NatWest (NWG) 20-F 24 Feb 23 2022 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2022 shares
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, 2022
Amendment Flag	false
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
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 File Number	001-10306
Entity Address, Address Line One	Gogarburn,
Entity Address, Address Line Two	PO Box 1000
Entity Address, City or Town	Edinburgh
Entity Address, Country	GB
Entity Address, Postal Zip Code	EH12 1HQ
Entity Interactive Data Current	Yes
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
ICFR Auditor Attestation Flag	true
Auditor Name	Ernst & Young LLP
Auditor Firm ID	1438
Auditor Location	London, United Kingdom
Chief Governance Officer and Company Secretary
Document Information [Line Items]
Entity Address, Address Line One	PO Box 1000
Entity Address, Address Line Two	Gogarburn
Entity Address, City or Town	Edinburgh
Entity Address, Country	GB
Entity Address, Postal Zip Code	EH12 1HQ
Contact Personnel Name	Jan Cargill
City Area Code	+44 (0)
Local Phone Number	370 702 0135
American Depositary Shares, each representing 2 ordinary shares, nominal value £1 per share
Document Information [Line Items]
Title of 12(b) Security	American Depositary Shares, each representing 2 ordinary shares, nominal value £1.0769 per share
Trading Symbol	RBS
Security Exchange Name	NYSE
Ordinary shares
Document Information [Line Items]
Title of 12(b) Security	Ordinary shares, nominal value £1.0769 per share
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding	9,786,023,923
No Trading Symbol Flag	true
3.875% Senior Notes due 2023
Document Information [Line Items]
Title of 12(b) Security	3.875% Senior Notes due 2023
Trading Symbol	RBS23B
Security Exchange Name	NYSE
4.519% Fixed Rate / Floating Rate Senior Notes due 2024
Document Information [Line Items]
Title of 12(b) Security	4.519% Fixed Rate / Floating Rate Senior Notes due 2024
Trading Symbol	RBS23A
Security Exchange Name	NYSE
2.359% Callable Fixed-to-fixed Reset Rate Green Senior Notes due 2024
Document Information [Line Items]
Title of 12(b) Security	2.359% Callable Fixed-to-fixed Reset Rate Green Senior Notes due 2024
Trading Symbol	RBS24C
Security Exchange Name	NYSE
4.269% Fixed Rate / Floating Rate Senior Notes due 2025
Document Information [Line Items]
Title of 12(b) Security	4.269% Fixed Rate / Floating Rate Senior Notes due 2025
Trading Symbol	RBS25
Security Exchange Name	NYSE
1.642% Senior Callable Fixed-to-Fixed Reset Rate Notes due 2027
Document Information [Line Items]
Title of 12(b) Security	1.642% Senior Callable Fixed-to-Fixed Reset Rate Notes due 2027
Trading Symbol	NWG27
Security Exchange Name	NYSE
5.516% Senior Callable Fixed-to-fixed Reset Rate Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	5.516% Senior Callable Fixed-to-fixed Reset Rate Notes due 2028
Trading Symbol	NWG28A
Security Exchange Name	NYSE
7.472% Callable Fixed-to-fixed Reset Rate Senior Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	7.472% Callable Fixed-to-fixed Reset Rate Senior Notes due 2026
Trading Symbol	NWG26A
Security Exchange Name	NYSE
3.073% Callable Fixed-to-fixed Reset Rate Senior Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	3.073% Callable Fixed-to-fixed Reset Rate Senior Notes due 2028
Trading Symbol	RBS28
Security Exchange Name	NYSE
4.892% Fixed Rate / Floating Rate Senior Notes due 2029
Document Information [Line Items]
Title of 12(b) Security	4.892% Fixed Rate / Floating Rate Senior Notes due 2029
Trading Symbol	RBS29
Security Exchange Name	NYSE
5.076% Fixed Rate / Floating Rate Senior Notes due 2030
Document Information [Line Items]
Title of 12(b) Security	5.076% Fixed Rate / Floating Rate Senior Notes due 2030
Trading Symbol	RBS30
Security Exchange Name	NYSE
4.445% Fixed Rate / Floating Rate Senior Notes due 2030
Document Information [Line Items]
Title of 12(b) Security	4.445% Fixed Rate / Floating Rate Senior Notes due 2030
Trading Symbol	RBS30A
Security Exchange Name	NYSE
Senior Floating Rate Notes due 2023
Document Information [Line Items]
Title of 12(b) Security	Senior Floating Rate Notes due 2023
Trading Symbol	RBS23C
Security Exchange Name	NYSE
Senior Floating Rate Notes due 2024
Document Information [Line Items]
Title of 12(b) Security	Senior Floating Rate Notes due 2024
Trading Symbol	RBS24B
Security Exchange Name	NYSE
6.000% Subordinated Tier 2 Notes due 2023
Document Information [Line Items]
Title of 12(b) Security	6.000% Subordinated Tier 2 Notes due 2023
Trading Symbol	RBS23A
Security Exchange Name	NYSE
6.100% Subordinated Tier 2 Notes due 2023
Document Information [Line Items]
Title of 12(b) Security	6.100% Subordinated Tier 2 Notes due 2023
Trading Symbol	RBS23
Security Exchange Name	NYSE
5.125% Subordinated Tier 2 Notes due 2024
Document Information [Line Items]
Title of 12(b) Security	5.125% Subordinated Tier 2 Notes due 2024
Trading Symbol	RBS24
Security Exchange Name	NYSE
3.754% Fixed-to-fixed Reset Rate Subordinated Tier 2 Notes due 2029
Document Information [Line Items]
Title of 12(b) Security	3.754% Fixed-to-fixed Reset Rate Subordinated Tier 2 Notes due 2029
Trading Symbol	RBS29A
Security Exchange Name	NYSE
3.032% Fixed-to-fixed Reset Rate Subordinated Tier 2 Notes due 2035
Document Information [Line Items]
Title of 12(b) Security	3.032% Fixed-to-fixed Reset Rate Subordinated Tier 2 Notes due 2035
Trading Symbol	NWG35
Security Exchange Name	NYSE
11% Cumulative Preference Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	240,686
5 1/2% Cumulative Preference Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	242,454

Consolidated income statement

Consolidated income statement - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Consolidated income statement
Interest receivable		£ 12,637	£ 9,234	[1]	£ 9,711	[1]
Interest payable		(2,795)	(1,699)	[1]	(2,322)	[1]
Net interest income		9,842	7,535	[1]	7,389	[1]
Fees and commissions receivable		2,915	2,694	[1]	2,704	[1]
Fees and commissions payable		(623)	(574)	[1]	(722)	[1]
Trading income		1,133	323	[1]	1,125	[1]
Other operating income		(111)	451	[1]	(93)	[1]
Non-interest income		3,314	2,894	[1]	3,014	[1]
Total income		13,156	10,429	[1]	10,403	[1]
Staff costs		(3,716)	(3,676)	[1]	(3,878)	[1]
Premises and equipment		(1,112)	(1,133)	[1]	(1,222)	[1]
Other administrative expenses		(2,026)	(2,026)	[1]	(1,845)	[1]
Depreciation and amortisation		(833)	(923)	[1]	(913)	[1]
Operating expenses		(7,687)	(7,758)	[1]	(7,858)	[1]
Profit before impairment losses/releases		5,469	2,671	[1]	2,545	[1]
Impairment (losses)/releases		(337)	1,173	[1]	(3,098)	[1]
Operating (loss)/profit before tax		5,132	3,844	[1]	(553)	[1]
Tax charge		(1,275)	(996)	[1]	(74)	[1]
Profit/(loss) from continuing operations		3,857	2,848	[1]	(627)	[1]
(Loss)/profit from discontinued operations, net of tax	[2]	(262)	464	[1]	193	[1]
Profit/(loss) for the year		3,595	3,312	[1]	(434)	[1]
Attributable to:
Ordinary shareholders		3,340	2,950	[1]	(753)	[1]
Preference shareholders	[1]		19		26
Paid-in equity holders		249	299	[1]	355	[1]
Non-controlling interests		6	44	[1]	(62)	[1]
Profit/(loss) for the year		£ 3,595	£ 3,312	[1]	£ (434)	[1]
Per ordinary share
Earnings per ordinary share - continuing operations		£ 0.365	£ 0.230	[1]	£ (0.084)
Earnings per ordinary share - discontinued operations		(0.027)	0.043	[1]	0.017
Total earnings per share attributable to ordinary shareholders - basic		0.338	0.273	[1]	(0.067)
Earnings per ordinary share - fully diluted continuing operations		0.362	0.229	[1]	(0.084)
Earnings per ordinary share - fully diluted discontinued operations		(0.026)	0.043	[1]	0.017
Total earnings per share attributable to ordinary shareholders - fully diluted		£ 0.336	£ 0.272	[1]	£ (0.067)
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements. The results of discontinued operations, comprising the post-tax profit, is shown as a single amount on the face of the income statement. An analysis of this amount is presented in Note 8 to the consolidated financial statements.

Consolidated income statement (

Consolidated income statement (Parenthetical)	Aug. 30, 2022
Consolidated income statement
Share consolidation ratio	0.9286

Consolidated statement of compr

Consolidated statement of comprehensive income - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Consolidated statement of comprehensive income
Profit/(loss) for the year		£ 3,595	£ 3,312	[1]	£ (434)	[1]
Items that do not qualify for reclassification
Remeasurement of retirement benefit schemes	[2]	(840)	(669)		4
Changes in fair value of credit in financial liabilities designated at FVTPL		50	(29)		(52)
FVOCI financial assets		59	13		(64)
Tax		187	164		42
Total - Items that do not qualify for reclassification		(544)	(521)		(70)
Items that do qualify for reclassification
FVOCI financial assets		(457)	(100)		44
Cash flow hedges	[3]	(3,277)	(848)		271
Currency translation		241	(382)		276
Tax		1,067	213		(89)
Total - Items that do qualify for reclassification		(2,426)	(1,117)		502
Other comprehensive (loss)/income after tax		(2,970)	(1,638)		432
Total comprehensive income/(loss) for the year		625	1,674		(2)
Attributable to:
Ordinary shareholders		370	1,308		(338)
Preference shareholders			19		26
Paid-in equity holders		249	299		355
Non-controlling interests		6	48		(45)
Total comprehensive income/(loss) for the year		£ 625	£ 1,674		£ (2)
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements. Following the purchase of ordinary shares from UKGI in Q1 2022, NatWest Group contributed £ 500 million to its main pension scheme in line with the memorandum of understanding announced on 17 April 2018. After tax relief, this contribution reduced total equity by £ 365 million. Other material movements came from asset underperformance relative to movements in the schemes’ liabilities over the year. In line with our policy, the present value of defined benefit obligations and the fair value of plan assets at the end of the reporting period, are assessed to identify significant market fluctuations and one-off events since the end of the prior financial year. The unrealised losses on cash flow hedge reserves is mainly driven by deferment of losses on GBP net received fixed swaps as interest rates have increased.

Consolidated statement of com_2

Consolidated statement of comprehensive income (Parenthetical) - Main Scheme £ in Millions	3 Months Ended
	Mar. 31, 2022 GBP (£)
Disclosure of transactions between related parties [line items]
Contributions	£ 500
Decrease in equity	365
UK Government Investments Ltd (UKGI)
Disclosure of transactions between related parties [line items]
Contributions	500
Decrease in equity	£ 365

Consolidated balance sheet

Consolidated balance sheet - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Assets
Cash and balances at central banks	£ 144,832	£ 177,757
Trading assets	45,577	59,158
Derivatives	99,545	106,139
Settlement balances	2,572	2,141
Loans to banks - amortised cost	7,139	7,682
Loans to customers - amortised cost	366,340	358,990
Securities subject to repurchase agreements	2,901	11,746
Other financial assets excluding securities subject to repurchase agreements	27,994	34,399
Other financial assets	30,895	46,145
Intangible assets	7,116	6,723
Other assets	9,176	8,242
Assets of disposal groups	6,861	9,015
Total assets	720,053	781,992
Liabilities
Bank deposits	20,441	26,279
Customer deposits	450,318	479,810
Settlement balances	2,012	2,068
Trading liabilities	52,808	64,598
Derivatives	94,047	100,835
Other financial liabilities	49,107	49,326
Subordinated liabilities	6,260	8,429
Notes in circulation	3,218	3,047
Other liabilities	5,346	5,797
Total liabilities	683,557	740,189
Equity
Ordinary shareholders' interests	32,598	37,412
Other owners' interests	3,890	4,384
Owners' equity	36,488	41,796
Non-controlling interests	8	7
Total equity	36,496	41,803
Total liabilities and equity	£ 720,053	£ 781,992

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	Capital redemption reserve	Retained earnings		Own shares held	Shareholders' equity	Non-controlling interests	Ordinary shareholders	Preference shareholders	Total
At 1 January at Dec. 31, 2019		£ 12,094	£ 4,058	£ 1,094		£ 138	£ 35		£ 1,343	£ 0	£ 13,946		£ (42)		£ 9
Ordinary shares issued		35	2,218	17
Share cancellation	[1],[2]									0
Reclassified	[3]		(1,277)
Unrealised (losses)/gains	[4]					76
Realised losses/(gains)	[5]					152
Tax						(6)
Amount recognized in equity	[6]						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									17
Profit/(loss) attributable to ordinary shareholders and other equity owners - continuing											(565)
Profit/(loss) attributable to ordinary shareholders and other equity owners - discontinued											193
Equity preference dividends paid											(26)
Paid-in equity dividends paid											(355)
Shares repurchased	[1]												(77)
Unclaimed dividends											2
Redemption/reclassification of paid-in equity gross											(358)
Redemption/reclassification of paid-in equity tax											3
Realised gains/(losses) on FVOCI equity shares gross											(248)
Remeasurement of retirement benefit schemes - gross	[7]										4							£ 4
Remeasurement of retirement benefit schemes - tax	[7]										22
Changes in fair value of credit in financial liabilities designated at FVTPL, gross											(52)							(52)
Changes in fair value of credit in financial liabilities designated at FVTPL, tax											8
Employee share schemes											(11)		95
Share-based payments gross											(5)
Share-based payments tax											(1)
Currency translation adjustments and other movements															17
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		1,608	0	12,567		(24)	£ 43,860	(36)	£ 38,367	£ 494	43,824
Ordinary shares issued		37	937	50
Share cancellation	[1],[2]	698								(698)
Reclassified	[3]		(2,046)
Unrealised (losses)/gains	[4]					32
Realised losses/(gains)	[5]					(122)
Tax						(1)
Amount recognized in equity							(687)	[6]										(687)
Amount transferred from equity to earnings							(161)											(161)
Tax							224
Retranslation of net assets									(484)
Foreign currency (losses)/gains on hedges of net assets									88									88
Tax									(17)
Recycled to profit or loss on disposal of businesses									10
Redemption of preference shares										24	(24)	[8]
Profit/(loss) attributable to ordinary shareholders and other equity owners - continuing											2,804
Profit/(loss) attributable to ordinary shareholders and other equity owners - discontinued											464
Equity preference dividends paid											(19)
Paid-in equity dividends paid											(299)
Ordinary dividends paid											(693)
Shares repurchased	[1]										(1,423)	[2]	(383)
Redemption/reclassification of paid-in equity gross											134
Redemption/reclassification of paid-in equity tax											16
Realised gains/(losses) on FVOCI equity shares gross											3
Remeasurement of retirement benefit schemes - gross	[7]										(669)							(669)
Remeasurement of retirement benefit schemes - tax	[7]										168
Changes in fair value of credit in financial liabilities designated at FVTPL, gross											(29)							(29)
Changes in fair value of credit in financial liabilities designated at FVTPL, tax											3
Employee share schemes											8		36
Share-based payments gross											55
Share-based payments tax											10
Currency translation adjustments and other movements															4
Profit/(loss) attributable to non-controlling interests															44
Dividends paid															(5)
At 31 December at Dec. 31, 2021		11,468	3,890	1,161	10,881	269	(395)		1,205	722	12,966		(371)	41,796	7	37,412	£ 494	41,803
Share cancellation	[1],[2]	929								(929)
Unrealised (losses)/gains	[4]					(570)
Realised losses/(gains)	[5]					59
Tax						140
Amount recognized in equity							(2,973)	[6]										(2,973)
Amount transferred from equity to earnings							(304)											(304)
Tax							901
Retranslation of net assets									512
Foreign currency (losses)/gains on hedges of net assets									(266)									(266)
Tax									32
Recycled to profit or loss on disposal of businesses									(5)
Redemption of preference shares	[8]										(750)
Profit/(loss) attributable to ordinary shareholders and other equity owners - continuing											3,851
Profit/(loss) attributable to ordinary shareholders and other equity owners - discontinued											(262)
Paid-in equity dividends paid											(249)
Ordinary dividends paid											(1,205)
Special dividends paid											(1,746)
Shares repurchased	[1],[2]										(2,054)
Redemption/reclassification of paid-in equity tax											(36)
Realised gains/(losses) on FVOCI equity shares gross											113
Realised gains/(losses) on FVOCI equity shares tax											(9)
Remeasurement of retirement benefit schemes - gross	[7]										(840)							(840)
Remeasurement of retirement benefit schemes - tax	[7]										192
Changes in fair value of credit in financial liabilities designated at FVTPL, gross											50							50
Changes in fair value of credit in financial liabilities designated at FVTPL, tax											(2)
Employee share schemes											6		113
Share-based payments gross											7
Share-based payments tax											1
Profit/(loss) attributable to non-controlling interests															6
Dividends paid															(5)
At 31 December at Dec. 31, 2022		£ 10,539	£ 3,890	£ 1,161	£ 10,881	£ (102)	£ (2,771)		£ 1,478	£ 1,651	£ 10,019		£ (258)	£ 36,488	£ 8	£ 32,598		£ 36,496
[1] In March 2022, there was an agreement with HM Treasury to buy 549.9 million (March 2021 - 591 million) ordinary shares in NatWest Group plc from UK Government Investments Ltd, at 220.5 pence per share (March 2021 - 190.5 pence per share) for the total consideration of £ 1.22 billion (March 2021 - £ 1.13 billion). NatWest Group cancelled all 549.9 million of the purchased ordinary shares (March 2021 - NatWest Group cancelled 391 million of the purchased ordinary shares and held the remaining 200 million in own shares held). The nominal value of the share cancellation has been transferred to the capital redemption reserve. NatWest Group plc repurchased and cancelled 379.3 million (2021 - 310.8 million) shares for total consideration of £ 829.3 million (2022 £ 676.2 million) excluding fees as part of the On Market Share Buyback Programme which has now concluded. The nominal value of the share cancellations has been transferred to the capital redemption reserve. In July 2021, paid-in equity was reclassified to liabilities as the result of a call in August 2021 of US $2.65 billion AT1 capital notes. Certain assets within this category have been hedged with derivatives which are not in an accounting hedge relationship. The effect of this creates a temporary difference between other comprehensive income and the income statement due to the difference in recognition criteria. This temporary difference is expected to reverse through the income statement over the duration of the hedge. In 2020, the completion of 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 fair value through other comprehensive income (FVOCI). The unrealised losses on cash flow hedge reserves is mainly driven by deferment of losses on GBP net received fixed swaps as interest rates have increased. Following the purchase of ordinary shares from UKGI in Q1 2022, NatWest Group contributed £ 500 million to its main pension scheme in line with the memorandum of understanding announced on 17 April 2018. After tax relief, this contribution reduced total equity by £ 365 million. Other material movements came from asset underperformance relative to movements in the schemes’ liabilities over the year. In line with our policy, the present value of defined benefit obligations and the fair value of plan assets at the end of the reporting period, are assessed to identify significant market fluctuations and one-off events since the end of the prior financial year. Following an announcement of a Regulatory Call in February 2022, the Series U preference shares were reclassified to liabilities. A £ 254 million loss was recognised in retained earnings as a result of FX unlocking.

Consolidated statement of cha_2

Consolidated statement of changes in equity (Parenthetical) £ in Millions, shares in Millions, $ in Millions		1 Months Ended			12 Months Ended
		Mar. 31, 2022 GBP (£) £ / shares shares	Feb. 28, 2022 GBP (£)	Mar. 31, 2021 GBP (£) £ / shares shares	Dec. 31, 2022 GBP (£) shares	Dec. 31, 2021 GBP (£) shares	Jul. 31, 2021 USD ($)
Net (loss) gain as a result of significant movements in underlying actuarial assumptions					£ 20,714
Main Scheme
Net (loss) gain as a result of significant movements in underlying actuarial assumptions					18,744
AT1 capital notes
AT1 capital notes called | $							$ 2,650
Retained earnings
Value of purchased ordinary shares	[1],[2]				2,054	£ 1,423
Loss recognised on reclassification between equity and liabilities			£ 254
UK Government Investments Ltd (UKGI)
Ordinary shares acquired | shares		549.9		591
Purchase price per share | £ / shares		£ 2.205		£ 1.905
Value of purchased ordinary shares		£ 1,220		£ 1,130
Number of treasury stock, shares cancelled | shares		549.9
Value of treasury shares cancelled				£ 391
Number of own shares held | shares				200
On Market Share Buyback Programme
Value of purchased ordinary shares					£ 829.3	£ 676.2
Number of shares repurchased and cancelled | shares					379.3	310.8
[1] In March 2022, there was an agreement with HM Treasury to buy 549.9 million (March 2021 - 591 million) ordinary shares in NatWest Group plc from UK Government Investments Ltd, at 220.5 pence per share (March 2021 - 190.5 pence per share) for the total consideration of £ 1.22 billion (March 2021 - £ 1.13 billion). NatWest Group cancelled all 549.9 million of the purchased ordinary shares (March 2021 - NatWest Group cancelled 391 million of the purchased ordinary shares and held the remaining 200 million in own shares held). The nominal value of the share cancellation has been transferred to the capital redemption reserve. NatWest Group plc repurchased and cancelled 379.3 million (2021 - 310.8 million) shares for total consideration of £ 829.3 million (2022 £ 676.2 million) excluding fees as part of the On Market Share Buyback Programme which has now concluded. The nominal value of the share cancellations has been transferred to the capital redemption reserve.

Consolidated cash flow statemen

Consolidated cash flow statement - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Operating profit before tax from continuing operations	[1]	£ 5,132	£ 3,844	£ (553)
Operating (loss)/profit before tax from discontinued operations	[1]	(262)	467	202
Impairment losses/(releases)		266	(1,335)	3,242
Amortisation of discounts and premiums of other financial assets		6	203	267
Depreciation and amortisation		833	923	914
Change in fair value taken to profit or loss of other financial assets		1,267	1,771	(1,474)
Change in fair value taken to profit or loss on other financial liabilities and subordinated liabilities		(2,400)	(1,083)	962
Elimination of foreign exchange differences		10	2,446	(2,497)
Other non-cash items		(261)	(164)	(2)
Income receivable on other financial assets		(591)	(581)	(518)
Loss/(profit) on sale of other financial assets		172	(118)	(96)
(Profit)/loss on disposal of subsidiaries and associates			(48)	16
Share of loss/(profit) of associates		30	(216)	30
Loss/(profit) on sale of other assets and net assets/liabilities		154	23	(16)
Interest payable on MRELs and subordinated liabilities		1,103	964	1,182
Loss on redemption of own debt		161	145	324
Charges and releases on provisions		248	478	296
Defined benefit pension schemes		205	215	215
Net cash flows from trading activities		6,073	7,934	2,494
Decrease in trading assets		14,991	7,751	4,147
Decrease/(increase) in derivative assets		3,621	59,697	(16,173)
(Increase)/decrease in settlement balance assets		(431)	156	2,090
Increase in loans to banks		(202)	(252)	(554)
(Increase)/decrease in loans to customers		(7,628)	2,721	(33,748)
(Increase)/decrease in other financial assets		(328)	(128)	221
(Increase)/decrease in other assets		(255)	(57)	8
Increase in assets of disposal groups		(4,117)	(9,015)
(Decrease)/increase in banks deposits		(5,838)	5,673	113
(Decrease)/increase in customer deposits		(29,492)	48,071	62,492
Decrease in settlement balance liabilities		(56)	(350)	(1,652)
Decrease in trading liabilities		(11,790)	(7,658)	(1,693)
(Decrease)/increase in derivative liabilities		(6,788)	(59,870)	13,826
Increase/(decrease) in other financial liabilities		989	938	(1,085)
Increase in notes in circulation		171	392	546
Decrease in other liabilities		(1,294)	(1,463)	(1,723)
Changes in operating assets and liabilities		(48,447)	46,606	26,815
Income taxes paid		(1,223)	(856)	(214)
Net cash flows from operating activities	[2],[3]	(43,597)	53,684	29,095
Cash flows from investing activities
Sale and maturity of other financial assets		36,975	16,859	25,952
Purchase of other financial assets		(23,510)	(10,150)	(18,825)
Income received on other financial assets		659	581	518
Net movement in business interests and intangible assets		5,420	(3,489)	(70)
Sale of property, plant and equipment		154	165	348
Purchase of property, plant and equipment		(639)	(901)	(376)
Net cash flows from investing activities		19,059	3,065	7,547
Cash flows from financing activities
Movement in MRELs		(1,974)	2,736	636
Movement in subordinated liabilities		(3,419)	(3,452)	(2,381)
Share repurchased		(2,054)	(1,806)	(2)
Dividends paid		(3,205)	(1,016)	(381)
Issue of paid-in equity			937	2,218
Net cash flows from financing activities		(10,652)	(2,601)	90
Effects of exchange rate changes on cash and cash equivalents		2,933	(2,641)	1,879
Net (decrease)/increase in cash and cash equivalents		(32,257)	51,507	38,611
Cash and cash equivalents at beginning of period		190,706	139,199	100,588
Cash and cash equivalents at end of period		£ 158,449	£ 190,706	£ 139,199
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements. Includes interest received of £ 12,638 million (2021 - £ 9,696 million, 2020 - £ 10,007 million) and interest paid of £ 2,357 million (2021 - £ 1,668 million, 2020 - £ 2,414 million). The total cash outflow for leases is £ 170 million (2021: £ 195 million; 2020: £ 220 million), including payment of principal amount of £ 145 million (2021: £ 164 million; 2020: £ 179 million) which are included in the operating activities.

Consolidated cash flow statem_2

Consolidated cash flow statement (Parenthetical) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed consolidated cash flow statement
Interest received	£ 12,638	£ 9,696	£ 10,007
Interest paid	2,357	1,668	2,414
Cash outflow for leases	170	195	220
Payments of principal amount, lease liabilities	£ 145	£ 164	£ 179

Accounting policies

Accounting policies	12 Months Ended
	Dec. 31, 2022
Accounting policies
Accounting policies	This section includes the basis of preparation, critical and significant accounting policies used to prepare the financial statements. ​ Our accounting policies are the specific principles, bases, conventions, rules, and practices we apply in preparing and presenting the financial statements. Further information is provided where judgment and estimation is applied to critical accounting policies and key sources of estimation uncertainty. ​ Future accounting developments details new, or amendments to existing, accounting standards, when they are effective from and where we are assessing their impact on future financial statements. ​ ​ 1. Presentation of financial statements NatWest Group plc is incorporated in the UK and registered in Scotland. The financial statements are presented in the functional currency, pounds sterling. The audited financial statements include audited sections of the Risk and capital management section. The directors have prepared the financial statements on a going concern basis after assessing the principal risks, forecasts, projections and other relevant evidence over the twelve months from the date the financial statements are approved (see the Report of the directors) and in accordance with UK adopted International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The critical and significant accounting policies and related judgments are set out below. The financial statements are presented on a historical cost basis except for certain financial instruments which are stated at fair value. The effect of the amendments to IFRS effective from 1 January 2022 on our financial statements was immaterial. Our consolidated financial statements incorporate the results of NatWest Group plc and the entities it controls. Control arises when we have the power to direct the activities of an entity so as to affect the return from the entity. Control is assessed by reference to our ability to enforce our will on the other entity, typically through voting rights. The consolidated financial statements are prepared under consistent accounting policies. On acquisition of a subsidiary, the identifiable assets, liabilities and contingent liabilities are included in the consolidated financial statements at their fair value. A subsidiary is included in the consolidated financial statements from the date it is controlled by us until the date we cease to control it through a sale or a significant change in circumstances. Changes in our interest in a subsidiary that does not result in us ceasing to control that subsidiary are accounted for as equity transactions. We apply accounting for associates and joint arrangements (including joint ventures) to entities where we have significant influence, but not control, over the operating and financial policies. We assess significant influence by reference to a presumption of voting rights of more than 20%, but less than 50%, supplemented by a qualitative assessment of substantive rights which include representation at the Board of Directors, significant exchange of managerial personnel or technology amongst others. Joint ventures are arrangements where we have joint control and rights to the net assets of the entity. Investments in associates and joint ventures are recorded upon initial recognition at cost, increased or decreased each period by the share of the subsequent levels of profit or loss, and other changes in equity are considered in line with their nature. Transactions and balances between Group companies are eliminated in the consolidated financial statements to show only those transactions and balances external to us. The judgments and assumptions involved in our accounting policies that are considered by the Board to be the most important to the portrayal of its financial condition are noted below. The use of estimates, assumptions or models that differ from those adopted by us would affect our reported results. How Climate risk affects our accounting judgments and estimates Business planning Key financial estimates are based on management's latest five-year revenue and cost forecasts. The outputs from this forecast affect forward-looking accounting estimates. Measurement of deferred tax and expected credit losses are highly sensitive to reasonably possible changes in those anticipated conditions. In 2022, our scenario planning supported the development of NatWest Group’s initial iteration climate transition plan, including the assessment of climate-related risks and opportunities. ​ - The initial iteration of our Climate transition plan includes an assessment of: - changes in business operations, products and services to support customer decarbonisation; - financial plans linked to business operations and strategy. During 2022, the financial planning process has been enhanced to incorporate climate related opportunities included in the climate transition plan. In 2023, we will link specific actions that are needed to align to our climate ambitions into the financial forecasts. - development in UK Government policies, aligned with the Committee on Climate Change Sixth carbon Budget published in 2021. We also assume certain broader policy responses and technological innovation to enable the wider transition of the economy. - There remains considerable uncertainty regarding this policy response, including the effect of wider geo-political uncertainty on governmental ambitions regarding climate transition and the effect of decarbonisation on wider economic growth, technology development and customer behaviours. ​ Information used in other accounting estimates We make use of reasonable and supportable information to make accounting judgments and estimates. This includes information about the observable effects of the physical and transition risks of climate change on the current creditworthiness of borrowers, asset values and market indicators. It also includes the effect on our competitiveness and profitability. Many of the effects arising from climate change will be longer term in nature, with an inherent level of uncertainty, and have limited effect on accounting judgments and estimates for the current period. Some physical and transition risks can manifest in the shorter term. The following items represent the most significant effects: ​ - The classification of financial instruments linked to climate, or other sustainability indicators: consideration is given to whether the effect of climate related terms prevent the instrument cashflows being solely payments of principal and interest. - The measurement of expected credit loss considers the ability of borrowers to make payments as they fall due. Future cashflows are discounted, so long dated cashflows are less likely to affect current expectations on credit loss. Our assessment of sector specific risks, and whether additional adjustments are required, include expectations of the ability of those sectors to meet their financing needs in the market. Changes in credit stewardship and credit risk appetite that stem from climate considerations, such as oil and gas, will directly affect our positions. - The use of market indicators as inputs to fair value is assumed to include current information and knowledge regarding the effect of climate risk. ​ Effect of climate change in the estimation of expected credit loss Since the implementation of IFRS 9 in January 2018 loan losses reflect expected credit losses taking account of relevant and reliable forward looking information. We are evaluating the effect of the physical and transition consequences of climate change on our experience of loan loss. We use available information regarding the effect of climate transition policy largely driven by carbon prices as an adjustment to macroeconomic factors that are used as inputs to the models that generate PD and LGD outcomes, which are key inputs to the ECL calculation. The determination of whether specific loss drivers and climate events generate specific losses is ongoing and is necessary to determine how sensitive changes in ECL could be to climate inputs. As at 31 December 2022, our quantification of the impact due to physical risk and how other climate risks may impact the ECL is ongoing. ​ An impact assessment on how climate risk factors may require adjustment in our IFRS 9 model suite has also not been finalised. We judged that this information was not sufficiently complete to make a reliable estimate and given the immaterial change in ECL it indicated, determined it was not appropriate to adjust ECL. ​ When this information is reliable, possibly during 2023, it could be used in our ECL calculation. A key part of this is determining that any adjustment resulting from the inclusion of new climate-related inputs does not double count or omit credit losses arising from other inputs. We will continue to develop our data, models and methodologies relating to climate evaluation and market practice will continue to evolve and this will affect the estimation of climate effect in ECL on an ongoing basis. We expect that the effect of climate risks on ECL will increase as government policy, organisations and individuals react to changes in climate as well as the probable increased occurrence of climate-related loss events (such as flooding and wildfire). ​ 2. Critical accounting policies The judgments and assumptions involved in our accounting policies that are considered by the Board to be the most important to the portrayal of our financial condition are noted below. The use of estimates, assumptions or models that differ from those adopted by us would affect our reported results. Management’s consideration of uncertainty is outlined in the relevant sections of this document, including the ECL estimate in the Risk and capital management section. ​ Information used for significant estimate Key financial estimates are based on management's latest five-year revenue and cost forecasts. Changes in judgments and assumptions could result in a material adjustment to those estimates in future reporting periods. Consideration of this source of estimate uncertainty has been set out in the notes below (as applicable). ​ Policy Judgment Estimate Further information Deferred tax ​ Determination of whether sufficient taxable profits will be generated in future years to recover DTA. ​ Our estimates are based on the five-year revenue and cost forecasts (which include inherent uncertainties). ​ Note 7 Fair value – financial instruments ​ Classification of a fair value instrument as level 3, where the valuation is driven by unobservable inputs. ​ Estimation of the fair value, where it is reasonably possible to have alternative assumptions in determining the FV. ​ Note 11 Loan impairment provisions ​ Definition of default against which to apply PD, LGD and EAD models. Criteria for a significant increase in credit risk. Identification of risks not captured by the models. ​ ECL estimates contain a number of measurement uncertainties (such as the selection of multiple economic scenarios) and disclosures include sensitivities to show impact on other reasonably possible scenarios. ​ Note 15 Provisions for liabilities and charges ​ Determination of whether a present obligation exists in respect of customer redress, litigation and other regulatory, property and other provisions. Legal proceedings often require a high degree of judgment and these are likely to change as the matter progresses. ​ Provisions remain sensitive to the assumptions used in the estimate. We consider a wide range of possible outcomes. It is often not practical to meaningfully quantify ranges of possible outcomes, given the uncertainties involved. ​ Note 21 ​ 2.1. Deferred tax 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 we have 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. ​ Deferred tax asset recoverability is based on the level of supporting offsetable deferred tax liabilities we have and of our future taxable profits. These future taxable profits are based on our five-year revenue and cost forecasts and the expectation of long term economic growth beyond this period. The five-year forecast takes account of management’s current expectations on competitiveness and profitability. The long term growth rate reflects external indicators which will include market expectations on climate risk. We do not consider any additional adjustments to this indicator. ​ 2.2. Fair value – financial instruments Financial instruments classified as mandatory fair value through profit or loss; held-for-trading; designated fair value through profit or loss and 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 considers the characteristics of the asset or liability and the assumptions that a market participant would consider when pricing the asset or liability. ​ We manage some portfolios of financial assets and financial liabilities based on our net exposure to either market or credit risk. In these cases, the fair value is derived from the net risk exposure of that portfolio with portfolio level adjustments applied to incorporate bid-offer spreads, counterparty credit risk, and funding costs (see ‘Valuation Adjustments’). ​ 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. The complexity and uncertainty in the financial instrument’s fair value is categorised using the fair value hierarchy. ​ The use of market indicators as inputs to fair value is assumed to include current information and knowledge regarding the effect of climate risk. ​ 2.3. Loan impairment provisions: expected credit losses (ECL) At each balance sheet date each financial asset or portfolio of financial assets measured at amortised cost or at fair value through other comprehensive income, issued financial guarantee and loan commitment (other than those classified as held for trading) is assessed for impairment. Any change in impairment is reported 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. Following a significant increase in credit risk, ECL are adjusted from 12 months to lifetime. This will lead to a higher impairment charge. ​ The measurement of expected credit loss considers the ability of borrowers to make payments as they fall due. Future cashflows are discounted, so long-dated cashflows are less likely to affect current expectations on credit loss. Our assessment of sector specific risks, and whether additional adjustments are required, include expectations of the ability of those sectors to meet their financing needs in the market. Changes in credit stewardship and credit risk appetite that stem from climate considerations, such as oil and gas, will directly affect our positions. ​ Judgment is exercised as follows: ​ - Models – in certain low default portfolios, Basel parameter estimates are also applied for IFRS 9. - Non-modelled portfolios – 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 where a financial asset is not derecognised, 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 our acquired interest is in equity shares, relevant policies for control, associates and joint ventures apply. ​ Impaired financial assets are written off and therefore derecognised from the balance sheet when we conclude that there is no longer any realistic prospect of recovery of part, or all, of the loan. For financial assets that are individually assessed for impairment, the timing of the write-off is determined on a case-by-case basis. Such financial assets are reviewed regularly and write-off will be prompted by bankruptcy, insolvency, re-negotiation, and similar events. ​ The typical time frames from initial impairment to write-off for our 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 . ​ 2.4. Provisions and contingent liabilities We recognise a provision for a present obligation resulting from a past event when it is more likely than not that we will be required to pay 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 we have a constructive obligation. An obligation exists when we have a detailed formal plan for the restructuring and have raised a valid expectation in those affected either by starting to implement the plan or by announcing its main features. We recognise any onerous cost of the present obligation under a contract as a provision. An onerous cost is the unavoidable cost of meeting our contractual obligations that exceed the expected economic benefits. When we intend to vacate a leasehold property or right of use asset, the asset would be tested for impairment and a provision may be recognised for the ancillary contractual occupancy costs. 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. 3. Significant accounting polices 3.1. Revenue recognition Interest receivable and payable are recognised in the income statement using the effective interest rate method for: all financial instruments measured at amortised cost; debt instruments measured as fair value through other comprehensive income; and the effective part of any related accounting hedging instruments. Finance lease income is recognised at a constant periodic rate of return before tax on the net investment on the lease. Other interest relating to financial instruments measured at fair value is recognised as part of the movement in fair value and is reported in income from trading activities or other operating income as relevant. 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. 3.2. Discontinued operations, Held for sale and Disposal group The results of discontinued operations (comprising the post-tax profit or loss of discontinued operations and the post-tax results of either the ongoing measurement at fair value less costs to sell or on disposal of the discontinued operation) are excluded from the results of continuing operations and are presented as a single amount as profit/(loss) from discontinued operations, net of tax in the income statement. Comparatives are represented for the income statement, cash flow statement, statement of changes in equity and related notes. An asset or disposal group (assets and liabilities) is classified as held for sale if we will recover its carrying amount principally through a sale transaction rather than through continuing use. These are measured at the lower of its carrying amount or fair value less cost to sell unless scoped out of IFRS 5 in which case the existing measurement provisions of IFRS apply. These are presented as single amounts; comparatives are not represented. 3.3. Staff costs Employee costs, such as salaries, paid absences, and other benefits are recognised over the period in which the employees provide the related services to us. Employees may receive variable compensation in cash, in deferred cash or debt instruments of NatWest Group or in ordinary shares of NatWest Group plc subject to deferral, clawback and forfeiture criteria. We operate a number of share-based compensation schemes under which we grant awards of NatWest Group plc shares and share options to our employees. Such awards are subject to vesting conditions. Variable compensation that is settled in cash or debt instruments is charged to the income statement on a straight-line basis over the period during which services are provided, taking account of forfeiture and clawback criteria. The value of employee services received in exchange for NatWest Group plc shares and share options is recognised as an expense over the vesting period, subject to deferral, clawback, cancelation and forfeiture criteria with a corresponding increase in equity. The fair value of shares granted is the market price adjusted for the expected effect of dividends as employees are not entitled to dividends until shares are vested. The fair value of options granted is determined using option pricing models to estimate the numbers of shares likely to vest. These consider the exercise price of the option, the current share price, the risk-free interest rate, the expected volatility of the share price over the life of the option and other relevant factors such as the dividend yield. Defined contribution pension scheme A scheme where we pay fixed contributions and there is no legal or constructive obligation to pay further contributions or benefits. Contributions are recognised in the income statement as employee service costs accrue. Defined benefit pension scheme A scheme that defines the benefit an employee will receive on retirement and is dependent on one or more factors such as age, salary, and years of service. The net of the recognisable scheme assets and obligations is reported on the balance sheet in other assets or other liabilities. The defined benefit obligation is measured on an actuarial basis. The charge to the income statement 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 due to changes in actuarial measurement assumptions) are recognised in other comprehensive income in full in the period in which they arise, and not subject to recycling to the income statement. The difference between scheme assets and scheme liabilities, the net defined benefit asset or liability, is recognised on the balance sheet if the criteria of the asset ceiling test are met. This requires the net defined benefit surplus to be limited to the present value of any economic benefits available to us in the form of refunds from the plan or reduced contributions to it. We will recognise a liability where a minimum funding requirement exists for any of our defined benefit pension schemes. This reflects agreed minimum funding and the availability of a net surplus as determined as described above. When estimating the liability for minimum funding requirements we only include contributions that are substantively or contractually agreed and do not include contingent and discretionary features, including dividend-linked contributions or contributions subject to contingent events requiring future verification. We will recognise a net defined benefit asset when the net defined benefit surplus can generate a benefit in the form of a refund or reduction in future contributions to the plan. The net benefit pension asset is recognised at the present value of the benefits that will be available to us excluding interest and the effect of the asset ceiling (if any, excluding interest). Changes in the present value of the net benefit pension asset are recognised immediately in other comprehensive income. In instances where Trustees have the ability to declare augmented benefits to participants, we do not recognise a defined benefit pension asset and write-off the surplus immediately in other comprehensive income. 3.4. Intangible assets and goodwill Intangible assets are identifiable non-monetary assets without physical substance acquired by us, and are stated at cost less accumulated amortisation and impairment losses. Amortisation is a method to spread the cost of such assets over time in the income statement. ​ This is charged to the income statement over the assets' estimated useful economic lives using methods that best reflect the pattern of economic benefits. ​ The 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 charged to the income statement as incurred. Direct costs relating to the development of internal-use computer software are reported on the balance sheet after technical feasibility and economic viability have been established. These direct costs include payroll, the costs of materials and services, and directly attributable overheads. Capitalisation of costs ceases when the software can operate 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 to the income statement 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 reported on the balance sheet Goodwill on the acquisition of a subsidiary is the excess of the fair value of the consideration paid, 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 when such transactions occur. 3.5. Impairment of non-financial assets At each balance sheet date, we assess whether there is any indication that its intangible assets or property, plant and equipment are impaired. If any such indication exists, we estimate the recoverable amount of the asset and compares it to its balance sheet value to calculate if an impairment loss should be charged to the income statement. The balance sheet value of the asset is reduced by the amount of the impairment loss. A reversal of an impairment loss on intangible assets or property, plant and equipment is recognised in the income statement provided the increased carrying value is not greater than it would have been had no impairment loss been recognised. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Impairment losses on goodwill are not reversed. 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 our 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 considered in estimating future cash flows. The assessment of asset impairment is based upon value in use. This represents the value of future cashflows and uses our five-year revenue and cost forecasts and the expectation of long term economic growth beyond this period. The five-year forecast takes account of management’s current expectations on competitiveness and profitability. The long term growth rate reflects external indicators which will include market expectations on climate risk. We do not consider any additional adjustments to this indicator. ​ 3.6. Foreign currencies 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. Non-monetary items denominated in foreign

Net interest income

Net interest income	12 Months Ended
	Dec. 31, 2022
Net interest income
Net interest income	1 Net interest income Net interest income is the difference between the interest NatWest Group earns from its interest-bearing assets, such as loans, balances with central banks and other financial assets, and the interest paid on its interest-bearing liabilities, such as deposits and subordinated liabilities. Interest receivable on financial instruments classified as amortised cost, debt instruments classified as FVOCI and the interest element of the effective portion of any designated hedging relationships are measured using the effective interest rate, which allocates the interest receivable or interest payable over the expected life of the financial instrument at the rate that exactly discounts all estimated future cash flows to equal the financial 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 financial 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. Negative interest on financial assets is presented in interest payable and negative interest on financial liabilities is presented in interest receivable. Included in interest receivable is finance lease income of £314 million (2021 - £298 million; 2020 - £289 million) which is recognised at a constant periodic rate of return before tax on the net investment. For accounting policy information see Accounting policies note 3.1. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 (1) 2020 (1) Continuing operations £m £m £m Balances at central banks and loans to banks - amortised cost 1,987 445 336 Loans to customers - amortised cost 10,085 8,536 8,892 Other financial assets 565 253 483 Interest receivable ​ 12,637 ​ 9,234 ​ 9,711 ​ ​ ​ ​ Balances with banks 379 204 144 Customer deposits 785 556 911 Other financial liabilities 1,196 670 846 Subordinated liabilities 370 267 402 Internal funding of trading businesses 65 2 19 Interest payable ​ 2,795 ​ 1,699 ​ 2,322 Net interest income 9,842 7,535 7,389 ​ (1) Comparative results have been re-presented from those previously published to reclassify certain operations as discontinued operations as described in Note 8.

