBP (£)		Jan. 01, 2019GBP (£)	[1]
Consolidated structured entities
Debt securities in issue		£ 1,408		£ 1,762
Loans and advances to customers		360,544		326,947	[1]	£ 305,089
ECL in relation to non-defaulted assets \| €	€ 183		€ 29
Unsecured
Consolidated structured entities
Other borrowings		0
Other credit risk transfer securitisations
Consolidated structured entities
Loans and advances to customers		10,027		9,001
Covered Bond Programme
Consolidated structured entities
Debt securities in issue		318		280
Loans and advances to customers		10,758		9,630
Other borrowings		4,105		7,241
Lending of own issued securities
Consolidated structured entities
Debt securities in issue		2,029		1,745
Lending of own issued securities \| Secured
Consolidated structured entities
Debt securities in issue		1,893		1,704
Lending of own issued securities \| Unsecured
Consolidated structured entities
Debt securities in issue				424
Held by Third party \| Other credit risk transfer securitisations
Consolidated structured entities
Debt securities in issue		£ 772		£ 673

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Structured entities - Unconsoli

Structured entities - Unconsolidated structured entities (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Unconsolidated structured entities
Unconsolidated structured entities
Liquidity facilities/loan commitments	£ 1,686	£ 1,916
Maximum exposure	8,127	10,450
Unconsolidated structured entities \| Held-for-trading \| Derivatives
Unconsolidated structured entities
Liabilities recognised related to structured entities	(340)	(158)
Unconsolidated structured entities \| Held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	482	874
Unconsolidated structured entities \| Held-for-trading \| Derivatives
Unconsolidated structured entities
Assets recognised related to structured entities	457	220
Unconsolidated structured entities \| Other than held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	5,959	7,660
Unconsolidated structured entities \| Other than held-for-trading \| Loans to customers - amortised cost
Unconsolidated structured entities
Assets recognised related to structured entities	1,897	2,180
Asset backed securitisation vehicles
Unconsolidated structured entities
Liquidity facilities/loan commitments	1,482	1,619
Maximum exposure	7,215	9,338
Asset backed securitisation vehicles \| Held-for-trading \| Derivatives
Unconsolidated structured entities
Liabilities recognised related to structured entities	(319)	(154)
Asset backed securitisation vehicles \| Held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	441	802
Asset backed securitisation vehicles \| Held-for-trading \| Derivatives
Unconsolidated structured entities
Assets recognised related to structured entities	441	196
Asset backed securitisation vehicles \| Other than held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	5,292	6,917
Asset backed securitisation vehicles \| Other than held-for-trading \| Loans to customers - amortised cost
Unconsolidated structured entities
Assets recognised related to structured entities	1,400	1,544
Investment funds and other
Unconsolidated structured entities
Liquidity facilities/loan commitments	204	297
Maximum exposure	912	1,112
Investment funds and other \| Held-for-trading \| Derivatives
Unconsolidated structured entities
Liabilities recognised related to structured entities	(21)	(4)
Investment funds and other \| Held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	41	72
Investment funds and other \| Held-for-trading \| Derivatives
Unconsolidated structured entities
Assets recognised related to structured entities	16	24
Investment funds and other \| Other than held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	667	743
Investment funds and other \| Other than held-for-trading \| Loans to customers - amortised cost
Unconsolidated structured entities
Assets recognised related to structured entities	497	636
Secured \| Unconsolidated structured entities \| Other than held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	4,062	5,480
Secured \| Asset backed securitisation vehicles \| Other than held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	3,892	5,373
Secured \| Investment funds and other \| Other than held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	170	107
Equity shares \| Unconsolidated structured entities \| Held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	365	812
Equity shares \| Asset backed securitisation vehicles \| Held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	319	760
Equity shares \| Investment funds and other \| Held-for-trading
Unconsolidated structured entities
Assets recognised related to structured entities	£ 46	£ 52

Asset transfers (Details)

Asset transfers (Details) - Securities repurchase agreements or lending transactions - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	£ 32,112	£ 27,516
Fair value of associated liabilities	31,932	27,342
Trading assets
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	20,526	23,247
Loans to banks - amortised cost
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	5
Loans to customers - amortised cost
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	39
Other financial assets
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	£ 11,542	£ 4,269