Non-interest income

Non-interest income	12 Months Ended
	Dec. 31, 2022
Non-interest income
Non-interest income	2 Non-interest income There are three main categories of non-interest income: net fees and commissions, trading income, and other operating income. Net fees and commissions is the difference between fees received from customers for services provided by NatWest Group, such as credit card annual fees, mortgage arrangement fees, underwriting fees, payment services, brokerage fees, trade finance, investment management fees, trustee and fiduciary services, and fees incurred in the provision of those services, such as credit card interchange fees, customer incentives, loan administration, foreign currency transaction charges, brokerage fees, and mortgage valuation reports. Trading income is earned from short-term financial assets and financial liabilities to either make a spread between purchase and sale price or held to take advantage of movements in prices and yields. Other operating income includes revenue from other operating activities which are not related to the principal activities of the company, such as share of profit or loss from associate, operating lease income, the profit or loss on the sale of a subsidiary or property, plant and equipment, profit or loss on own debt, and changes in the fair value of financial assets and liabilities designated at fair value through profit or loss. For accounting policy information see Accounting policies note 3.1 and 3.6. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 (1) 2020 (1) Continuing operations ​ £m ​ £m ​ £m Net fees and commissions (2) 2,292 2,120 1,982 ​ ​ ​ ​ ​ ​ ​ Trading income ​ ​ ​ ​ ​ ​ Foreign exchange 305 ​ 364 569 Interest rate (3) 752 ​ (130) 541 Credit 17 ​ 83 3 Changes in fair value of own debt and derivative liabilities attributable to own credit risk ​ ​ ​ ​ ​ ​ - debt securities in issue 42 ​ 6 (24) Equities, commodities and other 17 ​ — 36 ​ 1,133 ​ 323 1,125 ​ ​ ​ ​ ​ ​ ​ Other operating income ​ ​ ​ ​ ​ ​ Loss on redemption of own debt ​ (161) ​ (145) ​ (324) Rental income on operating lease assets and investment property 230 225 232 Changes in fair value of financial assets and liabilities designated at fair value through profit or loss (4) ​ 17 ​ (8) ​ (54) Changes in fair value of other financial assets at fair value through profit or loss (5,6) ​ (45) ​ 5 ​ 2 Hedge ineffectiveness (20) 25 24 Loss on disposal of amortised cost assets and liabilities (15) (15) (18) (Loss)/profit on disposal of fair value through other comprehensive income assets (168) 117 96 (Loss)/profit on sale of property, plant and equipment (7) (5) (30) 13 Share of (losses)/profits of associated entities (30) 216 (30) Profit/(loss) on disposal of subsidiaries and associates ​ — ​ 48 ​ (16) Other income (8,9) 86 13 (18) ​ ​ (111) ​ 451 ​ (93) ​ ​ 3,314 ​ 2,894 ​ 3,014 ​ (1) Comparative results have been re-presented from those previously published to reclassify certain operations as discontinued operations as described in Note 8. (2) Refer to Note 4 for further analysis. (3) Includes fair value changes on derivatives which have not been designated in a hedge accounting relationship and gains and losses from the management of the NatWest Group’s funding requirements involving the use of derivatives including FX. These are aimed at managing the interest rate and foreign exchange risk that NatWest Group is exposed to. (4) Includes related derivatives. (5) 2022 includes a £19 million gain from reclassification of mortgages from amortised cost to fair value through profit or loss. Refer to Note 10 for further details. (6) Includes instruments that have failed solely payments of principal and interest testing under IFRS 9. (7) 2021 includes £44 million loss on the purchase of freeholds for properties where the Group was the primary leaseholder. (8) 2022 includes £92 million profit from insurance liabilities. (9) 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
	Dec. 31, 2022
Operating expenses
Operating expenses	3 Operating expenses Operating expenses are expenses NatWest Group incurs in the running of the business such as all staff costs (for example salaries, bonus awards, pension costs and social security costs), premises and equipment costs (that arise from the occupation of premises and the use of equipment), depreciation and amortisation and other administrative expenses. For accounting policy information see Accounting policies note 3.3, 3.4 and 3.5. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Continuing operations ​ £m ​ £m ​ £m Salaries 2,250 2,295 2,494 Bonus awards 334 267 232 Temporary and contract costs ​ 234 ​ 240 ​ 258 Social security costs 328 300 316 Pension costs ​ 363 ​ 354 ​ 340 - defined benefit schemes (see Note 5) 205 215 215 - defined contribution schemes 158 139 125 Other 207 220 238 Staff costs 3,716 3,676 3,878 ​ ​ ​ ​ ​ ​ ​ Premises and equipment 1,112 1,133 1,222 UK bank levy 101 99 167 Depreciation and amortisation (1,2) 833 923 913 Other administrative expenses (3) 1,925 1,927 1,678 Administrative expenses 3,971 4,082 3,980 ​ ​ 7,687 ​ 7,758 ​ 7,858 ​ (1) Include depreciation on right of use assets of £119 million (2021 - £167 million; 2020 - £209 million). (2) 2021 includes impairment of goodwill of £85 million. (3) Includes litigation and conduct costs, net of amounts recovered. Refer to Note 21 for further details. The average number of persons employed, rounded to the nearest hundred, during the year, excluding temporary staff,was 60,000 (2021- 59,200; 2020 - 61,400). The average number of temporary employees during 2022 was 2,500 (2021 - 2,500; 2020 – 3,200). The number of persons employed at 31 December, excluding temporary staff, by reportable segment, was as follows: ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations 2022 2021 2020 Retail Banking 14,800 15,800 17,200 Private Banking 2,100 1,900 1,900 Commercial & Institutional 12,200 11,400 13,300 Central items & other (1) 31,900 28,700 26,800 Total 61,000 57,800 59,200 ​ ​ ​ ​ ​ ​ ​ UK 41,200 40,600 42,500 USA 300 300 300 India 15,700 13,500 13,200 Poland ​ 1,500 ​ 1,400 ​ 1,200 Republic of Ireland ​ 1,400 ​ 1,200 ​ 1,400 Rest of the World 900 800 600 Total 61,000 57,800 59,200 ​ (1) Central items & other includes Ulster Bank RoI. Total number of persons employed in Ulster Bank RoI of 2,200 (2021 – 2,400 ; 2020 – 2,600 ) includes 400 people employed in discontinued operations at 31 December 2022 (2021 – 700 ; 2020 – 700 ). ​ 3 Operating expenses continued 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, Channel Islands, Gibraltar, Isle of Man, Poland and India. ​ Option to buy shares under employee savings plan ​ Continuing employment or leavers in certain circumstances ​ 2023 to 2027 Deferred performance awards ​ All ​ Awards of ordinary shares and conditional shares ​ Continuing employment or leavers in certain circumstances ​ 2023 to 2030 Long-term incentives (2) (3) ​ 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 ​ 2023 to 2029 ​ (1) All awards have vesting conditions which may not be met. (2) Long-term incentives include buy-out awards offered to compensate certain new hires for the loss of forfeited awards from their previous employment. All awards are granted under the Employee Share Plan. (3) The existing Long-term incentive scheme has been closed to new awards and members as at 31 December 2022. The scheme will be replaced by a new Restricted share plan scheme with similar granting and vesting conditions. No awards have been granted at the end of the reporting period. The fair value of Sharesave options granted in 2022 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; estimated dividend yield on equity shares; and risk-free interest rates determined from UK gilts with terms matching the expected lives of the options. The exercise price of options and the fair value on granting awards of fully paid shares is the average market price over the five three ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sharesave ​ 2022 ​ 2021 ​ 2020 ​ Average Shares Average Shares Average Shares ​ ​ exercise price ​ under option ​ exercise price ​ under option ​ exercise price ​ under option ​ ​ £ ​ (million) ​ £ ​ (million) ​ £ ​ (million) At 1 January 1.61 95 1.64 96 2.01 84 Granted 1.86 25 1.80 24 1.12 35 Exercised 1.88 (15) 1.76 (10) 1.83 — Cancelled 1.60 (6) 2.02 (15) 2.20 (23) At 31 December 1.63 99 1.61 95 1.64 96 ​ Options are exercisable within six months of vesting; 5.1 million options were exercisable at 31 December 2022 ( 2021 - 6.0 million; 2020 - 6.3 million). The weighted average share price at the date of exercise of options was £2.59 (2021 - £2.19; 2020 - £1.57). At 31 December 2022, exercise prices ranged from £1.12 to £2.27 (2021 - £1.12 to £ 2.27; 2020 - £1.12 to £2.27) and the remaining average contractual life was 2 years (2021 - 2.1 years; 2020 - 2.3 years ). The fair value of options granted in 2022 was £22.1 million (2021 - £17 million; 2020 - £8 million). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred performance awards ​ 2022 ​ 2021 ​ 2020 ​ Value at Shares Value at Shares Value at Shares ​ ​ grant ​ awarded ​ grant ​ awarded ​ grant ​ awarded ​ ​ £m ​ (million) ​ £m ​ (million) ​ £m ​ (million) At 1 January 132 65 169 77 196 76 Granted 46 20 61 32 109 67 Forfeited (4) (2) (10) (5) (5) (2) Vested (81) (37) (88) (39) (131) (64) At 31 December 93 46 132 65 169 77 ​ The awards granted in 2022 vest in equal tranches on their anniversaries, predominantly over three years. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term incentives ​ 2022 ​ 2021 ​ 2020 ​ Value at Shares Value at Shares Value at Shares ​ ​ grant ​ awarded ​ grant ​ awarded ​ grant ​ awarded ​ ​ £m ​ (million) ​ £m ​ (million) ​ £m ​ (million) At 1 January 44 21 50 24 63 25 Granted 16 7 6 3 14 10 Vested/exercised (10) (4) (12) (6) (17) (7) Lapsed (1) (1) — — (10) (4) At 31 December 49 23 44 21 50 24 ​ The market value of awards vested/exercised in 2022 was £11.7 million (2021 - £13 million; 2020- £13 million). ​ 3 Operating expenses continued Bonus awards The following tables analyse NatWest Group’s bonus awards for 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ Change ​ £m £m % Non-deferred cash awards (1) ​ 40 ​ 38 ​ 5 % Deferred cash awards 270 214 26 % Deferred share awards 60 49 22 % Total deferred bonus awards 330 263 25 % Total bonus awards (2) 370 301 23 % ​ ​ ​ ​ ​ ​ ​ Bonus awards as a % of operating profit before tax (3) 7 % 7 % ​ ​ Proportion of bonus awards that are deferred 89 % 87 % ​ ​ of which ​ ​ ​ ​ ​ ​ ​ - deferred cash awards 82 % 81 % ​ ​ - deferred share awards 18 % 19 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Reconciliation of bonus awards to income statement charge ​ £m ​ £m ​ £m Bonus awarded 370 301 206 Less: deferral of charge for amounts awarded for current year (127) (99) (77) Income statement charge for amounts awarded in current year 243 202 129 ​ ​ ​ ​ ​ ​ ​ Add: current year charge for amounts deferred from prior years 94 80 114 Less: forfeiture of amounts deferred from prior years (3) (15) (11) Income statement charge for amounts deferred from prior years 91 65 103 ​ ​ ​ ​ ​ ​ ​ Income statement charge for bonus awards 334 267 232 ​ (1) Non-deferred 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 ​ ​ ​ ​ ​ 2024 ​ ​ 2020 ​ 2021 ​ 2022 ​ 2023 ​ 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 2020 and earlier 114 80 19 ​ 8 ​ 4 Bonus awards deferred from 2021 ​ — ​ — ​ 75 ​ 8 ​ 8 Less: forfeiture of amounts deferred from prior years (11) (15) (3) ​ — ​ — Bonus awards for 2022 deferred — — — ​ 105 ​ 22 ​ 103 65 91 ​ 121 ​ 34 ​

Segmental analysis

Segmental analysis	12 Months Ended
	Dec. 31, 2022
Segmental analysis
Segmental analysis	4 Segmental analysis NatWest Group analyses its performance between the different operating segments of the Group as required by IFRS 8, Operating segments. The presentation is consistent with internal financial reporting and how senior management assesses the performance of each operating segment. Changes in reportable segments: Two changes to reportable segments have been made: On 27 January 2022, NatWest Group announced that a new business segment, Commercial & Institutional, would be created, bringing together the Commercial, NatWest Markets and RBSI businesses to form a single business segment, with common management and objectives, to best support our customers across the full non-personal customer lifecycle. Following good progress with respect to the phased withdrawal from the Republic of Ireland, announced in February 2021,Ulster Bank RoI continuing operations are now included in Central items & other. Comparatives have been re-presented. The re-presentation of operating segments does not change the consolidated financial results of NatWest Group. Reportable operating segments: The business is organised into the following reportable segments: Retail Banking, Private Banking, Commercial & Institutional, and Central items & other. Retail Banking Private Banking Commercial & Institutional Central items & other 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ ​ Retail ​ Private ​ Commercial & ​ items ​ ​ ​ Banking Banking Institutional & other Total 2022 £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income 5,224 777 4,171 (330) 9,842 Net fees and commissions 422 250 1,580 40 2,292 Other non-interest income — 29 662 331 1,022 Total income 5,646 1,056 6,413 41 13,156 Depreciation and amortisation — — (161) (672) (833) Other operating expenses (2,593) (622) (3,583) (56) (6,854) Impairment (losses)/releases (229) 2 (122) 12 (337) Operating profit/(loss) 2,824 436 2,547 (675) 5,132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021(1) ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income 4,074 480 2,974 7 7,535 Net fees and commissions 377 258 1,440 45 2,120 Other non-interest income (6) 78 424 278 774 Total income 4,445 816 4,838 330 10,429 Depreciation and amortisation (85) — (173) (665) (923) Other operating expenses (2,428) (520) (3,584) (303) (6,835) Impairment releases/(losses) 36 54 1,160 (77) 1,173 Operating profit/(loss) 1,968 350 2,241 (715) 3,844 ​ 4 Segmental analysis continued ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ ​ Retail ​ Private ​ Commercial & ​ items ​ ​ ​ ​ Banking ​ Banking ​ Institutional ​ & other ​ Total 2020 (1) £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income ​ 3,868 489 3,054 (22) 7,389 Net fees and commissions 379 257 1,303 43 1,982 Other non-interest income (66) 17 1,221 (140) 1,032 Total income 4,181 763 5,578 (119) 10,403 Depreciation and amortisation — (8) (182) (723) (913) Operating expenses (2,540) (447) (3,849) (109) (6,945) Impairment losses (792) (100) (2,074) (132) (3,098) Operating profit/(loss) 849 208 (527) (1,083) (553) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ ​ Retail ​ Private ​ Commercial & ​ items & ​ ​ ​ Banking Banking Institutional other Total Year ended 31 December 2022 £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ External 5,773 874 6,747 3,180 16,574 Inter-segmental — 389 116 (505) — Total 5,773 1,263 6,863 2,675 16,574 ​ ​ ​ ​ ​ ​ Year ended 31 December 2021 (1) ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External ​ 5,419 ​ 792 ​ 5,168 ​ 1,323 ​ 12,702 Inter-segmental 14 127 123 (264) — Total 5,433 919 5,291 1,059 12,702 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended 31 December 2020 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External ​ 5,386 ​ 702 ​ 6,223 ​ 1,136 ​ 13,447 Inter-segmental ​ 39 ​ 163 ​ 80 ​ (282) ​ — Total ​ 5,425 ​ 865 ​ 6,303 ​ 854 ​ 13,447 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ ​ Retail ​ Private ​ Commercial & ​ items & ​ ​ ​ Banking Banking Institutional other Total Year ended 31 December 2022 £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External 5,646 ​ 780 6,777 (47) ​ 13,156 Inter-segmental — ​ 276 (364) 88 ​ — Total 5,646 ​ 1,056 6,413 41 ​ 13,156 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended 31 December 2021 (1) ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External 4,433 ​ 801 5,041 154 ​ 10,429 Inter-segmental ​ 12 ​ 15 ​ (203) ​ 176 ​ — Total ​ 4,445 ​ 816 ​ 4,838 ​ 330 ​ 10,429 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended 31 December 2020 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External ​ 4,157 ​ 700 ​ 5,960 ​ (414) ​ 10,403 Inter-segmental ​ 24 ​ 63 ​ (382) ​ 295 ​ — Total ​ 4,181 ​ 763 ​ 5,578 ​ (119) ​ 10,403 ​ ​ 4 Segmental analysis continued ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ Retail ​ Private ​ Commercial & ​ items ​ ​ Analysis of net fees and commissions Banking ​ Banking ​ Institutional ​ & other ​ Total 2022 £m ​ £m ​ £m ​ £m ​ £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions receivable ​ ​ - Payment services 314 25 ​ 642 43 1,024 - Credit and debit card fees 401 15 ​ 227 18 661 - Lending and financing ​ 17 ​ 8 ​ 673 ​ 3 ​ 701 - Brokerage 43 6 ​ 44 — 93 - Investment management, trustee and fiduciary services (3) ​ 4 219 ​ 46 — 269 - Underwriting fees — — ​ 120 — 120 - Other — 3 ​ 88 (44) 47 Total 779 276 ​ 1,840 20 2,915 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions payable (357) (26) ​ (260) 20 (623) Net fees and commissions 422 250 ​ 1,580 40 2,292 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions receivable ​ ​ - Payment services 306 35 ​ 577 49 967 - Credit and debit card fees 344 10 ​ 149 19 522 - Lending and financing 13 10 ​ 643 4 670 - Brokerage 48 ​ 6 ​ 42 — 96 - Investment management, trustee and fiduciary services (3) 3 230 ​ 45 2 280 - Underwriting fees — ​ — ​ 127 ​ — ​ 127 - Other — 35 ​ 109 (112) 32 Total 714 326 ​ 1,692 (38) 2,694 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions payable (337) (68) ​ (252) 83 (574) Net fees and commissions 377 258 ​ 1,440 45 2,120 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions receivable ​ ​ - Payment services 264 28 ​ 543 41 876 - Credit and debit card fees 299 9 ​ 131 21 460 - Lending and financing 42 7 ​ 625 2 676 - Brokerage 54 6 ​ 94 1 155 - Investment management, trustee and fiduciary services 3 225 ​ 41 2 271 - Underwriting fees — — ​ 183 — 183 - Other 1 26 ​ 89 (33) 83 Total 663 301 ​ 1,706 34 2,704 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions payable (284) (44) ​ (403) 9 (722) Net fees and commissions 379 257 ​ 1,303 43 1,982 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ Assets ​ Liabilities ​ Assets ​ Liabilities ​ Assets ​ Liabilities ​ £m £m £m £m £m £m Retail Banking 226,375 ​ 192,282 ​ 209,973 192,715 ​ 197,618 ​ 178,617 Private Banking 29,867 ​ 41,491 ​ 29,854 39,388 ​ 26,206 ​ 32,457 Commercial & Institutional 404,817 ​ 383,768 ​ 425,718 411,757 ​ 491,544 ​ 460,338 Central items & other 58,994 ​ 66,016 ​ 116,447 96,329 ​ 84,123 ​ 84,255 Total 720,053 ​ 683,557 ​ 781,992 740,189 ​ 799,491 ​ 755,667 ​ 4 Segmental analysis continued Segmental analysis of goodwill ​ The total carrying value of goodwill at 31 December 2022 and 2021 was £5,522 million comprising Retail Banking £2,607 million; Commercial & Institutional £2,906 million; and Private Banking £9 million. See note 17 for further details. 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 2022 £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue 15,795 117 558 104 16,574 Interest receivable 12,242 37 344 14 12,637 Interest payable ​ (2,567) ​ (2) ​ (221) ​ (5) ​ (2,795) Net fees and commissions 1,983 44 207 58 2,292 Trading income 1,208 1 (104) 28 1,133 Other operating income (140) 14 12 3 (111) Total income (4) 12,726 94 238 98 13,156 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating profit/(loss) before tax 5,716 (46) (620) 82 5,132 Total assets 589,758 25,979 101,164 3,152 720,053 Total liabilities 579,476 27,039 75,092 1,950 683,557 Contingent liabilities and commitments 117,915 — 8,649 17 126,581 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue 12,100 87 482 33 12,702 Interest receivable 8,949 20 257 8 9,234 Interest payable ​ (1,483) ​ (2) ​ (211) ​ (3) ​ (1,699) Net fees and commissions 1,820 27 231 42 2,120 Trading income 247 53 (1) 24 323 Other operating income 387 2 62 — 451 Total income (4) 9,920 100 338 71 10,429 Operating profit/(loss) before tax 4,143 48 (387) 40 3,844 Total assets 693,221 21,776 64,415 2,580 781,992 Total liabilities 676,684 23,286 38,835 1,384 740,189 Contingent liabilities and commitments 117,225 1 8,114 27 125,367 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 (1) Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue 12,511 211 551 174 13,447 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest receivable 9,479 — 210 22 9,711 Interest payable ​ (2,163) ​ — ​ (158) ​ (1) ​ (2,322) Net fees and commissions 1,637 33 215 97 1,982 Trading income 911 170 33 11 1,125 Other operating income (117) (22) 42 4 (93) Total income (4) 9,747 181 342 133 10,403 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating (loss)/profit before tax (193) (85) (363) 88 (553) 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 ​ (1) Comparative results have been re-presented from those previously published to reclassify certain operations as discontinued operations as described in Note 8. (2) Total revenue comprises interest receivable, fees and commissions receivable, income from trading activities and other operating income. (3) Comparisons with prior periods are impacted by the transfer of the Private Client Advice business to Private Banking from 1 January 2021. (4) Total income excludes internal service fee income which has been calculated on a cost plus mark-up basis.

Pensions

Pensions	12 Months Ended
	Dec. 31, 2022
Pensions
Pensions	5 Pensions ​ NatWest Group operates two types of pension scheme: defined benefit and defined contribution. The defined contribution schemes invest contributions in a choice of funds and the accumulated contributions and investment returns are used by the employee to provide benefits on retirement, there is no legal or constructive obligation for NatWest Group to pay any further contributions or benefits. The defined benefit schemes provide pensions in retirement based on employees’ pensionable salary and service. NatWest Group’s balance sheet includes any defined benefit pension scheme surplus or deficit as a retirement benefit asset or liability reported in other assets and other liabilities. The surplus or deficit is the difference between the liabilities to be paid from the defined benefit scheme, and the assets held by the scheme to meet these liabilities. The liabilities are calculated by external actuaries using a number of financial and demographic assumptions. For some NatWest Group defined benefit schemes where there is a net defined benefit surplus in excess of the present value of any economic benefits that can be obtained from that surplus, the application of accounting standards means we do not recognise that surplus on the balance sheet. For accounting policy information see Accounting policies note 3.3. Defined contribution schemes NatWest Group sponsors several defined contribution schemes in different territories, which new employees are entitled to join. NatWest Group pays specific contributions into individual investment funds on employees’ behalf. Once those contributions are paid, there is no further liability on the NatWest Group balance sheet relating to the defined contribution scheme. 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 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 defined benefit pension schemes. Investment strategy The assets of the Main section, which is typical of other group schemes, represent 91% of all plan assets at 31 December 2022 (2021 - 90%) and are invested as shown below. The Main section employs physical, derivative and non-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. In particular, movements in interest rate and inflation are substantially hedged by the Trustee. Over the year, increases in bond yields resulted in many pension schemes in the UK having to raise additional collateral to support Liability-driven investments positions held as part of their hedging strategies. Liability-driven investments (LDI) refer to assets that are expected to move broadly in line with liabilities on a specific basis. All of the Group’s schemes affected by this were able to raise the collateral needed from existing assets, with no additional support from the Group. The Trustee of the Group Pension Fund takes a prudent approach to liquidity and collateral and holds sufficient collateral to withstand substantial rises in gilt yields. The level of collateral held by some of the Group’s smaller schemes was increased over the year, so as to ensure they could withstand further large rises in gilt yields if required. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 Major classes of plan assets as a percentage of Quoted Unquoted Total Quoted Unquoted Total total plan assets of the Main section ​ % ​ % ​ % ​ % ​ % ​ % Equities ​ 0.1 ​ 7.7 ​ 7.8 ​ 3.7 ​ 4.7 ​ 8.4 Index linked bonds 37.7 ​ — ​ 37.7 ​ 46.7 ​ — ​ 46.7 Government bonds 18.4 ​ — ​ 18.4 ​ 9.8 ​ — ​ 9.8 Corporate and other bonds 15.3 ​ 6.7 ​ 22.0 ​ 10.7 ​ 4.4 ​ 15.1 Real estate — 6.0 ​ 6.0 ​ — ​ 4.4 ​ 4.4 Derivatives — 8.2 ​ 8.2 ​ — ​ 8.8 ​ 8.8 Cash and other assets ​ — ​ (0.1) ​ (0.1) ​ — ​ 6.8 ​ 6.8 ​ 71.5 ​ 28.5 ​ 100.0 ​ 70.9 ​ 29.1 ​ 100.0 ​ 5 Pensions continued The Main section’s holdings of derivative instruments are summarised in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Notional ​ Fair value ​ Notional ​ Fair value ​ amounts Assets Liabilities amounts Assets Liabilities ​ ​ £bn ​ £m ​ £m ​ £bn ​ £m ​ £m Inflation rate swaps 21 1,873 990 20 1,408 796 Interest rate swaps 103 14,317 12,546 172 8,385 4,421 Currency forwards 12 310 113 12 61 98 Equity and bond call options — — — — 1 — Equity and bond put options — 2 70 — 1 3 Other 1 14 19 1 9 10 ​ Swaps have been executed at prevailing market rates and within standard market bid/offer spreads with a number of counterparties, including NWB Plc. At 31 December 2022, the gross notional value of the swaps was £124 billion (2021 - £192 billion) and had a net positive fair value of £2,642 million (2021 - £4,573 million) against which the counterparties had posted approximately 112% collateral. The schemes do not invest directly in NatWest Group but may have exposure to NatWest Group through indirect holdings. The trustees of the respective UK schemes are responsible for ensuring that indirect investments in NatWest Group do not exceed the regulatory limit of 5% of plan assets. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ assets/ ​ value of ​ benefit ​ minimum ​ assets/ ​ ​ plan assets ​ obligation (1) ​ funding ​ (liability) (2) ​ plan assets ​ obligation (2) ​ funding ​ (liability) (2) Changes in value of net pension assets/(liability) ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m At 1 January 2021 51,323 (43,870) (7,453) — 57,249 (48,864) (7,783) 602 Currency translation and other adjustments ​ — ​ — ​ — ​ — ​ (129) ​ 116 ​ 3 ​ (10) Income statement - operating expenses ​ 713 ​ (767) ​ (105) ​ (159) ​ 795 ​ (901) ​ (109) ​ (215) Other comprehensive income ​ 841 ​ 1,056 ​ (2,443) ​ (546) ​ 872 ​ 1,061 ​ (2,602) ​ (669) Contributions by employer ​ 705 ​ — ​ — ​ 705 ​ 780 ​ — ​ — ​ 780 Contributions by plan participants and other scheme members ​ 8 ​ (8) ​ — ​ — ​ 13 ​ (13) ​ — ​ — Assets/liabilities extinguished upon settlement ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Benefits paid ​ (1,569) ​ 1,569 ​ — ​ — ​ (1,793) ​ 1,793 ​ — ​ — At 1 January 2022 ​ 52,021 ​ (42,020) ​ (10,001) ​ — ​ 57,787 ​ (46,808) ​ (10,491) ​ 488 Currency translation and other adjustments ​ — ​ — ​ — ​ — ​ 78 ​ (65) ​ (11) ​ 2 Income statement - operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest expense ​ 932 ​ (744) ​ (180) ​ 8 ​ 1,041 ​ (834) ​ (191) ​ 16 Current service cost ​ — ​ (143) ​ — ​ (143) ​ — ​ (194) ​ — ​ (194) Past service cost ​ — ​ (5) ​ — ​ (5) ​ — ​ (6) ​ — ​ (6) Loss on curtailments and settlements ​ — ​ — ​ — ​ — ​ — ​ (21) ​ — ​ (21) ​ ​ 932 ​ (892) ​ (180) ​ (140) ​ 1,041 ​ (1,055) ​ (191) ​ (205) Other comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on plan assets excluding recognised interest income (3) ​ (18,180) ​ — ​ — ​ (18,180) ​ (20,326) ​ — ​ — ​ (20,326) Experience gains and losses ​ — ​ (2,053) ​ — ​ (2,053) ​ — ​ (2,137) ​ — ​ (2,137) Effect of changes in actuarial financial assumptions (3) ​ — ​ 18,744 ​ — ​ 18,744 ​ — ​ 20,714 ​ — ​ 20,714 Effect of changes in actuarial demographic assumptions ​ — ​ 23 ​ — ​ 23 ​ — ​ (7) ​ — ​ (7) Asset ceiling adjustments ​ — ​ — ​ 898 ​ 898 ​ — ​ — ​ 916 ​ 916 ​ ​ (18,180) ​ 16,714 ​ 898 ​ (568) ​ (20,326) ​ 18,570 ​ 916 ​ (840) Contributions by employer ​ 708 ​ — ​ — ​ 708 ​ 775 ​ — ​ — ​ 775 Contributions by plan participants and other scheme members ​ 7 ​ (7) ​ — ​ — ​ 13 ​ (13) ​ — ​ — Assets/liabilities extinguished upon settlement ​ — ​ — ​ — ​ — ​ (113) ​ 113 ​ — ​ — Benefits paid ​ (1,472) ​ 1,472 ​ — ​ — ​ (1,657) ​ 1,657 ​ — ​ — At 31 December 2022 ​ 34,016 ​ (24,733) ​ (9,283) ​ — ​ 37,598 ​ (27,601) ​ (9,777) ​ 220 ​ (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 as the trustees may have control over the use of the surplus. Other NatWest Group schemes that this applies to include the Ulster Bank Pension Scheme (NI) and the NatWest Markets section. (3) Changes in market conditions during 2022 resulted in a particularly large increase in discount rate, which is the key driver of the effect of changes in actuarial financial assumptions. Given the level of hedging in place, there was a corresponding reduction in the value of plan assets over the period. The experience losses shown are mainly as a result of inflation over the year being higher than expected. (4) NatWest Group expects to make contributions to the Main section of £196 million in 2023. In 2022 NatWest Group made contributions of £ 708 m to the Main scheme, including a £ 500 m contribution paid in two instalments in January and March 2022 as required by the ring-fencing agreement with the Trustee. Such contributions do not constitute a minimum funding requirement as the obligation to pay only arises on the payment of a distribution to shareholders. ​ 5 Pensions continued ​ ​ ​ ​ ​ ​ ​ ​ All schemes ​ 2022 2021 Amounts recognised on the balance sheet ​ £m ​ £m Fund asset at fair value 37,598 57,787 Present value of fund liabilities (27,601) (46,808) Funded status 9,997 10,979 Assets ceiling/minimum funding (9,777) (10,491) ​ 220 488 ​ ​ ​ ​ ​ ​ ​ 2022 2021 Net pension assets/(liability) comprises ​ £m ​ £m Net assets of schemes in surplus (included in Other assets, Note 18) 318 602 Net liabilities of schemes in deficit (included in Other liabilities, Note 21) (98) (114) ​ 220 488 ​ 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 to determine future contribution requirements. 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 NatWest Group sponsors defined benefit pension schemes. A full triennial funding valuation of the Main section, effective 31 December 2020, was completed during financial year 2021. This triennial funding valuation determined the funding level to be 104%, pension liabilities to be £49 billion and the surplus to be £2 billion, all assessed on the agreed funding basis. The average cost of the future service of current members is 49% of salary before contributions from those members. In addition, the sponsor has agreed to meet administrative expenses. Following the ring-fencing agreement with the Trustee reached in 2018, additional contributions of up to £500 million p.a. are payable to the Main section should the Group make distributions to shareholders of an equal amount. These contributions are capped at £1.5 billion in total; £500 million was paid in 2022 (2021 – £500 million). The remaining distribution linked contribution to the Main section would have fallen due in 2023, but NatWest Bank has agreed with the Trustee that assets to the value of the contributions falling due will instead be paid to a new legal structure. These assets will be restricted and are reserved to ensure they are available should they be needed by the Trustee according to agreed criteria in the future. The assets under this arrangement would be available to the Group to the extent that they are not needed under the defined trigger events. The key assumptions used to determine the funding liabilities were the discount rate, which is determined based on fixed interest swap and gilt yields plus 0.64% per annum, and mortality assumptions, which result in life expectancies of 27.7 / 29.4 years for males/females who are currently age 60 and 28.9 / 30.7 years from age 60 for males/females who are currently aged 40. The 2020 triennial valuation of the Group Pension Fund included an allowance for the estimated impact of guaranteed minimum pension equalisation, which is reflected in the IAS 19 valuation at 31 December 2022. Accounting 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 (1) ​ ​ 2022 2021 ​ ​ % ​ % ​ Discount rate 5.0 1.8 Inflation assumption (RPI) 3.2 3.3 Rate of increase in salaries 1.8 1.8 Rate of increase in deferred pensions 3.2 3.7 Rate of increase in pensions in payment 2.5 2.5 Lump sum conversion rate at retirement 18 18 Longevity at age 60: years years Current pensioners ​ ​ ​ ​ ​ Males 27.3 27.3 Females 29.1 29.0 Future pensioners, currently aged 40 ​ ​ Males 28.3 28.2 Females 30.1 30.1 ​ (1) The above financial assumptions are long term assumptions set with reference to the period over which the obligations are expected to be settled 5 Pensions continued 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. Significant judgment 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. Judgment 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 weighted average duration of the Main section's defined benefit obligation at 31 December 2022 is 15.3 years ​ The larger outflow in 2023 represents an assumption in the actuarial valuation of the level of transfers out to 31 December 2023. ​ 5 Pensions continued 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 2022 ​ £m ​ £m ​ £m 0.25% increase in interest rates/discount rate (2) ​ (1,389) ​ (907) ​ (482) 0.25% increase in inflation ​ 963 ​ 632 ​ 331 0.25% increase in credit spreads ​ (3) ​ (907) ​ 904 Longevity increase of one year ​ — ​ 767 ​ (767) 0.25% additional rate of increase in pensions in payment ​ — ​ 679 ​ (679) Increase in equity values of 10% (1) ​ 267 ​ — ​ 267 2021 ​ ​ ​ ​ ​ ​ 0.25% increase in interest rates/discount rate (2,917) ​ (1,926) ​ (991) 0.25% increase in inflation 1,883 ​ 1,329 ​ 554 0.25% increase in credit spreads (3) ​ (1,926) ​ 1,923 Longevity increase of one year ​ — ​ 1,790 ​ (1,790) 0.25% additional rate of increase in pensions in payment ​ — ​ 1,485 ​ (1,485) Increase in equity values of 10% (1) 442 ​ — ​ 442 ​ (1) Includes both quoted and private equity. (2) A 0.5% increase in interest rates/discount rate would lead to a decrease of £ 2,689 m in the value of assets and a £ 1,766 m decrease in the value of liabilities at 31 December 2022. The funded status is most sensitive to movements in credit spreads and longevity. Note the longevity sensitivities quoted above reflect the impact of a one year increase to single life annuities. 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 2022 £bn £bn £bn £bn £bn Change in credit spreads +50 bps 3.2 2.5 1.8 1.1 0.4 ​ No change 1.6 0.8 — (0.8) (1.5) ​ -50 bps (0.3) (1.2) (2.0) (2.8) (3.6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ Change in credit spreads +50 bps 6.9 5.3 3.8 2.3 0.8 ​ No change 3.6 1.8 — (1.8) (3.6) ​ -50 bps (0.3) (2.4) (4.5) (6.6) (8.7) ​ The defined benefit obligation of the Main section is attributable to the different classes of scheme members in the following proportions: ​ ​ ​ ​ ​ ​ ​ 2022 2021 Membership category ​ % ​ % Active members 8.4 10.7 Deferred members 41.0 47.6 Pensioners and dependants 50.6 41.7 ​ 100.0 100.0 ​ The experience history of NatWest Group schemes is shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Main section ​ All schemes ​ 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 History of defined benefit schemes ​ £m £m £m £m £m £m £m £m £m £m Fair value of plan assets ​ 34,016 52,021 51,323 46,555 43,806 37,598 57,787 57,249 51,925 48,752 Present value of plan obligations ​ (24,733) (42,020) (43,870) (39,669) (35,466) (27,601) (46,808) (48,864) (44,115) (39,607) Net surplus ​ 9,283 10,001 7,453 6,886 8,340 9,997 10,979 8,385 7,810 9,145 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Experience (losses)/gains on plan liabilities ​ (2,053) 241 427 275 (122) (2,137) 237 455 279 (81) Experience (losses)/gains on plan assets ​ (18,180) 841 5,486 3,021 (1,891) (20,326) 872 6,027 3,556 (2,090) Actual return on plan assets ​ (17,248) 1,554 6,422 4,266 (768) (19,285) 1,667 7,064 4,930 (848) Actual return on plan assets ​ (33.2) % 3.0 % 13.8 % 9.7 % (1.7) % (33.4) % 2.9 % 13.6 % 10.1 % (1.7) % ​