Asset transfers - Assets pledge

Asset transfers - Assets pledged as collateral (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Asset transfers
Assets pledged against liabilities	£ 49,682	£ 50,565
Trading assets
Asset transfers
Assets pledged against liabilities	28,728	27,918
Loans to banks - amortised cost
Asset transfers
Assets pledged against liabilities	49	39
Loans to customers - amortised cost
Asset transfers
Assets pledged against liabilities	15,939	17,920
Other financial assets
Asset transfers
Assets pledged against liabilities	£ 4,966	£ 4,688

Asset transfers - Transferred a

Asset transfers - Transferred assets continue to be recorded on Natwest Group's balance sheet (Details) € in Millions, £ in Millions	Dec. 31, 2020EUR (€)	Dec. 31, 2020GBP (£)	Dec. 31, 2019EUR (€)	Dec. 31, 2019GBP (£)		Jan. 01, 2019GBP (£)	[1]	Dec. 31, 2018GBP (£)
Assets		£ 799,491		£ 723,039	[1]	£ 694,235		£ 694,235
Mortgages - RoI
Total		2,091		2,385
Debt securities in issue
Assets \| €	€ 2,067		€ 2,377
Debt securities in issue \| Mortgages - RoI
Assets		1,921		2,221
Debt securities in issue \| Cash deposits
Assets		146		156
Debt securities in issue held by third parties \| Mortgages - RoI
Assets		243		468
Debt securities in issue held by the Group \| Mortgages - RoI
Assets		£ 1,848		£ 1,917

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Capital resources (Details)

Capital resources (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]
Shareholders' equity (excluding non-controlling interests)
Shareholders' equity	£ 43,860	£ 43,547	[1]	£ 45,736
Qualifying Tier 2 capital
Minimum pillar 1 capital ratio	8.00%
Minimum tier 1 component ratio	4.50%
RBSG plc
Shareholders' equity (excluding non-controlling interests)
Shareholders' equity	£ 43,860	43,547
Preference shares - equity	(494)	(496)
Other equity instruments	(4,999)	(4,058)
Shareholders' equity (excluding non-controlling interests)	38,367	38,993
Regulatory adjustments and deductions
Own credit	(1)	(118)
Defined benefit pension fund adjustment	(579)	(474)
Cash flow hedging reserve	(229)	(35)
Deferred tax assets	(760)	(757)
Prudential valuation adjustments	(286)	(431)
Goodwill and other intangible assets	(6,182)	(6,622)
Expected losses less impairments		(167)
Foreseeable ordinary and special dividends	(364)	(968)
Foreseeable charges	(266)	(365)
Adjustment under IFRS 9 transitional arrangements	1,747
Other regulatory adjustments		(2)
Total regulatory adjustments and deductions	(6,920)	(9,939)
CET1 capital	31,447	29,054
Additional Tier 1 (AT1) capital
Qualifying instruments and related share premium	4,983	4,051
Qualifying instruments and related share premium subject to phase out	690	1,366
Qualifying instruments issued by subsidiaries and held by third parties subject to phase out	140	140
AT1 capital	5,813	5,557
Tier 1 capital	37,260	34,611
Qualifying Tier 2 capital
Qualifying instruments and related share premium	4,882	4,867
Qualifying instruments issued by subsidiaries and held by third parties	1,191	1,345
Other Regulatory Adjustments	400
Tier 2 capital	6,473	6,212
Total regulatory capital	£ 43,733	£ 40,823

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Memorandum items - Contingent l

Memorandum items - Contingent liabilities and commitments (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Contingent liabilities and commitments
Standby facilities, credit lines and other commitments	£ 124,167	£ 119,760
Contingent liabilities and commitments	128,732	124,995	£ 126,883
Within 1 year
Contingent liabilities and commitments
Standby facilities, credit lines and other commitments	62,794
Contingent liabilities and commitments	65,057
More than 1 year but less than 3 years
Contingent liabilities and commitments
Standby facilities, credit lines and other commitments	27,476
Contingent liabilities and commitments	28,275
More than 3 years but less than 5 years
Contingent liabilities and commitments
Standby facilities, credit lines and other commitments	26,483
Contingent liabilities and commitments	26,684
After 5 years
Contingent liabilities and commitments
Standby facilities, credit lines and other commitments	7,414
Contingent liabilities and commitments	8,716
Guarantees
Contingent liabilities and commitments
Estimated net exposure	2,244	2,757
Guarantees \| Within 1 year
Contingent liabilities and commitments
Estimated net exposure	1,044
Guarantees \| More than 1 year but less than 3 years
Contingent liabilities and commitments
Estimated net exposure	308
Guarantees \| More than 3 years but less than 5 years
Contingent liabilities and commitments
Estimated net exposure	159
Guarantees \| After 5 years
Contingent liabilities and commitments
Estimated net exposure	733
Other contingent liabilities
Contingent liabilities and commitments
Estimated net exposure	2,321	£ 2,478
Other contingent liabilities \| Within 1 year
Contingent liabilities and commitments
Estimated net exposure	1,219
Other contingent liabilities \| More than 1 year but less than 3 years
Contingent liabilities and commitments
Estimated net exposure	491
Other contingent liabilities \| More than 3 years but less than 5 years
Contingent liabilities and commitments
Estimated net exposure	42
Other contingent liabilities \| After 5 years
Contingent liabilities and commitments
Estimated net exposure	£ 569