Auditor's remuneration

Auditor's remuneration	12 Months Ended
	Dec. 31, 2022
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. ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m £m Fees payable for : ​ ​ ​ ​ ​ ​ - the audit of NatWest Group’s annual accounts (1) 4.7 4.4 4.7 - the audit of NatWest Group plc’s subsidiaries (1) 31.9 29.6 30.6 - audit-related assurance services (1,2) 3.9 5.3 4.7 Total audit and audit-related assurance services fees 40.5 39.3 40.0 ​ ​ ​ ​ ​ ​ ​ Other assurance services 1.2 0.4 0.6 Corporate finance services (3) 0.5 0.5 0.4 Total other services 1.7 0.9 1.0 ​ (1) The 2022 audit fee was approved by the Group Audit Committee. At 31 December 2022, £16 million has been billed and £13 million paid in respect of the 2022 NatWest Group audit fees. (2) Comprises fees of £1.1 million (2021 - £1.1 million) in relation to reviews of interim financial information, £2.3 million (2021 - £3.5 million) in respect of reports to NatWest Group’s regulators in the UK and overseas, and £0.4 million (2021 - £0.7 million) in relation to non-statutory audit opinions. (3) Comprises fees of £0.5 million (2021 - £0.5 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
	Dec. 31, 2022
Tax
Tax	7 Tax NatWest Group’s corporate income tax charge for the period is set out below, together with a reconciliation to the expected tax charge calculated using the UK standard corporation tax rate and details of the NatWest Group’s deferred tax balances. For accounting policy information see Accounting policies note 3.7. Analysis of the tax charge for the year The tax charge comprises current and deferred tax in respect of profits and losses recognised or originating in the income statement. Tax on items originating outside the income statement is charged to other comprehensive income or direct to equity (as appropriate) and is therefore not reflected in the table below. Current tax is tax payable or recoverable in respect of the taxable profit or loss for the year and any adjustments to tax payable in prior years. Deferred tax is explained on page 56. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 Continuing operations £m £m £m Current tax ​ ​ Charge for the year (1,611) ​ (1,036) ​ (191) Over provision in respect of prior years 100 ​ 31 ​ 86 ​ (1,511) ​ (1,005) ​ (105) Deferred tax ​ ​ ​ ​ ​ Credit/(charge)for the year 47 ​ (185) ​ 176 UK tax rate change impact (1) (10) ​ 165 ​ 75 Net increase/(decrease) in the carrying value of deferred tax assets in respect of UK, RoI and Netherlands losses ​ 267 ​ 12 ​ (130) (Under)/over provision in respect of prior years (2) (68) ​ 17 ​ (90) Tax charge for the year (1,275) ​ (996) ​ (74) ​ (1) It was announced in the UK Government’s budget on 27 October 2021 that the main UK banking surcharge will decrease from 8% to 3% from 1 April 2023. This legislative change was enacted on 24 February 2022. (2) Prior year tax adjustments incorporate refinements to tax computations made on submission and agreement with the tax authorities and adjustments to provisions in respect of uncertain tax positions. ​ ​ 7 Tax continued Factors affecting the tax charge for the year Taxable profits differ from profits reported in the income statement as certain amounts of income and expense may not be taxable or deductible. In addition, taxable profits may reflect items that have been included outside the income statement (for instance, in other comprehensive income) or adjustments that are made for tax purposes only. The expected tax charge for the year is calculated by applying the standard UK corporation tax rate of 19% (2021 and 2020 – 19%) to the Operating profit or loss before tax in the income statement. The actual tax charge differs from the expected tax charge as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Continuing operations ​ £m ​ £m ​ £m Expected tax (charge)/credit (975) ​ (766) ​ 92 Losses and temporary differences in year where no deferred tax asset recognised (118) ​ (51) ​ (43) Foreign profits taxed at other rates (62) ​ (11) ​ (29) Non deductible goodwill impairment — ​ (16) ​ — Items not allowed for tax: ​ ​ ​ ​ ​ ​ - losses on disposals and write-downs (10) ​ (55) ​ (22) - UK bank levy (20) ​ (18) ​ (32) - regulatory and legal actions (7) ​ (74) ​ 14 - other disallowable items (51) ​ (28) ​ (70) Non-taxable items: ​ ​ ​ ​ ​ - RPI related uplift on index linked gilts (1) ​ 67 ​ — ​ — - other non-taxable items ​ 29 ​ 73 ​ 28 Taxable foreign exchange movements (19) ​ 8 ​ (3) Unrecognised losses brought forward and utilised 6 ​ 10 ​ 16 Net increase/(decrease) in the carrying value of deferred tax assets in respect of: ​ ​ ​ ​ ​ - UK losses ​ 272 ​ (9) ​ 7 - RoI losses ​ (5) ​ (27) ​ (137) - Netherlands losses ​ — ​ 48 ​ — Banking surcharge (447) ​ (341) ​ (27) Tax on paid-in equity dividends ​ 43 ​ 48 ​ 61 UK tax rate change impact (10) ​ 165 ​ 75 Adjustments in respect of prior years ​ 32 ​ 48 ​ (4) Actual tax charge (1,275) ​ (996) ​ (74) ​ (1) Judgment: tax contingencies NatWest Group’s corporate income tax charge and its provisions for corporate income taxes necessarily involve a degree of estimation and judgment. 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 Deferred tax is the tax expected to be payable or recoverable in respect of temporary differences where the carrying amount of an asset or liability differs for accounting and tax purposes. Deferred tax liabilities reflect the expected amount of tax payable in the future on these temporary differences. Deferred tax assets reflect the expected amount of tax recoverable in the future on these differences. The net deferred tax asset recognised by the NatWest Group is shown below, together with details of the accounting judgments and tax rates that have been used to calculate the deferred tax. Details are also provided of any deferred tax assets or liabilities that have not been recognised on the balance sheet. Analysis of deferred tax ​ ​ ​ ​ ​ ​ ​ £m £m Deferred tax asset (2,178) (1,195) Deferred tax liability 227 359 Net deferred tax asset (1,951) (836) ​ 7 Tax continued ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accelerated ​ ​ ​ ​ ​ Tax losses ​ ​ ​ ​ ​ ​ ​ ​ capital ​ Expense ​ Financial ​ carried ​ ​ ​ ​ ​ ​ Pension ​ allowances ​ provisions ​ instruments (1) ​ forward ​ Other ​ Total ​ £m £m £m £m £m £m £m At 1 January 2021 (4) (64) (85) 480 (905) (32) (610) Charge/(credit) to income statement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ - continuing operations ​ 19 21 (5) (10) (1) (33) (9) - discontinued operations ​ — ​ — ​ — ​ — ​ 3 ​ — ​ 3 Charge/(credit) to other comprehensive income 10 — (7) (222) — (5) (224) Currency translation and other adjustments (1) 1 — — 4 — 4 At 1 January 2022 24 (42) (97) 248 (899) (70) (836) Charge/(credit) to income statement: ​ ​ ​ ​ ​ ​ ​ - continuing operations ​ 1 ​ (43) ​ 14 ​ (171) ​ (51) ​ 14 ​ (236) - discontinued operations ​ — ​ — ​ — ​ — ​ — ​ — ​ — (Credit)/charge to other comprehensive income (2) — 1 (913) — (2) (916) Currency translation and other adjustments — 10 — 31 (2) (2) 37 At 31 December 2022 23 (75) (82) (805) (952) (60) (1,951) ​ (1) The in-year movement predominantly relates to cash flow hedges. 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. ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m UK tax losses carried forward ​ ​ ​ ​ - NWM Plc 3 56 - NWB Plc 445 608 - RBS plc 452 176 Total 900 840 Overseas tax losses carried forward ​ ​ ​ ​ - UBIDAC ​ 6 ​ 11 - NWM N.V. 46 48 ​ 952 899 ​ Critical accounting policy: Deferred tax NatWest Group has recognised a deferred tax asset of £2,178 million (2021 - £1,195 million) and a deferred tax liability of £227 million (2021 - £359 million). These include amounts recognised in respect of UK and overseas tax losses of £952 million (2021 - £899 million). It was announced in the UK Government’s budget on 27 October 2021 that the UK banking surcharge will decrease from 8% to 3% from 1 April 2023. This legislative change was enacted on 24 February 2022. NatWest Group’s closing deferred tax assets and liabilities have therefore been recalculated taking into account this change of rate and the applicable period the deferred tax assets and liabilities are expected to crystallise. Judgment – Estimate – 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 rate introduced by The Finance (No. 2) Act 2015. ​ 7 Tax continued NWM Plc - NWB Plc – RBS plc – Overseas tax losses UBIDAC – NatWest Market N.V. (NWM N.V.) - Unrecognised deferred tax Deferred tax assets of £5,534 million (2021 - £5,437 million; 2020 - £4,965 million) have not been recognised in respect of tax losses and other deductible temporary differences carried forward of £25,742 million (2021 - £24,699 million; 2020 - £25,091 million) in jurisdictions where doubt exists over the availability of future taxable profits. Of these losses and other deductible temporary differences, £75 million expire within five years and £4,774 million thereafter. The balance of tax losses and other deductible temporary differences carried forward has no expiry date. Deferred tax liabilities of £257 million (2021 - £302 million; 2020 - £242 million) on aggregate underlying temporary differences of £1,010 million (2021 - £1,032 million; 2020 £1,021 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.

Discontinued operations and ass

Discontinued operations and assets and liabilities of disposal groups	12 Months Ended
	Dec. 31, 2022
Discontinued operations and assets and liabilities of disposal groups
Discontinued operations and assets and liabilities of disposal groups	8 Discontinued operations and assets and liabilities of disposal groups Discontinued operations are reported separately on the income statement to allow users to distinguish the profits and cash flows from continuing operations from those activities that are subject to disposal. Assets and liabilities which we intend to dispose of in a single transaction are also presented separately on the balance sheet. For accounting policy information see Accounting policies note 3.2. This note sets out the profit/(loss) from the discontinued operations (represented for comparative periods), the assets and liabilities of the disposal group and the operating cash flows attributable to the discontinued operations. Three legally binding agreements for the sale of UBIDAC business have been announced as part of the phased withdrawal from the Republic of Ireland. Material developments since the beginning of 2022 are set out below. Agreement with Allied Irish Banks, p.l.c. (AIB) for the transfer of performing commercial loans . Successful migration of six tranches of performing commercial loans to AIB was completed during 2022, with €2.1 billion of gross performing loans being fully migrated by year-end. It is expected that remaining migrations of commercial customers will be materially completed in phases over H1 2023. Colleagues who are wholly or mainly assigned to supporting this part of the business are in the process of getting transferred to AIB under Transfer of Undertakings, Protection of Employment (TUPE) arrangements, with more than half having completed their move by the end of 2022. Losses on disposal of €123 million have been recognised in 2022 in respect of the migrations completed to date. Agreement with Permanent TSB Group Holdings p.l.c. (PTSB) for the sale of performing non-tracker mortgages, the performing loans in the micro-SME business, the UBIDAC Asset Finance business, including its Lombard digital platform, and 25 Ulster Bank branch locations in the Republic of Ireland. c.€5 billion of performing non-tracker mortgages migrated to PTSB in November 2022, with the remaining balances expected to migrate during H1 2023. In January 2023, 25 branches transferred to PTSB. The remaining performing non-tracker mortgages, micro-SME loans, Lombard Asset Finance business and all remaining eligible colleagues who will move under TUPE regulations, are also expected to transfer in 2023. Agreement with AIB for the sale of performing tracker and linked mortgages. In January 2023 the Competition and Consumer Protection Commission (CCPC) granted approval on the portfolio sale of performing tracker and linked mortgages to AIB. Completion of this sale is expected to occur in Q2 2023. The business activities relating to these sales that meet the requirements of IFRS 5 are presented as a discontinued operation and as a disposal group. Comparatives have been re-presented from those previously published to reclassify certain items as discontinued operations. This has resulted in a re-presentation of 2021 comparatives: a reduction of Operating profit before tax and Profit from continuing operations of £188 million, and an increase of Profit from discontinued operations of £188 million. Total profit for the year remains unchanged. Ulster Bank RoI continuing operations are now reported within Group central items & other. In 2022 we reclassified mortgage loans to fair value through profit or loss, which resulted in a €453 million reduction in mortgage financial assets in UBIDAC to 31 December 2022. This reclassification applies across both our continuing and discontinued operations. (a) (Loss)/profit from discontinued operations, net of tax ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m ​ ​ ​ ​ ​ ​ Interest receivable ​ 177 ​ 339 ​ 360 Net interest income ​ 177 ​ 339 ​ 360 Non-interest income(1) ​ (472) ​ 13 ​ 33 Total income ​ (295) ​ 352 ​ 393 Operating expenses ​ (38) ​ (47) ​ (47) (Loss)/profit before impairment releases/(losses) ​ (333) ​ 305 ​ 346 Impairment releases/(losses) ​ 71 ​ 162 ​ (144) Operating (loss)/profit before tax ​ (262) ​ 467 ​ 202 Tax charge ​ — ​ (3) ​ (9) (Loss)/profit from discontinued operations, net of tax ​ (262) ​ 464 ​ 193 ​ (1) Excludes gain of £ 20 million (€ 24 million) recognised by NatWest Group as a result of acquisition of PTSB shares in relation to disposal of UBIDAC assets to PTSB. ​ 8 Discontinued operations and assets and liabilities of disposal groups continued (b) Assets and liabilities of disposal groups ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Assets of disposal groups ​ Loans to customers - amortised cost 1,458 9,002 Other financial assets - loans to customers ​ 5,397 ​ — Derivatives — 5 Other assets 6 8 ​ ​ 6,861 ​ 9,015 Liabilities of disposal groups ​ ​ Other liabilities 15 5 ​ 15 5 ​ ​ ​ ​ ​ Net assets of disposal groups 6,846 9,010 ​ (c) Operating cash flows attributable to discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ £m £m £m Net cash flows from operating activities 1,090 2,212 (816) Net cash flows from investing activities 6,164 — — Net increase/(decrease) in cash and cash equivalents 7,254 2,212 (816) ​

Earnings per share

Earnings per share	12 Months Ended
	Dec. 31, 2022
Earnings per share
Earnings per share	9 Earnings per share Earnings per share is a metric to measure how much profit NatWest Group makes for each share that is in issue during the year. Basic earnings per ordinary share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding. Diluted earnings per ordinary share is calculated by dividing the basic earnings by the weighted average number of ordinary shares outstanding plus the weighted average number of ordinary shares that would be issued on conversion of dilutive share options and convertible securities. The assessment of whether the effect of share options and convertible securities is dilutive or not, is based on the earnings from continuing operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m Earnings Profit/(loss) from continuing operations attributable to ordinary shareholders 3,602 2,486 (946) (Loss)/profit from discontinued operations attributable to ordinary shareholders (262) 464 193 Profit/(loss) attributable to ordinary shareholders 3,340 2,950 (753) Weighted average number of shares (millions) Weighted average number of ordinary shares outstanding during the year 9,872 10,792 11,231 Effect of dilutive share options and convertible securities(1) 57 45 — Diluted weighted average number of ordinary shares outstanding during the year 9,929 10,837 11,231 ​ (1) As there was a loss from continuing operations attributable to the parent company for the period to 31 December 2020, the effect of share options and convertible securities was not dilutive. (2) At the General Meeting and Class Meeting on 25 August 2022, the shareholders approved the proposed special dividend and share consolidation. On 30 August 2022 the issued ordinary share capital was consolidated in the ratio of 14 existing shares for 13 new shares. The average number of shares and earnings per share have been adjusted retrospectively.

Financial instruments - classif

Financial instruments - classification	12 Months Ended
	Dec. 31, 2022
Financial instruments - classification
Financial instruments - classification	10 Financial instruments – classification Financial instruments are contracts that give rise to a financial asset of one entity and a corresponding financial liability or equity instrument of a counterparty entity, such as: cash; derivatives; loans; deposits; and settlement balances. This note presents financial instruments classified in accordance with IFRS 9 – Financial Instruments. ​ Judgment: classification of financial assets Classification of financial assets between amortised cost and fair value through other comprehensive income requires a degree of judgment 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 solely payments of principal and interest. A level of judgment is made in assessing terms that could change the contractual cash flows so that it would not meet the condition for solely payments of principal and interest, including contingent and leverage features, non-recourse arrangements and features that could modify the time value of money. We originate loans that include features that change the contractual cash flows based on the borrower meeting certain contractually specified environmental, social and governance (ESG) targets. These are known as ESG-linked (or sustainability-linked) loans. As part of the terms of these loans, the contractual interest rate is reduced or increased if the borrower meets (fails to meet) specific targets linked to the activity of the borrower for example reducing carbon emissions, increase the level of diversity at Board level, sustainable supply chain, etc. ESG features are first assessed to ascertain whether the adjustment to the contractual cash flows results in a de minimis exposure to risks or volatility in those contractual cash flows. If this is the case the classification of the loan is not affected. If the effect of the ESG feature is assessed as being more than de minimis, we apply judgement to ensure that the ESG features do not generate compensation for risks that are not in line with a basic lending arrangement. This includes amongst other aspects a review of the consistency of the ESG targets with the asset or activity of the borrower, consideration of the targets within our risk appetite etc. Some of these loans are an integral part of our climate and sustainable funding and financing target. For accounting policy information see Accounting policies notes 3.8, 3.9, 3.10 and 3.12. ​ 10 Financial instruments – classification continued Judgment: classification of financial assets The following tables analyse financial assets and liabilities in accordance with the categories of financial instruments in IFRS 9. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortised ​ Other ​ ​ ​ MFVTPL ​ FVOCI ​ cost ​ assets Total Assets £m £m £m £m £m Cash and balances at central banks — — 144,832 — ​ 144,832 Trading assets ​ 45,577 ​ — ​ — ​ — ​ 45,577 Derivatives (1) ​ 99,545 ​ — ​ — ​ — ​ 99,545 Settlement balances — ​ — ​ 2,572 ​ — ​ 2,572 Loans to bank - amortised cost (2) — — 7,139 — ​ 7,139 Loans to customers - amortised cost (3) — — 366,340 — ​ 366,340 Other financial assets (4) 787 ​ 16,973 13,135 — ​ 30,895 Intangible assets ​ — ​ — ​ — ​ 7,116 ​ 7,116 Other assets — ​ — ​ — 9,176 ​ 9,176 Assets of disposal groups (5) ​ — ​ — ​ — ​ 6,861 ​ 6,861 31 December 2022 145,909 16,973 534,018 23,153 720,053 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and balances at central banks ​ ​ ​ ​ 177,757 ​ ​ 177,757 Trading assets ​ 59,158 ​ ​ ​ ​ ​ 59,158 Derivatives (1) ​ 106,139 ​ ​ ​ ​ ​ 106,139 Settlement balances ​ ​ ​ ​ 2,141 ​ ​ 2,141 Loans to bank - amortised cost (2) ​ ​ ​ ​ 7,682 ​ ​ 7,682 Loans to customers - amortised cost (3) ​ ​ ​ 358,990 ​ ​ 358,990 Other financial assets 317 37,266 ​ 8,562 ​ ​ 46,145 Intangible assets ​ ​ ​ ​ ​ ​ ​ 6,723 ​ 6,723 Other assets ​ ​ ​ ​ ​ ​ 8,242 ​ 8,242 Assets of disposal groups ​ ​ ​ ​ ​ ​ ​ 9,015 ​ 9,015 31 December 2021 165,614 37,266 ​ 555,132 23,980 ​ 781,992 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held-for- ​ ​ ​ Amortised ​ Other ​ ​ ​ trading DFV cost liabilities Total Liabilities £m ​ £m ​ £m ​ £m ​ £m Bank deposits (6) — — ​ 20,441 — 20,441 Customer deposits — — ​ 450,318 — 450,318 Settlement balances — — ​ 2,012 — 2,012 Trading liabilities ​ 52,808 ​ — ​ — ​ — ​ 52,808 Derivatives (1) 94,047 — ​ — — 94,047 Other financial liabilities (7) — 2,377 ​ 46,730 — 49,107 Subordinated liabilities — 345 ​ 5,915 — 6,260 Notes in circulation ​ — ​ — ​ 3,218 ​ — ​ 3,218 Other liabilities (8) — — ​ 1,205 4,141 5,346 31 December 2022 146,855 2,722 ​ 529,839 4,141 683,557 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits (6) ​ ​ ​ 26,279 ​ 26,279 Customer deposits ​ ​ ​ 479,810 ​ 479,810 Settlement balances ​ ​ ​ 2,068 ​ 2,068 Trading liabilities 64,598 ​ ​ — ​ 64,598 Derivatives (1) 100,835 ​ ​ — ​ 100,835 Other financial liabilities (7) ​ 1,671 ​ 47,655 ​ 49,326 Subordinated liabilities ​ 703 ​ 7,726 ​ 8,429 Notes in circulation ​ ​ ​ ​ ​ 3,047 ​ ​ ​ 3,047 Other liabilities (8) ​ ​ ​ 1,356 4,441 5,797 31 December 2021 165,433 2,374 ​ 567,941 4,441 740,189 ​ (1) Includes net hedging derivatives assets of £ 143 million (2021 - £44 million) and net hedging derivatives liabilities of £ 132 million (2021 - £120 million). (2) Includes items in the course of collection from other banks of £229 million (2021 - £67 million). (3) Includes finance lease receivables of £8,402 million (2021 - £8,531 million). (4) Includes amounts reclassified from amortised cost to FVTPL in relation to a mortgage portfolio. Refer to Note 8 for further information. (5) Includes £ 5,397 million of assets of disposal groups reclassified from amortised cost to FVTPL during the year. The portfolio is classified as level 3 in the fair value hierarchy. (6) Includes items in the course of transmission to other banks of £242 million (2021 - £56 million). (7) The carrying amount of other customer accounts designated 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. (8) Includes lease liabilities of £1,118 million (2021 - £1,263 million) held at amortised cost. ​ ​ 10 Financial instruments – classification continued Reclassification of mortgages from amortised cost to fair value through profit or loss In June 2022 UBIDAC announced the cessation of new mortgage business to its customers. On 1 July 2022 UBIDAC mortgages in both its continuing and discontinued businesses were reclassified from amortised cost to fair value through profit or loss, reflecting the change in business model. We fair value these assets using a discounted cash flow method. Key inputs include assumptions around cash flows from legally binding sales agreements for those mortgage assets that form part of the assets of disposal groups. The effect of the reclassification as at 1 July 2022 is shown below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortised cost MFVTPL Change in value ​ ​ £m ​ £m ​ £m Amounts reclassified on balance sheet Loans to customers (1) 587 606 19 Assets of disposal groups (2) 10,676 10,383 (293) ​ 11,263 10,989 (274) ​ (1) (2) Additional information on finance lease receivables The following table shows the reconciliation of undiscounted finance lease receivables to net investment in finance leases: ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Amount receivable under finance leases ​ ​ Within 1 year ​ 3,235 ​ 3,272 1 to 2 years ​ 2,254 ​ 2,044 2 to 3 years ​ 1,388 ​ 1,443 3 to 4 years ​ 833 ​ 757 4 to 5 years ​ 411 ​ 429 After 5 years ​ 1,130 ​ 1,423 Lease payments total ​ 9,251 ​ 9,368 Unguaranteed residual values ​ 171 ​ 225 Future drawdowns ​ (13) ​ (21) Unearned income ​ (889) ​ (891) Present value of lease payments ​ 8,520 ​ 8,681 Impairments ​ (118) ​ (150) Net investment in finance leases ​ 8,402 ​ 8,531 ​ Additional information on reverse repos and repos The following table shows the value of reverse repos and repos included within the below balance sheet captions: ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Reverse repos Trading assets ​ 21,537 ​ 20,742 Loans to banks - amortised cost 277 189 Loans to customers - amortised cost 19,750 25,962 ​ Repos Bank deposits 1,446 7,912 Customer deposits 9,829 14,541 Trading liabilities 23,740 ​ 19,389 ​ Interest rate benchmark reform NatWest Group continues to work on the transition of USD IBOR exposures to risk free rates in advance of the cessation date of 30 June 2023. Derivatives are expected to transition during April and May 2023 and other exposures in line with fallback provisions or deferred switches using widely accepted methodologies. The instruments yet to transition reflect an insignificant element of NatWest Group’s exposures. Instruments with exposures to other rates transitioned at the end of 2021, or at the first contractual reset date, or at a date agreed with the counterparty. 10 Financial instruments – classification continued The level of exposures without explicit or agreed conversion provisions as of the preceding year were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rates subject to IBOR reform ​ ​ GBP LIBOR ​ USD IBOR ​ Other IBOR ​ Total 2021 £m £m £m £m Trading assets 62 90 — 152 Loans to banks - amortised cost — 11 — 11 Loans to customers - amortised cost 4,788 4,565 267 9,620 Other financial assets 864 768 — 1,632 ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits — 37 — 37 Trading liabilities 31 166 — 197 Other financial liabilities 2,390 7,023 131 9,544 Subordinated liabilities — 90 — 90 ​ ​ ​ ​ ​ ​ ​ ​ ​ Loan commitments (1) 1,016 6,366 ​ 55 7,437 ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives notional (£bn) 4 1,152 — 1,156 ​ (1) 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. At 31 December 2021, NatWest Group held certain currency swaps with both legs subject to IBOR reform, for which only the GBP LIBOR leg has an explicit or agreed conversion provisions as of 31 December 2021, but not the entire contract. These include currency swaps of GBP LIBOR of £8.7 billion with USD IBOR £8.2 billion and Other IBOR £0.5 billion; currency swaps of USD IBOR of £117 billion with GBP LIBOR £91.7 billion and Other IBOR £25.3 billion; currency swaps of EURIBOR of £0.1 billion with GBP LIBOR £0.1 billion; currency swaps of Other IBOR of £0.4 billion with USD IBOR £0.4 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: ​ ​ ​ ​ ​ ​ 31 December ​ ​ 2021 ​ £m US$1.15 billion 8% notes ​ 734 ​ 10 Financial instruments – classification continued Financial instruments – financial assets and liabilities that can be offset 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ master ​ ​ ​ ​ ​ after the effect ​ Instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ netting ​ ​ ​ ​ ​ of netting ​ outside ​ ​ ​ ​ ​ ​ IFRS ​ Balance ​ and similar ​ Cash ​ Securities ​ agreements and ​ netting ​ Balance ​ ​ Gross ​ offset ​ sheet ​ agreements ​ collateral ​ collateral ​ related collateral ​ agreements ​ sheet total 2022 £m £m £m £m £m £m £m £m £m Derivative assets 117,606 ​ (18,730) ​ 98,876 ​ (77,365) ​ (14,079) ​ (4,571) ​ 2,861 ​ 669 ​ 99,545 Derivative liabilities 115,177 ​ (22,111) ​ 93,066 ​ (77,365) ​ (9,761) ​ (1,185) ​ 4,755 ​ 981 ​ 94,047 Net position (1) 2,429 ​ 3,381 ​ 5,810 ​ — ​ (4,318) ​ (3,386) ​ (1,894) ​ (312) ​ 5,498 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trading reverse repos 35,612 ​ (14,510) ​ 21,102 ​ (2,445) ​ — ​ (18,458) ​ 199 ​ 435 ​ 21,537 Trading repos 33,767 ​ (14,510) ​ 19,257 ​ (2,445) ​ — ​ (16,812) ​ — ​ 4,483 ​ 23,740 Net position 1,845 ​ — ​ 1,845 ​ — ​ — ​ (1,646) ​ 199 ​ (4,048) ​ (2,203) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non trading reverse repos 25,630 ​ (5,702) ​ 19,928 ​ — ​ — ​ (19,928) ​ — ​ 98 ​ 20,026 Non trading repos 16,977 ​ (5,702) ​ 11,275 ​ — ​ — ​ (11,275) ​ — ​ — ​ 11,275 Net position 8,653 ​ — ​ 8,653 ​ — ​ — ​ (8,653) ​ — ​ 98 ​ 8,751 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets 113,220 ​ (7,961) ​ 105,259 ​ (85,006) ​ (15,035) ​ (2,428) ​ 2,790 ​ 880 ​ 106,139 Derivative liabilities 108,594 ​ (8,568) ​ 100,026 ​ (85,006) ​ (9,909) ​ (2,913) ​ 2,198 ​ 809 ​ 100,835 Net position (1) 4,626 ​ 607 ​ 5,233 ​ — ​ (5,126) ​ 485 ​ 592 ​ 71 ​ 5,304 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trading reverse repos 44,529 ​ (24,422) ​ 20,107 ​ (900) ​ — ​ (19,136) ​ 71 ​ 635 ​ 20,742 Trading repos 42,664 ​ (24,422) ​ 18,242 ​ (900) ​ — ​ (17,341) ​ 1 ​ 1,147 ​ 19,389 Net position 1,865 ​ — ​ 1,865 ​ — ​ — ​ (1,795) ​ 70 ​ (512) ​ 1,353 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non trading reverse repos 33,729 ​ (7,594) ​ 26,135 ​ — ​ — ​ (26,135) ​ — ​ 16 ​ 26,151 Non trading repos 30,047 ​ (7,594) ​ 22,453 ​ — ​ — ​ (22,453) ​ — ​ — ​ 22,453 Net position 3,682 ​ — ​ 3,682 ​ — ​ — ​ (3,682) ​ — ​ 16 ​ 3,698 ​ (1) The net IFRS offset balance of £3,381 million (2021 - £607 million)relates to variation margin netting reflected on other balance sheet lines .

Financial instruments - valuati

Financial instruments - valuation	12 Months Ended
	Dec. 31, 2022
Financial instruments - classification
Financial instruments - valuation	11 Financial instruments – valuation Financial instruments recognised at fair value are revalued using techniques that can include observable inputs (pricing information that is readily available in the market, for example UK Government securities), and unobservable inputs (pricing information that is not readily available, for example unlisted securities). Gains and losses are recognised in the income statement and statement of comprehensive income as appropriate. This note presents information on the valuation of financial instruments. The table below provides an overview of the various sections contained within the note. Critical accounting policy: Fair value - financial instruments Financial instruments classified as mandatory fair value through profit or loss; held-for-trading; designated fair value through profit or loss and 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 considers the characteristics of the asset or liability and the assumptions that a market participant would consider when pricing the asset or liability. NatWest Group manages some portfolios of financial assets and financial liabilities based on its net exposure to either market or credit risk. In these cases, the fair value is derived from the net risk exposure of that portfolio with portfolio level adjustments applied to incorporate bid-offer spreads, counterparty credit risk, and funding costs (see ’Valuation Adjustments’). 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. The complexity and uncertainty in the financial instrument’s fair value is categorised using the fair value hierarchy. For accounting policy information see Accounting policies notes 3.8 and 3.12. ​ ​ Page Financial instruments ​ Critical accounting policy: Fair value 66 Valuation ​ Fair value hierarchy 67 Valuation techniques 67 Inputs to valuation models 69 Valuation control 68 Key areas of judgment 68 Table of assets and liabilities split by fair value hierarchy level 69 Valuation adjustments ​ Table of fair value adjustments made 69 Funding valuation adjustments (FVA) 70 Credit valuation adjustments (CVA) 70 Bid-offer 70 Product and deal specific 70 Own credit 70 Level 3 additional information ​ Level 3 ranges of unobservable inputs 71 Table of level 3 instruments, valuation techniques and inputs (T) 71 Level 3 sensitivities 72 Alternative assumptions 72 Other considerations 72 Table of high and low range of fair value of level 3 assets and liabilities (T) 72 Movement in level 3 assets and liabilities over the reporting period 73 Table of the movement in level 3 assets and liabilities (T) 73 Fair value of financial instruments measured at amortised cost ​ Table showing the fair value of financial instruments measured at amortised cost on the balance sheet (T) 74 (D) = Descriptive; (T) = Table ​ ​ ​ 11 Financial instruments – valuation continued Valuation Fair value hierarchy Financial instruments carried at fair value have been classified under the fair value hierarchy. The classification ranges from level 1 to level 3, with more expert judgment and price uncertainty for those classified at level 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 the level of market activity for the referenced entity. 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. Observable inputs are those that are readily available with limited adjustments required. Examples include most government agency securities, investment-grade corporate bonds, certain mortgage products - including CLOs, most bank loans, repos and reverse repos, 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 instruments valuation, is not based on observable market data. Examples include non-derivative instruments which trade infrequently, certain syndicated and commercial mortgage loans, private equity, 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. Examples include equities and most debt securities. Non-modelled products can fall into any fair value levelling hierarchy depending on the observable market activity, liquidity, and assessment of valuation uncertainty of the instruments. The assessment of fair value and the classification of the instrument to a fair value level is subject to the valuation controls discussed in the Valuation control section. 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 (e.g., balance guarantee swaps). For modelled products the fair value is derived using the model and the appropriate model inputs or parameters, as opposed to a cash price equivalent. Model inputs are taken either directly or indirectly from available data, where some inputs are also modelled. Fair value classification of modelled instruments is either level 2 or level 3, depending on the product/model combination, the observability and quality of input parameters and other factors. All these must be assessed to classify a position. The modelled product is assigned to the lowest fair value hierarchy level of any significant input used in that valuation. Most derivative instruments, for example vanilla interest rate swaps, foreign exchange swaps and liquid single name credit derivatives, are classified as level 2. This is because they are vanilla products valued using standard market models and with observable inputs. Level 2 products range from vanilla to more complex products, where more complex products remain classified as level 2 due to the low materiality of any unobservable inputs. Inputs to valuation models When using valuation techniques, the fair value can be significantly affected by the choice of valuation model and underlying assumptions. Factors considered include the cashflow amounts and timing of those cash flows, and application of appropriate discount rates, incorporating both funding and credit risk. Values between and beyond available data points are obtained by interpolation and extrapolation. 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 - these express the return required over a benchmark rate or index to compensate for the referenced credit risk. Where available, these are derived from the price of credit default swaps or other credit-based instruments, such as debt securities. When direct prices are not available; credit spreads are determined with reference to available prices of entities with similar characteristics. Interest rates - these are principally based on interest rate swap prices referencing benchmark interest rates. Benchmark rates include Interbank Offered Rates (IBOR) and the Overnight Index Swap (OIS) rate, including SONIA (Sterling Overnight Interbank Average Rate). Other quoted interest rates may also be used from both the 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. ​ 11 Financial instruments – valuation continued 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. 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 variables are observed to move together. Variables that move in the same direction show positive correlation; those that move in opposite directions are negatively correlated. Prepayment rates - rates used to reflect how fast a pool of assets prepay. 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. When valuing prepayable instruments, the value of this prepayment option is considered. 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, the value of the underlying collateral 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 procedures for the review and validation of fair values. This review is performed by an independent price verification (IPV) team. IPV is a key element of the control environment. Valuations are first performed by the business which entered into the transaction. These valuations are then reviewed by the IPV team, independent of those trading the financial instruments, in light of available pricing evidence. Independent pricing data is collated from a range of sources. Each source is reviewed for quality and the independent data applied in the IPV processes using a formalised input quality hierarchy. Consensus services are one source of independent data and encompass interest rate, currency, credit, and bond markets, providing comprehensive coverage of vanilla products and a wide selection of exotic products. Where measurement differences are identified through the IPV process these are grouped by the quality hierarchy of the independent data. If the size of the difference exceeds defined thresholds, an adjustment is made to bring the valuation to within the independently calculated fair value range. IPV takes place at least monthly, for all fair value financial instruments. The IPV control includes formalised reporting and escalation of any valuation differences in breach of established thresholds. 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 and forms part of the information considered when determining fair value hierarchy classifications. Initial fair value level classification of a financial instrument is carried out by the IPV team. These initial classifications are subject to senior management review. Particular attention is paid to instruments transferring from one level to another, new instrument classes or products, instruments where the transaction price is significantly different from the fair value and instruments where valuation uncertainty is high. 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 industry matters. The Group model risk policy sets the policy for model documentation, testing and review. Governance of the model risk policy is carried out by the Group model risk oversight committee, which comprises model risk owners and independent model experts. All models are required to be independently validated in accordance with the Model Risk Policy. Key areas of judgment Over the years the business has simplified, with most products classified as level 1 or 2 of the fair value hierarchy. However, the diverse range of products historically traded by NatWest Group means some products remain classified as level 3. Level 3 indicates a significant level of pricing uncertainty, where expert judgment is used. As such, extra disclosures are required in respect of level 3 instruments. In general, the degree of expert judgment used and hence valuation uncertainty depends on the degree of liquidity of an instrument or 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. For example, 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 challenging. ​ 11 Financial instruments – valuation continued A key related matter is where a market moves from liquid to illiquid or vice versa. Where this movement is considered temporary, the fair value level 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 liquid. In this case, the instrument will continue to be classified at 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 by the Business and IPV. 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. The table below shows the assets and liabilities held by NatWest Group split by fair value hierarchy level. Level 1 are considered the most liquid instruments, and level 3 the most illiquid, valued using expert judgment and hence carry the most significant price uncertainty. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 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 — 35,260 395 35,655 ​ — 33,482 721 34,203 Securities 7,463 2,458 1 9,922 ​ 19,563 5,371 21 24,955 Derivatives 5 98,533 1,007 99,545 ​ — 105,222 917 106,139 Other financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans — 172 727 899 ​ — 359 207 566 Securities 10,380 6,278 203 16,861 ​ 28,880 7,951 186 37,017 Total financial assets held at fair value 17,848 142,701 2,333 ​ 162,882 ​ 48,443 152,385 2,052 202,880 As % of total fair value assets ​ 11 % 88 % 1 % ​ ​ 24 % 75 % 1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ Trading liabilities ​ ​ ​ ​ ​ ​ ​ Deposits — 42,486 1 42,487 ​ — 38,658 2 38,660 Debt securities in issue — 797 — 797 ​ — 974 — 974 Short positions 7,462 2,062 — 9,524 ​ 20,507 4,456 1 24,964 Derivatives 2 93,070 975 94,047 ​ — 100,229 606 100,835 Other financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt securities in issue — 1,327 — 1,327 ​ — 1,103 — 1,103 Other deposits — 1,050 — 1,050 ​ — 568 — 568 Subordinated liabilities — 345 — 345 ​ — 703 — 703 Total financial liabilities held at fair value 7,464 141,137 976 149,577 ​ 20,507 146,691 609 167,807 As % of total fair value liabilities ​ 5 % 94 % 1 % ​ ​ 12 % 88 % 0 % ​ ​ (1) Transfers between levels are deemed to have occurred at the beginning of the quarter in which the instrument was transferred. (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. Valuation adjustments 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: ​ ​ ​ ​ ​ ​ ​ 2022 2021 Adjustment ​ £m ​ £m Funding – FVA 173 90 Credit – CVA 300 390 Bid – Offer 130 113 Product and deal specific 141 119 ​ 744 712 ​ 11 Financial instruments – valuation continued Funding valuation adjustments on the group defined benefit pension plan increased during the year, primarily driven by increases in GBP interest rates. The decrease in CVA was driven by a reduction in exposures, primarily due to increases in interest rates and trade exit activity, partially offset by the net impact of credit spreads widening and specific counterparty activity. The increase in bid-offer was driven by the net impact of risk changes, wider bid-offer spreads and an increase in the estimated costs of exiting certain less liquid risks. The increase in product and deal specific was driven by credit spreads widening and specific counterparty activity. Funding valuation adjustments (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 (positive) or funding benefit (negative). Funding levels are applied to estimated potential future exposures. For uncollateralised derivatives, the exposure reflects the future valuation of the derivative. For collateralised derivatives, the exposure reflects the difference between the future valuation of the derivative and the level of collateral posted. Credit valuation adjustments (CVA) CVA represents an estimate of the adjustment to fair value that is made 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 required to be marked to exit, represented by bid (long positions) or offer (short positions) levels. Non-derivative positions are typically marked directly to bid or offer prices. However derivative exposures are adjusted to exit levels by taking bid-offer reserves calculated on a portfolio basis. 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. Netting is applied on a portfolio basis to reflect the value at which NatWest Group believes it could exit the net risk of 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. Product and deal specific On initial recognition of financial assets and liabilities valued using valuation techniques which have a significant dependence on 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 the income statement over the life of the transaction; when market data becomes observable; or when the transaction matures or is closed out as appropriate. On 31 December 2022, net gains of £74 million (2021 - £71 million) were carried forward. During the year, net gains of £97 million (2021 - £103 million) were deferred and £94 million (2021 - £94 million) were recognised in the income statement. Where system generated valuations do not accurately reflect 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 considers the effect of its own credit standing when valuing financial liabilities recorded at fair value. 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 NatWest Group's creditworthiness when pricing trades. ​ 11 Financial instruments – valuation continued Level 3 additional information For illiquid assets and liabilities, classified as level 3, additional information is provided on the valuation techniques used and price sensitivity of the products to those inputs. This is to enable the reader to gauge the level of uncertainty that arises from positions with significant unobservable inputs or modelling parameters. Level 3 ranges of unobservable inputs The table below provides additional information on level 3 instruments and inputs. This shows the valuation technique used for the fair value calculation, the unobservable input and input range. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 Financial instrument Valuation technique Unobservable inputs Units Low High Low High Trading assets and Other financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans Price-based ​ Price ​ % ​ — ​ 113 ​ — ​ 106 ​ ​ Discount cash flow ​ Credit spreads ​ bps ​ 56 ​ 114 ​ 40 ​ 102 ​ ​ Discount cash flow ​ Discount margin ​ bps ​ — ​ — ​ 46 ​ 55 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt securities Price-based ​ Price % ​ — ​ 225 ​ — ​ 240 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Shares ​ Price-based ​ Price ​ GBP ​ — ​ 34,027 ​ — ​ 30,378 ​ ​ Price-based ​ Price ​ % ​ — ​ 30 ​ — ​ 7 ​ Discount cash flow ​ Discount margin ​ % ​ 6 ​ 8 ​ 6 ​ 8 ​ ​ Net asset valuation ​ Fund NAV ​ % ​ 80 ​ 120 ​ 80 ​ 120 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets and liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit derivatives ​ Credit derivative pricing ​ Credit spreads ​ bps ​ 7 ​ 530 ​ 6 ​ 635 ​ Option pricing ​ Correlation % ​ (15) ​ 95 ​ (15) ​ 95 ​ ​ Volatility ​ % ​ 30 ​ 80 ​ 30 ​ 108 ​ ​ Upfront points % ​ — ​ 99 ​ — ​ 100 ​ ​ Recovery rate % ​ — ​ 60 ​ — ​ 60 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate & FX Option pricing ​ Correlation % ​ (50) ​ 100 ​ (50) ​ 100 derivatives ​ ​ Volatility ​ % ​ 30 ​ 127 ​ 17 ​ 77 ​ ​ ​ ​ Constant Prepayment Rate ​ % ​ 2 ​ 21 ​ 2 ​ 16 ​ ​ ​ ​ Mean Reversion ​ % ​ — ​ 92 ​ — ​ 92 ​ ​ ​ ​ Inflation volatility ​ % ​ 1 ​ 2 ​ 1 ​ 2 ​ ​ ​ ​ Inflation rate ​ % ​ 2 ​ 3 ​ 2 ​ 3 ​ (1) Valuation for private equity investments 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. (2) NatWest Group does not have any material liabilities measured at fair value that are issued with an inseparable third-party credit enhancement. ​ 11 Financial instruments – valuation continued Level 3 sensitivities The level 3 sensitivities presented below are calculated at a trade or low-level portfolio basis rather than an overall portfolio basis. As individual sensitivities are aggregated with no reflection of the correlated nature between instruments, the overall portfolio sensitivity may not be accurately reflected. For example, some portfolios may be negatively correlated to others, where a downwards movement in one asset would produce an upwards movement in another. However, due to the additive presentation of the above figures this correlation impact cannot be displayed. As such, 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 below table. Alternative assumptions Reasonably plausible alternative assumptions of unobservable inputs are determined based on a specified target level of certainty of 90%. Alternative assumptions are determined with reference to all available evidence including consideration of the following: quality of independent pricing information considering 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 these inputs is not considered to have a significant effect on the net valuation of the related derivative portfolios and issued debt. As such, the fair value levelling of the derivative portfolios and issued debt is not determined by CVA, FVA or own credit inputs. In addition, any fair value sensitivity driven by these inputs is not included in the level 3 sensitivities presented. The table below shows the high and low range of fair value of the level 3 assets and liabilities. This range incorporates the range of fair value inputs as described in the previous table. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Level 3 ​ Favourable ​ Unfavourable ​ Level 3 ​ Favourable ​ Unfavourable ​ £m £m £m £m £m £m Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trading assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans 395 10 (10) 721 10 (10) Securities 1 — — 21 — — Derivatives 1,007 50 (50) 917 60 (70) Other financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans 727 — (10) 207 10 (10) Securities 203 20 (30) 186 20 (20) ​ 2,333 80 (100) 2,052 100 (110) ​ Liabilities Trading liabilities Deposits 1 — — 2 — — Debt securities in issue — — — — — — Short positions — — — 1 — — Derivatives 975 30 (30) 606 30 (30) ​ 976 30 (30) 609 30 (30) ​ ​ 11 Financial instruments – valuation continued Movement in level 3 assets and liabilities The following table shows the movement in level 3 assets and liabilities in the year. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Trading ​ Other ​ ​ ​ ​ ​ Trading ​ Other ​ ​ ​ ​ ​ ​ assets ​ financial ​ Total ​ Total ​ assets ​ financial ​ Total ​ Total ​ ​ (2) ​ assets (3) ​ assets ​ liabilities ​ (2) ​ assets (3) ​ assets ​ liabilities ​ £m £m £m £m £m £m £m £m At 1 January 1,658 394 2,052 609 1,388 335 1,723 894 Amounts recorded in the income statement (1) 157 (14) 143 381 (93) (29) (122) (90) Amounts recorded in the statement of comprehensive income — (20) (20) — — 23 23 — Level 3 transfers in 194 532 726 81 125 3 128 20 Level 3 transfers out (269) (68) (337) (64) (104) (6) (109) (168) Purchases/originations 629 185 814 382 965 452 1,416 305 Settlements/other decreases (115) — (115) (41) (47) (364) (411) (28) Sales (857) (101) (958) (378) (573) (17) (590) (321) Foreign exchange and other 6 22 28 6 (3) (3) (6) (3) At 31 December 1,403 930 2,333 976 1,658 394 2,052 609 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts recorded in the income statement in respect of balances held at year end: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ - unrealised 157 (16) 141 381 (93) (32) (126) (90) ​ (1) There were £224 million net losses on trading assets and liabilities (2021 - £3 million net losses) recorded in income from trading activities. Net losses on other instruments of £14 million (2021 - £29 million net losses) 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. ​ 11 Financial instruments – valuation continued Fair value of financial instruments measured at amortised cost on the balance sheet The following table shows the carrying value and fair value of financial instruments measured at amortised cost on the balance sheet. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Items where ​ ​ ​ ​ ​ ​ ​ fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ approximates ​ Carrying ​ Fair ​ Fair value hierarchy level ​ ​ carrying value ​ value ​ value ​ Level 1 ​ Level 2 ​ Level 3 2022 ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn Financial assets ​ ​ ​ ​ ​ ​ Cash and balances at central banks 144.8 ​ — ​ — ​ — ​ — ​ — Settlement balances ​ 2.6 ​ — ​ — ​ — ​ — ​ — Loans to banks 0.1 ​ 7.0 ​ 7.0 ​ — ​ 4.2 ​ 2.8 Loans to customers ​ — ​ 366.3 ​ 354.5 ​ — ​ 20.3 ​ 334.2 Other financial assets - securities — ​ 13.1 ​ 12.8 ​ 3.6 ​ 3.2 ​ 6.0 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and balances at central banks 177.8 ​ — ​ — ​ — ​ — ​ — Settlement balances 2.1 ​ — ​ — ​ — ​ — ​ — Loans to banks ​ 0.1 ​ 7.5 ​ 7.5 ​ — ​ 5.0 ​ 2.5 Loans to customers — ​ 359.0 ​ 354.1 ​ — ​ 28.0 ​ 326.1 Other financial assets - securities — ​ 8.6 ​ 8.6 ​ 4.4 ​ 0.7 ​ 3.5 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits 4.7 15.7 15.3 — 13.1 2.2 Customer deposits 407.0 43.3 43.3 — 12.7 30.6 Settlement balances 2.0 — — — — — Other financial liabilities - debt securities in issue ​ — ​ 46.7 ​ 46.1 ​ — ​ 40.7 ​ 5.4 Subordinated liabilities — 5.9 5.6 — 5.5 0.1 Notes in circulation ​ 3.2 ​ — ​ — ​ — ​ — ​ — 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ Bank deposits ​ 4.9 21.4 21.0 — 18.7 2.3 Customer deposits 442.4 37.4 37.6 — 18.1 19.5 Settlement balances 2.1 — — — — — Other financial liabilities - debt securities in issue — ​ 47.7 ​ 48.6 ​ — ​ 41.4 ​ 7.2 Subordinated liabilities — 7.7 8.3 — 8.2 0.1 Notes in circulation 3.0 ​ — ​ — ​ — ​ — ​ — ​ The assumptions and methodologies underlying the calculation of fair values of financial instruments at the balance sheet date are as follows: Short-term financial instruments For certain short-term financial instruments, including but not limited to; cash and balances at central banks, settlement balances, loans with short-term maturities, notes in circulation and customer demand deposits, carrying value is deemed a reasonable approximation of fair value. Loans to banks and customers In estimating the fair value of net loans to customers and banks measured at amortised cost, NatWest Group's loans are segregated into appropriate portfolios reflecting the characteristics of the constituent loans. Two principal methods are used to estimate fair value: (a) Contractual cashflows that are discounted using a market discount rate that incorporates the current spread for the borrower or where this is not observable, the spread for borrowers of a similar credit standing. (b) Expected cash flows (unadjusted for credit losses) are discounted at the current offer rate for the same or similar products. The current methodology caps all loan values at par rather than modelling clients' option to repay loans early. This approach is adopted for lending portfolios in Retail Banking, Ulster Bank RoI, Commercial & Institutional (SME loans) and Private Banking in order to reflect the homogeneous nature of these portfolios. Debt securities and subordinated liabilities Most debt securities are valued using quoted prices in active markets or from quoted prices of similar financial instruments. The remaining population is valued using discounted cashflows at current offer rates Bank and customer deposits Fair values of deposits are estim

Financial instruments - maturit

Financial instruments - maturity analysis	12 Months Ended
	Dec. 31, 2022
Financial instruments - classification
Financial instruments - maturity analysis	12 Financial instruments - maturity analysis Remaining maturity This note shows the maturity profile of NatWest Group’s financial assets and liabilities by contractual date of maturity and contractual cash flows. ​ The following table shows the residual maturity of financial instruments, based on contractual date of maturity. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ 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 144,832 — 144,832 177,757 — 177,757 Trading assets 35,944 9,633 45,577 40,263 18,895 59,158 Derivatives 38,107 61,438 99,545 34,538 71,601 106,139 Settlement balances 2,572 — 2,572 2,141 — 2,141 Loans to banks - amortised cost ​ 6,872 ​ 267 ​ 7,139 ​ 7,425 ​ 257 ​ 7,682 Loans to customers - amortised cost ​ 84,289 ​ 282,051 ​ 366,340 ​ 103,689 ​ 255,301 ​ 358,990 Other financial assets 6,128 24,767 30,895 11,151 34,994 46,145 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits 7,799 ​ 12,642 ​ 20,441 ​ 13,715 ​ 12,564 ​ 26,279 Customer deposits 448,821 1,497 450,318 478,801 1,009 479,810 Settlement balances 2,012 — 2,012 2,068 — 2,068 Trading liabilities 42,760 10,048 52,808 41,664 22,934 64,598 Derivatives ​ 39,331 ​ 54,716 ​ 94,047 ​ 34,593 ​ 66,242 ​ 100,835 Other financial liabilities 13,796 35,311 49,107 16,060 33,266 49,326 Subordinated liabilities 973 5,287 6,260 1,375 7,054 8,429 Notes in circulation ​ 3,218 ​ — ​ 3,218 ​ 3,047 ​ — ​ 3,047 Lease liabilities 137 981 1,118 238 1,025 1,263 ​ Assets and liabilities by contractual cash flows up to 20 years 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 £145.8 billion (2021 - £165.6 billion) and HFT liabilities of £146.7 billion (2021 - £165.3 billion) have been excluded from the following tables. ​ 12 Financial instruments - maturity analysis continued ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 0-3 months 3-12 months 1-3 years 3-5 years 5-10 years 10-20 years 2022 ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m Assets by contractual maturity up to 20 years ​ ​ ​ ​ ​ ​ Cash and balances at central banks 144,832 — — — — — Derivatives held for hedging ​ 130 ​ 345 ​ 28 ​ 41 ​ (44) ​ 43 Settlement balances 2,572 ​ — ​ — ​ — ​ — ​ — Loans to banks - amortised cost 5,254 1,621 17 288 — — Loans to customers - amortised cost 50,923 43,417 76,278 55,128 85,038 100,085 Other financial assets (1) ​ 2,771 ​ 4,507 ​ 8,391 ​ 7,835 ​ 5,706 ​ 2,524 Finance lease 96 267 857 482 549 296 ​ 206,578 ​ 50,157 85,571 63,774 91,249 102,948 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities by contractual maturity up to 20 years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits 6,690 1,445 5,662 8,503 89 — Customer deposits 437,830 11,389 1,252 2 14 20 Settlement balances 2,012 — — — — — Derivatives held for hedging 280 (371) 586 306 116 85 Other financial liabilities 6,720 6,640 18,833 13,906 7,361 294 Subordinated liabilities ​ 96 ​ 1,073 ​ 2,690 ​ 1,897 ​ 1,541 ​ 328 Other liabilities - Notes in circulation ​ 3,218 ​ — ​ — ​ — ​ — ​ — Lease liabilities 41 ​ 113 260 203 318 254 ​ 456,887 20,289 29,283 24,817 9,439 981 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Guarantees and commitments - notional amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Guarantees (2) 3,150 — ​ — ​ — ​ — ​ — Commitments (3) 118,779 — — — — — ​ 121,929 — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ Assets by contractual maturity up to 20 years ​ ​ ​ ​ ​ ​ Cash and balances at central banks 177,757 — — — — — Derivatives held for hedging (23) ​ (32) ​ 72 ​ 15 ​ 10 ​ 17 Settlement balances ​ 2,141 ​ — ​ — ​ — ​ — ​ — Loans to banks - amortised cost 5,735 1,689 21 — — — Loans to customers - amortised cost 65,760 43,144 63,979 45,057 73,044 90,115 Other financial assets (1) 3,924 ​ 7,576 ​ 10,467 ​ 8,048 ​ 7,444 ​ 5,523 Finance lease ​ 290 340 746 504 704 377 ​ ​ 255,584 ​ 52,717 75,285 53,624 81,202 96,032 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities by contractual maturity up to 20 years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits 13,292 421 566 12,003 — — Customer deposits 473,123 5,440 1,155 73 4 19 Settlement balances 2,068 — — — — — Derivatives held for hedging (57) (31) 561 155 (152) (198) Other financial liabilities 6,967 9,293 16,953 10,062 7,905 292 Subordinated liabilities 66 ​ 1,604 ​ 3,481 ​ 2,170 ​ 1,496 ​ 563 Other liabilities- Notes in circulation ​ 3,047 ​ — ​ — ​ — ​ — ​ — Lease liabilities ​ 74 ​ 161 220 167 281 251 ​ 498,580 16,888 22,936 24,630 9,534 927 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Guarantees and commitments - notional amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Guarantees (2) 2,055 — ​ — ​ — ​ — ​ — Commitments (3) 118,536 — — — — — ​ 120,591 — — — — — ​ (1) Other financial assets exclude equity shares. (2) 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. (3) 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.

Trading assets and liabilities

Trading assets and liabilities	12 Months Ended
	Dec. 31, 2022
Trading assets and liabilities
Trading assets and liabilities	13 Trading assets and liabilities Trading assets and liabilities comprise assets and liabilities held at fair value and classified as held-for- trading. Financial instruments are classified as held for trading if they are held for the purpose of selling or repurchasing them in the short term, to make a spread between purchase and sale price or held to take advantage of movements in prices and yields. ​ For accounting policy information see Accounting policies note 3.8. ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 Assets £m £m Loans Reverse repos 21,537 20,742 Collateral given 13,005 12,047 Other loans 1,113 1,414 Total loans 35,655 34,203 Securities ​ ​ Central and local government ​ ​ - UK 2,205 6,919 - US 2,345 3,329 - other 2,799 10,929 Financial institutions and corporate 2,573 3,778 Total securities 9,922 24,955 Total 45,577 59,158 ​ ​ ​ ​ ​ Liabilities ​ ​ Deposits ​ ​ Repos 23,740 19,389 Collateral received 17,680 17,718 Other deposits 1,067 1,553 Total deposits 42,487 38,660 Debt securities in issue 797 974 Short positions 9,524 24,964 Total 52,808 64,598 ​

Derivatives

Derivatives	12 Months Ended
	Dec. 31, 2022
Derivatives
Derivatives	14 Derivatives Derivative is a term covering a wide range of financial instruments that derive their fair value from an underlying rate or price, for example interest rates or exchange rates (the underlying). NatWest Group uses derivatives as a part of its trading activities, to manage its own risks such as interest rate, foreign exchange, or credit risk and in certain customer transactions. This note shows contracted volumes of derivatives, how they are used for hedging purposes and more specifically the effects of the application of hedge accounting. ​ For accounting policy information see Accounting policies note 3.8 and 3.12. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Notional ​ Assets ​ Liabilities ​ Notional ​ Assets ​ Liabilities ​ £bn £m £m £bn £m £m Exchange rate contracts ​ 3,168 ​ 45,829 ​ 45,237 ​ 3,167 ​ 38,517 ​ 39,286 Interest rate contracts 10,742 53,480 48,535 8,919 67,458 61,206 Credit derivatives 15 236 275 14 154 343 Equity and commodity contracts — — — — 10 — ​ ​ 99,545 94,047 ​ 106,139 100,835 ​ NatWest Group applies hedge accounting to reduce the accounting mismatch caused in the income statement by using derivatives to hedge the following risks: interest rate, foreign exchange and the foreign exchange risk associated with net investment in foreign operations. NatWest Group’s interest rate hedging relates 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 on its financial instruments. NatWest Group manages this risk within approved limits. Residual risk positions are hedged with derivatives, principally interest rate swaps. Suitable larger fixed rate financial instruments are subject to fair value hedging in line with documented risk management strategies Cash flow hedges of interest rate risk relate to exposures to the variability in future interest payments and receipts due to the movement of benchmark interest rates on forecast transactions and on financial assets and financial liabilities. This variability in cash flows is hedged by interest rate swaps, which convert variable cash flows into fixed. 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 rates, most notably USD LIBOR, SOFR, EURIBOR, SONIA and the Bank of England Official Bank 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 and encompasses the majority of cash flow variability risk. 14 Derivatives continued Fair value hedges of interest rate risk involve interest rate swaps transforming the fixed interest rate risk in 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 risk component of the hedged item. The significant benchmarks identified as risk components are USD LIBOR, SOFR, EURIBOR and SONIA. These risk components are identified using the risk management systems of NatWest Group and encompass the majority of the hedged item’s 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 currencies other than the functional currency. Residual risk positions are hedged with forward foreign exchange contracts, 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, and net investment hedging, NatWest Group determines that there is an adequate level of offsetting between the hedged item and hedging instrument at inception and on an ongoing basis. This is achieved by comparing movements in the fair value of the expected highly probable forecast 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 instruments. The method used for comparing movements is either regression testing or the dollar offset method. The method for testing effectiveness and the period over which the test is performed depends on the applicable risk management strategy and is applied consistently to each risk management strategy. Hedge effectiveness is assessed on a cumulative basis and the determination of effectiveness is in line with the requirements of IAS39. 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. Hedge ineffectiveness is measured in line with the requirements of IAS39 and recognised in the income statement as it arises. Included in the table below are derivatives held for hedging purposes as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ 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 58.7 1,554 3,009 ​ 482 65.6 1,176 2,057 ​ 897 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts 167.6 2,681 6,207 ​ (3,342) 133.1 952 1,149 ​ (931) Exchange rate contracts 6.3 142 112 ​ (3) 7.3 30 109 ​ 27 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net investment hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate contracts 0.5 1 9 ​ 4 0.5 11 1 ​ 7 ​ ​ 233.1 ​ 4,378 ​ 9,337 ​ (2,859) ​ 206.5 ​ 2,169 ​ 3,316 ​ — IFRS netting/Clearing house settlements ​ ​ ​ (4,235) ​ (9,205) ​ ​ ​ ​ ​ (2,125) ​ (3,196) ​ ​ ​ ​ 143 132 ​ ​ ​ 44 120 ​ ​ ​ (1) The change in fair value used for hedge ineffectiveness includes instruments that were derecognised in the year. ​ 14 Derivatives continued The following table shows the period in which the notional of hedging contract ends: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 0-3 months 3-12 months 1-3 years 3-5 years 5-10 years 10-20 years 20+ years Total 2022 ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn Fair value hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hedging assets - interest rate risk ​ 0.5 ​ 1.9 ​ 4.7 ​ 4.9 ​ 4.2 ​ 2.5 ​ 1.1 ​ 19.8 Hedging liabilities - interest rate risk ​ 1.0 ​ 2.9 ​ 14.6 ​ 10.3 ​ 9.6 ​ 0.5 ​ — ​ 38.9 Cash flow hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hedging assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk ​ 6.6 ​ 9.4 ​ 46.5 ​ 21.9 ​ 10.1 ​ — ​ — ​ 94.5 Average fixed interest rate (%) ​ 1.36 ​ 1.98 ​ 1.71 ​ 2.04 ​ 1.02 ​ 3.12 ​ — ​ 1.72 Hedging liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk ​ 17.3 ​ 26.8 ​ 15.7 ​ 5.1 ​ 7.5 ​ 0.7 ​ — ​ 73.1 Average fixed interest rate (%) ​ 1.27 ​ 0.95 ​ 2.75 ​ 1.03 ​ 2.68 ​ 4.55 ​ — ​ 1.63 Hedging assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ 0.1 ​ — ​ — ​ — ​ — ​ — ​ — ​ 0.1 Hedging liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ — ​ 1.1 ​ 2.8 ​ 2.1 ​ 0.2 ​ — ​ — ​ 6.2 Net investment hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ 0.5 ​ — ​ — ​ — ​ — ​ — ​ — ​ 0.5 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hedging assets - interest rate risk ​ 0.9 ​ 2.5 ​ 5.5 ​ 5.7 ​ 6.2 ​ 4.9 ​ 4.5 ​ 30.2 Hedging liabilities - interest rate risk ​ 1.1 ​ 4.2 ​ 11.8 ​ 9.3 ​ 8.4 ​ 0.6 ​ 0.0 ​ 35.4 Cash flow hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hedging assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk ​ 5.4 ​ 8.1 ​ 14.3 ​ 24.5 ​ 11.4 ​ — ​ — ​ 63.7 Average fixed interest rate (%) ​ 1.40 ​ 1.19 ​ 1.35 ​ 0.65 ​ 0.82 ​ — ​ — ​ 0.97 Hedging liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk ​ 8.8 ​ 21.1 ​ 33.0 ​ 3.3 ​ 2.5 ​ 0.7 ​ — ​ 69.4 Average fixed interest rate (%) ​ 0.50 ​ 0.24 ​ 0.41 ​ 0.47 ​ 1.01 ​ 4.55 ​ — ​ 0.44 Hedging assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Hedging liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ 0.1 ​ 2.4 ​ 3.5 ​ 1.3 ​ — ​ — ​ — ​ 7.3 Net investment hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ 0.5 ​ — ​ — ​ — ​ — ​ — ​ — ​ 0.5 ​ For cash flow hedging of exchange rate risk, the average foreign exchange rates applicable across the relationships were as below for the main currencies hedged. ​ ​ ​ ​ ​ ​ ​ 2022 2021 INR/GBP 100.54 106.58 USD/GBP 1.29 1.38 CHF/GBP 1.15 1.25 JPY/GBP 132.89 132.93 JPY/USD 128.29 n/a NOK/USD 9.21 n/a CNH/GBP n/a 8.74 ​ For net investment hedging of exchange rate risk, the average foreign exchange rates applicable were as below for the main currencies hedged. ​ ​ ​ ​ ​ ​ ​ 2022 2021 SEK/GBP 13.23 11.74 DKK/GBP n/a 8.85 NOK/GBP 12.34 12.12 AED/USD 4.42 3.67 USD/GBP 1.20 1.32 ​ 14 Derivatives continued 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 2022 ​ £m ​ £m ​ £m ​ £m Fair value hedging - interest rate ​ ​ ​ ​ ​ ​ ​ ​ Loans to banks and customers - amortised cost ​ 5,764 ​ (526) ​ (1,236) ​ 63 Other financial assets - securities ​ 12,897 ​ (922) ​ (2,525) ​ (2) Total ​ 18,661 ​ (1,448) ​ (3,761) ​ 61 ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank and customer deposits ​ 565 ​ (3) ​ 3 ​ — Other financial liabilities - debt securities in issue ​ 35,856 ​ (2,222) ​ 2,790 ​ — Subordinated liabilities ​ 5,504 ​ (547) ​ 526 ​ — Total ​ 41,925 ​ (2,772) ​ 3,319 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - interest rate ​ ​ ​ ​ ​ ​ ​ ​ Loans to banks and customer - amortised cost (2) ​ 93,212 ​ ​ ​ 5,263 ​ ​ Other financial assets - securities ​ 1,176 ​ ​ ​ 73 ​ ​ Total ​ 94,388 ​ ​ ​ 5,336 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank and customer deposits ​ 72,610 ​ — ​ (2,008) ​ — Other financial liabilities - debt securities in issue ​ 571 ​ — ​ (46) ​ — Total ​ 73,181 ​ — ​ (2,054) ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - exchange rate ​ ​ ​ ​ ​ ​ ​ ​ Loans to banks and customer - amortised cost (2) ​ — ​ ​ ​ — ​ ​ Other financial assets - securities ​ — ​ ​ ​ — ​ ​ Total ​ — ​ ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other financial liabilities - debt securities in issue ​ 4,141 ​ ​ ​ (2) ​ ​ Subordinated liabilities ​ — ​ ​ ​ — ​ ​ Other ​ 204 ​ ​ ​ 5 ​ ​ Total ​ 4,345 ​ ​ ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ Fair value hedging - interest rate ​ ​ Loans to banks and customers - amortised cost 6,603 701 (478) ​ 69 Other financial assets - securities 30,882 518 (1,576) ​ — Total 37,485 1,219 (2,054) ​ 69 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other financial liabilities - debt securities in issue 34,371 454 953 ​ — Subordinated liabilities 6,235 (9) 255 ​ — Total 40,606 445 1,208 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - interest rate ​ ​ ​ ​ Loans to banks and customers - amortised cost 63,025 ​ 1,984 ​ ​ Other financial assets - securities 714 ​ 26 ​ ​ Total 63,739 ​ 2,010 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank and customer deposits ​ 68,383 ​ ​ ​ (1,084) ​ ​ Other financial liabilities - debt securities in issue ​ 1,006 ​ ​ ​ (21) ​ ​ Total ​ 69,389 ​ ​ ​ (1,105) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - exchange rate ​ ​ ​ ​ ​ ​ ​ ​ Loans to banks and customer - amortised cost ​ 21 ​ ​ ​ — ​ ​ Other financial assets - securities ​ 2 ​ ​ ​ — ​ ​ Total ​ 23 ​ ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - exchange rate ​ ​ ​ ​ ​ ​ ​ ​ Other financial liabilities - debt securities in issue 6,337 ​ (5) ​ ​ Subordinated liabilities 742 ​ (12) ​ ​ Other ​ 200 ​ ​ ​ (10) ​ ​ Total 7,279 ​ (27) ​ ​ ​ (1) The change in fair value used for hedge ineffectiveness includes instruments that were derecognised in the year. (2) Includes cash and balances at central banks. ​ 14 Derivatives continued The following table shows an analysis of the pre-tax cash flow hedge reserve and foreign exchange hedge reserve. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ Foreign ​ ​ ​ Foreign ​ ​ Cash flow ​ exchange ​ Cash flow ​ exchange ​ ​ hedge reserve ​ hedge reserve ​ hedge reserve ​ hedge reserve ​ £m £m £m £m Continuing ​ ​ ​ ​ Interest rate risk (3,576) — (295) — Foreign exchange risk 16 ​ (85) ​ 23 ​ 53 De-designated ​ ​ ​ ​ Interest rate risk (297) — (297) — Foreign exchange risk 20 (880) 10 (759) Total (3,837) (965) (559) (706) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ Foreign ​ ​ ​ Foreign ​ ​ Cash flow ​ exchange hedge ​ Cash flow ​ exchange hedge ​ hedge reserve reserve hedge reserve reserve ​ £m £m £m £m Amount recognised in equity ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk (2,997) ​ (64) (700) ​ — Foreign exchange risk 24 (202) 13 88 Total (2,973) (266) (687) 88 ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount transferred from equity to earnings ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk to net interest income (252) — (181) — Interest rate risk to non-interest income (1) ​ (21) ​ — ​ 20 ​ — Interest rate risk to operating expenses (14) — — — Foreign exchange risk to net interest income (29) — (4) 2 Foreign exchange risk to non-interest income 15 7 1 (2) Foreign exchange risk to operating expenses ​ (3) ​ — ​ 3 ​ — Total (304) 7 (161) — ​ (1) There was £21 million (2021 - £20 million) reclassified with the cash flow reserve to earnings due to forecasted cash flows that are no longer expected to occur. Hedge ineffectiveness recognised in other operating income comprises: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m Fair value hedging ​ (Loss)/gain on hedged items attributable to the hedged risk (442) (846) 877 Gain/(loss) on the hedging instruments 482 897 (875) Fair value hedging ineffectiveness 40 51 2 Cash flow hedging ​ ​ ​ ​ ​ ​ Interest rate risk ​ (60) ​ (26) ​ 22 Cash flow hedging ineffectiveness (60) (26) 22 Total (20) 25 24 ​ 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).

Loan impairment provisions

Loan impairment provisions	12 Months Ended
	Dec. 31, 2022
Loan impairment provisions
Loan impairment provisions	15 Loan impairment provisions Loan exposure and impairment metrics There is a risk that customers and counterparties fail to meet their contractual obligation to settle outstanding amounts, known as expected credit losses (ECL). The calculation of ECL considers historic, current and forward-looking information to determine the amount we do not expect to recover. ECL is recognised on current and potential exposures, and contingent liabilities. ​ For accounting policy information see Accounting policies note 2.3. Further disclosures on credit risk and information on ECL methodology are shown from page 176 of Exhibit 15.2. The table below summarises loans and credit impairment measures within the scope of IFRS 9 Expected credit losses framework. ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ £m £m Loans - amortised cost and FVOCI Stage 1 325,224 330,824 Stage 2 46,833 33,981 Stage 3 5,096 5,022 Of which: individual ​ 1,121 ​ 1,215 Of which: collective 3,975 3,807 ​ ​ 377,153 ​ 369,827 ECL provisions (1) ​ ​ - Stage 1 632 302 - Stage 2 1,043 1,478 - Stage 3 1,759 2,026 Of which: individual ​ 287 ​ 363 Of which: collective ​ 1,472 ​ 1,663 ​ 3,434 3,806 ECL provision coverage (2) ​ ​ - Stage 1 (%) ​ 0.19 0.09 - Stage 2 (%) ​ 2.23 4.35 - Stage 3 (%) ​ 34.52 40.34 ​ 0.91 1.03 Continuing operations ​ ​ ​ ​ Impairment (releases)/losses ​ ​ ECL (release)/charge (3,4) ​ 337 ​ (1,173) Stage 1 ​ (290) ​ (1,317) Stage 2 ​ 393 ​ (164) Stage 3 ​ 234 ​ 308 Of which: individual ​ 54 ​ 20 Of which: collective ​ 180 ​ 288 ​ ​ ​ ​ ​ Amounts written off 482 876 Of which: individual ​ 168 ​ 455 Of which: collective 314 421 ​ (1) Includes loans to customers and banks. (2) Includes £3 million (2021 - £5 million) related to assets classified as FVOCI and £0.1 billion (2021 - £0.1 billion related to off-balance sheet exposures. (3) ECL provisions coverage is calculated as total ECL provisions divided by loans – amortised cost and FVOCI. It is calculated on third party loans and total ECL provisions. (4) Includes a £3 million charge (2021 - £3 million release) related to other financial assets, of which nil (2021 - £2 million release) related to assets classified as FVOCI; and £5 million release (2021 - £34 million release) 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 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 £143.3 billion (2021 - £176.3 billion) and debt securities of £29.9 billion (2021 – £44.9 billion). ​ ​ 15 Loan impairment provisions continued 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 Accounting policies note 2.3 sets out how the expected loss approach is applied. At 31 December 2022, customer loan impairment provisions amounted to £3,434 million (2021 - £3,806 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 Refer to Credit risk – IFRS 9 ECL model design principles section for further details. Approach for multiple economic scenarios (MES) The base scenario plays a greater part in the calculation of ECL than the approach to MES. Refer to Credit risk - Economic loss drivers - Probability weightings of scenarios section for further details.

Other financial assets

Other financial assets	12 Months Ended
	Dec. 31, 2022
Other financial assets
Other financial assets	16 Other financial assets Other financial assets consist of debt securities, equity shares and loans that are not held for trading. Balances consist of local and central government securities, a component part of NatWest Group’s liquidity portfolio. For accounting policy information see Accounting policy 3.8. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt securities ​ ​ ​ ​ ​ ​ ​ ​ Central and local government ​ Other ​ ​ ​ Equity ​ ​ ​ ​ ​ ​ UK ​ US ​ Other ​ debt ​ Total ​ shares ​ Loans ​ Total 2022 £m £m £m £m £m £m £m £m Mandatory fair value through profit or loss — — — 2 2 3 ​ 782 787 Fair value through other comprehensive income (1) 802 7,175 1,757 6,765 16,499 357 ​ 117 16,973 Amortised cost 2,562 937 54 9,582 13,135 — ​ — 13,135 Total 3,364 8,112 1,811 16,349 29,636 360 ​ 899 30,895 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mandatory fair value through profit or loss ​ — — — 6 6 13 ​ 298 317 Fair value through other comprehensive income (1) 11,938 10,086 5,604 9,058 36,686 312 ​ 268 37,266 Amortised cost 3,821 156 81 4,504 8,562 — ​ — 8,562 Total 15,759 10,242 5,685 13,568 45,254 325 ​ 566 46,145 ​ (1) Upon initial recognition, NatWest Group occasionally irrevocably designates some of its equity investments as equity instruments at FVOCI when they meet the definition of equity under IAS 32 Financial instruments: presentation, are not held for trading or they are held for strategic purposes. Such classification is determined on an instrument-by-instrument basis. Gains and losses on these equity instruments are not recycled to the income statement and dividends are recognised in profit or loss except when they represent a recovery of part of the cost of the instrument, in which case such gains are recorded in OCI. Equity instruments at FVOCI are not subject to an impairment assessment. During the year NatWest Group acquired £146 million of equity shares in Permanent TSB Group Holdings p.l.c. as part consideration on the sale of certain assets. Refer to Note 8 for additional information on assets of disposal groups. In addition, NatWest Group acquired £26 million of equity shares in Vodeno Limited. ​ NatWest Group disposed of equity shares in Visa Inc. of £99 million and UBS Equity Funds of £69 million. There were no significant disposals in the prior year. There are no significant dividends on equity shares held at FVOCI in either year.

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2022
Intangible assets
Intangible assets	17 Intangible assets Intangible assets, such as internally generated software and goodwill generated on business combinations are not physical in nature. This note presents the cost of the assets, which is the amount NatWest Group initially paid or incurred, additions and disposals during the year, and any amortisation or impairment. Amortisation is a charge that reflects the usage of the asset and impairment is a reduction in value arising from specific events identified during the year. ​ For accounting policy information see Accounting policies notes 3.4 and 3.5. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ Goodwill Other (1) Total Goodwill Other (1) Total Cost ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m At 1 January 9,939 ​ 3,050 ​ 12,989 9,939 ​ 2,592 ​ 12,531 Currency translation and other adjustments (8) (3) (11) — 29 29 Additions — 743 743 — 479 479 Disposals and write-off of fully amortised assets — (27) (27) — (50) (50) At 31 December 9,931 ​ 3,763 ​ 13,694 9,939 ​ 3,050 ​ 12,989 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated amortisation and impairment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 4,417 ​ 1,849 ​ 6,266 4,332 ​ 1,544 ​ 5,876 Currency translation and other adjustments (8) (4) (12) — 31 31 Disposals and write-off of fully amortised assets — (17) (17) — (28) (28) Impairment of intangible assets — — — 85 2 87 Amortisation charge for the year ​ — ​ 341 ​ 341 ​ — ​ 300 ​ 300 At 31 December 4,409 2,169 6,578 4,417 1,849 6,266 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net book value at 31 December 5,522 1,594 7,116 5,522 1,201 6,723 ​ (1) Principally internally generated software. Intangible assets and goodwill are reviewed for indicators of impairment. No impairment was indicated at 31 December 2022. In 2021 goodwill in the Retail Banking segment was impaired by £85 million. NatWest Group’s goodwill acquired in business combinations is reviewed for impairment annually at 31 December by cash-generating unit (CGU) (2022 and 2021: Retail Banking £2,607 million; Commercial Banking £2,606 million; Private Banking £9 million; and RBS International £300 million). Analysis by reportable segment is in Note 4 Segmental analysis. Impairment testing involves the comparison of the carrying value of each 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. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants. Value in use is the present value of expected future cash flows from the CGU. The recoverable amounts for all CGUs at 31 December 2022 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 growth of the CGUs (2022: 1.4% and 2021: 1.6%). The pre-tax risk discount rates are based on those observed to be applied to businesses regarded as peers of the CGUs (2022: 15.3% for Retail Banking, Commercial Banking and Private Banking, 14% for RBS International, and 2021: 13.9% for Retail Banking, Commercial Banking and Private Banking, 12.1% for RBS International).

Other assets

Other assets	12 Months Ended
	Dec. 31, 2022
Other assets
Other assets	18 Other assets Other assets are not financial assets and reflect a grouping of assets that are not large enough to present separately on the balance sheet. ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Interests in associates (1) ​ 688 ​ 716 Property, plant and equipment (2) ​ 4,240 ​ 4,230 Pension schemes in net surplus (Note 5) ​ 318 ​ 602 Prepayments 340 360 Accrued income 327 248 Tax recoverable 279 190 Deferred tax (Note 7) ​ 2,178 ​ 1,195 Acceptances ​ 237 ​ 225 Other 569 476 Other assets 9,176 8,242 ​ (1) Includes interest in Business Growth Fund £ 677 million (2021 - £ 700 million). (2) The estimated useful lives of NatWest Group's property, plant and equipment are: freehold buildings and long leasehold 50 years , short leaseholds for unexpired period of lease, property adaptation costs 10 to 15 years , computer equipment up to 5 years and other equipment 4 to 15 years .