Memorandum items - Contractual

Memorandum items - Contractual obligations of future (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019
Disclosure Of Finance Lease And Operating Lease By Lessee IAS 17 [Line Items]
Capital expenditure on property, plant and equipment	£ 15	£ 20	[1]
Contracts to purchase goods or services	729	614	[1]
Total capital commitments	744	634	[1]
Within 1 year
Disclosure Of Finance Lease And Operating Lease By Lessee IAS 17 [Line Items]
Contracts to purchase goods or services	£ 267	£ 285

[1]	Of which due within 1 year: £267 million (2019 - £285 million).

Memorandum items - Litigation,

Memorandum items - Litigation, investigations and reviews (Details) € in Millions, £ in Millions, $ in Millions, $ in Millions

Dec. 16, 2020GBP (£)

May 31, 2019AUD ($)

Oct. 31, 2017item

Oct. 31, 2011USD ($)

Dec. 31, 2010USD ($)

Jun. 30, 2019EUR (€)

Dec. 31, 2020USD ($)actionitem

Dec. 31, 2020EUR (€)actionitem

Dec. 31, 2020GBP (£)actionitem

Dec. 31, 2019GBP (£)

Dec. 31, 2018GBP (£)

Dec. 31, 2016action

Dec. 31, 2015USD ($)company

Dec. 31, 2015GBP (£)company

Dec. 31, 2012GBP (£)

Dec. 31, 2020EUR (€)

Dec. 31, 2020GBP (£)

Jul. 10, 2017item

Trustee and other fiduciary activities

Fee income

£ 245

£ 250

£ 257

UK 2008 rights issue shareholder litigation

Tax Assessments

£ 143

Payments for tax assessments

£ 143

Provisions utilised

1,208

RBS Financial Products, Inc

The Financial Services Compensation Scheme

Amount agreed to pay to resolve investigation by State of Maryland | $

$ 18.2

Payment protection insurance

UK 2008 rights issue shareholder litigation

Provisions utilised

557

Treatment of tracker mortgage customers

UK 2008 rights issue shareholder litigation

Total aggregate provisions

€ 335

£ 301

Provisions utilised

€ 284

255

Internal review from treatment of tracker mortgage customers

UK 2008 rights issue shareholder litigation

Total aggregate provisions

€ 164

147

Provisions utilised

€ 144

£ 129

Foreign exchange related investigations

UK 2008 rights issue shareholder litigation

Settlement amount paid | €

€ 275

Residential mortgage-backed securities (RMBS) litigation in the US, issued by Nomura Holding America Inc and subsidiaries

Litigation, investigations and reviews

Final settlement amount | $

400

UK 2008 rights issue shareholder litigation

Settlement amount paid | $

$ 55.3

London Interbank Offered Rate (LIBOR)

UK 2008 rights issue shareholder litigation

Number of non-class action | action

Number of non-class actions pending | action

Number of failed US banks | item

FX antitrust litigation

UK 2008 rights issue shareholder litigation

Settlement amount paid | $

$ 255

Maximum Total Transaction Value | $

$ 0.5

Swaps antitrust litigation

UK 2008 rights issue shareholder litigation

Number of swap execution facilities | item

Madoff

UK 2008 rights issue shareholder litigation

Number of class actions | action

Damages claimed | $

$ 21.8

$ 276.3

Tax dispute

UK 2008 rights issue shareholder litigation

Damages claimed

£ 71.4

Damages Awarded

£ 45

Value-added-tax

£ 86

Penalty as a percentage of VAT

100.00%

Number of claimants | company

NatWest

UK 2008 rights issue shareholder litigation

Number of terrorist attacks claims dismissed | item

Number of terrorist attacks claimed | item

Total aggregate provisions

£ 30

Analysis of the net investmen_3

Analysis of the net investment in business interests and intangible assets (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Analysis of the net investment in business interests and intangible assets
Fair value given for businesses acquired		£ (55)	£ (113)
Additional investment in associates	£ (40)		(9)
Net outflow of cash in respect of acquisitions	(40)	(55)	(122)
Sale of interests in associates	27
Net assets sold	288	351
Profit on disposals	3
Net inflow of cash in respect of disposals	318	351
Dividends received from associates			5
Cash expenditure on intangible assets	(348)	(380)	(364)
Net outflow of cash	£ (70)	£ (84)	£ (481)