Other financial liabilities

Other financial liabilities	12 Months Ended
	Dec. 31, 2022
Other financial liabilities
Other financial liabilities	19 Other financial liabilities Other financial liabilities consist of customer deposits designated at fair value and debt securities in issue. For accounting policy information see Accounting policies notes 3.8 and 3.11. ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Customer deposits - designated as at fair value through profit or loss 1,050 568 Debt securities in issue - MRELs 22,265 23,422 - Other medium term notes ​ 16,419 ​ 12,430 - Commercial paper and certificates of deposit ​ 5,672 ​ 9,153 - Covered bonds ​ 2,842 ​ 2,886 - Securitisation 859 867 Total 49,107 49,326 ​

Subordinated liabilities

Subordinated liabilities	12 Months Ended
	Dec. 31, 2022
Subordinated liabilities
Subordinated liabilities	20 Subordinated liabilities Subordinated liabilities are debt securities that, in the event of winding up or bankruptcy, rank below other liabilities for interest payments and repayment. For accounting policy information see Accounting policies notes 3.8 and 3.11. ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Dated loan capital 5,968 8,051 Undated loan capital 173 259 Preference shares 119 119 6,260 8,429 ​ 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First call Maturity ​ Capital ​ 2022 ​ 2021 Dated loan capital ​ date date treatment £m £m Natwest Group plc ​ ​ ​ $2,250 million 6.13% notes — Dec-22 ​ Tier 2 ​ — ​ 986 $2,250 million 5.13% notes — May-24 ​ Tier 2 ​ 706 ​ 956 $2,000 million 6.00% notes — Dec-23 ​ Tier 2 ​ 536 ​ 1,073 £1,000 million 3.622% notes Aug-25 Aug-30 ​ Tier 2 ​ 964 ​ 995 £1,000 million 2.105% notes Aug-26 Nov-31 ​ Tier 2 ​ 1,001 ​ 999 $1,000 million 6.10% notes — Jun-23 ​ Tier 2 ​ 126 ​ 354 $850 million 3.032% notes Nov-30 Nov-35 ​ Tier 2 ​ 555 ​ 584 €750 million 1.043% notes Jun-27 Sep-32 ​ Tier 2 ​ 665 ​ 630 $750 million 3.754% notes Nov-24 Nov-29 ​ Tier 2 ​ 626 ​ 558 £650 million 7.416% notes Mar-28 Jun-33 ​ Tier 2 ​ 641 ​ — $650 million 6.425% notes Jan-34 Jan-43 Not applicable — 554 ​ ​ ​ 5,820 7,689 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other subsidiaries ​ ​ ​ ​ ​ ​ ​ ​ ​ $650 million 6.3% notes Jan-34 Dec-43 ​ Not applicable ​ — ​ 39 €300 million Floating rate notes — Jun-22 ​ Tier 2 ​ — ​ 252 €170 million Floating rate notes — Feb-41 ​ Not applicable ​ 223 ​ 331 $150 million 7.125% notes — Oct-93 ​ Not applicable ​ 18 ​ 113 €145.6 million Floating rate notes — Apr-23 ​ Tier 2 ​ 122 ​ 119 $136 million 7.75% notes — May-23 ​ Not applicable ​ 83 ​ 104 ​ ​ ​ ​ ​ ​ 6,266 8,647 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Undated loan capital ​ ​ ​ Natwest Group plc ​ ​ ​ ​ ​ ​ ​ ​ ​ $762 million 7.648% notes Sep-31 — ​ Not applicable ​ — ​ 51 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other subsidiaries ​ ​ ​ ​ ​ ​ ​ ​ ​ £16 million 5.63% notes Sep-26 — ​ Not applicable ​ 18 ​ 20 £19 million 5.63% notes Jun-32 — ​ Tier 2 ​ — ​ 1 £21 million 6.2% notes Mar-22 — ​ Tier 2 ​ — ​ 22 £31 million 7.38% notes — — ​ Not applicable ​ 2 ​ 1 £53 million 7.125% notes Oct-22 — ​ Not applicable ​ — ​ 56 €31 million 11.375% notes — — ​ Tier 2 ​ 48 ​ 45 £35 million 11.5% notes Dec-22 — ​ Not applicable ​ 72 ​ 31 £11 million 11.75% notes — — ​ Tier 2 ​ 25 ​ 24 £1.1 million SONIA + 2.8266% notes — — ​ Tier 2 ​ 2 ​ 2 £4.9 million 2.5% fixed notes — — ​ Not applicable ​ 6 ​ 6 ​ ​ ​ ​ ​ ​ ​ 173 ​ 259 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preference shares ​ ​ ​ ​ ​ ​ ​ ​ ​ Other subsidiaries ​ ​ ​ £140 million Non-cumulative preference shares of £1 — — ​ Not applicable ​ 119 ​ 119 ​ ​ ​ ​ ​ ​ ​ 119 ​ 119 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Hedging ​ ​ ​ ​ ​ (298) ​ (596) ​ ​ ​ ​ ​ ​ ​ 6,260 ​ 8,429 ​ ​ (1) Notes redeemed before call date as tax and regulatory benefits discontinued.

Other liabilities

Other liabilities	12 Months Ended
	Dec. 31, 2022
Other liabilities.
Other liabilities	21 Other liabilities Other liabilities are amounts due to third parties that are not financial liabilities including lease liabilities, amounts due for goods and services that have been received but not invoiced, tax due to HMRC, and retirement benefit liabilities. Liabilities which have a level of uncertainty regarding their timing or the future cost to settle them are included in other liabilities as provisions for liabilities and charges. ​ ​ ​ ​ ​ ​ ​ 2022 2021 Other liabilities ​ £m ​ £m Lease liabilities ​ 1,118 ​ 1,263 Provisions for liabilities and charges ​ 1,138 ​ 1,268 Retirement benefit liabilities (Note 5) 98 114 Accruals 1,407 1,508 Deferred income 355 319 Current tax 55 12 Deferred tax (Note 7) ​ 227 ​ 359 Acceptances 237 225 Other liabilities (1) ​ 711 ​ 729 ​ 5,346 5,797 ​ (1) Other liabilities include liabilities of disposal groups of £ 15 million (2021 - £ 5 million). See Note 8 for further information. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Litigation and ​ ​ ​ Financial ​ ​ ​ ​ ​ ​ Customer ​ other ​ ​ ​ commitments ​ ​ ​ ​ ​ ​ redress (1) ​ regulatory ​ Property ​ and guarantees ​ Other (2) ​ Total Provisions for liabilities and charges £m £m £m £m £m £m At 1 January 2022 474 277 231 93 193 1,268 Expected credit loss impairment release ​ — ​ — ​ — ​ (6) ​ — ​ (6) Currency translation and other movements ​ 2 ​ 20 ​ — ​ — ​ 7 ​ 29 Charge to income statement ​ 178 ​ 36 ​ 31 ​ — ​ 193 ​ 438 Release to income statement (45) (14) (71) — (60) (190) Provisions utilised (178) (79) (37) — (107) (401) At 31 December 2022 431 240 154 87 226 1,138 ​ (1) Includes payment protection insurance provision which reflects the estimated cost of PPI redress attributable to claims prior to the Financial Conduct Authority (FCA) complaint deadline of 29 August 2019. All pre-deadline complaints have been processed which removes complaint volume estimation uncertainty from the provision estimate. NatWest Group continues to conclude remaining bank-identified closure work and conclude cases with the Financial Ombudsmen Service. (2) Other materially comprises provisions relating to restructuring costs. ​ 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. For accounting policy information see Accounting policies note 2.4. Critical accounting policy: Provisions for liabilities The key judgment is involved in determining whether a present obligation exists. There is often a high degree of uncertainty and judgment is based on the specific facts and circumstances relating to individual events in determining whether there is a present obligation. Judgment 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 Any difference between the final outcome and the amounts provided will affect the reported results in the period when the matter is resolved. - Customer redress: Provisions reflect the estimated cost of redress attributable to claims where it is determined that a present obligation exists. - Litigation and other regulatory: NatWest Group is engaged in various legal proceedings, both in the UK and in overseas jurisdictions, including the US. For further information in relation to legal proceedings and discussion of the associated uncertainties, refer to Note 26. - Property: This includes provision for contractual costs associated with vacant properties. - Other provisions: These materially comprise provisions for onerous contracts and restructuring costs. Onerous contract provisions comprise an estimate of the costs involved in fulfilling the terms and conditions of contracts net of any expected benefits to be received. This includes provision for contractual costs associated with vacant properties. Redundancy and restructuring provisions comprise the estimated cost of restructuring, including redundancy costs where an obligation exists. Background information for all material provisions is given in Note 26.

Share capital and other equity

Share capital and other equity	12 Months Ended
	Dec. 31, 2022
Share capital and other equity
Share capital and other equity	22 Share capital and other equity Share capital consists of ordinary shares and preference shares and is measured as the number of shares allotted and fully paid multiplied by the nominal value of a share. Other equity includes paid-in equity, merger reserves, capital redemption reserve and own shares held. For accounting policy information see Accounting policies note 3.11. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Allotted, called up and fully paid £m £m 000s 000s Ordinary shares of £1.0769 (1) 10,539 11,468 9,786,024 11,467,982 Cumulative preference shares of £1 0.5 0.5 483 483 Non-cumulative preference shares of US$0.01 (2) — — — 10 ​ (1) The nominal value of ordinary shares without rounding is £1.076923076923077 per share (2) The company redeemed the Series U Non-cumulative dollar preference shares on 31 March 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Movement in allotted, called up and fully paid ordinary shares £m shares 000s At 1 January 2021 12,129 12,129,165 Shares issued 38 37,584 Share cancellation (699) (698,767) At 1 January 2022 11,468 11,467,982 Share cancellation ​ (929) ​ (929,188) Share consolidation — (752,770) At 31 December 2022 10,539 9,786,024 ​ Ordinary shares At a General Meeting of the company on 25 August 2022, shareholders approved a share consolidation of the company’s ordinary shares. Every 14 existing ordinary shares of £1 each in the capital of the company in issue as at 26 August 2022 were consolidated into one intermediate ordinary share of £14.00 and immediately divided into 13 new ordinary shares of £1.0769 in the capital of the company. There is no authorised share capital under the company’s constitution. At 31 December 2022, the directors had authority granted at the 2022 Annual General Meeting to issue up to £561,452,512 nominal of ordinary shares other than by pre-emption to existing shareholders. This figure was amended to £520,306,980 at the General Meeting on 25 August 2022 to preserve the position as if the share consolidation had not taken place. On 6 February 2019 the company held a General Meeting and shareholders approved a special resolution to give the company authority to make off-market purchases of up to 4.99% of its issued ordinary share capital in any 12-month period from HM Treasury (or its nominee) at such times as the directors may determine is appropriate. Full details of the proposal are set out in the Circular and Notice of General Meeting available at natwestgroup.com. This authority was renewed at the Annual General Meeting in 2022, and amended at the General Meeting held on 25 August 2022 to preserve the position as if the share consolidation had not taken place. Shareholders will be asked to renew the authority at the Annual General Meeting in 2023. The company utilised the authority it obtained at the 2021 AGM to make an off-market purchase of 549,851,147 ordinary shares (nominal value £549,851,147) in the company from HMT on 28 March 2022, at a price of 220.5p per ordinary share for the total consideration of £1,212,421,779, representing 4.91% of the company's issued ordinary share capital. The company cancelled all of the purchased ordinary shares. At the Annual General Meeting in 2022 shareholders authorised the company to make market purchases of up to 1,122,905,024 ordinary shares in the company. The authority was amended at the General Meeting held on 25 August 2022 to preserve the position as if the share consolidation had not taken place and shareholders will be asked to renew the authority at the Annual General Meeting in 2023. The directors utilised the authority obtained at the 2021 AGM to conduct a share buyback programme (the Programme) of up to £750 million, as announced to the market on 30 July 2021. The Programme’s purpose is to reduce the ordinary share capital of NatWest Group. Taking into account the reduction in issued ordinary share capital which occurred as a result of the off-market buyback announced on 19 March 2021, the maximum number of ordinary shares that could be purchased by the company under the Programme was 1,157,583,542. Phase 1 of the Programme commenced on 2 August 2021 and completed on 18 January 2022. 340,537,460 ordinary shares (nominal value £340,537,460) were purchased by the company at an average purchase price of 220.0199p per ordinary share for the total consideration of £749,250,031. Phase 2 of the Programme commenced on 21 February 2022 and completed on 15 July 2022. A further 346,835,822 ordinary shares (nominal value £346,835,822) were purchased by the company at an average purchase price of 216.2406p per ordinary share for the total consideration of £749,999,999. All of the purchased ordinary shares were cancelled, representing 11.23% of the company’s issued ordinary share capital. In 2022 NatWest Group paid an interim dividend of £364 million, or 3.5p per ordinary share (2021 – £347 million, or 3p per ordinary share). In addition, the company also paid a special dividend of £1,750 million, or 16.8p per ordinary share. The company has announced that the directors have recommended a final dividend of £1.0 billion, or 10.0p per ordinary share (2021 - £844 million, or 7.5p per ordinary share) subject to shareholder approval at the Annual General Meeting on 25 April 2023. If approved, payment will be made on 2 May 2023 to shareholders on the register at the close of business on 17 March 2023. The ex-dividend date will be 16 March 2023. 22 Share capital and other equity continued Cumulative preference shares At the 2021 Annual General Meeting, shareholders authorised the company to make an off-market purchase of preference shares in the company. In December 2021 the company used this authority to purchase 157,546 5.5% cumulative preference shares and 259,314 11% cumulative preference shares. The company cancelled all of the purchased preference shares. ​ Non-cumulative preference shares The company announced on 2 February 2022 that it had given notice to holders of the redemption of the Series U Non-Cumulative Dollar Preference Shares. On 31 March 2022, the Series U Dollar Non-cumulative Preference Shares, of amount outstanding US$1,013,000,000 were redeemed at the redemption price of US$100,000 per Series U Dollar Preference Share plus accrued dividends equalling $635.94 per share. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m Additional Tier 1 notes ​ ​ US$1.15 billion 8% notes callable August 2025 (1) ​ 735 ​ 735 ​ 735 US$2.65 billion 8.625% notes callable August 2021 (2) ​ — ​ — ​ 2,046 US$1.5 billion 6.000% notes callable December 2025 - June 2026 (3) 1,220 ​ 1,220 ​ 1,220 GBP£1.0 billion 5.125% notes callable May - November 2027 (4) ​ 998 ​ 998 ​ 998 GBP£0.4 billion – March 2021 issuance (5) ​ 399 ​ 399 ​ — US$0.75 billion – June 2021 issuance (6) 538 ​ 538 ​ — ​ ​ 3,890 ​ 3,890 ​ 4,999 ​ (1) Issued in August 2015. In the event of conversion, converted into ordinary shares at a price of $3.295 nominal per £ 1 share. (2) Issued in August 2016. In the event of conversion, converted into ordinary shares at a price of $2.284 nominal per £ 1 share. In July 2021, paid-in equity reclassified to liabilities as the result of a call in August 2021 of US$ 2.65 billion AT1 Capital notes. (3) Issued in June 2020. In the event of conversion, converted into ordinary shares at a price of $2.179 (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. (5) Issued in March 2021. In the event of conversion, converted into ordinary shares at a price of £ 1.754 nominal per £ 1 share. (6) Issued in June 2021. In the event of conversion, converted into ordinary shares at a price of $2.448 (translated at applicable exchange rate) per £ 1 share. ​ 22 Share capital and other equity continued Paid-in equity - Additional Tier 1 instruments issued by NatWest Group plc having the legal form of debt are classified as equity under IFRS. The coupons on these instruments are non-cumulative and payable at the company’s discretion. In the event NatWest Group’s CET1 ratio falls below 7% any outstanding instruments will be converted into ordinary shares at a fixed price. Capital recognised for regulatory purposes cannot be redeemed without Prudential Regulation Authority consent. This includes ordinary shares, preference shares and additional Tier 1 instruments. Merger reserve - Capital redemption reserve - Own shares held - As part of the shares bought back from HM Treasury in March 2021, the company transferred 200 million ordinary shares to treasury. The company has used a total of 76,513,524 treasury shares to satisfy the exercise of options and the vesting of share awards under the employee share plans. The balance of ordinary shares held in treasury as at 31 December 2022 was 114,011,084 . The figure has been adjusted to reflect the 13 for 14 share consolidation on 30 August 2022. NatWest Group plc optimises capital efficiency by maintaining reserves in subsidiaries, including regulated entities. Certain preference shares and subordinated debt are also included within regulatory capital. The remittance of reserves to the company or the redemption of shares or subordinated capital by regulated entities may be subject to maintaining the capital resources required by the relevant regulator. UK law prescribes that only the reserves of the company are taken into account for the purpose of making distributions and in determining permissible applications of the share premium account.

Structured entities

Structured entities	12 Months Ended
	Dec. 31, 2022
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. Securitisations In a securitisation, assets, or interests in a pool of assets, are transferred, or the credit risk is transferred via a derivative or financial guarantee to a SE which then issues liabilities to third party investors. NatWest Group’s involvement in client securitisations takes a number of forms. It may provide secured finance to, or purchase asset-backed notes from, client sponsored SEs secured on assets transferred by the client entity; purchase asset backed securities issued by client sponsored SEs in the primary or secondary markets; or provide liquidity facilities to client sponsored SEs. In addition, NatWest Group arranges or acts as lead manager or placement agent in client primary markets securitisations. NatWest Group provides portfolio structured derivative hedging solutions to clients. NatWest Group undertakes own-asset securitisations to transfer the credit risk on portfolios of financial assets. Other credit risk transfer securitisations NatWest Group transfers credit risk on originated loans and mortgages without the transfer of assets to a SE. As part of this, NatWest Group enters into credit derivative and financial guarantee contracts with consolidated SEs. At 31 December 2022, debt securities in issue by such SEs (and held by third parties) were £859 million (2021 - £867 million). The associated loans and mortgages at 31 December 2022 were £4,361 million (2021 - £7,137 million). At 31 December, ECL in relation to non-defaulted assets was reduced by £20 million (2021 - £28 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 2022, £8,156 million (2021 - £8,965 million) of loans to customers provided security for debt securities in issue and other borrowing of £4,132 million (2021 - £3,512 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 2022, £2,419 million (2021 - £1,494 million) of secured own issued liabilities have been retained and lent under securities lending arrangements. At 31 December 2022, £2,244 million (2021 - £1,564 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Asset ​ ​ ​ ​ ​ Asset ​ ​ ​ ​ ​ ​ backed ​ Investment ​ ​ ​ backed ​ Investment ​ ​ ​ ​ securitisation ​ funds and ​ ​ ​ securitisation ​ funds and ​ ​ ​ ​ vehicles ​ others ​ Total ​ vehicles ​ others ​ Total ​ £m £m £m £m £m £m Trading assets and derivatives ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trading assets 616 137 753 490 117 607 Derivative assets 343 — 343 251 18 269 Derivative liabilities (388) (22) (410) (170) (1) (171) Total 571 115 686 571 134 705 ​ ​ ​ ​ ​ ​ Non trading assets ​ ​ ​ ​ ​ ​ Loans to customers 2,431 648 3,079 1,692 361 2,053 Other financial assets 6,334 849 7,183 3,645 379 4,024 Total 8,765 1,497 10,262 5,337 740 6,077 ​ ​ ​ ​ ​ ​ Liquidity facilities/loan commitments 1,723 320 2,043 1,403 135 1,538 Guarantees — 107 107 — — — Maximum exposure 11,059 2,039 13,098 7,311 1,009 8,320 ​

Asset transfers

Asset transfers	12 Months Ended
	Dec. 31, 2022
Asset transfers
Asset transfers	24 Asset transfers This note provides an overview of asset transfers which do not qualify for derecognition and therefore continue to be recognised in NatWest Group’s balance sheet. For accounting policy information see Accounting policies note 3.9. ​ 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. ​ ​ ​ ​ ​ ​ ​ 2022 2021 The following assets have failed derecognition (1) ​ £m ​ £m Trading assets ​ 6,668 ​ 13,084 Loans to bank - amortised cost ​ 16 ​ 38 Loans to customers - amortised cost ​ 398 ​ 1,837 Other financial assets ​ 2,901 ​ 11,746 Total 9,983 26,705 ​ (1) Associated liabilities were £9,501 million (2021 - £24,747 million). Assets pledged as collateral NatWest Group pledges collateral with its counterparties in respect of derivative liabilities and bank and stock borrowings. ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 Assets pledged against liabilities £m £m Trading assets ​ 15,062 ​ 23,601 Loans to banks - amortised cost 66 62 Loans to customers - amortised cost 17,493 20,108 Other financial assets (1) 3,351 3,624 Total 35,972 47,395 ​ (1) Includes assets pledged for pension derivatives and stock borrowings. As part of the covered debt programme £8,156 million of loans to customers and other debt instruments (2021 – £8,965 million) have been transferred to bankruptcy remote limited liability partnerships within the NatWest Group to provide collateral for issues of debt securities and other borrowing by the NatWest Group of £4,132 million (2021 – £3,512 million). See Structured Entities Note.

Capital resources

Capital resources	12 Months Ended
	Dec. 31, 2022
Capital resources
Capital resources	25 Capital resources NatWest Group’s regulatory capital is assessed against minimum requirements that are set out under the Capital Requirements Regulation to determine the strength of its capital base. This note shows a reconciliation of shareholders’ equity to regulatory capital. ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Shareholders’ equity (excluding non-controlling interests) Shareholders’ equity 36,488 41,796 Preference shares - equity — (494) Other equity instruments (3,890) (3,890) ​ 32,598 37,412 Regulatory adjustments and deductions ​ ​ Own credit (58) 21 Defined benefit pension fund adjustment (227) (465) Cash flow hedging reserve 2,771 395 Deferred tax assets (912) (761) Prudential valuation adjustments (275) (274) Goodwill and other intangible assets (7,116) (6,312) Foreseeable ordinary dividends and pension contributions ​ (967) ​ (1,211) Adjustment for trust assets (1) ​ (365) ​ — Foreseeable charges - on-market share buyback programme ​ (800) ​ (825) Adjustment under IFRS 9 transitional arrangements 361 621 Insufficient coverage for non-performing exposures ​ (18) ​ (5) ​ (7,606) (8,816) ​ ​ ​ CET1 capital 24,992 28,596 Additional Tier 1 (AT1) capital ​ ​ Qualifying instruments and related share premium 3,875 3,875 Qualifying instruments and related share premium subject to phase out — 571 AT1 capital 3,875 4,446 Tier 1 capital 28,867 33,042 Qualifying Tier 2 capital ​ ​ Qualifying instruments and related share premium 4,953 4,935 Qualifying instruments issued by subsidiaries and held by third parties 82 314 Other regulatory adjustments ​ 18 ​ 457 Tier 2 capital 5,053 5,706 Total regulatory capital 33,920 38,748 ​ (1) 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
	Dec. 31, 2022
Memorandum items
Memorandum items	26 Memorandum items Contingent liabilities and commitments NatWest Group provides its customers with a variety of services to support their businesses, such as guarantees. These are reported as commitments. Contingent liabilities are possible obligations dependent on a future event or present obligations which are either not probable or cannot be measured reliably. For accounting policy information see Accounting policies note 2.4. The amounts shown in the table below are intended only to provide an indication of the volume of business outstanding at 31 December 2022. Although NatWest Group is exposed to credit risk in the event of a customer’s failure to meet its obligations, the amounts shown do not, and are not intended to, provide any indication of NatWest Group’s expectation of future losses. ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Guarantees 3,150 2,055 Other contingent liabilities 1,855 2,004 Standby facilities, credit lines and other commitments 121,576 121,308 Contingent liabilities and commitments 126,581 125,367 ​ 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. ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ £m £m Capital expenditure on property, plant and equipment 8 ​ 16 Contracts to purchase goods or services (1) 677 ​ 682 ​ 685 ​ 698 ​ (1) Of which due within 1 year: £321 million (2021 - £301 million). ​ 26 Memorandum items continued 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 £266 million (2021 - £280 million; 2020 - £245 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 in respect of any such Matter. It is not practicable to provide an aggregate estimate of potential liability for our legal proceedings and regulatory matters as a class of 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. Please refer to Note 21 for information on material provisions. Matters which are, or could be material, having regard to NatWest Group, considered as a whole, in which NatWest Group is currently involved are set out below. We have provided information on the procedural history of certain Matters, where we believe appropriate, to aid the understanding of the Matter. For a discussion of certain risks associated with NatWest Group’s litigation and regulatory matters, see the Risk Factors relating to legal, regulatory and governmental actions and investigations set out on pages 146 to 148. Litigation Residential mortgage-backed securities (RMBS) litigation in the US NatWest Group companies continue to defend RMBS-related claims in the US in which the plaintiff, the Federal Deposit Insurance Corporation (FDIC), alleges 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. ​ 26 Memorandum items continued 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 purported class actions relating to USD LIBOR, as well as more than two Litigation and regulatory matters The non-class claims filed in the SDNY include claims that the FDIC is asserting on behalf of certain failed US banks. In July 2017, the FDIC, on behalf of 39 of those 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 collusion with regard to the setting of USD LIBOR and that the defendants breached UK and European competition law, as well as asserting common law claims of fraud under US law. The defendant banks consented to a request by the FDIC for discontinuance of the claim in respect of 20 failed US banks, leaving 19 failed US banks as claimants. The trial is currently anticipated to take place in Q4 2025. In addition to the USD LIBOR cases described above, there are two class actions relating to JPY LIBOR and Euroyen TIBOR that remain outstanding. The first class action, which relates to Euroyen TIBOR futures contracts, was dismissed by the SDNY in September 2020 on jurisdictional and other grounds, and that decision was affirmed by the US Court of Appeals in October 2022. The plaintiffs have petitioned the court for a rehearing of their appeal. The second class action, which relates to other derivatives allegedly tied to JPY LIBOR and Euroyen TIBOR, was dismissed by the SDNY in relation to NWM Plc and other NatWest Group companies in September 2021. That dismissal may be the subject of a future appeal. Two other IBOR-related class actions, concerning alleged manipulation of Euribor and Pound Sterling LIBOR, were previously dismissed by the SDNY for various reasons. The plaintiffs’ appeals in those two cases remain pending. In June 2021, NWM Plc and the plaintiffs in the Swiss Franc LIBOR class action finalised a settlement resolving that case. The amount of that settlement has been paid into escrow pending final court approval of the settlement. Settlements in the class action relating to the Singapore Interbank Offered Rate and Singapore Swap Offer Rate and the class action relating to the Australian Bank Bill Swap Reference Rate received court approval in 2022, such that the settlements became final and the amounts previously paid into escrow were released to the plaintiffs. In August 2020, a complaint was filed in the United States District Court for the Northern District of California by several United States retail borrowers against the USD ICE LIBOR panel banks and their affiliates (including NatWest Group plc, NWM Plc, NWMSI and NWB Plc), alleging (i) that the very process of setting USD ICE LIBOR amounts to illegal price-fixing; and (ii) that banks in the United States have illegally agreed to use LIBOR as a component of price in variable retail loans. In September 2022, the district court dismissed the complaint, subject to re-pleading by the plaintiffs. The plaintiffs filed an amended complaint in October 2022, which the defendants are again seeking to have dismissed. NWM Plc is 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 outside the jurisdiction, 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 an appeal to Israel’s Supreme Court in respect of the dismissal of the substantive case against banks that had a presence in Israel. ​ 26 Memorandum items continued FX litigation NWM Plc, NWMSI and/or NatWest Group plc are defendants in several cases relating to NWM Plc's foreign exchange (FX) business. In 2015, NWM Plc paid US$255 million to settle the consolidated antitrust class action filed in the SDNY on behalf of persons who entered into over-the-counter FX transactions with defendants or who traded FX instruments on exchanges. In 2018, some members of the settlement class who opted out of that class action settlement filed their own non-class complaint in the SDNY asserting antitrust claims against NWM Plc, NWMSI and other banks. In April 2019, some of the claimants in the opt-out case described above, as well as others, served proceedings in the High Court of Justice of England and Wales, asserting competition claims against NWM Plc and several other banks. The claim was transferred from the High Court of Justice of England and Wales in December 2021 and registered in the UK Competition Appeal Tribunal (CAT) in January 2022. In December 2022, NWM Plc reached an agreement in principle, subject to documentation, to resolve both the SDNY and CAT cases. The settlement amount to be paid by NWM Plc is covered by an existing provision. An FX-related class action, on behalf of ‘consumers and end-user businesses’, is proceeding in the SDNY against NWM Plc and others. In March 2022, the SDNY denied the plaintiffs’ motion for class certification. Plaintiffs sought an immediate appeal of the decision but the appellate court declined to review the decision. As a result, the case is proceeding on an individual, non-class basis, and the defendants are seeking summary judgment dismissing the individual claims. 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 AUD $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 and NWMSI have been named in the action as 'other cartel participants', but are not respondents. The claim was served in June 2019 and NWM Plc filed its defence in March 2022. In July and December 2019, two separate applications seeking opt-out collective proceedings orders were filed in the CAT against NatWest Group plc, NWM Plc and other banks. Both applications were 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. In March 2022, the CAT declined to certify as collective proceedings either of the applications. In October 2022, the CAT granted permission for the applicants to appeal that decision to the Court of Appeal. Separately, the applicants have served judicial review proceedings, which are due to be heard together with the appeal to the Court of Appeal in April 2023. 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 to certify, which names The Royal Bank of Scotland plc (now NWM Plc) and several other banks as defendants, was served on NWM Plc in May 2020. The applicants have sought the court’s permission to amend their motions to certify the class actions. Litigation and regulatory matters NWM Plc has filed a motion challenging the permission granted by the court for the applicants to serve the consolidated motion outside the Israeli jurisdiction. That NWM Plc motion remains pending. In December 2021, a claim was issued in the Netherlands against NatWest Group plc, NWM Plc and NWM N.V. by Stichting FX Claims, seeking a declaration from the court that anti-competitive FX market conduct described in decisions of the European Commission (EC) of 16 May 2019 is unlawful, along with unspecified damages. The claimant has amended its claim to also refer to a December 2021 decision by the EC, which also described anti-competitive FX market conduct. The defendants are contesting the jurisdiction of the Dutch court. Certain other foreign exchange transaction related claims have been or may be threatened. NatWest Group cannot predict whether all or any of these claims will be pursued. Government securities antitrust litigation NWMSI and certain other US broker-dealers are defendants in a consolidated antitrust class action 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 the 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 the plaintiffs. In March 2022, the SDNY dismissed the complaint, without leave to re-plead. The plaintiffs are appealing the dismissal. 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. In March 2022, the SDNY dismissed the claims against NWM Plc and NWMSI on the ground that the complaint’s conspiracy allegations are insufficient. The plaintiffs have filed a motion for permission to file an amended complaint. ​ 26 Memorandum items continued 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 June 2021, a class action antitrust complaint was filed against a number of credit default swap dealers in New Mexico federal court on behalf of persons who, from 2005 onwards, settled credit default swaps in the United States by reference to the ISDA credit default swap auction protocol. The complaint alleges that the defendants conspired to manipulate that benchmark through various means in violation of the antitrust laws and the Commodity Exchange Act. The defendants include several NatWest Group companies, including NatWest Group plc. Defendants are seeking dismissal. Odd lot corporate bond trading antitrust litigation In October 2021, the SDNY granted the defendants’ motion to dismiss the class action antitrust complaint alleging that from August 2006 onwards various securities dealers, including NWMSI, 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. The plaintiffs have filed an appeal. Spoofing litigation In December 2021, three substantially similar class actions complaints were filed in federal court in the United States against NWM Plc and NWMSI alleging Commodity Exchange Act and common law unjust enrichment claims arising from manipulative trading known as spoofing. The complaints refer to NWM Plc’s December 2021 spoofing-related guilty plea (described below under “US investigations relating to fixed-income securities”) and purport to assert claims on behalf of those who transacted in US Treasury securities and futures and options on US Treasury securities between 2008 and 2018. In July 2022, defendants filed a motion to dismiss these claims, which have been consolidated into one matter in the United States District Court for the Northern District of Illinois. Madoff NWM N.V. was named as a defendant in two actions filed by the trustee for the bankrupt estates of Bernard L. Madoff and Bernard L. Madoff Investment Securities LLC, in bankruptcy court in New York, which together seek to clawback more than US$298 million that NWM N.V. allegedly received from certain Madoff feeder funds and certain swap counterparties. The claims were previously dismissed, but as a result of an August 2021 decision by the US Court of Appeals, they will now proceed in the bankruptcy court, where they have now been consolidated into one action, subject to NWM N.V.’s legal and factual defences. In May 2022, NWM N.V. filed a motion to dismiss the amended complaint in the consolidated action. EUA trading litigation 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 European Union Allowances (EUAs) in 2009 and were alleged to be VAT defaulting traders within (or otherwise connected to) EUA supply chains of which NWM Plc was a party. In March 2020, the court held that NWM Plc and Mercuria Energy Europe Trading Limited (‘Mercuria’) were liable for dishonestly assisting and knowingly being a party to fraudulent trading during a seven In October 2020, the High Court quantified total damages against NWM Plc and Mercuria at £45 million plus interest and costs, and permitted the defendants to appeal to the Court of Appeal. In May 2021 the Court of Appeal set aside the High Court’s judgment and ordered that a retrial take place before a different High Court judge. The claimants have been denied permission by the Supreme Court to appeal that decision and the retrial will therefore proceed on a date to be scheduled. Mercuria has also been denied permission by the Supreme Court to appeal the High Court’s finding that NWM Plc and Mercuria were both vicariously liable. Litigation and regulatory matters 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 £143 million to HMRC, and payment was made in December 2020. The appeal and the application for judicial review have both been stayed pending resolution of a separate case involving another bank. ​ 26 Memorandum items continued US Anti-Terrorism Act litigation NWM N.V. and certain other financial institutions are defendants in several actions 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. 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 that committed the attacks, 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. On 5 January 2023, the US Court of Appeals affirmed the district court’s dismissal of this case. Another action, filed in the SDNY in 2017, was dismissed by the SDNY in March 2019 on similar grounds as the first case, but remains subject to appeal to the US Court of Appeals. Other follow-on actions that are substantially similar to the two that have now been dismissed are pending in the same courts. 1MDB litigation A Malaysian court claim was served in Switzerland in November 2022 by 1MDB, a Sovereign Wealth Fund, in which Coutts & Co Ltd was named, along with six others, as a defendant in respect of losses allegedly incurred by 1MDB. It is claimed that Coutts & Co Ltd is liable as a constructive trustee for having dishonestly assisted the directors of 1MDB in the breach of their fiduciary duties by failing (amongst other alleged claims) to undertake due diligence in relation to a customer of Coutts & Co Ltd, through which funds totalling c.US$1 billion were received and paid out between 2009 and 2011. The claimant seeks the return of that amount plus interest. Coutts & Co Ltd filed an application in January 2023 challenging the validity of service and the Malaysian court’s jurisdiction to hear the claim. Coutts & Co Ltd is a company registered in Switzerland and is in wind-down following the announced sale of its business assets in 2015. 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. NatWest Group expects government and regulatory intervention in financial services to be high for the foreseeable future, including increased scrutiny from competition and other regulators in the retail and SME business sectors. 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. US investigations relating to fixed-income securities In December 2021, NWM Plc pled guilty in the United States District Court for the District of Connecticut to one count of wire fraud and one count of securities fraud in connection with historical spoofing conduct by former employees in US Treasuries markets between January 2008 and May 2014 and, separately, during approximately three months in 2018. The 2018 trading occurred during the term of a non-prosecution agreement (NPA) between NWMSI and the United States Attorney’s Office for the District of Connecticut (USAO CT), under which non-prosecution was conditioned on NWMSI and affiliated companies not engaging in criminal conduct during the term of the NPA. The relevant trading in 2018 was conducted by two NWM traders in Singapore and breached that NPA. The plea agreement reached with the US Department of Justice and the USAO CT resolved both the spoofing conduct and the breach of the NPA. As required by the resolution and sentence imposed by the court, NWM Plc is subject to a three-year period of probation. The plea agreement also imposes an independent corporate monitor. In addition, NWM Plc has committed to compliance programme reviews and improvements and agreed to reporting and co-operation obligations. Other material adverse collateral consequences may occur as a result of this matter, as further described in the Risk Factors relating to legal, regulatory and governmental actions and investigations set out on page 146 to 148. 26 Memorandum items continued Litigation and regulatory matters RBSI inspection report and referral to enforcement The Isle of Man Financial Services Authority undertook an inspection at The Royal Bank of Scotland International Limited (RBSI), Isle of Man, in 2021, following which it issued an inspection report. The inspection was in relation to anti-money laundering and counter-terrorist financing controls and procedures relating to specific RBSI customers. In May 2022, the FSA notified RBSI that it had been referred to its Enforcement Division in relation to certain issues identified in the inspection report. RBSI reliance regime and referral to enforcement In January 2023, the Jersey Financial Services Commission notified RBSI that it had been referred to its Enforcement Division in relation to RBSI’s operation of the reliance regime. The reliance regime is specific to certain Crown Dependencies and enables the bank to rely on regulated third parties for specific due diligence information. Investment advice review In October 2019, the FCA notified NatWest Group of its intention to appoint a Skilled Person under section 166 of the Financial Services and Markets Act 2000 to conduct a review of whether NatWest Group’s past business review of investment advice provided during 2010 to 2015 was subject to appropriate governance and accountability and led to appropriate customer outcomes. The Skilled Person’s review has concluded and, after discussion with the FCA, NatWest Group has now commenced additional review / remediation work. Review and investigation of treatment of tracker mortgage customers in Ulster Bank Ireland DAC In Dec

Analysis of the net investment

Analysis of the net investment in business interests and intangible assets	12 Months Ended
	Dec. 31, 2022
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 This note shows cash flows relating to obtaining or losing control of associates or subsidiaries and net assets and liabilities purchased and sold. These cash flows are presented as investing activities on the cash flow statement. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ £m £m £m Acquisition of interests in associates (1) — — Additional investment in associates ​ — ​ (51) ​ (40) Net assets/liabilities purchased ​ — ​ (3,128) ​ — Net outflow of cash in respect of acquisitions (1) (3,179) (40) ​ ​ ​ ​ ​ ​ ​ Sale of interests in associates — — 27 Disposal of net assets and liabilities 6,270 114 288 (Loss)/profit on disposal of net assets and liabilities (106) 55 3 Net inflow of cash in respect of disposals 6,164 169 318 ​ ​ ​ ​ ​ ​ ​ Cash expenditure on intangible assets (743) (479) (348) Net inflow/(outflow) of cash 5,420 (3,489) (70) ​

Analysis of changes in financin

Analysis of changes in financing during the year	12 Months Ended
	Dec. 31, 2022
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 This note shows cash flows and non-cash movements relating to the financing activities of the Group. These activities reflect movements in share capital, share premium, paid-in equity, subordinated liabilities and MRELs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Share capital, share premium, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and paid-in equity ​ Subordinated liabilities ​ MRELs ​ 2022 2021 2020 2022 2021 2020 2022 2021 2020 ​ ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m At 1 January 16,519 18,239 17,246 8,429 9,962 9,979 ​ 23,423 ​ 20,873 ​ 19,249 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issue of paid-in equity — 937 2,218 — — — ​ — ​ — ​ — Issue of subordinated liabilities ​ — ​ — ​ — ​ 648 ​ 1,634 ​ 1,631 ​ — ​ — ​ — Redemption of subordinated liabilities — — — (3,693) (4,765) (3,502) ​ — ​ — ​ — Interest on subordinated liabilities ​ — ​ — ​ — ​ (374) ​ (321) ​ (510) ​ — ​ — ​ — Issue of MRELs ​ — ​ — ​ — ​ — ​ — ​ — ​ 3,721 ​ 3,383 ​ 1,309 Maturity and redemption of MRELs ​ — ​ — ​ — ​ — ​ — ​ — ​ (4,992) ​ — ​ (2) Interest on MRELs ​ — ​ — ​ — ​ — ​ — ​ — ​ (703) ​ (647) ​ (671) Net cash inflow/(outflow) from financing — 937 2,218 (3,419) (3,452) (2,381) ​ (1,974) ​ 2,736 ​ 636 Ordinary shares issued ​ — ​ 87 ​ 52 ​ — ​ — ​ — ​ — ​ — ​ — Share cancellation ​ (929) ​ (698) ​ — ​ — ​ — ​ — ​ — ​ — ​ — Effects of foreign exchange — — — 597 (18) (234) ​ 1,889 ​ (190) ​ (514) Changes in fair value of subordinated liabilities and MRELs ​ — ​ — ​ — ​ (594) ​ (434) ​ 133 ​ (1,806) ​ (649) ​ 829 Preference shares reclassified to subordinated liabilities ​ — ​ — ​ — ​ 750 ​ — ​ — ​ — ​ — ​ — Paid in equity reclassified to subordinated liabilities ​ — ​ (2,046) ​ (1,277) ​ — ​ 1,915 ​ 1,632 ​ ​ ​ — ​ — Loss on sale of subordinated liabilities and MRELs ​ — ​ — ​ — ​ 161 ​ 145 ​ 324 ​ — ​ — ​ — Interest on subordinated liabilities and MRELs ​ — ​ — ​ — ​ 370 ​ 311 ​ 509 ​ 733 ​ 653 ​ 673 Other adjustments — — — (34) — — ​ — ​ — ​ — At 31 December 15,590 16,519 18,239 6,260 8,429 9,962 ​ 22,265 ​ 23,423 ​ 20,873 ​

Analysis of cash and cash equiv

Analysis of cash and cash equivalents	12 Months Ended
	Dec. 31, 2022
Analysis of cash and cash equivalents
Analysis of cash and cash equivalents	29 Analysis of cash and cash equivalents In the cash flow statement, cash and cash equivalents comprises cash, loans to banks and treasury bills with an original maturity of less than three months that are readily convertible to known amounts of cash and subject to insignificant risk of change in value. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m At 1 January 190,706 139,199 100,588 Net (decrease)/increase in cash and cash equivalents (32,257) 51,507 38,611 At 31 December 158,449 190,706 139,199 ​ ​ ​ Comprising: ​ ​ ​ Cash and balances at central banks 144,832 177,757 124,489 Trading assets ​ 8,551 ​ 7,137 ​ 9,220 Other financial assets 19 16 173 Loans to banks (1) 5,047 5,796 5,317 Cash and cash equivalents 158,449 190,706 139,199 ​ (1) Includes cash collateral posted with bank counterparties in respect of derivative liabilities of £4,895 million (2021 - £4,293 million; 2020 - £7,592 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 €64 million (2021 - €60 million, 2020 - €81 million). The Royal Bank of Scotland International (Holdings) Limited had balances with Central Bank of Luxembourg of £108 million (2021 - £123 million, 2020 - £59 million)

Directors' and key management r

Directors' and key management remuneration	12 Months Ended
	Dec. 31, 2022
Directors' and key management remuneration
Directors' and key management remuneration	30 Directors' and key management remuneration Directors and key management are remunerated for services rendered in the period. 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. 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. ​ ​ ​ ​ ​ ​ ​ 2022 2021 Directors' remuneration ​ £000 ​ £000 Non-executive directors emoluments 1,685 1,641 Chairman and executive directors emoluments 5,804 4,688 ​ 7,489 6,329 Amounts receivable under long-term incentive plans and share option plans 542 549 Total 8,031 6,878 ​ Compensation of key management The aggregate remuneration of directors and other members of key management during the year was as follows: ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £000 ​ £000 Short-term benefits 22,175 17,303 Post-employment benefits 732 820 Share-based payments 2,547 2,491 ​ 25,454 20,614 ​ Short term benefits include benefits expected to be settled wholly within twelve months of Balance Sheet date. Post-employment benefits include defined benefit contributions for active members and pension funding to support contributions to the defined contribution schemes. Share-based payments include awards vesting under rewards schemes.

Transactions with directors and

Transactions with directors and key management	12 Months Ended
	Dec. 31, 2022
Transactions with directors and key management
Transactions with directors and key management	31 Transactions with directors and key management This note presents information relating to any transactions with directors and key management. Key management comprises directors of the company and Persons Discharging Managerial Responsibilities (PDMRs) of NatWest Group plc. For the purposes of IAS 24 Related party disclosures, key management comprises directors of the company and PDMRs of NatWest Group plc. 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. Amounts in the table below are attributed to each person at their highest level of NatWest Group key management. ​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £000 ​ £000 Loans to customers - amortised cost 12,137 9,128 Customer deposits 47,866 51,018 ​ At 31 December 2022, amounts outstanding in relation to transactions, arrangements and agreements entered into by authorised institutions in NatWest Group, as defined in UK legislation, were £9,636,586 in respect of loans to 8 persons who were directors of the company at any time during the financial period.

Related parties

Related parties	12 Months Ended
	Dec. 31, 2022
Related parties
Related parties	32 Related parties A related party is a person or entity that is related to the entity that is preparing its financial statements. Transactions between an entity and any related party are disclosed in the financial statements in accordance with both accounting standards and relevant listing rules to ensure readers are aware of how financial statements may be affected by these transactions. 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 2022 HM Treasury’s holding in the company’s ordinary shares was 45.97%. 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 levy (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 0.403% 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 subsidiaries liabilities to the Bank of England. Other related parties - 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. - To further strategic partnerships, NatWest group may seek to invest in third parties or allow third parties to hold a minority interest in a subsidiary of NatWest group. We disclose as related parties where stakes of 10 per cent or more are held. Ongoing business transactions with these entities are on normal commercial terms. - We hold investments and other assets of £871 million and total liabilities of £4.5 million. - 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. - During February 2023, the Group has entered into an agreement to establish a new legal structure to hold assets, consolidated on the Group’s balance sheet, to meet potential future contributions required by the Main section of the Group’ Pension Fund. This transaction will require a future transfer of £471 million to the Reservoir Trust once the final dividend for 2022 approved by shareholders. This transaction does not create a pension liability with the Main section of the Group Pension Fund. See further details in note 5 and note 33. - In accordance with IAS 24, transactions or balances between NatWest Group entities that have been eliminated on consolidation are not reported. - The primary financial statements of the parent company include transactions and balances with its subsidiaries which have been further disclosed in the relevant notes. ​

Post balance sheet events

Post balance sheet events	12 Months Ended
	Dec. 31, 2022
Post balance sheet events
Post balance sheet events	33 Post balance sheet events A post balance sheet event is an event that takes place between 31 December 2022 (reporting date) and 16 February 2023 (date of approval of these financial statements). Significant events are included in the financial statements either to provide new information about conditions that existed at 31 December 2022, including estimates used to prepare the financial statements (known as an adjusting event) or to provide new information about conditions that did not exist at 31 December 2022 (non-adjusting events). This note provides information relating to material non-adjusting events. On 6 February 2023, NWB reached agreement with the trustees of the Main Section of the Group pension scheme to recognise that the final distribution linked contribution to the Main Scheme, of up to £471 million, in 2023 is not expected to be required. In its place, agreement was reached to establish a new legal structure to hold assets with a value equivalent to £471 million. These assets would become transferrable to the Main section in the event that future triggers, reflecting a funding requirement, were met. The assets are not de-recognised from NWB balance sheet but are recorded as encumbered. The Group believes likelihood of triggers being met are remote given the current funding position of the Main section. Other than as disclosed in the accounts, there have been no other significant events between 31 December 2022 and the date of approval of these accounts which would require a change or additional disclosure. ​

Accounting policies (Policies)

Accounting policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting policies
Presentation of financial statements	1. Presentation of financial statements NatWest Group plc is incorporated in the UK and registered in Scotland. The financial statements are presented in the functional currency, pounds sterling. The audited financial statements include audited sections of the Risk and capital management section. The directors have prepared the financial statements on a going concern basis after assessing the principal risks, forecasts, projections and other relevant evidence over the twelve months from the date the financial statements are approved (see the Report of the directors) and in accordance with UK adopted International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The critical and significant accounting policies and related judgments are set out below. The financial statements are presented on a historical cost basis except for certain financial instruments which are stated at fair value. The effect of the amendments to IFRS effective from 1 January 2022 on our financial statements was immaterial. Our consolidated financial statements incorporate the results of NatWest Group plc and the entities it controls. Control arises when we have the power to direct the activities of an entity so as to affect the return from the entity. Control is assessed by reference to our ability to enforce our will on the other entity, typically through voting rights. The consolidated financial statements are prepared under consistent accounting policies. On acquisition of a subsidiary, the identifiable assets, liabilities and contingent liabilities are included in the consolidated financial statements at their fair value. A subsidiary is included in the consolidated financial statements from the date it is controlled by us until the date we cease to control it through a sale or a significant change in circumstances. Changes in our interest in a subsidiary that does not result in us ceasing to control that subsidiary are accounted for as equity transactions. We apply accounting for associates and joint arrangements (including joint ventures) to entities where we have significant influence, but not control, over the operating and financial policies. We assess significant influence by reference to a presumption of voting rights of more than 20%, but less than 50%, supplemented by a qualitative assessment of substantive rights which include representation at the Board of Directors, significant exchange of managerial personnel or technology amongst others. Joint ventures are arrangements where we have joint control and rights to the net assets of the entity. Investments in associates and joint ventures are recorded upon initial recognition at cost, increased or decreased each period by the share of the subsequent levels of profit or loss, and other changes in equity are considered in line with their nature. Transactions and balances between Group companies are eliminated in the consolidated financial statements to show only those transactions and balances external to us. The judgments and assumptions involved in our accounting policies that are considered by the Board to be the most important to the portrayal of its financial condition are noted below. The use of estimates, assumptions or models that differ from those adopted by us would affect our reported results. How Climate risk affects our accounting judgments and estimates Business planning Key financial estimates are based on management's latest five-year revenue and cost forecasts. The outputs from this forecast affect forward-looking accounting estimates. Measurement of deferred tax and expected credit losses are highly sensitive to reasonably possible changes in those anticipated conditions. In 2022, our scenario planning supported the development of NatWest Group’s initial iteration climate transition plan, including the assessment of climate-related risks and opportunities. ​ - The initial iteration of our Climate transition plan includes an assessment of: - changes in business operations, products and services to support customer decarbonisation; - financial plans linked to business operations and strategy. During 2022, the financial planning process has been enhanced to incorporate climate related opportunities included in the climate transition plan. In 2023, we will link specific actions that are needed to align to our climate ambitions into the financial forecasts. - development in UK Government policies, aligned with the Committee on Climate Change Sixth carbon Budget published in 2021. We also assume certain broader policy responses and technological innovation to enable the wider transition of the economy. - There remains considerable uncertainty regarding this policy response, including the effect of wider geo-political uncertainty on governmental ambitions regarding climate transition and the effect of decarbonisation on wider economic growth, technology development and customer behaviours. ​ Information used in other accounting estimates We make use of reasonable and supportable information to make accounting judgments and estimates. This includes information about the observable effects of the physical and transition risks of climate change on the current creditworthiness of borrowers, asset values and market indicators. It also includes the effect on our competitiveness and profitability. Many of the effects arising from climate change will be longer term in nature, with an inherent level of uncertainty, and have limited effect on accounting judgments and estimates for the current period. Some physical and transition risks can manifest in the shorter term. The following items represent the most significant effects: ​ - The classification of financial instruments linked to climate, or other sustainability indicators: consideration is given to whether the effect of climate related terms prevent the instrument cashflows being solely payments of principal and interest. - The measurement of expected credit loss considers the ability of borrowers to make payments as they fall due. Future cashflows are discounted, so long dated cashflows are less likely to affect current expectations on credit loss. Our assessment of sector specific risks, and whether additional adjustments are required, include expectations of the ability of those sectors to meet their financing needs in the market. Changes in credit stewardship and credit risk appetite that stem from climate considerations, such as oil and gas, will directly affect our positions. - The use of market indicators as inputs to fair value is assumed to include current information and knowledge regarding the effect of climate risk. ​ Effect of climate change in the estimation of expected credit loss Since the implementation of IFRS 9 in January 2018 loan losses reflect expected credit losses taking account of relevant and reliable forward looking information. We are evaluating the effect of the physical and transition consequences of climate change on our experience of loan loss. We use available information regarding the effect of climate transition policy largely driven by carbon prices as an adjustment to macroeconomic factors that are used as inputs to the models that generate PD and LGD outcomes, which are key inputs to the ECL calculation. The determination of whether specific loss drivers and climate events generate specific losses is ongoing and is necessary to determine how sensitive changes in ECL could be to climate inputs. As at 31 December 2022, our quantification of the impact due to physical risk and how other climate risks may impact the ECL is ongoing. ​ An impact assessment on how climate risk factors may require adjustment in our IFRS 9 model suite has also not been finalised. We judged that this information was not sufficiently complete to make a reliable estimate and given the immaterial change in ECL it indicated, determined it was not appropriate to adjust ECL. ​ When this information is reliable, possibly during 2023, it could be used in our ECL calculation. A key part of this is determining that any adjustment resulting from the inclusion of new climate-related inputs does not double count or omit credit losses arising from other inputs. We will continue to develop our data, models and methodologies relating to climate evaluation and market practice will continue to evolve and this will affect the estimation of climate effect in ECL on an ongoing basis. We expect that the effect of climate risks on ECL will increase as government policy, organisations and individuals react to changes in climate as well as the probable increased occurrence of climate-related loss events (such as flooding and wildfire). ​
Critical accounting polices	2. Critical accounting policies The judgments and assumptions involved in our accounting policies that are considered by the Board to be the most important to the portrayal of our financial condition are noted below. The use of estimates, assumptions or models that differ from those adopted by us would affect our reported results. Management’s consideration of uncertainty is outlined in the relevant sections of this document, including the ECL estimate in the Risk and capital management section. ​ Information used for significant estimate Key financial estimates are based on management's latest five-year revenue and cost forecasts. Changes in judgments and assumptions could result in a material adjustment to those estimates in future reporting periods. Consideration of this source of estimate uncertainty has been set out in the notes below (as applicable). ​ Policy Judgment Estimate Further information Deferred tax ​ Determination of whether sufficient taxable profits will be generated in future years to recover DTA. ​ Our estimates are based on the five-year revenue and cost forecasts (which include inherent uncertainties). ​ Note 7 Fair value – financial instruments ​ Classification of a fair value instrument as level 3, where the valuation is driven by unobservable inputs. ​ Estimation of the fair value, where it is reasonably possible to have alternative assumptions in determining the FV. ​ Note 11 Loan impairment provisions ​ Definition of default against which to apply PD, LGD and EAD models. Criteria for a significant increase in credit risk. Identification of risks not captured by the models. ​ ECL estimates contain a number of measurement uncertainties (such as the selection of multiple economic scenarios) and disclosures include sensitivities to show impact on other reasonably possible scenarios. ​ Note 15 Provisions for liabilities and charges ​ Determination of whether a present obligation exists in respect of customer redress, litigation and other regulatory, property and other provisions. Legal proceedings often require a high degree of judgment and these are likely to change as the matter progresses. ​ Provisions remain sensitive to the assumptions used in the estimate. We consider a wide range of possible outcomes. It is often not practical to meaningfully quantify ranges of possible outcomes, given the uncertainties involved. ​ Note 21 ​
Deferred tax	2.1. Deferred tax 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 we have 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. ​ Deferred tax asset recoverability is based on the level of supporting offsetable deferred tax liabilities we have and of our future taxable profits. These future taxable profits are based on our five-year revenue and cost forecasts and the expectation of long term economic growth beyond this period. The five-year forecast takes account of management’s current expectations on competitiveness and profitability. The long term growth rate reflects external indicators which will include market expectations on climate risk. We do not consider any additional adjustments to this indicator. ​
Fair value - financial instruments	2.2. Fair value – financial instruments Financial instruments classified as mandatory fair value through profit or loss; held-for-trading; designated fair value through profit or loss and 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 considers the characteristics of the asset or liability and the assumptions that a market participant would consider when pricing the asset or liability. ​ We manage some portfolios of financial assets and financial liabilities based on our net exposure to either market or credit risk. In these cases, the fair value is derived from the net risk exposure of that portfolio with portfolio level adjustments applied to incorporate bid-offer spreads, counterparty credit risk, and funding costs (see ‘Valuation Adjustments’). ​ 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. The complexity and uncertainty in the financial instrument’s fair value is categorised using the fair value hierarchy. ​ The use of market indicators as inputs to fair value is assumed to include current information and knowledge regarding the effect of climate risk.
Loan impairment provisions: expected credit losses (ECL)	2.3. Loan impairment provisions: expected credit losses (ECL) At each balance sheet date each financial asset or portfolio of financial assets measured at amortised cost or at fair value through other comprehensive income, issued financial guarantee and loan commitment (other than those classified as held for trading) is assessed for impairment. Any change in impairment is reported 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. Following a significant increase in credit risk, ECL are adjusted from 12 months to lifetime. This will lead to a higher impairment charge. ​ The measurement of expected credit loss considers the ability of borrowers to make payments as they fall due. Future cashflows are discounted, so long-dated cashflows are less likely to affect current expectations on credit loss. Our assessment of sector specific risks, and whether additional adjustments are required, include expectations of the ability of those sectors to meet their financing needs in the market. Changes in credit stewardship and credit risk appetite that stem from climate considerations, such as oil and gas, will directly affect our positions. ​ Judgment is exercised as follows: ​ - Models – in certain low default portfolios, Basel parameter estimates are also applied for IFRS 9. - Non-modelled portfolios – 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 where a financial asset is not derecognised, 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 our acquired interest is in equity shares, relevant policies for control, associates and joint ventures apply. ​ Impaired financial assets are written off and therefore derecognised from the balance sheet when we conclude that there is no longer any realistic prospect of recovery of part, or all, of the loan. For financial assets that are individually assessed for impairment, the timing of the write-off is determined on a case-by-case basis. Such financial assets are reviewed regularly and write-off will be prompted by bankruptcy, insolvency, re-negotiation, and similar events. ​ The typical time frames from initial impairment to write-off for our 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 . ​
Provisions and contingent liabilities	2.4. Provisions and contingent liabilities We recognise a provision for a present obligation resulting from a past event when it is more likely than not that we will be required to pay 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 we have a constructive obligation. An obligation exists when we have a detailed formal plan for the restructuring and have raised a valid expectation in those affected either by starting to implement the plan or by announcing its main features. We recognise any onerous cost of the present obligation under a contract as a provision. An onerous cost is the unavoidable cost of meeting our contractual obligations that exceed the expected economic benefits. When we intend to vacate a leasehold property or right of use asset, the asset would be tested for impairment and a provision may be recognised for the ancillary contractual occupancy costs. 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.
Revenue recognition	3.1. Revenue recognition Interest receivable and payable are recognised in the income statement using the effective interest rate method for: all financial instruments measured at amortised cost; debt instruments measured as fair value through other comprehensive income; and the effective part of any related accounting hedging instruments. Finance lease income is recognised at a constant periodic rate of return before tax on the net investment on the lease. Other interest relating to financial instruments measured at fair value is recognised as part of the movement in fair value and is reported in income from trading activities or other operating income as relevant. 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.
Discontinued operations, Held for sale and Disposal group	3.2. Discontinued operations, Held for sale and Disposal group The results of discontinued operations (comprising the post-tax profit or loss of discontinued operations and the post-tax results of either the ongoing measurement at fair value less costs to sell or on disposal of the discontinued operation) are excluded from the results of continuing operations and are presented as a single amount as profit/(loss) from discontinued operations, net of tax in the income statement. Comparatives are represented for the income statement, cash flow statement, statement of changes in equity and related notes. An asset or disposal group (assets and liabilities) is classified as held for sale if we will recover its carrying amount principally through a sale transaction rather than through continuing use. These are measured at the lower of its carrying amount or fair value less cost to sell unless scoped out of IFRS 5 in which case the existing measurement provisions of IFRS apply. These are presented as single amounts; comparatives are not represented.
Staff costs	3.3. Staff costs Employee costs, such as salaries, paid absences, and other benefits are recognised over the period in which the employees provide the related services to us. Employees may receive variable compensation in cash, in deferred cash or debt instruments of NatWest Group or in ordinary shares of NatWest Group plc subject to deferral, clawback and forfeiture criteria. We operate a number of share-based compensation schemes under which we grant awards of NatWest Group plc shares and share options to our employees. Such awards are subject to vesting conditions. Variable compensation that is settled in cash or debt instruments is charged to the income statement on a straight-line basis over the period during which services are provided, taking account of forfeiture and clawback criteria. The value of employee services received in exchange for NatWest Group plc shares and share options is recognised as an expense over the vesting period, subject to deferral, clawback, cancelation and forfeiture criteria with a corresponding increase in equity. The fair value of shares granted is the market price adjusted for the expected effect of dividends as employees are not entitled to dividends until shares are vested. The fair value of options granted is determined using option pricing models to estimate the numbers of shares likely to vest. These consider the exercise price of the option, the current share price, the risk-free interest rate, the expected volatility of the share price over the life of the option and other relevant factors such as the dividend yield. Defined contribution pension scheme A scheme where we pay fixed contributions and there is no legal or constructive obligation to pay further contributions or benefits. Contributions are recognised in the income statement as employee service costs accrue. Defined benefit pension scheme A scheme that defines the benefit an employee will receive on retirement and is dependent on one or more factors such as age, salary, and years of service. The net of the recognisable scheme assets and obligations is reported on the balance sheet in other assets or other liabilities. The defined benefit obligation is measured on an actuarial basis. The charge to the income statement 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 due to changes in actuarial measurement assumptions) are recognised in other comprehensive income in full in the period in which they arise, and not subject to recycling to the income statement. The difference between scheme assets and scheme liabilities, the net defined benefit asset or liability, is recognised on the balance sheet if the criteria of the asset ceiling test are met. This requires the net defined benefit surplus to be limited to the present value of any economic benefits available to us in the form of refunds from the plan or reduced contributions to it. We will recognise a liability where a minimum funding requirement exists for any of our defined benefit pension schemes. This reflects agreed minimum funding and the availability of a net surplus as determined as described above. When estimating the liability for minimum funding requirements we only include contributions that are substantively or contractually agreed and do not include contingent and discretionary features, including dividend-linked contributions or contributions subject to contingent events requiring future verification. We will recognise a net defined benefit asset when the net defined benefit surplus can generate a benefit in the form of a refund or reduction in future contributions to the plan. The net benefit pension asset is recognised at the present value of the benefits that will be available to us excluding interest and the effect of the asset ceiling (if any, excluding interest). Changes in the present value of the net benefit pension asset are recognised immediately in other comprehensive income. In instances where Trustees have the ability to declare augmented benefits to participants, we do not recognise a defined benefit pension asset and write-off the surplus immediately in other comprehensive income.
Intangible assets and goodwill	3.4. Intangible assets and goodwill Intangible assets are identifiable non-monetary assets without physical substance acquired by us, and are stated at cost less accumulated amortisation and impairment losses. Amortisation is a method to spread the cost of such assets over time in the income statement. ​ This is charged to the income statement over the assets' estimated useful economic lives using methods that best reflect the pattern of economic benefits. ​ The 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 charged to the income statement as incurred. Direct costs relating to the development of internal-use computer software are reported on the balance sheet after technical feasibility and economic viability have been established. These direct costs include payroll, the costs of materials and services, and directly attributable overheads. Capitalisation of costs ceases when the software can operate 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 to the income statement 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 reported on the balance sheet Goodwill on the acquisition of a subsidiary is the excess of the fair value of the consideration paid, 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 when such transactions occur.
Impairment of non-financial assets	3.5. Impairment of non-financial assets At each balance sheet date, we assess whether there is any indication that its intangible assets or property, plant and equipment are impaired. If any such indication exists, we estimate the recoverable amount of the asset and compares it to its balance sheet value to calculate if an impairment loss should be charged to the income statement. The balance sheet value of the asset is reduced by the amount of the impairment loss. A reversal of an impairment loss on intangible assets or property, plant and equipment is recognised in the income statement provided the increased carrying value is not greater than it would have been had no impairment loss been recognised. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Impairment losses on goodwill are not reversed. 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 our 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 considered in estimating future cash flows. The assessment of asset impairment is based upon value in use. This represents the value of future cashflows and uses our five-year revenue and cost forecasts and the expectation of long term economic growth beyond this period. The five-year forecast takes account of management’s current expectations on competitiveness and profitability. The long term growth rate reflects external indicators which will include market expectations on climate risk. We do not consider any additional adjustments to this indicator. ​
Foreign currencies	3.6. Foreign currencies 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. Non-monetary items denominated in foreign currencies that are stated at fair value are translated into the functional currency at the foreign exchange rates ruling at the dates the values are determined. Translation differences are recognised in the income statement except for differences arising on non-monetary financial assets classified as fair value through other comprehensive income. Income and expenses of foreign subsidiaries and branches are translated into sterling at average exchange rates unless these do not approximate 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 the income statement on disposal of a foreign operation.
Tax	3.7. Tax Tax encompassing current tax and deferred tax is recognised in the income statement except when taxable items are recognised in other comprehensive income or equity. Tax consequences arising from servicing financial instruments classified as equity are recognised in the income statement. Current tax is tax payable or recoverable in respect of the taxable profit or loss for the year arising in the income statement, other comprehensive income or equity. Provision is made for current tax at rates enacted, or substantively enacted, at the balance sheet date. 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. We recognise 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	3.8. Financial instruments Financial instruments are measured at fair value on initial recognition on the balance sheet. Monetary financial assets are classified into one of the following subsequent measurement categories (subject to business model assessment and review of contractual cash flow for the purposes of sole payments of principal and interest where applicable): - amortised cost measured at cost using the effective interest rate method, less any impairment allowance; - fair value through other comprehensive income (FVOCI) measured at fair value, using the effective interest rate method and changes in fair value through other comprehensive income; - mandatory fair value through profit or loss (MFVTPL) measured at fair value and changes in fair value reported in the income statement; or - designated at fair value through profit or loss (DFV) measured at fair value and changes in fair value reported in the income statement. Classification by business model reflects how we manage our financial assets to generate cash flows. A business model assessment helps to ascertain the measurement approach depending on whether cash flows result from holding financial assets to collect the contractual cash flows, from selling those financial assets, or both. 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 for the portfolio, its risk management, manager’s remuneration and the ability to monitor sales of assets from a portfolio. When a significant change to our business is communicated to external parties, we reassess our business model for managing those financial assets. We reclassify financial assets if we have a significant change to the business model. A reclassification is applied prospectively from the reclassification date. The contractual terms of a financial asset; any leverage features; prepayment and extension terms; and discounts or penalties to interest rates that are part of meeting environmental, social and governance targets as well as other contingent and leverage features, non-recourse arrangements and features that could modify the timing and/or amount of the contractual cash flows that might reset the effective rate of interest; are considered in determining whether cash flows are solely payments of principal and interest. Certain financial assets may be designated at fair value through profit or loss (DFV) upon initial recognition if such designation eliminates, or significantly reduces, accounting mismatch. Equity shares are measured at fair value through profit or loss unless specifically elected as at fair value through other comprehensive income (FVOCI). Upon disposal, the cumulative gains or losses in fair value through other comprehensive income reserve are recycled to the income statement for monetary assets and for non-monetary assets (equity shares) the cumulative gains or losses are transferred directly to retained earnings. Regular way purchases and sales 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. Financial liabilities are classified into one of following measurement categories: - amortised cost measured at cost using the effective interest rate method; - held for trading measured at fair value and changes in fair value reported in income statement; or - designated at fair value through profit or loss measured at fair value and changes in fair value reported in the income statement except changes in fair value attributable to the credit risk component recognised in other comprehensive income when no accounting mismatch occurs.
Derecognition	3.9. Derecognition A financial asset is derecognised (removed from the balance sheet) 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 in a contract under which we retain substantially all the risks and rewards of ownership. A financial liability is removed from the balance sheet when the obligation is paid, or is cancelled, or expires. Cancellation includes the issuance of a substitute instrument on substantially different terms.
Netting	3.10. Netting Financial assets and financial liabilities are offset, and the net amount presented on the balance sheet when, and only when, we currently have a legally enforceable right to set off the recognised amounts and we intend either to settle on a net basis or to realise the asset and settle the liability simultaneously. We are party to a number of arrangements, including master netting agreements, that give us the right to offset financial assets and financial liabilities, but where we do not intend to settle the amounts net or simultaneously, the assets and liabilities concerned are presented separately on the balance sheet.
Capital instruments	3.11. Capital instruments We classify a financial instrument that we issue 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 we evidence a residual interest in our assets after the deduction of liabilities. 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 us (known as treasury shares or own shares held) 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	3.12. Derivatives and hedging Derivatives are reported on the balance sheet at fair value. We use derivatives as part of our trading activities, to manage our own risk such as interest rate, foreign exchange, or credit risk or in certain customer transactions. Not all derivatives used to manage risk are in hedge accounting relationships (an IFRS method to reduce accounting mismatch from changes in the fair value of the derivatives reported in the income statement). Gains and losses arising from changes in the fair value of derivatives that are not in hedge relationships are recognised in the income statement 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. Hedge accounting We enter into three types of hedge accounting relationships (see later). Hedge accounting relationships are 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. When designating a hedging relationship, we consider: the economic relationship between the hedged item (including the risk being hedged) and the hedging instrument; the nature of the risk; the risk management objective and strategy for undertaking the hedge; and the appropriateness of the method that will be used to assess hedge effectiveness. Designated hedging relationships must be expected to be highly effective both on a prospective and retrospective basis. Effectiveness is assessed by reference to the degree of offsetting between the changes in fair value or cash flows attributable to the hedged risk and the changes in fair value of the designated hedging derivatives. Fair value hedge Cash flow hedge Hedge of net investment in a foreign operation Discontinuation of hedge accounting Hedge accounting is discontinued if the hedge no longer meets the criteria for hedge accounting i.e. the hedge is not highly effective in offsetting changes in fair value or cash flows attributable to the hedged risk, consistent with the documented risk management strategy; the hedging instrument expires or is sold, terminated or exercised; or if hedge designation is revoked. For fair value hedging any cumulative adjustment is amortised to the income statement over the life of the hedged item. Where the hedge item is no longer on the balance sheet the adjustment to the hedged item is reported in the income statement. For cash flow hedging the cumulative unrealised gain or loss is reclassified from equity to the income statement 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 the income statement. Where a forecast transaction is no longer expected to occur, the cumulative unrealised gain or loss is reclassified from equity to the income statement immediately. For net investment hedging on disposal or partial disposal of a foreign operation, the amount accumulated in equity is reclassified from equity to the income statement.
Future accounting developments	4.Future accounting developments International Financial Reporting Standards Effective 1 January 2023 - IFRS 17 Insurance Contracts (Amendments to IFRS 17 Insurance Contracts); - Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12); - Definition of Accounting Estimates (Amendments to IAS 8); and - Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2). Effective 1 January 2024 - Classification of Liabilities as Current or Non-current (Amendments to IAS 1); - Non-current Liabilities with Covenants (Amendments to IAS 1) - Lease Liability in a sale and Leaseback (Amendments to IFRS 16). ​ We are assessing the effect of adopting these standards and amendments on our financial statements but do not expect the effect to be material.

Accounting policies (Tables)

Accounting policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting policies
Schedule of information used for significant estimates	​ Policy Judgment Estimate Further information Deferred tax ​ Determination of whether sufficient taxable profits will be generated in future years to recover DTA. ​ Our estimates are based on the five-year revenue and cost forecasts (which include inherent uncertainties). ​ Note 7 Fair value – financial instruments ​ Classification of a fair value instrument as level 3, where the valuation is driven by unobservable inputs. ​ Estimation of the fair value, where it is reasonably possible to have alternative assumptions in determining the FV. ​ Note 11 Loan impairment provisions ​ Definition of default against which to apply PD, LGD and EAD models. Criteria for a significant increase in credit risk. Identification of risks not captured by the models. ​ ECL estimates contain a number of measurement uncertainties (such as the selection of multiple economic scenarios) and disclosures include sensitivities to show impact on other reasonably possible scenarios. ​ Note 15 Provisions for liabilities and charges ​ Determination of whether a present obligation exists in respect of customer redress, litigation and other regulatory, property and other provisions. Legal proceedings often require a high degree of judgment and these are likely to change as the matter progresses. ​ Provisions remain sensitive to the assumptions used in the estimate. We consider a wide range of possible outcomes. It is often not practical to meaningfully quantify ranges of possible outcomes, given the uncertainties involved. ​ Note 21 ​
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
	Dec. 31, 2022
Net interest income
Schedule of Net interest income	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 (1) 2020 (1) Continuing operations £m £m £m Balances at central banks and loans to banks - amortised cost 1,987 445 336 Loans to customers - amortised cost 10,085 8,536 8,892 Other financial assets 565 253 483 Interest receivable ​ 12,637 ​ 9,234 ​ 9,711 ​ ​ ​ ​ Balances with banks 379 204 144 Customer deposits 785 556 911 Other financial liabilities 1,196 670 846 Subordinated liabilities 370 267 402 Internal funding of trading businesses 65 2 19 Interest payable ​ 2,795 ​ 1,699 ​ 2,322 Net interest income 9,842 7,535 7,389 ​ (1) Comparative results have been re-presented from those previously published to reclassify certain operations as discontinued operations as described in Note 8.

Non-interest income (Tables)

Non-interest income (Tables)	12 Months Ended
	Dec. 31, 2022
Non-interest income
Schedule of Non-interest income	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 (1) 2020 (1) Continuing operations ​ £m ​ £m ​ £m Net fees and commissions (2) 2,292 2,120 1,982 ​ ​ ​ ​ ​ ​ ​ Trading income ​ ​ ​ ​ ​ ​ Foreign exchange 305 ​ 364 569 Interest rate (3) 752 ​ (130) 541 Credit 17 ​ 83 3 Changes in fair value of own debt and derivative liabilities attributable to own credit risk ​ ​ ​ ​ ​ ​ - debt securities in issue 42 ​ 6 (24) Equities, commodities and other 17 ​ — 36 ​ 1,133 ​ 323 1,125 ​ ​ ​ ​ ​ ​ ​ Other operating income ​ ​ ​ ​ ​ ​ Loss on redemption of own debt ​ (161) ​ (145) ​ (324) Rental income on operating lease assets and investment property 230 225 232 Changes in fair value of financial assets and liabilities designated at fair value through profit or loss (4) ​ 17 ​ (8) ​ (54) Changes in fair value of other financial assets at fair value through profit or loss (5,6) ​ (45) ​ 5 ​ 2 Hedge ineffectiveness (20) 25 24 Loss on disposal of amortised cost assets and liabilities (15) (15) (18) (Loss)/profit on disposal of fair value through other comprehensive income assets (168) 117 96 (Loss)/profit on sale of property, plant and equipment (7) (5) (30) 13 Share of (losses)/profits of associated entities (30) 216 (30) Profit/(loss) on disposal of subsidiaries and associates ​ — ​ 48 ​ (16) Other income (8,9) 86 13 (18) ​ ​ (111) ​ 451 ​ (93) ​ ​ 3,314 ​ 2,894 ​ 3,014 ​ (1) Comparative results have been re-presented from those previously published to reclassify certain operations as discontinued operations as described in Note 8. (2) Refer to Note 4 for further analysis. (3) Includes fair value changes on derivatives which have not been designated in a hedge accounting relationship and gains and losses from the management of the NatWest Group’s funding requirements involving the use of derivatives including FX. These are aimed at managing the interest rate and foreign exchange risk that NatWest Group is exposed to. (4) Includes related derivatives. (5) 2022 includes a £19 million gain from reclassification of mortgages from amortised cost to fair value through profit or loss. Refer to Note 10 for further details. (6) Includes instruments that have failed solely payments of principal and interest testing under IFRS 9. (7) 2021 includes £44 million loss on the purchase of freeholds for properties where the Group was the primary leaseholder. (8) 2022 includes £92 million profit from insurance liabilities. (9) 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
	Dec. 31, 2022
Operating expenses
Schedule of operating expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Continuing operations ​ £m ​ £m ​ £m Salaries 2,250 2,295 2,494 Bonus awards 334 267 232 Temporary and contract costs ​ 234 ​ 240 ​ 258 Social security costs 328 300 316 Pension costs ​ 363 ​ 354 ​ 340 - defined benefit schemes (see Note 5) 205 215 215 - defined contribution schemes 158 139 125 Other 207 220 238 Staff costs 3,716 3,676 3,878 ​ ​ ​ ​ ​ ​ ​ Premises and equipment 1,112 1,133 1,222 UK bank levy 101 99 167 Depreciation and amortisation (1,2) 833 923 913 Other administrative expenses (3) 1,925 1,927 1,678 Administrative expenses 3,971 4,082 3,980 ​ ​ 7,687 ​ 7,758 ​ 7,858 ​ (1) Include depreciation on right of use assets of £119 million (2021 - £167 million; 2020 - £209 million). (2) 2021 includes impairment of goodwill of £85 million. (3) Includes litigation and conduct costs, net of amounts recovered. Refer to Note 21 for further details.
Schedule of employees in continuing operations	​ ​ ​ ​ ​ ​ ​ ​ Continuing operations 2022 2021 2020 Retail Banking 14,800 15,800 17,200 Private Banking 2,100 1,900 1,900 Commercial & Institutional 12,200 11,400 13,300 Central items & other (1) 31,900 28,700 26,800 Total 61,000 57,800 59,200 ​ ​ ​ ​ ​ ​ ​ UK 41,200 40,600 42,500 USA 300 300 300 India 15,700 13,500 13,200 Poland ​ 1,500 ​ 1,400 ​ 1,200 Republic of Ireland ​ 1,400 ​ 1,200 ​ 1,400 Rest of the World 900 800 600 Total 61,000 57,800 59,200 ​ (1) Central items & other includes Ulster Bank RoI. Total number of persons employed in Ulster Bank RoI of 2,200 (2021 – 2,400 ; 2020 – 2,600 ) includes 400 people employed in discontinued operations at 31 December 2022 (2021 – 700 ; 2020 – 700 ).
Schedule of share-based compensation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Award plan Eligible employees Nature of award Vesting conditions (1) Settlement Sharesave ​ UK, Channel Islands, Gibraltar, Isle of Man, Poland and India. ​ Option to buy shares under employee savings plan ​ Continuing employment or leavers in certain circumstances ​ 2023 to 2027 Deferred performance awards ​ All ​ Awards of ordinary shares and conditional shares ​ Continuing employment or leavers in certain circumstances ​ 2023 to 2030 Long-term incentives (2) (3) ​ 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 ​ 2023 to 2029 ​ (1) All awards have vesting conditions which may not be met. (2) Long-term incentives include buy-out awards offered to compensate certain new hires for the loss of forfeited awards from their previous employment. All awards are granted under the Employee Share Plan. (3) The existing Long-term incentive scheme has been closed to new awards and members as at 31 December 2022. The scheme will be replaced by a new Restricted share plan scheme with similar granting and vesting conditions. No awards have been granted at the end of the reporting period.
Schedule of bonus awards	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ Change ​ £m £m % Non-deferred cash awards (1) ​ 40 ​ 38 ​ 5 % Deferred cash awards 270 214 26 % Deferred share awards 60 49 22 % Total deferred bonus awards 330 263 25 % Total bonus awards (2) 370 301 23 % ​ ​ ​ ​ ​ ​ ​ Bonus awards as a % of operating profit before tax (3) 7 % 7 % ​ ​ Proportion of bonus awards that are deferred 89 % 87 % ​ ​ of which ​ ​ ​ ​ ​ ​ ​ - deferred cash awards 82 % 81 % ​ ​ - deferred share awards 18 % 19 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Reconciliation of bonus awards to income statement charge ​ £m ​ £m ​ £m Bonus awarded 370 301 206 Less: deferral of charge for amounts awarded for current year (127) (99) (77) Income statement charge for amounts awarded in current year 243 202 129 ​ ​ ​ ​ ​ ​ ​ Add: current year charge for amounts deferred from prior years 94 80 114 Less: forfeiture of amounts deferred from prior years (3) (15) (11) Income statement charge for amounts deferred from prior years 91 65 103 ​ ​ ​ ​ ​ ​ ​ Income statement charge for bonus awards 334 267 232 ​ (1) Non-deferred 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 ​ ​ ​ ​ ​ 2024 ​ ​ 2020 ​ 2021 ​ 2022 ​ 2023 ​ 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 2020 and earlier 114 80 19 ​ 8 ​ 4 Bonus awards deferred from 2021 ​ — ​ — ​ 75 ​ 8 ​ 8 Less: forfeiture of amounts deferred from prior years (11) (15) (3) ​ — ​ — Bonus awards for 2022 deferred — — — ​ 105 ​ 22 ​ 103 65 91 ​ 121 ​ 34
Sharesave
Operating expenses
Schedule of share-based compensation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sharesave ​ 2022 ​ 2021 ​ 2020 ​ Average Shares Average Shares Average Shares ​ ​ exercise price ​ under option ​ exercise price ​ under option ​ exercise price ​ under option ​ ​ £ ​ (million) ​ £ ​ (million) ​ £ ​ (million) At 1 January 1.61 95 1.64 96 2.01 84 Granted 1.86 25 1.80 24 1.12 35 Exercised 1.88 (15) 1.76 (10) 1.83 — Cancelled 1.60 (6) 2.02 (15) 2.20 (23) At 31 December 1.63 99 1.61 95 1.64 96 ​
Deferred performance awards
Operating expenses
Schedule of share-based compensation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred performance awards ​ 2022 ​ 2021 ​ 2020 ​ Value at Shares Value at Shares Value at Shares ​ ​ grant ​ awarded ​ grant ​ awarded ​ grant ​ awarded ​ ​ £m ​ (million) ​ £m ​ (million) ​ £m ​ (million) At 1 January 132 65 169 77 196 76 Granted 46 20 61 32 109 67 Forfeited (4) (2) (10) (5) (5) (2) Vested (81) (37) (88) (39) (131) (64) At 31 December 93 46 132 65 169 77 ​
Long-term incentives
Operating expenses
Schedule of share-based compensation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term incentives ​ 2022 ​ 2021 ​ 2020 ​ Value at Shares Value at Shares Value at Shares ​ ​ grant ​ awarded ​ grant ​ awarded ​ grant ​ awarded ​ ​ £m ​ (million) ​ £m ​ (million) ​ £m ​ (million) At 1 January 44 21 50 24 63 25 Granted 16 7 6 3 14 10 Vested/exercised (10) (4) (12) (6) (17) (7) Lapsed (1) (1) — — (10) (4) At 31 December 49 23 44 21 50 24 ​

Segmental analysis (Tables)