Analysis of changes in financ_3

Analysis of changes in financing during the year (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020		Dec. 31, 2019		Dec. 31, 2018
At 1 January	£ 43,556	[1]	£ 46,490
Issue of ordinary shares			17		£ 144
Net cash flows from financing activities	90		(2,570)		389
At 31 December	43,824		43,556	[1]	46,490
Share capital, share premium, and paid-in-equity
At 1 January	17,246		17,134		16,910
Issue of ordinary shares			17		144
Issue of paid in equity	(2,218)
Net cash flows from financing activities	2,218		17		144
AT1 reclassification to subordinated liabilities	(1,277)
At 31 December	18,239		17,246		17,134
Share capital, share premium, and paid-in-equity \| Employee share schemes
Issue of ordinary shares	£ 52		£ 95		£ 80

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Analysis of changes in financ_4

Analysis of changes in financing during the year, Subordinated liabilities (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Analysis of changes in financing during the year
Issue of ordinary shares		£ 17	£ 144
Issue of other equity instruments: Additional Tier 1 capital notes	£ 2,218
Net cash flows from financing activities	90	(2,570)	389
Subordinated Liabilities
Analysis of changes in financing during the year
At 1 January	9,979	10,535	12,722
Issue of subordinated liabilities	1,631	577
Redemption of subordinated liabilities	(3,502)	(1,108)	(2,258)
Interest on subordinated liabilities	(510)	(533)	(566)
Net cash flows from financing activities	(2,381)	(1,064)	(2,824)
Effects of foreign exchange	(234)	(315)	419
Changes in fair value of subordinated liabilities/MRELs	133	317	(243)
AT1 reclassification to subordinated liabilities	1,632
Loss on sale of MRELs and subordinated liabilities	324
Interest on subordinated liabilities/MRELs	509	506	461
At 31 December	9,962	9,979	10,535
MREL
Analysis of changes in financing during the year
At 1 January	19,249	16,821	9,202
Issuance of MRELs	1,309	3,640	6,996
Maturity/redemption of MRELs	(2)	(1,285)	(83)
Interest on MRELs	(671)	(428)	(237)
Net cash flows from financing activities	636	1,927	6,676
Effects of foreign exchange	(514)	(683)	587
Changes in fair value of subordinated liabilities/MRELs	829	539	(59)
Interest on subordinated liabilities/MRELs	673	645	415
At 31 December	£ 20,873	£ 19,249	£ 16,821

Analysis of cash and cash equ_3

Analysis of cash and cash equivalents (Details) € in Millions, £ in Millions	12 Months Ended
	Dec. 31, 2020GBP (£)	Dec. 31, 2019GBP (£)	Dec. 31, 2018GBP (£)	Dec. 31, 2020EUR (€)	Dec. 31, 2020GBP (£)	Dec. 31, 2019EUR (€)	Dec. 31, 2019GBP (£)		Jan. 01, 2019GBP (£)	[1]	Dec. 31, 2018GBP (£)	Dec. 31, 2017GBP (£)
Analysis of cash and cash equivalents
Cash							£ 80,993				£ 91,368	£ 100,724
Cash equivalents							19,595				17,568	21,881
Cash and cash equivalents at beginning of period	£ 100,588	£ 108,936	£ 122,605
Net increase/(decrease) in cash and cash equivalents	38,611	(8,348)	(13,669)
Cash and cash equivalents at end of period	139,199	100,588	108,936
Cash and balances at central banks					£ 124,489		80,993	[1]	£ 91,368		91,368
Trading assets					9,220		12,578				11,610
Other financial assets					173		459				40
Loans to banks - amortised cost (1)					5,317		6,558				5,918
Total cash and cash equivalents	£ 139,199	£ 100,588	£ 108,936		139,199		100,588				108,936	£ 122,605
Cash collateral posted with bank counterparties					£ 7,592		£ 7,570				£ 7,302
De Nederlandsche Bank
Cash
Mandatory reserve deposits at central banks \| €				€ 81		€ 47