Segmental analysis (Tables)	12 Months Ended
	Dec. 31, 2022
Segmental analysis
Schedule of operating segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ ​ Retail ​ Private ​ Commercial & ​ items ​ ​ ​ Banking Banking Institutional & other Total 2022 £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income 5,224 777 4,171 (330) 9,842 Net fees and commissions 422 250 1,580 40 2,292 Other non-interest income — 29 662 331 1,022 Total income 5,646 1,056 6,413 41 13,156 Depreciation and amortisation — — (161) (672) (833) Other operating expenses (2,593) (622) (3,583) (56) (6,854) Impairment (losses)/releases (229) 2 (122) 12 (337) Operating profit/(loss) 2,824 436 2,547 (675) 5,132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021(1) ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income 4,074 480 2,974 7 7,535 Net fees and commissions 377 258 1,440 45 2,120 Other non-interest income (6) 78 424 278 774 Total income 4,445 816 4,838 330 10,429 Depreciation and amortisation (85) — (173) (665) (923) Other operating expenses (2,428) (520) (3,584) (303) (6,835) Impairment releases/(losses) 36 54 1,160 (77) 1,173 Operating profit/(loss) 1,968 350 2,241 (715) 3,844 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ ​ Retail ​ Private ​ Commercial & ​ items ​ ​ ​ ​ Banking ​ Banking ​ Institutional ​ & other ​ Total 2020 (1) £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income ​ 3,868 489 3,054 (22) 7,389 Net fees and commissions 379 257 1,303 43 1,982 Other non-interest income (66) 17 1,221 (140) 1,032 Total income 4,181 763 5,578 (119) 10,403 Depreciation and amortisation — (8) (182) (723) (913) Operating expenses (2,540) (447) (3,849) (109) (6,945) Impairment losses (792) (100) (2,074) (132) (3,098) Operating profit/(loss) 849 208 (527) (1,083) (553) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ ​ Retail ​ Private ​ Commercial & ​ items & ​ ​ ​ Banking Banking Institutional other Total Year ended 31 December 2022 £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ External 5,773 874 6,747 3,180 16,574 Inter-segmental — 389 116 (505) — Total 5,773 1,263 6,863 2,675 16,574 ​ ​ ​ ​ ​ ​ Year ended 31 December 2021 (1) ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External ​ 5,419 ​ 792 ​ 5,168 ​ 1,323 ​ 12,702 Inter-segmental 14 127 123 (264) — Total 5,433 919 5,291 1,059 12,702 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended 31 December 2020 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External ​ 5,386 ​ 702 ​ 6,223 ​ 1,136 ​ 13,447 Inter-segmental ​ 39 ​ 163 ​ 80 ​ (282) ​ — Total ​ 5,425 ​ 865 ​ 6,303 ​ 854 ​ 13,447 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ ​ Retail ​ Private ​ Commercial & ​ items & ​ ​ ​ Banking Banking Institutional other Total Year ended 31 December 2022 £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External 5,646 ​ 780 6,777 (47) ​ 13,156 Inter-segmental — ​ 276 (364) 88 ​ — Total 5,646 ​ 1,056 6,413 41 ​ 13,156 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended 31 December 2021 (1) ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External 4,433 ​ 801 5,041 154 ​ 10,429 Inter-segmental ​ 12 ​ 15 ​ (203) ​ 176 ​ — Total ​ 4,445 ​ 816 ​ 4,838 ​ 330 ​ 10,429 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended 31 December 2020 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External ​ 4,157 ​ 700 ​ 5,960 ​ (414) ​ 10,403 Inter-segmental ​ 24 ​ 63 ​ (382) ​ 295 ​ — Total ​ 4,181 ​ 763 ​ 5,578 ​ (119) ​ 10,403 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Central ​ ​ ​ Retail ​ Private ​ Commercial & ​ items ​ ​ Analysis of net fees and commissions Banking ​ Banking ​ Institutional ​ & other ​ Total 2022 £m ​ £m ​ £m ​ £m ​ £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions receivable ​ ​ - Payment services 314 25 ​ 642 43 1,024 - Credit and debit card fees 401 15 ​ 227 18 661 - Lending and financing ​ 17 ​ 8 ​ 673 ​ 3 ​ 701 - Brokerage 43 6 ​ 44 — 93 - Investment management, trustee and fiduciary services (3) ​ 4 219 ​ 46 — 269 - Underwriting fees — — ​ 120 — 120 - Other — 3 ​ 88 (44) 47 Total 779 276 ​ 1,840 20 2,915 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions payable (357) (26) ​ (260) 20 (623) Net fees and commissions 422 250 ​ 1,580 40 2,292 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions receivable ​ ​ - Payment services 306 35 ​ 577 49 967 - Credit and debit card fees 344 10 ​ 149 19 522 - Lending and financing 13 10 ​ 643 4 670 - Brokerage 48 ​ 6 ​ 42 — 96 - Investment management, trustee and fiduciary services (3) 3 230 ​ 45 2 280 - Underwriting fees — ​ — ​ 127 ​ — ​ 127 - Other — 35 ​ 109 (112) 32 Total 714 326 ​ 1,692 (38) 2,694 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions payable (337) (68) ​ (252) 83 (574) Net fees and commissions 377 258 ​ 1,440 45 2,120 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions receivable ​ ​ - Payment services 264 28 ​ 543 41 876 - Credit and debit card fees 299 9 ​ 131 21 460 - Lending and financing 42 7 ​ 625 2 676 - Brokerage 54 6 ​ 94 1 155 - Investment management, trustee and fiduciary services 3 225 ​ 41 2 271 - Underwriting fees — — ​ 183 — 183 - Other 1 26 ​ 89 (33) 83 Total 663 301 ​ 1,706 34 2,704 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fees and commissions payable (284) (44) ​ (403) 9 (722) Net fees and commissions 379 257 ​ 1,303 43 1,982 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ ​ Assets ​ Liabilities ​ Assets ​ Liabilities ​ Assets ​ Liabilities ​ £m £m £m £m £m £m Retail Banking 226,375 ​ 192,282 ​ 209,973 192,715 ​ 197,618 ​ 178,617 Private Banking 29,867 ​ 41,491 ​ 29,854 39,388 ​ 26,206 ​ 32,457 Commercial & Institutional 404,817 ​ 383,768 ​ 425,718 411,757 ​ 491,544 ​ 460,338 Central items & other 58,994 ​ 66,016 ​ 116,447 96,329 ​ 84,123 ​ 84,255 Total 720,053 ​ 683,557 ​ 781,992 740,189 ​ 799,491 ​ 755,667
Schedule of geographical segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ UK USA Europe RoW Total 2022 £m £m £m £m £m Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue 15,795 117 558 104 16,574 Interest receivable 12,242 37 344 14 12,637 Interest payable ​ (2,567) ​ (2) ​ (221) ​ (5) ​ (2,795) Net fees and commissions 1,983 44 207 58 2,292 Trading income 1,208 1 (104) 28 1,133 Other operating income (140) 14 12 3 (111) Total income (4) 12,726 94 238 98 13,156 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating profit/(loss) before tax 5,716 (46) (620) 82 5,132 Total assets 589,758 25,979 101,164 3,152 720,053 Total liabilities 579,476 27,039 75,092 1,950 683,557 Contingent liabilities and commitments 117,915 — 8,649 17 126,581 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue 12,100 87 482 33 12,702 Interest receivable 8,949 20 257 8 9,234 Interest payable ​ (1,483) ​ (2) ​ (211) ​ (3) ​ (1,699) Net fees and commissions 1,820 27 231 42 2,120 Trading income 247 53 (1) 24 323 Other operating income 387 2 62 — 451 Total income (4) 9,920 100 338 71 10,429 Operating profit/(loss) before tax 4,143 48 (387) 40 3,844 Total assets 693,221 21,776 64,415 2,580 781,992 Total liabilities 676,684 23,286 38,835 1,384 740,189 Contingent liabilities and commitments 117,225 1 8,114 27 125,367 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 (1) Continuing operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue 12,511 211 551 174 13,447 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest receivable 9,479 — 210 22 9,711 Interest payable ​ (2,163) ​ — ​ (158) ​ (1) ​ (2,322) Net fees and commissions 1,637 33 215 97 1,982 Trading income 911 170 33 11 1,125 Other operating income (117) (22) 42 4 (93) Total income (4) 9,747 181 342 133 10,403 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating (loss)/profit before tax (193) (85) (363) 88 (553) 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 ​ (1) Comparative results have been re-presented from those previously published to reclassify certain operations as discontinued operations as described in Note 8. (2) Total revenue comprises interest receivable, fees and commissions receivable, income from trading activities and other operating income. (3) Comparisons with prior periods are impacted by the transfer of the Private Client Advice business to Private Banking from 1 January 2021. (4) Total income excludes internal service fee income which has been calculated on a cost plus mark-up basis.

Pensions (Tables)

Pensions (Tables)	12 Months Ended
	Dec. 31, 2022
Pensions
Schedule of major classes of plan assets as a percentage of total plan assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 Major classes of plan assets as a percentage of Quoted Unquoted Total Quoted Unquoted Total total plan assets of the Main section ​ % ​ % ​ % ​ % ​ % ​ % Equities ​ 0.1 ​ 7.7 ​ 7.8 ​ 3.7 ​ 4.7 ​ 8.4 Index linked bonds 37.7 ​ — ​ 37.7 ​ 46.7 ​ — ​ 46.7 Government bonds 18.4 ​ — ​ 18.4 ​ 9.8 ​ — ​ 9.8 Corporate and other bonds 15.3 ​ 6.7 ​ 22.0 ​ 10.7 ​ 4.4 ​ 15.1 Real estate — 6.0 ​ 6.0 ​ — ​ 4.4 ​ 4.4 Derivatives — 8.2 ​ 8.2 ​ — ​ 8.8 ​ 8.8 Cash and other assets ​ — ​ (0.1) ​ (0.1) ​ — ​ 6.8 ​ 6.8 ​ 71.5 ​ 28.5 ​ 100.0 ​ 70.9 ​ 29.1 ​ 100.0 ​
Summary of derivative instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Notional ​ Fair value ​ Notional ​ Fair value ​ amounts Assets Liabilities amounts Assets Liabilities ​ ​ £bn ​ £m ​ £m ​ £bn ​ £m ​ £m Inflation rate swaps 21 1,873 990 20 1,408 796 Interest rate swaps 103 14,317 12,546 172 8,385 4,421 Currency forwards 12 310 113 12 61 98 Equity and bond call options — — — — 1 — Equity and bond put options — 2 70 — 1 3 Other 1 14 19 1 9 10 ​
Schedule of 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 ​ assets/ ​ value of ​ benefit ​ minimum ​ assets/ ​ ​ plan assets ​ obligation (1) ​ funding ​ (liability) (2) ​ plan assets ​ obligation (2) ​ funding ​ (liability) (2) Changes in value of net pension assets/(liability) ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m At 1 January 2021 51,323 (43,870) (7,453) — 57,249 (48,864) (7,783) 602 Currency translation and other adjustments ​ — ​ — ​ — ​ — ​ (129) ​ 116 ​ 3 ​ (10) Income statement - operating expenses ​ 713 ​ (767) ​ (105) ​ (159) ​ 795 ​ (901) ​ (109) ​ (215) Other comprehensive income ​ 841 ​ 1,056 ​ (2,443) ​ (546) ​ 872 ​ 1,061 ​ (2,602) ​ (669) Contributions by employer ​ 705 ​ — ​ — ​ 705 ​ 780 ​ — ​ — ​ 780 Contributions by plan participants and other scheme members ​ 8 ​ (8) ​ — ​ — ​ 13 ​ (13) ​ — ​ — Assets/liabilities extinguished upon settlement ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Benefits paid ​ (1,569) ​ 1,569 ​ — ​ — ​ (1,793) ​ 1,793 ​ — ​ — At 1 January 2022 ​ 52,021 ​ (42,020) ​ (10,001) ​ — ​ 57,787 ​ (46,808) ​ (10,491) ​ 488 Currency translation and other adjustments ​ — ​ — ​ — ​ — ​ 78 ​ (65) ​ (11) ​ 2 Income statement - operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest expense ​ 932 ​ (744) ​ (180) ​ 8 ​ 1,041 ​ (834) ​ (191) ​ 16 Current service cost ​ — ​ (143) ​ — ​ (143) ​ — ​ (194) ​ — ​ (194) Past service cost ​ — ​ (5) ​ — ​ (5) ​ — ​ (6) ​ — ​ (6) Loss on curtailments and settlements ​ — ​ — ​ — ​ — ​ — ​ (21) ​ — ​ (21) ​ ​ 932 ​ (892) ​ (180) ​ (140) ​ 1,041 ​ (1,055) ​ (191) ​ (205) Other comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on plan assets excluding recognised interest income (3) ​ (18,180) ​ — ​ — ​ (18,180) ​ (20,326) ​ — ​ — ​ (20,326) Experience gains and losses ​ — ​ (2,053) ​ — ​ (2,053) ​ — ​ (2,137) ​ — ​ (2,137) Effect of changes in actuarial financial assumptions (3) ​ — ​ 18,744 ​ — ​ 18,744 ​ — ​ 20,714 ​ — ​ 20,714 Effect of changes in actuarial demographic assumptions ​ — ​ 23 ​ — ​ 23 ​ — ​ (7) ​ — ​ (7) Asset ceiling adjustments ​ — ​ — ​ 898 ​ 898 ​ — ​ — ​ 916 ​ 916 ​ ​ (18,180) ​ 16,714 ​ 898 ​ (568) ​ (20,326) ​ 18,570 ​ 916 ​ (840) Contributions by employer ​ 708 ​ — ​ — ​ 708 ​ 775 ​ — ​ — ​ 775 Contributions by plan participants and other scheme members ​ 7 ​ (7) ​ — ​ — ​ 13 ​ (13) ​ — ​ — Assets/liabilities extinguished upon settlement ​ — ​ — ​ — ​ — ​ (113) ​ 113 ​ — ​ — Benefits paid ​ (1,472) ​ 1,472 ​ — ​ — ​ (1,657) ​ 1,657 ​ — ​ — At 31 December 2022 ​ 34,016 ​ (24,733) ​ (9,283) ​ — ​ 37,598 ​ (27,601) ​ (9,777) ​ 220 ​ (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 as the trustees may have control over the use of the surplus. Other NatWest Group schemes that this applies to include the Ulster Bank Pension Scheme (NI) and the NatWest Markets section. (3) Changes in market conditions during 2022 resulted in a particularly large increase in discount rate, which is the key driver of the effect of changes in actuarial financial assumptions. Given the level of hedging in place, there was a corresponding reduction in the value of plan assets over the period. The experience losses shown are mainly as a result of inflation over the year being higher than expected. (4) NatWest Group expects to make contributions to the Main section of £196 million in 2023. In 2022 NatWest Group made contributions of £ 708 m to the Main scheme, including a £ 500 m contribution paid in two instalments in January and March 2022 as required by the ring-fencing agreement with the Trustee. Such contributions do not constitute a minimum funding requirement as the obligation to pay only arises on the payment of a distribution to shareholders. ​ ​ ​ ​ ​ ​ ​ ​ All schemes ​ 2022 2021 Amounts recognised on the balance sheet ​ £m ​ £m Fund asset at fair value 37,598 57,787 Present value of fund liabilities (27,601) (46,808) Funded status 9,997 10,979 Assets ceiling/minimum funding (9,777) (10,491) ​ 220 488 ​ ​ ​ ​ ​ ​ ​ 2022 2021 Net pension assets/(liability) comprises ​ £m ​ £m Net assets of schemes in surplus (included in Other assets, Note 18) 318 602 Net liabilities of schemes in deficit (included in Other liabilities, Note 21) (98) (114) ​ 220 488 ​
Schedule of principal actuarial assumptions	​ ​ ​ ​ ​ ​ ​ ​ ​ Principal IAS 19 actuarial assumptions (1) ​ ​ 2022 2021 ​ ​ % ​ % ​ Discount rate 5.0 1.8 Inflation assumption (RPI) 3.2 3.3 Rate of increase in salaries 1.8 1.8 Rate of increase in deferred pensions 3.2 3.7 Rate of increase in pensions in payment 2.5 2.5 Lump sum conversion rate at retirement 18 18 Longevity at age 60: years years Current pensioners ​ ​ ​ ​ ​ Males 27.3 27.3 Females 29.1 29.0 Future pensioners, currently aged 40 ​ ​ Males 28.3 28.2 Females 30.1 30.1 ​ (1) The above financial assumptions are long term assumptions set with reference to the period over which the obligations are expected to be settled
Schedule of 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 2022 ​ £m ​ £m ​ £m 0.25% increase in interest rates/discount rate (2) ​ (1,389) ​ (907) ​ (482) 0.25% increase in inflation ​ 963 ​ 632 ​ 331 0.25% increase in credit spreads ​ (3) ​ (907) ​ 904 Longevity increase of one year ​ — ​ 767 ​ (767) 0.25% additional rate of increase in pensions in payment ​ — ​ 679 ​ (679) Increase in equity values of 10% (1) ​ 267 ​ — ​ 267 2021 ​ ​ ​ ​ ​ ​ 0.25% increase in interest rates/discount rate (2,917) ​ (1,926) ​ (991) 0.25% increase in inflation 1,883 ​ 1,329 ​ 554 0.25% increase in credit spreads (3) ​ (1,926) ​ 1,923 Longevity increase of one year ​ — ​ 1,790 ​ (1,790) 0.25% additional rate of increase in pensions in payment ​ — ​ 1,485 ​ (1,485) Increase in equity values of 10% (1) 442 ​ — ​ 442 ​ (1) Includes both quoted and private equity. (2) A 0.5% increase in interest rates/discount rate would lead to a decrease of £ 2,689 m in the value of assets and a £ 1,766 m decrease in the value of liabilities at 31 December 2022. The funded status is most sensitive to movements in credit spreads and longevity. Note the longevity sensitivities quoted above reflect the impact of a one year increase to single life annuities. 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 2022 £bn £bn £bn £bn £bn Change in credit spreads +50 bps 3.2 2.5 1.8 1.1 0.4 ​ No change 1.6 0.8 — (0.8) (1.5) ​ -50 bps (0.3) (1.2) (2.0) (2.8) (3.6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ Change in credit spreads +50 bps 6.9 5.3 3.8 2.3 0.8 ​ No change 3.6 1.8 — (1.8) (3.6) ​ -50 bps (0.3) (2.4) (4.5) (6.6) (8.7) ​
Schedule of different classes of scheme members proportions	​ ​ ​ ​ ​ ​ ​ 2022 2021 Membership category ​ % ​ % Active members 8.4 10.7 Deferred members 41.0 47.6 Pensioners and dependants 50.6 41.7 ​ 100.0 100.0 ​
Schedule of history of defined benefit schemes	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Main section ​ All schemes ​ 2022 2021 2020 2019 2018 2022 2021 2020 2019 2018 History of defined benefit schemes ​ £m £m £m £m £m £m £m £m £m £m Fair value of plan assets ​ 34,016 52,021 51,323 46,555 43,806 37,598 57,787 57,249 51,925 48,752 Present value of plan obligations ​ (24,733) (42,020) (43,870) (39,669) (35,466) (27,601) (46,808) (48,864) (44,115) (39,607) Net surplus ​ 9,283 10,001 7,453 6,886 8,340 9,997 10,979 8,385 7,810 9,145 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Experience (losses)/gains on plan liabilities ​ (2,053) 241 427 275 (122) (2,137) 237 455 279 (81) Experience (losses)/gains on plan assets ​ (18,180) 841 5,486 3,021 (1,891) (20,326) 872 6,027 3,556 (2,090) Actual return on plan assets ​ (17,248) 1,554 6,422 4,266 (768) (19,285) 1,667 7,064 4,930 (848) Actual return on plan assets ​ (33.2) % 3.0 % 13.8 % 9.7 % (1.7) % (33.4) % 2.9 % 13.6 % 10.1 % (1.7) %

Auditor's remuneration (Tables)

Auditor's remuneration (Tables)	12 Months Ended
	Dec. 31, 2022
Auditor's remuneration
Schedule of auditor's remuneration	​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m £m Fees payable for : ​ ​ ​ ​ ​ ​ - the audit of NatWest Group’s annual accounts (1) 4.7 4.4 4.7 - the audit of NatWest Group plc’s subsidiaries (1) 31.9 29.6 30.6 - audit-related assurance services (1,2) 3.9 5.3 4.7 Total audit and audit-related assurance services fees 40.5 39.3 40.0 ​ ​ ​ ​ ​ ​ ​ Other assurance services 1.2 0.4 0.6 Corporate finance services (3) 0.5 0.5 0.4 Total other services 1.7 0.9 1.0 ​ (1) The 2022 audit fee was approved by the Group Audit Committee. At 31 December 2022, £16 million has been billed and £13 million paid in respect of the 2022 NatWest Group audit fees. (2) Comprises fees of £1.1 million (2021 - £1.1 million) in relation to reviews of interim financial information, £2.3 million (2021 - £3.5 million) in respect of reports to NatWest Group’s regulators in the UK and overseas, and £0.4 million (2021 - £0.7 million) in relation to non-statutory audit opinions. (3) Comprises fees of £0.5 million (2021 - £0.5 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
	Dec. 31, 2022
Tax
Schedule of current and deferred tax expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 2020 Continuing operations £m £m £m Current tax ​ ​ Charge for the year (1,611) ​ (1,036) ​ (191) Over provision in respect of prior years 100 ​ 31 ​ 86 ​ (1,511) ​ (1,005) ​ (105) Deferred tax ​ ​ ​ ​ ​ Credit/(charge)for the year 47 ​ (185) ​ 176 UK tax rate change impact (1) (10) ​ 165 ​ 75 Net increase/(decrease) in the carrying value of deferred tax assets in respect of UK, RoI and Netherlands losses ​ 267 ​ 12 ​ (130) (Under)/over provision in respect of prior years (2) (68) ​ 17 ​ (90) Tax charge for the year (1,275) ​ (996) ​ (74) ​ (1) It was announced in the UK Government’s budget on 27 October 2021 that the main UK banking surcharge will decrease from 8% to 3% from 1 April 2023. This legislative change was enacted on 24 February 2022. (2) Prior year tax adjustments incorporate refinements to tax computations made on submission and agreement with the tax authorities and adjustments to provisions in respect of uncertain tax positions.
Schedule of reconciliation of actual tax charge from the expected tax charge	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 Continuing operations ​ £m ​ £m ​ £m Expected tax (charge)/credit (975) ​ (766) ​ 92 Losses and temporary differences in year where no deferred tax asset recognised (118) ​ (51) ​ (43) Foreign profits taxed at other rates (62) ​ (11) ​ (29) Non deductible goodwill impairment — ​ (16) ​ — Items not allowed for tax: ​ ​ ​ ​ ​ ​ - losses on disposals and write-downs (10) ​ (55) ​ (22) - UK bank levy (20) ​ (18) ​ (32) - regulatory and legal actions (7) ​ (74) ​ 14 - other disallowable items (51) ​ (28) ​ (70) Non-taxable items: ​ ​ ​ ​ ​ - RPI related uplift on index linked gilts (1) ​ 67 ​ — ​ — - other non-taxable items ​ 29 ​ 73 ​ 28 Taxable foreign exchange movements (19) ​ 8 ​ (3) Unrecognised losses brought forward and utilised 6 ​ 10 ​ 16 Net increase/(decrease) in the carrying value of deferred tax assets in respect of: ​ ​ ​ ​ ​ - UK losses ​ 272 ​ (9) ​ 7 - RoI losses ​ (5) ​ (27) ​ (137) - Netherlands losses ​ — ​ 48 ​ — Banking surcharge (447) ​ (341) ​ (27) Tax on paid-in equity dividends ​ 43 ​ 48 ​ 61 UK tax rate change impact (10) ​ 165 ​ 75 Adjustments in respect of prior years ​ 32 ​ 48 ​ (4) Actual tax charge (1,275) ​ (996) ​ (74) ​ (1)
Schedule of deferred tax asset and liability	​ ​ ​ ​ ​ ​ ​ £m £m Deferred tax asset (2,178) (1,195) Deferred tax liability 227 359 Net deferred tax asset (1,951) (836) ​
Schedule of net deferred tax asset	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accelerated ​ ​ ​ ​ ​ Tax losses ​ ​ ​ ​ ​ ​ ​ ​ capital ​ Expense ​ Financial ​ carried ​ ​ ​ ​ ​ ​ Pension ​ allowances ​ provisions ​ instruments (1) ​ forward ​ Other ​ Total ​ £m £m £m £m £m £m £m At 1 January 2021 (4) (64) (85) 480 (905) (32) (610) Charge/(credit) to income statement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ - continuing operations ​ 19 21 (5) (10) (1) (33) (9) - discontinued operations ​ — ​ — ​ — ​ — ​ 3 ​ — ​ 3 Charge/(credit) to other comprehensive income 10 — (7) (222) — (5) (224) Currency translation and other adjustments (1) 1 — — 4 — 4 At 1 January 2022 24 (42) (97) 248 (899) (70) (836) Charge/(credit) to income statement: ​ ​ ​ ​ ​ ​ ​ - continuing operations ​ 1 ​ (43) ​ 14 ​ (171) ​ (51) ​ 14 ​ (236) - discontinued operations ​ — ​ — ​ — ​ — ​ — ​ — ​ — (Credit)/charge to other comprehensive income (2) — 1 (913) — (2) (916) Currency translation and other adjustments — 10 — 31 (2) (2) 37 At 31 December 2022 23 (75) (82) (805) (952) (60) (1,951) ​ (1) The in-year movement predominantly relates to cash flow hedges.
Schedule of recognised deferred tax assets in respect of tax losses	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m UK tax losses carried forward ​ ​ ​ ​ - NWM Plc 3 56 - NWB Plc 445 608 - RBS plc 452 176 Total 900 840 Overseas tax losses carried forward ​ ​ ​ ​ - UBIDAC ​ 6 ​ 11 - NWM N.V. 46 48 ​ 952 899 ​

Discontinued operations and a_2

Discontinued operations and assets and liabilities of disposal groups (Tables)	12 Months Ended
	Dec. 31, 2022
Discontinued operations and assets and liabilities of disposal groups
Schedule of profit/(loss) net of tax and operating cash flows attributable to discontinued operations	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m ​ ​ ​ ​ ​ ​ Interest receivable ​ 177 ​ 339 ​ 360 Net interest income ​ 177 ​ 339 ​ 360 Non-interest income(1) ​ (472) ​ 13 ​ 33 Total income ​ (295) ​ 352 ​ 393 Operating expenses ​ (38) ​ (47) ​ (47) (Loss)/profit before impairment releases/(losses) ​ (333) ​ 305 ​ 346 Impairment releases/(losses) ​ 71 ​ 162 ​ (144) Operating (loss)/profit before tax ​ (262) ​ 467 ​ 202 Tax charge ​ — ​ (3) ​ (9) (Loss)/profit from discontinued operations, net of tax ​ (262) ​ 464 ​ 193 ​ (1) Excludes gain of £ 20 million (€ 24 million) recognised by NatWest Group as a result of acquisition of PTSB shares in relation to disposal of UBIDAC assets to PTSB. ​ 8 Discontinued operations and assets and liabilities of disposal groups continued ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ £m £m £m Net cash flows from operating activities 1,090 2,212 (816) Net cash flows from investing activities 6,164 — — Net increase/(decrease) in cash and cash equivalents 7,254 2,212 (816)
Schedule of assets and liabilities of disposal groups	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Assets of disposal groups ​ Loans to customers - amortised cost 1,458 9,002 Other financial assets - loans to customers ​ 5,397 ​ — Derivatives — 5 Other assets 6 8 ​ ​ 6,861 ​ 9,015 Liabilities of disposal groups ​ ​ Other liabilities 15 5 ​ 15 5 ​ ​ ​ ​ ​ Net assets of disposal groups 6,846 9,010 ​

Earnings per share (Tables)

Earnings per share (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings per share
Schedule of earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m Earnings Profit/(loss) from continuing operations attributable to ordinary shareholders 3,602 2,486 (946) (Loss)/profit from discontinued operations attributable to ordinary shareholders (262) 464 193 Profit/(loss) attributable to ordinary shareholders 3,340 2,950 (753) Weighted average number of shares (millions) Weighted average number of ordinary shares outstanding during the year 9,872 10,792 11,231 Effect of dilutive share options and convertible securities(1) 57 45 — Diluted weighted average number of ordinary shares outstanding during the year 9,929 10,837 11,231 ​ (1) As there was a loss from continuing operations attributable to the parent company for the period to 31 December 2020, the effect of share options and convertible securities was not dilutive. (2) At the General Meeting and Class Meeting on 25 August 2022, the shareholders approved the proposed special dividend and share consolidation. On 30 August 2022 the issued ordinary share capital was consolidated in the ratio of 14 existing shares for 13 new shares. The average number of shares and earnings per share have been adjusted retrospectively.

Financial instruments - class_2

Financial instruments - classification (Tables)	12 Months Ended
	Dec. 31, 2022
Financial instruments - classification
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 — — 144,832 — ​ 144,832 Trading assets ​ 45,577 ​ — ​ — ​ — ​ 45,577 Derivatives (1) ​ 99,545 ​ — ​ — ​ — ​ 99,545 Settlement balances — ​ — ​ 2,572 ​ — ​ 2,572 Loans to bank - amortised cost (2) — — 7,139 — ​ 7,139 Loans to customers - amortised cost (3) — — 366,340 — ​ 366,340 Other financial assets (4) 787 ​ 16,973 13,135 — ​ 30,895 Intangible assets ​ — ​ — ​ — ​ 7,116 ​ 7,116 Other assets — ​ — ​ — 9,176 ​ 9,176 Assets of disposal groups (5) ​ — ​ — ​ — ​ 6,861 ​ 6,861 31 December 2022 145,909 16,973 534,018 23,153 720,053 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and balances at central banks ​ ​ ​ ​ 177,757 ​ ​ 177,757 Trading assets ​ 59,158 ​ ​ ​ ​ ​ 59,158 Derivatives (1) ​ 106,139 ​ ​ ​ ​ ​ 106,139 Settlement balances ​ ​ ​ ​ 2,141 ​ ​ 2,141 Loans to bank - amortised cost (2) ​ ​ ​ ​ 7,682 ​ ​ 7,682 Loans to customers - amortised cost (3) ​ ​ ​ 358,990 ​ ​ 358,990 Other financial assets 317 37,266 ​ 8,562 ​ ​ 46,145 Intangible assets ​ ​ ​ ​ ​ ​ ​ 6,723 ​ 6,723 Other assets ​ ​ ​ ​ ​ ​ 8,242 ​ 8,242 Assets of disposal groups ​ ​ ​ ​ ​ ​ ​ 9,015 ​ 9,015 31 December 2021 165,614 37,266 ​ 555,132 23,980 ​ 781,992 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held-for- ​ ​ ​ Amortised ​ Other ​ ​ ​ trading DFV cost liabilities Total Liabilities £m ​ £m ​ £m ​ £m ​ £m Bank deposits (6) — — ​ 20,441 — 20,441 Customer deposits — — ​ 450,318 — 450,318 Settlement balances — — ​ 2,012 — 2,012 Trading liabilities ​ 52,808 ​ — ​ — ​ — ​ 52,808 Derivatives (1) 94,047 — ​ — — 94,047 Other financial liabilities (7) — 2,377 ​ 46,730 — 49,107 Subordinated liabilities — 345 ​ 5,915 — 6,260 Notes in circulation ​ — ​ — ​ 3,218 ​ — ​ 3,218 Other liabilities (8) — — ​ 1,205 4,141 5,346 31 December 2022 146,855 2,722 ​ 529,839 4,141 683,557 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits (6) ​ ​ ​ 26,279 ​ 26,279 Customer deposits ​ ​ ​ 479,810 ​ 479,810 Settlement balances ​ ​ ​ 2,068 ​ 2,068 Trading liabilities 64,598 ​ ​ — ​ 64,598 Derivatives (1) 100,835 ​ ​ — ​ 100,835 Other financial liabilities (7) ​ 1,671 ​ 47,655 ​ 49,326 Subordinated liabilities ​ 703 ​ 7,726 ​ 8,429 Notes in circulation ​ ​ ​ ​ ​ 3,047 ​ ​ ​ 3,047 Other liabilities (8) ​ ​ ​ 1,356 4,441 5,797 31 December 2021 165,433 2,374 ​ 567,941 4,441 740,189 ​ (1) Includes net hedging derivatives assets of £ 143 million (2021 - £44 million) and net hedging derivatives liabilities of £ 132 million (2021 - £120 million). (2) Includes items in the course of collection from other banks of £229 million (2021 - £67 million). (3) Includes finance lease receivables of £8,402 million (2021 - £8,531 million). (4) Includes amounts reclassified from amortised cost to FVTPL in relation to a mortgage portfolio. Refer to Note 8 for further information. (5) Includes £ 5,397 million of assets of disposal groups reclassified from amortised cost to FVTPL during the year. The portfolio is classified as level 3 in the fair value hierarchy. (6) Includes items in the course of transmission to other banks of £242 million (2021 - £56 million). (7) The carrying amount of other customer accounts designated 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. (8) Includes lease liabilities of £1,118 million (2021 - £1,263 million) held at amortised cost. ​ ​
Schedule of effect of reclassification of mortgages from amortised cost to fair value through profit or loss	​ ​ ​ ​ ​ ​ ​ ​ ​ Amortised cost MFVTPL Change in value ​ ​ £m ​ £m ​ £m Amounts reclassified on balance sheet Loans to customers (1) 587 606 19 Assets of disposal groups (2) 10,676 10,383 (293) ​ 11,263 10,989 (274) ​ (1) (2)
Schedule of amount receivable under finance leases	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Amount receivable under finance leases ​ ​ Within 1 year ​ 3,235 ​ 3,272 1 to 2 years ​ 2,254 ​ 2,044 2 to 3 years ​ 1,388 ​ 1,443 3 to 4 years ​ 833 ​ 757 4 to 5 years ​ 411 ​ 429 After 5 years ​ 1,130 ​ 1,423 Lease payments total ​ 9,251 ​ 9,368 Unguaranteed residual values ​ 171 ​ 225 Future drawdowns ​ (13) ​ (21) Unearned income ​ (889) ​ (891) Present value of lease payments ​ 8,520 ​ 8,681 Impairments ​ (118) ​ (150) Net investment in finance leases ​ 8,402 ​ 8,531 ​
Schedule of financial assets and liabilities	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Reverse repos Trading assets ​ 21,537 ​ 20,742 Loans to banks - amortised cost 277 189 Loans to customers - amortised cost 19,750 25,962 ​ Repos Bank deposits 1,446 7,912 Customer deposits 9,829 14,541 Trading liabilities 23,740 ​ 19,389 ​
Schedule of IBOR related exposure by currency and nature of financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rates subject to IBOR reform ​ ​ GBP LIBOR ​ USD IBOR ​ Other IBOR ​ Total 2021 £m £m £m £m Trading assets 62 90 — 152 Loans to banks - amortised cost — 11 — 11 Loans to customers - amortised cost 4,788 4,565 267 9,620 Other financial assets 864 768 — 1,632 ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits — 37 — 37 Trading liabilities 31 166 — 197 Other financial liabilities 2,390 7,023 131 9,544 Subordinated liabilities — 90 — 90 ​ ​ ​ ​ ​ ​ ​ ​ ​ Loan commitments (1) 1,016 6,366 ​ 55 7,437 ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives notional (£bn) 4 1,152 — 1,156 ​ (1) 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.
Schedule of issuance of certain capital instruments	​ ​ ​ ​ ​ ​ 31 December ​ ​ 2021 ​ £m US$1.15 billion 8% notes ​ 734 ​
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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ master ​ ​ ​ ​ ​ after the effect ​ Instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ netting ​ ​ ​ ​ ​ of netting ​ outside ​ ​ ​ ​ ​ ​ IFRS ​ Balance ​ and similar ​ Cash ​ Securities ​ agreements and ​ netting ​ Balance ​ ​ Gross ​ offset ​ sheet ​ agreements ​ collateral ​ collateral ​ related collateral ​ agreements ​ sheet total 2022 £m £m £m £m £m £m £m £m £m Derivative assets 117,606 ​ (18,730) ​ 98,876 ​ (77,365) ​ (14,079) ​ (4,571) ​ 2,861 ​ 669 ​ 99,545 Derivative liabilities 115,177 ​ (22,111) ​ 93,066 ​ (77,365) ​ (9,761) ​ (1,185) ​ 4,755 ​ 981 ​ 94,047 Net position (1) 2,429 ​ 3,381 ​ 5,810 ​ — ​ (4,318) ​ (3,386) ​ (1,894) ​ (312) ​ 5,498 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trading reverse repos 35,612 ​ (14,510) ​ 21,102 ​ (2,445) ​ — ​ (18,458) ​ 199 ​ 435 ​ 21,537 Trading repos 33,767 ​ (14,510) ​ 19,257 ​ (2,445) ​ — ​ (16,812) ​ — ​ 4,483 ​ 23,740 Net position 1,845 ​ — ​ 1,845 ​ — ​ — ​ (1,646) ​ 199 ​ (4,048) ​ (2,203) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non trading reverse repos 25,630 ​ (5,702) ​ 19,928 ​ — ​ — ​ (19,928) ​ — ​ 98 ​ 20,026 Non trading repos 16,977 ​ (5,702) ​ 11,275 ​ — ​ — ​ (11,275) ​ — ​ — ​ 11,275 Net position 8,653 ​ — ​ 8,653 ​ — ​ — ​ (8,653) ​ — ​ 98 ​ 8,751 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets 113,220 ​ (7,961) ​ 105,259 ​ (85,006) ​ (15,035) ​ (2,428) ​ 2,790 ​ 880 ​ 106,139 Derivative liabilities 108,594 ​ (8,568) ​ 100,026 ​ (85,006) ​ (9,909) ​ (2,913) ​ 2,198 ​ 809 ​ 100,835 Net position (1) 4,626 ​ 607 ​ 5,233 ​ — ​ (5,126) ​ 485 ​ 592 ​ 71 ​ 5,304 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trading reverse repos 44,529 ​ (24,422) ​ 20,107 ​ (900) ​ — ​ (19,136) ​ 71 ​ 635 ​ 20,742 Trading repos 42,664 ​ (24,422) ​ 18,242 ​ (900) ​ — ​ (17,341) ​ 1 ​ 1,147 ​ 19,389 Net position 1,865 ​ — ​ 1,865 ​ — ​ — ​ (1,795) ​ 70 ​ (512) ​ 1,353 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non trading reverse repos 33,729 ​ (7,594) ​ 26,135 ​ — ​ — ​ (26,135) ​ — ​ 16 ​ 26,151 Non trading repos 30,047 ​ (7,594) ​ 22,453 ​ — ​ — ​ (22,453) ​ — ​ — ​ 22,453 Net position 3,682 ​ — ​ 3,682 ​ — ​ — ​ (3,682) ​ — ​ 16 ​ 3,698 ​ (1) The net IFRS offset balance of £3,381 million (2021 - £607 million)relates to variation margin netting reflected on other balance sheet lines .