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Directors' and key management r

Directors' and key management remuneration - Directors (Details) - GBP (£) £ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related party transactions
Director emoluments before amounts receivable under long-term incentive plans and share option plans	£ 6,057	£ 6,664
Amounts receivable under long-term incentive plans and share option plans	609	741
Total Directors' remuneration	6,666	7,405
Non-executive directors
Related party transactions
Director emoluments before amounts receivable under long-term incentive plans and share option plans	1,708	1,881
Chairman and executive directors
Related party transactions
Director emoluments before amounts receivable under long-term incentive plans and share option plans	4,349	4,783
Director
Related party transactions
Accrued benefits	£ 0	£ 0

Directors' and key management_2

Directors' and key management remuneration - Key management (Details) - GBP (£) £ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Directors' and key management remuneration
Short-term benefits	£ 18,718	£ 22,067
Post-employment benefits	474	401
Share-based payments	3,249	2,435
Total remuneration	£ 22,441	£ 24,903

Transactions with directors a_3

Transactions with directors and key management (Details)	Dec. 31, 2020GBP (£)director	Dec. 31, 2019GBP (£)		Jan. 01, 2019GBP (£)	[1]
Transactions with directors and key management
Loans to customers - amortised cost	£ 360,544,000,000	£ 326,947,000,000	[1]	£ 305,089,000,000
Customer deposits	431,739,000,000	369,247,000,000	[1]	£ 360,914,000,000
key management personnel
Transactions with directors and key management
Loans to directors	£ 1,329,102
Number of directors with outstanding loans \| director	5
Loans to customers - amortised cost	£ 5,165,000	1,662,000
Customer deposits	£ 45,747,000	£ 37,727,000

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.

Related parties (Details)

Related parties (Details) - GBP (£) £ in Millions	Dec. 31, 2019	Dec. 31, 2020
Related party transactions
Cash ratio deposits		0.368%
Threshold eligible liabilities		£ 600
Associate
Related party transactions
Investment extended to ownership voting rights (as a percentage)		20.00%
RBSG plc \| HM Treasury
Related party transactions
Percentage of ownership interest	61.90%

Post balance sheet events (Deta

Post balance sheet events (Details) € in Billions	12 Months Ended
Post balance sheet events (Details) € in Billions	Dec. 31, 2020EUR (€)
Commercial loans \| Allied Irish Banks, p.l.c
Post balance sheet events
Sale of financial assets	€ 4

Consolidating financial infor_3

Consolidating financial information - Income statement (Details) - GBP (£) £ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidating financial information
Net interest income	£ 7,749,000	£ 8,047,000	£ 8,656,000
Non-interest income	3,047,000	6,206,000	4,746,000
Total income	10,796,000	14,253,000	13,402,000
Operating expenses	(7,905,000)	(9,325,000)	(9,645,000)
Impairment (losses)/releases	(3,242,000)	(696,000)	(398,000)
Operating (loss)/profit before tax	(351,000)	4,232,000	3,359,000
Tax credit/(charge)	(83,000)	(432,000)	(1,208,000)
Profit/(loss) for the year	(434,000)	3,800,000	2,151,000
Attributable to:
Ordinary shareholders	(753,000)	3,133,000	1,622,000
Preference shareholders	26,000	39,000	182,000
Paid-in equity holders	355,000	367,000	355,000
Non-controlling interests	(62,000)	261,000	(8,000)
(Loss)/profit for the year	(434,000)	3,800,000	2,151,000
NatWest Group
Consolidating financial information
Increase (decrease) in results of investments using the equity method	9,201	811,000
Increase (decrease) in net assets	579,000	10,240,000
Net interest income	(478,000)	(628,000)	(368,000)
Non-interest income	(9,142,000)	3,467,000	2,794,000
Total income	(9,620,000)	2,839,000	2,426,000
Operating expenses	(69,000)	(42,000)	(85,000)
Impairment (losses)/releases	(9,000)	2,000	1,000
Operating (loss)/profit before tax	(9,698,000)	2,799,000	2,342,000
Tax credit/(charge)	125,000	(71,000)	149,000
Profit/(loss) from continuing operations			2,491,000
Profit/(loss) for the year	(9,573,000)	2,728,000	2,491,000
Attributable to:
Ordinary shareholders	(9,954,000)	2,322,000	1,954,000
Preference shareholders	26,000	39,000	182,000
Paid-in equity holders	355,000	367,000	355,000
(Loss)/profit for the year	(9,573,000)	2,728,000	2,491,000
NWM Plc
Consolidating financial information
Increase (decrease) in results of investments using the equity method	48,000	148,000
Increase (decrease) in net assets	236,000	276,000
Net interest income	(31,000)	(127,000)	(239,000)
Non-interest income	953,000	815,000	1,002,000
Total income	922,000	688,000	763,000
Operating expenses	(1,110,000)	(1,101,000)	(1,262,000)
Impairment (losses)/releases	(17,000)	50,000	89,000
Operating (loss)/profit before tax	(205,000)	(363,000)	(410,000)
Tax credit/(charge)	(7,000)	94,000	51,000
Profit/(loss) from continuing operations			(359,000)
Profit/(loss) from discontinued operations, net of tax			54,000
Profit/(loss) for the year	(212,000)	(269,000)	(305,000)
Attributable to:
Ordinary shareholders	(280,000)	(329,000)	(305,000)
Paid-in equity holders	68,000	60,000
(Loss)/profit for the year	£ (212,000)	£ (269,000)	£ (305,000)

Consolidating financial infor_4

Consolidating financial information - Balance sheet (Details) - GBP (£) £ in Millions	Dec. 31, 2020	Dec. 31, 2019		Jan. 01, 2019	[1]	Dec. 31, 2018
Assets
Cash and balances at central banks	£ 124,489	£ 80,993	[1]	£ 91,368		£ 91,368
Trading assets	68,990	76,745	[1]	75,119
Derivatives	166,523	150,029	[1]	133,349
Settlement balances	2,297	4,387	[1]	2,928
Loans to banks - amortised cost	6,955	7,554	[1]	10,476
Loans to customers - amortised cost	360,544	326,947	[1]	305,089
Amount due from holding company and fellow subsidiaries	449	436
Other financial assets	55,148	61,452	[1]	59,485
Other assets	7,890	8,310	[1]	9,805
Total assets	799,491	723,039	[1]	694,235		694,235
Liabilities
Bank deposits	20,606	20,493	[1]	23,297
Customer deposits	431,739	369,247	[1]	360,914
Settlement balances	5,545	4,069	[1]	3,066
Trading liabilities	72,256	73,949	[1]	72,350
Derivatives	160,705	146,879	[1]	128,897
Other financial liabilities.	45,811	45,220	[1]	39,732
Subordinated liabilities	9,962	9,979	[1]	10,535
Other liabilities	6,388	7,538	[1]	6,802
Total liabilities	755,667	679,483	[1]	647,745		647,745
Owners' equity	43,860	43,547	[1]	45,736
Non-controlling interests	(36)	9	[1]	754
Total equity	43,824	43,556	[1]	46,490		£ 46,490
Total liabilities and equity	799,491	723,039	[1]	£ 694,235
NatWest Group
Assets
Derivatives	1,580	979
Amount due from holding company and fellow subsidiaries	26,910	25,018
Other financial assets	579	277
Investments in group undertakings	46,229	55,808
Other assets	117	1
Total assets	75,415	82,083
Liabilities
Amounts due to holding company and fellow subsidiaries	723	439
Derivatives	1,102	711
Other financial liabilities.	21,056	19,331
Subordinated liabilities	7,944	7,647
Other liabilities	151	168
Total liabilities	30,976	28,296
Owners' equity	44,439	53,787
Total equity	44,439	53,787
Total liabilities and equity	75,415	82,083
NWM Plc
Assets
Cash and balances at central banks	11,736	9,953
Trading assets	52,169	57,768
Derivatives	164,104	147,458
Settlement balances	1,084	3,353
Loans to banks - amortised cost	701	238
Loans to customers - amortised cost	7,477	6,910
Amount due from holding company and fellow subsidiaries	7,606	7,145
Other financial assets	8,043	11,636
Investments in group undertakings	2,600	2,905
Other assets	562	687
Total assets	256,082	248,053
Liabilities
Bank deposits	1,762	2,038
Customer deposits	1,469	2,247
Amounts due to holding company and fellow subsidiaries	16,189	16,858
Settlement balances	604	2,648
Trading liabilities	56,916	53,576
Derivatives	153,754	142,390
Other financial liabilities.	15,370	17,470
Other liabilities	866	1,195
Total liabilities	246,930	238,422
Owners' equity	9,152	9,631
Total equity	9,152	9,631
Total liabilities and equity	£ 256,082	£ 248,053

[1]	2019 data has been retrospectively revised to reflect reclassification of balances held with central banks. Refer to Accounting policies Note 1 for further details.