Financial instruments - valua_2

Financial instruments - valuation (Tables)	12 Months Ended
	Dec. 31, 2022
Financial instruments - classification
Schedule of financial assets and liabilities at fair value by valuation hierarchy	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ 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 — 35,260 395 35,655 ​ — 33,482 721 34,203 Securities 7,463 2,458 1 9,922 ​ 19,563 5,371 21 24,955 Derivatives 5 98,533 1,007 99,545 ​ — 105,222 917 106,139 Other financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans — 172 727 899 ​ — 359 207 566 Securities 10,380 6,278 203 16,861 ​ 28,880 7,951 186 37,017 Total financial assets held at fair value 17,848 142,701 2,333 ​ 162,882 ​ 48,443 152,385 2,052 202,880 As % of total fair value assets ​ 11 % 88 % 1 % ​ ​ 24 % 75 % 1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ Trading liabilities ​ ​ ​ ​ ​ ​ ​ Deposits — 42,486 1 42,487 ​ — 38,658 2 38,660 Debt securities in issue — 797 — 797 ​ — 974 — 974 Short positions 7,462 2,062 — 9,524 ​ 20,507 4,456 1 24,964 Derivatives 2 93,070 975 94,047 ​ — 100,229 606 100,835 Other financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt securities in issue — 1,327 — 1,327 ​ — 1,103 — 1,103 Other deposits — 1,050 — 1,050 ​ — 568 — 568 Subordinated liabilities — 345 — 345 ​ — 703 — 703 Total financial liabilities held at fair value 7,464 141,137 976 149,577 ​ 20,507 146,691 609 167,807 As % of total fair value liabilities ​ 5 % 94 % 1 % ​ ​ 12 % 88 % 0 % ​ ​ (1) Transfers between levels are deemed to have occurred at the beginning of the quarter in which the instrument was transferred. (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.
Schedule of financial instruments valuation adjustments	​ ​ ​ ​ ​ ​ ​ 2022 2021 Adjustment ​ £m ​ £m Funding – FVA 173 90 Credit – CVA 300 390 Bid – Offer 130 113 Product and deal specific 141 119 ​ 744 712
Schedule of valuation techniques for unobservable inputs of level 3 financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 Financial instrument Valuation technique Unobservable inputs Units Low High Low High Trading assets and Other financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans Price-based ​ Price ​ % ​ — ​ 113 ​ — ​ 106 ​ ​ Discount cash flow ​ Credit spreads ​ bps ​ 56 ​ 114 ​ 40 ​ 102 ​ ​ Discount cash flow ​ Discount margin ​ bps ​ — ​ — ​ 46 ​ 55 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt securities Price-based ​ Price % ​ — ​ 225 ​ — ​ 240 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Shares ​ Price-based ​ Price ​ GBP ​ — ​ 34,027 ​ — ​ 30,378 ​ ​ Price-based ​ Price ​ % ​ — ​ 30 ​ — ​ 7 ​ Discount cash flow ​ Discount margin ​ % ​ 6 ​ 8 ​ 6 ​ 8 ​ ​ Net asset valuation ​ Fund NAV ​ % ​ 80 ​ 120 ​ 80 ​ 120 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative assets and liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit derivatives ​ Credit derivative pricing ​ Credit spreads ​ bps ​ 7 ​ 530 ​ 6 ​ 635 ​ Option pricing ​ Correlation % ​ (15) ​ 95 ​ (15) ​ 95 ​ ​ Volatility ​ % ​ 30 ​ 80 ​ 30 ​ 108 ​ ​ Upfront points % ​ — ​ 99 ​ — ​ 100 ​ ​ Recovery rate % ​ — ​ 60 ​ — ​ 60 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate & FX Option pricing ​ Correlation % ​ (50) ​ 100 ​ (50) ​ 100 derivatives ​ ​ Volatility ​ % ​ 30 ​ 127 ​ 17 ​ 77 ​ ​ ​ ​ Constant Prepayment Rate ​ % ​ 2 ​ 21 ​ 2 ​ 16 ​ ​ ​ ​ Mean Reversion ​ % ​ — ​ 92 ​ — ​ 92 ​ ​ ​ ​ Inflation volatility ​ % ​ 1 ​ 2 ​ 1 ​ 2 ​ ​ ​ ​ Inflation rate ​ % ​ 2 ​ 3 ​ 2 ​ 3 ​ (1) Valuation for private equity investments 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. (2) NatWest Group does not have any material liabilities measured at fair value that are issued with an inseparable third-party credit enhancement.
Schedule of financial instruments carried at fair value on the balance sheet by valuation sensitivities for level 3 balances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Level 3 ​ Favourable ​ Unfavourable ​ Level 3 ​ Favourable ​ Unfavourable ​ £m £m £m £m £m £m Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trading assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans 395 10 (10) 721 10 (10) Securities 1 — — 21 — — Derivatives 1,007 50 (50) 917 60 (70) Other financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans 727 — (10) 207 10 (10) Securities 203 20 (30) 186 20 (20) ​ 2,333 80 (100) 2,052 100 (110) ​ Liabilities Trading liabilities Deposits 1 — — 2 — — Debt securities in issue — — — — — — Short positions — — — 1 — — Derivatives 975 30 (30) 606 30 (30) ​ 976 30 (30) 609 30 (30) ​
Schedule of movement in level 3 assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Trading ​ Other ​ ​ ​ ​ ​ Trading ​ Other ​ ​ ​ ​ ​ ​ assets ​ financial ​ Total ​ Total ​ assets ​ financial ​ Total ​ Total ​ ​ (2) ​ assets (3) ​ assets ​ liabilities ​ (2) ​ assets (3) ​ assets ​ liabilities ​ £m £m £m £m £m £m £m £m At 1 January 1,658 394 2,052 609 1,388 335 1,723 894 Amounts recorded in the income statement (1) 157 (14) 143 381 (93) (29) (122) (90) Amounts recorded in the statement of comprehensive income — (20) (20) — — 23 23 — Level 3 transfers in 194 532 726 81 125 3 128 20 Level 3 transfers out (269) (68) (337) (64) (104) (6) (109) (168) Purchases/originations 629 185 814 382 965 452 1,416 305 Settlements/other decreases (115) — (115) (41) (47) (364) (411) (28) Sales (857) (101) (958) (378) (573) (17) (590) (321) Foreign exchange and other 6 22 28 6 (3) (3) (6) (3) At 31 December 1,403 930 2,333 976 1,658 394 2,052 609 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts recorded in the income statement in respect of balances held at year end: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ - unrealised 157 (16) 141 381 (93) (32) (126) (90) ​ (1) There were £224 million net losses on trading assets and liabilities (2021 - £3 million net losses) recorded in income from trading activities. Net losses on other instruments of £14 million (2021 - £29 million net losses) 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 ​ Fair value hierarchy level ​ ​ carrying value ​ value ​ value ​ Level 1 ​ Level 2 ​ Level 3 2022 ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn Financial assets ​ ​ ​ ​ ​ ​ Cash and balances at central banks 144.8 ​ — ​ — ​ — ​ — ​ — Settlement balances ​ 2.6 ​ — ​ — ​ — ​ — ​ — Loans to banks 0.1 ​ 7.0 ​ 7.0 ​ — ​ 4.2 ​ 2.8 Loans to customers ​ — ​ 366.3 ​ 354.5 ​ — ​ 20.3 ​ 334.2 Other financial assets - securities — ​ 13.1 ​ 12.8 ​ 3.6 ​ 3.2 ​ 6.0 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and balances at central banks 177.8 ​ — ​ — ​ — ​ — ​ — Settlement balances 2.1 ​ — ​ — ​ — ​ — ​ — Loans to banks ​ 0.1 ​ 7.5 ​ 7.5 ​ — ​ 5.0 ​ 2.5 Loans to customers — ​ 359.0 ​ 354.1 ​ — ​ 28.0 ​ 326.1 Other financial assets - securities — ​ 8.6 ​ 8.6 ​ 4.4 ​ 0.7 ​ 3.5 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits 4.7 15.7 15.3 — 13.1 2.2 Customer deposits 407.0 43.3 43.3 — 12.7 30.6 Settlement balances 2.0 — — — — — Other financial liabilities - debt securities in issue ​ — ​ 46.7 ​ 46.1 ​ — ​ 40.7 ​ 5.4 Subordinated liabilities — 5.9 5.6 — 5.5 0.1 Notes in circulation ​ 3.2 ​ — ​ — ​ — ​ — ​ — 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ Bank deposits ​ 4.9 21.4 21.0 — 18.7 2.3 Customer deposits 442.4 37.4 37.6 — 18.1 19.5 Settlement balances 2.1 — — — — — Other financial liabilities - debt securities in issue — ​ 47.7 ​ 48.6 ​ — ​ 41.4 ​ 7.2 Subordinated liabilities — 7.7 8.3 — 8.2 0.1 Notes in circulation 3.0 ​ — ​ — ​ — ​ — ​ — ​

Financial Instruments - matur_2

Financial Instruments - maturity analysis (Tables)	12 Months Ended
	Dec. 31, 2022
Financial instruments - classification
Schedule of residual maturity of financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ 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 144,832 — 144,832 177,757 — 177,757 Trading assets 35,944 9,633 45,577 40,263 18,895 59,158 Derivatives 38,107 61,438 99,545 34,538 71,601 106,139 Settlement balances 2,572 — 2,572 2,141 — 2,141 Loans to banks - amortised cost ​ 6,872 ​ 267 ​ 7,139 ​ 7,425 ​ 257 ​ 7,682 Loans to customers - amortised cost ​ 84,289 ​ 282,051 ​ 366,340 ​ 103,689 ​ 255,301 ​ 358,990 Other financial assets 6,128 24,767 30,895 11,151 34,994 46,145 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits 7,799 ​ 12,642 ​ 20,441 ​ 13,715 ​ 12,564 ​ 26,279 Customer deposits 448,821 1,497 450,318 478,801 1,009 479,810 Settlement balances 2,012 — 2,012 2,068 — 2,068 Trading liabilities 42,760 10,048 52,808 41,664 22,934 64,598 Derivatives ​ 39,331 ​ 54,716 ​ 94,047 ​ 34,593 ​ 66,242 ​ 100,835 Other financial liabilities 13,796 35,311 49,107 16,060 33,266 49,326 Subordinated liabilities 973 5,287 6,260 1,375 7,054 8,429 Notes in circulation ​ 3,218 ​ — ​ 3,218 ​ 3,047 ​ — ​ 3,047 Lease liabilities 137 981 1,118 238 1,025 1,263 ​
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 2022 ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m Assets by contractual maturity up to 20 years ​ ​ ​ ​ ​ ​ Cash and balances at central banks 144,832 — — — — — Derivatives held for hedging ​ 130 ​ 345 ​ 28 ​ 41 ​ (44) ​ 43 Settlement balances 2,572 ​ — ​ — ​ — ​ — ​ — Loans to banks - amortised cost 5,254 1,621 17 288 — — Loans to customers - amortised cost 50,923 43,417 76,278 55,128 85,038 100,085 Other financial assets (1) ​ 2,771 ​ 4,507 ​ 8,391 ​ 7,835 ​ 5,706 ​ 2,524 Finance lease 96 267 857 482 549 296 ​ 206,578 ​ 50,157 85,571 63,774 91,249 102,948 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities by contractual maturity up to 20 years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits 6,690 1,445 5,662 8,503 89 — Customer deposits 437,830 11,389 1,252 2 14 20 Settlement balances 2,012 — — — — — Derivatives held for hedging 280 (371) 586 306 116 85 Other financial liabilities 6,720 6,640 18,833 13,906 7,361 294 Subordinated liabilities ​ 96 ​ 1,073 ​ 2,690 ​ 1,897 ​ 1,541 ​ 328 Other liabilities - Notes in circulation ​ 3,218 ​ — ​ — ​ — ​ — ​ — Lease liabilities 41 ​ 113 260 203 318 254 ​ 456,887 20,289 29,283 24,817 9,439 981 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Guarantees and commitments - notional amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Guarantees (2) 3,150 — ​ — ​ — ​ — ​ — Commitments (3) 118,779 — — — — — ​ 121,929 — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ Assets by contractual maturity up to 20 years ​ ​ ​ ​ ​ ​ Cash and balances at central banks 177,757 — — — — — Derivatives held for hedging (23) ​ (32) ​ 72 ​ 15 ​ 10 ​ 17 Settlement balances ​ 2,141 ​ — ​ — ​ — ​ — ​ — Loans to banks - amortised cost 5,735 1,689 21 — — — Loans to customers - amortised cost 65,760 43,144 63,979 45,057 73,044 90,115 Other financial assets (1) 3,924 ​ 7,576 ​ 10,467 ​ 8,048 ​ 7,444 ​ 5,523 Finance lease ​ 290 340 746 504 704 377 ​ ​ 255,584 ​ 52,717 75,285 53,624 81,202 96,032 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities by contractual maturity up to 20 years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank deposits 13,292 421 566 12,003 — — Customer deposits 473,123 5,440 1,155 73 4 19 Settlement balances 2,068 — — — — — Derivatives held for hedging (57) (31) 561 155 (152) (198) Other financial liabilities 6,967 9,293 16,953 10,062 7,905 292 Subordinated liabilities 66 ​ 1,604 ​ 3,481 ​ 2,170 ​ 1,496 ​ 563 Other liabilities- Notes in circulation ​ 3,047 ​ — ​ — ​ — ​ — ​ — Lease liabilities ​ 74 ​ 161 220 167 281 251 ​ 498,580 16,888 22,936 24,630 9,534 927 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Guarantees and commitments - notional amount ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Guarantees (2) 2,055 — ​ — ​ — ​ — ​ — Commitments (3) 118,536 — — — — — ​ 120,591 — — — — — ​ (1) Other financial assets exclude equity shares. (2) 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. (3) 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.

Trading assets and liabilities

Trading assets and liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Trading assets and liabilities
Schedule of trading assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 Assets £m £m Loans Reverse repos 21,537 20,742 Collateral given 13,005 12,047 Other loans 1,113 1,414 Total loans 35,655 34,203 Securities ​ ​ Central and local government ​ ​ - UK 2,205 6,919 - US 2,345 3,329 - other 2,799 10,929 Financial institutions and corporate 2,573 3,778 Total securities 9,922 24,955 Total 45,577 59,158 ​ ​ ​ ​ ​ Liabilities ​ ​ Deposits ​ ​ Repos 23,740 19,389 Collateral received 17,680 17,718 Other deposits 1,067 1,553 Total deposits 42,487 38,660 Debt securities in issue 797 974 Short positions 9,524 24,964 Total 52,808 64,598

Derivatives (Tables)

Derivatives (Tables)	12 Months Ended
	Dec. 31, 2022
Derivatives
Schedule of actual movements in the fair value of the hedged items attributable to the hedged risk	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Notional ​ Assets ​ Liabilities ​ Notional ​ Assets ​ Liabilities ​ £bn £m £m £bn £m £m Exchange rate contracts ​ 3,168 ​ 45,829 ​ 45,237 ​ 3,167 ​ 38,517 ​ 39,286 Interest rate contracts 10,742 53,480 48,535 8,919 67,458 61,206 Credit derivatives 15 236 275 14 154 343 Equity and commodity contracts — — — — 10 — ​ ​ 99,545 94,047 ​ 106,139 100,835 ​
Schedule of derivatives held for hedging purposes	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ 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 58.7 1,554 3,009 ​ 482 65.6 1,176 2,057 ​ 897 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts 167.6 2,681 6,207 ​ (3,342) 133.1 952 1,149 ​ (931) Exchange rate contracts 6.3 142 112 ​ (3) 7.3 30 109 ​ 27 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net investment hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate contracts 0.5 1 9 ​ 4 0.5 11 1 ​ 7 ​ ​ 233.1 ​ 4,378 ​ 9,337 ​ (2,859) ​ 206.5 ​ 2,169 ​ 3,316 ​ — IFRS netting/Clearing house settlements ​ ​ ​ (4,235) ​ (9,205) ​ ​ ​ ​ ​ (2,125) ​ (3,196) ​ ​ ​ ​ 143 132 ​ ​ ​ 44 120 ​ ​ ​ (1) The change in fair value used for hedge ineffectiveness includes instruments that were derecognised in the year. ​
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 2022 ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn ​ £bn Fair value hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hedging assets - interest rate risk ​ 0.5 ​ 1.9 ​ 4.7 ​ 4.9 ​ 4.2 ​ 2.5 ​ 1.1 ​ 19.8 Hedging liabilities - interest rate risk ​ 1.0 ​ 2.9 ​ 14.6 ​ 10.3 ​ 9.6 ​ 0.5 ​ — ​ 38.9 Cash flow hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hedging assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk ​ 6.6 ​ 9.4 ​ 46.5 ​ 21.9 ​ 10.1 ​ — ​ — ​ 94.5 Average fixed interest rate (%) ​ 1.36 ​ 1.98 ​ 1.71 ​ 2.04 ​ 1.02 ​ 3.12 ​ — ​ 1.72 Hedging liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk ​ 17.3 ​ 26.8 ​ 15.7 ​ 5.1 ​ 7.5 ​ 0.7 ​ — ​ 73.1 Average fixed interest rate (%) ​ 1.27 ​ 0.95 ​ 2.75 ​ 1.03 ​ 2.68 ​ 4.55 ​ — ​ 1.63 Hedging assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ 0.1 ​ — ​ — ​ — ​ — ​ — ​ — ​ 0.1 Hedging liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ — ​ 1.1 ​ 2.8 ​ 2.1 ​ 0.2 ​ — ​ — ​ 6.2 Net investment hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ 0.5 ​ — ​ — ​ — ​ — ​ — ​ — ​ 0.5 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hedging assets - interest rate risk ​ 0.9 ​ 2.5 ​ 5.5 ​ 5.7 ​ 6.2 ​ 4.9 ​ 4.5 ​ 30.2 Hedging liabilities - interest rate risk ​ 1.1 ​ 4.2 ​ 11.8 ​ 9.3 ​ 8.4 ​ 0.6 ​ 0.0 ​ 35.4 Cash flow hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hedging assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk ​ 5.4 ​ 8.1 ​ 14.3 ​ 24.5 ​ 11.4 ​ — ​ — ​ 63.7 Average fixed interest rate (%) ​ 1.40 ​ 1.19 ​ 1.35 ​ 0.65 ​ 0.82 ​ — ​ — ​ 0.97 Hedging liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk ​ 8.8 ​ 21.1 ​ 33.0 ​ 3.3 ​ 2.5 ​ 0.7 ​ — ​ 69.4 Average fixed interest rate (%) ​ 0.50 ​ 0.24 ​ 0.41 ​ 0.47 ​ 1.01 ​ 4.55 ​ — ​ 0.44 Hedging assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Hedging liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ 0.1 ​ 2.4 ​ 3.5 ​ 1.3 ​ — ​ — ​ — ​ 7.3 Net investment hedging ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exchange rate risk ​ 0.5 ​ — ​ — ​ — ​ — ​ — ​ — ​ 0.5 ​
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 2022 ​ £m ​ £m ​ £m ​ £m Fair value hedging - interest rate ​ ​ ​ ​ ​ ​ ​ ​ Loans to banks and customers - amortised cost ​ 5,764 ​ (526) ​ (1,236) ​ 63 Other financial assets - securities ​ 12,897 ​ (922) ​ (2,525) ​ (2) Total ​ 18,661 ​ (1,448) ​ (3,761) ​ 61 ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank and customer deposits ​ 565 ​ (3) ​ 3 ​ — Other financial liabilities - debt securities in issue ​ 35,856 ​ (2,222) ​ 2,790 ​ — Subordinated liabilities ​ 5,504 ​ (547) ​ 526 ​ — Total ​ 41,925 ​ (2,772) ​ 3,319 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - interest rate ​ ​ ​ ​ ​ ​ ​ ​ Loans to banks and customer - amortised cost (2) ​ 93,212 ​ ​ ​ 5,263 ​ ​ Other financial assets - securities ​ 1,176 ​ ​ ​ 73 ​ ​ Total ​ 94,388 ​ ​ ​ 5,336 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank and customer deposits ​ 72,610 ​ — ​ (2,008) ​ — Other financial liabilities - debt securities in issue ​ 571 ​ — ​ (46) ​ — Total ​ 73,181 ​ — ​ (2,054) ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - exchange rate ​ ​ ​ ​ ​ ​ ​ ​ Loans to banks and customer - amortised cost (2) ​ — ​ ​ ​ — ​ ​ Other financial assets - securities ​ — ​ ​ ​ — ​ ​ Total ​ — ​ ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other financial liabilities - debt securities in issue ​ 4,141 ​ ​ ​ (2) ​ ​ Subordinated liabilities ​ — ​ ​ ​ — ​ ​ Other ​ 204 ​ ​ ​ 5 ​ ​ Total ​ 4,345 ​ ​ ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ Fair value hedging - interest rate ​ ​ Loans to banks and customers - amortised cost 6,603 701 (478) ​ 69 Other financial assets - securities 30,882 518 (1,576) ​ — Total 37,485 1,219 (2,054) ​ 69 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other financial liabilities - debt securities in issue 34,371 454 953 ​ — Subordinated liabilities 6,235 (9) 255 ​ — Total 40,606 445 1,208 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - interest rate ​ ​ ​ ​ Loans to banks and customers - amortised cost 63,025 ​ 1,984 ​ ​ Other financial assets - securities 714 ​ 26 ​ ​ Total 63,739 ​ 2,010 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bank and customer deposits ​ 68,383 ​ ​ ​ (1,084) ​ ​ Other financial liabilities - debt securities in issue ​ 1,006 ​ ​ ​ (21) ​ ​ Total ​ 69,389 ​ ​ ​ (1,105) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - exchange rate ​ ​ ​ ​ ​ ​ ​ ​ Loans to banks and customer - amortised cost ​ 21 ​ ​ ​ — ​ ​ Other financial assets - securities ​ 2 ​ ​ ​ — ​ ​ Total ​ 23 ​ ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedging - exchange rate ​ ​ ​ ​ ​ ​ ​ ​ Other financial liabilities - debt securities in issue 6,337 ​ (5) ​ ​ Subordinated liabilities 742 ​ (12) ​ ​ Other ​ 200 ​ ​ ​ (10) ​ ​ Total 7,279 ​ (27) ​ ​ ​ (1) The change in fair value used for hedge ineffectiveness includes instruments that were derecognised in the year. (2) Includes cash and balances at central banks.
Schedule of analysis of cash flow reserve and foreign exchange reserve	​ ​ ​ ​ ​ ​ ​ 2022 2021 INR/GBP 100.54 106.58 USD/GBP 1.29 1.38 CHF/GBP 1.15 1.25 JPY/GBP 132.89 132.93 JPY/USD 128.29 n/a NOK/USD 9.21 n/a CNH/GBP n/a 8.74 ​ For net investment hedging of exchange rate risk, the average foreign exchange rates applicable were as below for the main currencies hedged. ​ ​ ​ ​ ​ ​ ​ 2022 2021 SEK/GBP 13.23 11.74 DKK/GBP n/a 8.85 NOK/GBP 12.34 12.12 AED/USD 4.42 3.67 USD/GBP 1.20 1.32 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ Foreign ​ ​ ​ Foreign ​ ​ Cash flow ​ exchange ​ Cash flow ​ exchange ​ ​ hedge reserve ​ hedge reserve ​ hedge reserve ​ hedge reserve ​ £m £m £m £m Continuing ​ ​ ​ ​ Interest rate risk (3,576) — (295) — Foreign exchange risk 16 ​ (85) ​ 23 ​ 53 De-designated ​ ​ ​ ​ Interest rate risk (297) — (297) — Foreign exchange risk 20 (880) 10 (759) Total (3,837) (965) (559) (706) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ ​ ​ Foreign ​ ​ ​ Foreign ​ ​ Cash flow ​ exchange hedge ​ Cash flow ​ exchange hedge ​ hedge reserve reserve hedge reserve reserve ​ £m £m £m £m Amount recognised in equity ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk (2,997) ​ (64) (700) ​ — Foreign exchange risk 24 (202) 13 88 Total (2,973) (266) (687) 88 ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount transferred from equity to earnings ​ ​ ​ ​ ​ ​ ​ ​ Interest rate risk to net interest income (252) — (181) — Interest rate risk to non-interest income (1) ​ (21) ​ — ​ 20 ​ — Interest rate risk to operating expenses (14) — — — Foreign exchange risk to net interest income (29) — (4) 2 Foreign exchange risk to non-interest income 15 7 1 (2) Foreign exchange risk to operating expenses ​ (3) ​ — ​ 3 ​ — Total (304) 7 (161) — ​ (1) There was £21 million (2021 - £20 million) reclassified with the cash flow reserve to earnings due to forecasted cash flows that are no longer expected to occur.
Schedule of hedge ineffectiveness recognized in other operating income	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m Fair value hedging ​ (Loss)/gain on hedged items attributable to the hedged risk (442) (846) 877 Gain/(loss) on the hedging instruments 482 897 (875) Fair value hedging ineffectiveness 40 51 2 Cash flow hedging ​ ​ ​ ​ ​ ​ Interest rate risk ​ (60) ​ (26) ​ 22 Cash flow hedging ineffectiveness (60) (26) 22 Total (20) 25 24 ​

Loan impairment provisions (Tab

Loan impairment provisions (Tables)	12 Months Ended
	Dec. 31, 2022
Loan impairment provisions
Schedule of loan exposure and impairment metrics	​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ £m £m Loans - amortised cost and FVOCI Stage 1 325,224 330,824 Stage 2 46,833 33,981 Stage 3 5,096 5,022 Of which: individual ​ 1,121 ​ 1,215 Of which: collective 3,975 3,807 ​ ​ 377,153 ​ 369,827 ECL provisions (1) ​ ​ - Stage 1 632 302 - Stage 2 1,043 1,478 - Stage 3 1,759 2,026 Of which: individual ​ 287 ​ 363 Of which: collective ​ 1,472 ​ 1,663 ​ 3,434 3,806 ECL provision coverage (2) ​ ​ - Stage 1 (%) ​ 0.19 0.09 - Stage 2 (%) ​ 2.23 4.35 - Stage 3 (%) ​ 34.52 40.34 ​ 0.91 1.03 Continuing operations ​ ​ ​ ​ Impairment (releases)/losses ​ ​ ECL (release)/charge (3,4) ​ 337 ​ (1,173) Stage 1 ​ (290) ​ (1,317) Stage 2 ​ 393 ​ (164) Stage 3 ​ 234 ​ 308 Of which: individual ​ 54 ​ 20 Of which: collective ​ 180 ​ 288 ​ ​ ​ ​ ​ Amounts written off 482 876 Of which: individual ​ 168 ​ 455 Of which: collective 314 421 ​ (1) Includes loans to customers and banks. (2) Includes £3 million (2021 - £5 million) related to assets classified as FVOCI and £0.1 billion (2021 - £0.1 billion related to off-balance sheet exposures. (3) ECL provisions coverage is calculated as total ECL provisions divided by loans – amortised cost and FVOCI. It is calculated on third party loans and total ECL provisions. (4) Includes a £3 million charge (2021 - £3 million release) related to other financial assets, of which nil (2021 - £2 million release) related to assets classified as FVOCI; and £5 million release (2021 - £34 million release) 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 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 £143.3 billion (2021 - £176.3 billion) and debt securities of £29.9 billion (2021 – £44.9 billion). ​

Other financial assets (Tables)

Other financial assets (Tables)	12 Months Ended
	Dec. 31, 2022
Other financial assets
Schedule of other financial assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt securities ​ ​ ​ ​ ​ ​ ​ ​ Central and local government ​ Other ​ ​ ​ Equity ​ ​ ​ ​ ​ ​ UK ​ US ​ Other ​ debt ​ Total ​ shares ​ Loans ​ Total 2022 £m £m £m £m £m £m £m £m Mandatory fair value through profit or loss — — — 2 2 3 ​ 782 787 Fair value through other comprehensive income (1) 802 7,175 1,757 6,765 16,499 357 ​ 117 16,973 Amortised cost 2,562 937 54 9,582 13,135 — ​ — 13,135 Total 3,364 8,112 1,811 16,349 29,636 360 ​ 899 30,895 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mandatory fair value through profit or loss ​ — — — 6 6 13 ​ 298 317 Fair value through other comprehensive income (1) 11,938 10,086 5,604 9,058 36,686 312 ​ 268 37,266 Amortised cost 3,821 156 81 4,504 8,562 — ​ — 8,562 Total 15,759 10,242 5,685 13,568 45,254 325 ​ 566 46,145 ​ (1) Upon initial recognition, NatWest Group occasionally irrevocably designates some of its equity investments as equity instruments at FVOCI when they meet the definition of equity under IAS 32 Financial instruments: presentation, are not held for trading or they are held for strategic purposes. Such classification is determined on an instrument-by-instrument basis. Gains and losses on these equity instruments are not recycled to the income statement and dividends are recognised in profit or loss except when they represent a recovery of part of the cost of the instrument, in which case such gains are recorded in OCI. Equity instruments at FVOCI are not subject to an impairment assessment.

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2022
Intangible assets
Schedule of Intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ Goodwill Other (1) Total Goodwill Other (1) Total Cost ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m At 1 January 9,939 ​ 3,050 ​ 12,989 9,939 ​ 2,592 ​ 12,531 Currency translation and other adjustments (8) (3) (11) — 29 29 Additions — 743 743 — 479 479 Disposals and write-off of fully amortised assets — (27) (27) — (50) (50) At 31 December 9,931 ​ 3,763 ​ 13,694 9,939 ​ 3,050 ​ 12,989 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated amortisation and impairment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At 1 January 4,417 ​ 1,849 ​ 6,266 4,332 ​ 1,544 ​ 5,876 Currency translation and other adjustments (8) (4) (12) — 31 31 Disposals and write-off of fully amortised assets — (17) (17) — (28) (28) Impairment of intangible assets — — — 85 2 87 Amortisation charge for the year ​ — ​ 341 ​ 341 ​ — ​ 300 ​ 300 At 31 December 4,409 2,169 6,578 4,417 1,849 6,266 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net book value at 31 December 5,522 1,594 7,116 5,522 1,201 6,723 ​ (1) Principally internally generated software.

Other assets (Tables)

Other assets (Tables)	12 Months Ended
	Dec. 31, 2022
Other assets
Schedule of other assets	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Interests in associates (1) ​ 688 ​ 716 Property, plant and equipment (2) ​ 4,240 ​ 4,230 Pension schemes in net surplus (Note 5) ​ 318 ​ 602 Prepayments 340 360 Accrued income 327 248 Tax recoverable 279 190 Deferred tax (Note 7) ​ 2,178 ​ 1,195 Acceptances ​ 237 ​ 225 Other 569 476 Other assets 9,176 8,242 ​ (1) Includes interest in Business Growth Fund £ 677 million (2021 - £ 700 million). (2) The estimated useful lives of NatWest Group's property, plant and equipment are: freehold buildings and long leasehold 50 years , short leaseholds for unexpired period of lease, property adaptation costs 10 to 15 years , computer equipment up to 5 years and other equipment 4 to 15 years .

Other financial liabilities (Ta

Other financial liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Other financial liabilities
Schedule of other financial liabilities	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Customer deposits - designated as at fair value through profit or loss 1,050 568 Debt securities in issue - MRELs 22,265 23,422 - Other medium term notes ​ 16,419 ​ 12,430 - Commercial paper and certificates of deposit ​ 5,672 ​ 9,153 - Covered bonds ​ 2,842 ​ 2,886 - Securitisation 859 867 Total 49,107 49,326

Subordinated liabilities (Table

Subordinated liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Subordinated liabilities
Schedule of subordinated liabilities	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Dated loan capital 5,968 8,051 Undated loan capital 173 259 Preference shares 119 119 6,260 8,429 ​
Schedule of issuances and redemptions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First call Maturity ​ Capital ​ 2022 ​ 2021 Dated loan capital ​ date date treatment £m £m Natwest Group plc ​ ​ ​ $2,250 million 6.13% notes — Dec-22 ​ Tier 2 ​ — ​ 986 $2,250 million 5.13% notes — May-24 ​ Tier 2 ​ 706 ​ 956 $2,000 million 6.00% notes — Dec-23 ​ Tier 2 ​ 536 ​ 1,073 £1,000 million 3.622% notes Aug-25 Aug-30 ​ Tier 2 ​ 964 ​ 995 £1,000 million 2.105% notes Aug-26 Nov-31 ​ Tier 2 ​ 1,001 ​ 999 $1,000 million 6.10% notes — Jun-23 ​ Tier 2 ​ 126 ​ 354 $850 million 3.032% notes Nov-30 Nov-35 ​ Tier 2 ​ 555 ​ 584 €750 million 1.043% notes Jun-27 Sep-32 ​ Tier 2 ​ 665 ​ 630 $750 million 3.754% notes Nov-24 Nov-29 ​ Tier 2 ​ 626 ​ 558 £650 million 7.416% notes Mar-28 Jun-33 ​ Tier 2 ​ 641 ​ — $650 million 6.425% notes Jan-34 Jan-43 Not applicable — 554 ​ ​ ​ 5,820 7,689 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other subsidiaries ​ ​ ​ ​ ​ ​ ​ ​ ​ $650 million 6.3% notes Jan-34 Dec-43 ​ Not applicable ​ — ​ 39 €300 million Floating rate notes — Jun-22 ​ Tier 2 ​ — ​ 252 €170 million Floating rate notes — Feb-41 ​ Not applicable ​ 223 ​ 331 $150 million 7.125% notes — Oct-93 ​ Not applicable ​ 18 ​ 113 €145.6 million Floating rate notes — Apr-23 ​ Tier 2 ​ 122 ​ 119 $136 million 7.75% notes — May-23 ​ Not applicable ​ 83 ​ 104 ​ ​ ​ ​ ​ ​ 6,266 8,647 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Undated loan capital ​ ​ ​ Natwest Group plc ​ ​ ​ ​ ​ ​ ​ ​ ​ $762 million 7.648% notes Sep-31 — ​ Not applicable ​ — ​ 51 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other subsidiaries ​ ​ ​ ​ ​ ​ ​ ​ ​ £16 million 5.63% notes Sep-26 — ​ Not applicable ​ 18 ​ 20 £19 million 5.63% notes Jun-32 — ​ Tier 2 ​ — ​ 1 £21 million 6.2% notes Mar-22 — ​ Tier 2 ​ — ​ 22 £31 million 7.38% notes — — ​ Not applicable ​ 2 ​ 1 £53 million 7.125% notes Oct-22 — ​ Not applicable ​ — ​ 56 €31 million 11.375% notes — — ​ Tier 2 ​ 48 ​ 45 £35 million 11.5% notes Dec-22 — ​ Not applicable ​ 72 ​ 31 £11 million 11.75% notes — — ​ Tier 2 ​ 25 ​ 24 £1.1 million SONIA + 2.8266% notes — — ​ Tier 2 ​ 2 ​ 2 £4.9 million 2.5% fixed notes — — ​ Not applicable ​ 6 ​ 6 ​ ​ ​ ​ ​ ​ ​ 173 ​ 259 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preference shares ​ ​ ​ ​ ​ ​ ​ ​ ​ Other subsidiaries ​ ​ ​ £140 million Non-cumulative preference shares of £1 — — ​ Not applicable ​ 119 ​ 119 ​ ​ ​ ​ ​ ​ ​ 119 ​ 119 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Hedging ​ ​ ​ ​ ​ (298) ​ (596) ​ ​ ​ ​ ​ ​ ​ 6,260 ​ 8,429 ​

Other liabilities (Tables)

Other liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Other liabilities.
Schedule of other liabilities	​ ​ ​ ​ ​ ​ ​ 2022 2021 Other liabilities ​ £m ​ £m Lease liabilities ​ 1,118 ​ 1,263 Provisions for liabilities and charges ​ 1,138 ​ 1,268 Retirement benefit liabilities (Note 5) 98 114 Accruals 1,407 1,508 Deferred income 355 319 Current tax 55 12 Deferred tax (Note 7) ​ 227 ​ 359 Acceptances 237 225 Other liabilities (1) ​ 711 ​ 729 ​ 5,346 5,797 ​ (1) Other liabilities include liabilities of disposal groups of £ 15 million (2021 - £ 5 million). See Note 8 for further information.
Schedule for provisions for liabilities and charges	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Litigation and ​ ​ ​ Financial ​ ​ ​ ​ ​ ​ Customer ​ other ​ ​ ​ commitments ​ ​ ​ ​ ​ ​ redress (1) ​ regulatory ​ Property ​ and guarantees ​ Other (2) ​ Total Provisions for liabilities and charges £m £m £m £m £m £m At 1 January 2022 474 277 231 93 193 1,268 Expected credit loss impairment release ​ — ​ — ​ — ​ (6) ​ — ​ (6) Currency translation and other movements ​ 2 ​ 20 ​ — ​ — ​ 7 ​ 29 Charge to income statement ​ 178 ​ 36 ​ 31 ​ — ​ 193 ​ 438 Release to income statement (45) (14) (71) — (60) (190) Provisions utilised (178) (79) (37) — (107) (401) At 31 December 2022 431 240 154 87 226 1,138 ​ (1) Includes payment protection insurance provision which reflects the estimated cost of PPI redress attributable to claims prior to the Financial Conduct Authority (FCA) complaint deadline of 29 August 2019. All pre-deadline complaints have been processed which removes complaint volume estimation uncertainty from the provision estimate. NatWest Group continues to conclude remaining bank-identified closure work and conclude cases with the Financial Ombudsmen Service. (2) Other materially comprises provisions relating to restructuring costs. ​

Share capital and other equity

Share capital and other equity (Tables)	12 Months Ended
	Dec. 31, 2022
Share capital and other equity
Schedule of allotted, called up and fully paid shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of shares ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Allotted, called up and fully paid £m £m 000s 000s Ordinary shares of £1.0769 (1) 10,539 11,468 9,786,024 11,467,982 Cumulative preference shares of £1 0.5 0.5 483 483 Non-cumulative preference shares of US$0.01 (2) — — — 10 ​ (1) The nominal value of ordinary shares without rounding is £1.076923076923077 per share (2) The company redeemed the Series U Non-cumulative dollar preference shares on 31 March 2022.
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 2021 12,129 12,129,165 Shares issued 38 37,584 Share cancellation (699) (698,767) At 1 January 2022 11,468 11,467,982 Share cancellation ​ (929) ​ (929,188) Share consolidation — (752,770) At 31 December 2022 10,539 9,786,024 ​
Schedule of other equity instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m Additional Tier 1 notes ​ ​ US$1.15 billion 8% notes callable August 2025 (1) ​ 735 ​ 735 ​ 735 US$2.65 billion 8.625% notes callable August 2021 (2) ​ — ​ — ​ 2,046 US$1.5 billion 6.000% notes callable December 2025 - June 2026 (3) 1,220 ​ 1,220 ​ 1,220 GBP£1.0 billion 5.125% notes callable May - November 2027 (4) ​ 998 ​ 998 ​ 998 GBP£0.4 billion – March 2021 issuance (5) ​ 399 ​ 399 ​ — US$0.75 billion – June 2021 issuance (6) 538 ​ 538 ​ — ​ ​ 3,890 ​ 3,890 ​ 4,999 ​ (1) Issued in August 2015. In the event of conversion, converted into ordinary shares at a price of $3.295 nominal per £ 1 share. (2) Issued in August 2016. In the event of conversion, converted into ordinary shares at a price of $2.284 nominal per £ 1 share. In July 2021, paid-in equity reclassified to liabilities as the result of a call in August 2021 of US$ 2.65 billion AT1 Capital notes. (3) Issued in June 2020. In the event of conversion, converted into ordinary shares at a price of $2.179 (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. (5) Issued in March 2021. In the event of conversion, converted into ordinary shares at a price of £ 1.754 nominal per £ 1 share. (6) Issued in June 2021. In the event of conversion, converted into ordinary shares at a price of $2.448 (translated at applicable exchange rate) per £ 1 share.

Structured entities (Tables)

Structured entities (Tables)	12 Months Ended
	Dec. 31, 2022
Structured entities
Schedule of interest in unconsolidated structured entities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ ​ Asset ​ ​ ​ ​ ​ Asset ​ ​ ​ ​ ​ ​ backed ​ Investment ​ ​ ​ backed ​ Investment ​ ​ ​ ​ securitisation ​ funds and ​ ​ ​ securitisation ​ funds and ​ ​ ​ ​ vehicles ​ others ​ Total ​ vehicles ​ others ​ Total ​ £m £m £m £m £m £m Trading assets and derivatives ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trading assets 616 137 753 490 117 607 Derivative assets 343 — 343 251 18 269 Derivative liabilities (388) (22) (410) (170) (1) (171) Total 571 115 686 571 134 705 ​ ​ ​ ​ ​ ​ Non trading assets ​ ​ ​ ​ ​ ​ Loans to customers 2,431 648 3,079 1,692 361 2,053 Other financial assets 6,334 849 7,183 3,645 379 4,024 Total 8,765 1,497 10,262 5,337 740 6,077 ​ ​ ​ ​ ​ ​ Liquidity facilities/loan commitments 1,723 320 2,043 1,403 135 1,538 Guarantees — 107 107 — — — Maximum exposure 11,059 2,039 13,098 7,311 1,009 8,320

Asset transfers (Tables)

Asset transfers (Tables)	12 Months Ended
	Dec. 31, 2022
Asset transfers
Schedule of assets subject to securities repurchase agreements or security lending transactions	​ ​ ​ ​ ​ ​ ​ 2022 2021 The following assets have failed derecognition (1) ​ £m ​ £m Trading assets ​ 6,668 ​ 13,084 Loans to bank - amortised cost ​ 16 ​ 38 Loans to customers - amortised cost ​ 398 ​ 1,837 Other financial assets ​ 2,901 ​ 11,746 Total 9,983 26,705 ​ (1) Associated liabilities were £9,501 million (2021 - £24,747 million).
Schedule of assets pledged as collateral	​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 Assets pledged against liabilities £m £m Trading assets ​ 15,062 ​ 23,601 Loans to banks - amortised cost 66 62 Loans to customers - amortised cost 17,493 20,108 Other financial assets (1) 3,351 3,624 Total 35,972 47,395 ​ (1) Includes assets pledged for pension derivatives and stock borrowings.

Capital resources (Tables)

Capital resources (Tables)	12 Months Ended
	Dec. 31, 2022
Capital resources
Schedule of regulatory capital	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Shareholders’ equity (excluding non-controlling interests) Shareholders’ equity 36,488 41,796 Preference shares - equity — (494) Other equity instruments (3,890) (3,890) ​ 32,598 37,412 Regulatory adjustments and deductions ​ ​ Own credit (58) 21 Defined benefit pension fund adjustment (227) (465) Cash flow hedging reserve 2,771 395 Deferred tax assets (912) (761) Prudential valuation adjustments (275) (274) Goodwill and other intangible assets (7,116) (6,312) Foreseeable ordinary dividends and pension contributions ​ (967) ​ (1,211) Adjustment for trust assets (1) ​ (365) ​ — Foreseeable charges - on-market share buyback programme ​ (800) ​ (825) Adjustment under IFRS 9 transitional arrangements 361 621 Insufficient coverage for non-performing exposures ​ (18) ​ (5) ​ (7,606) (8,816) ​ ​ ​ CET1 capital 24,992 28,596 Additional Tier 1 (AT1) capital ​ ​ Qualifying instruments and related share premium 3,875 3,875 Qualifying instruments and related share premium subject to phase out — 571 AT1 capital 3,875 4,446 Tier 1 capital 28,867 33,042 Qualifying Tier 2 capital ​ ​ Qualifying instruments and related share premium 4,953 4,935 Qualifying instruments issued by subsidiaries and held by third parties 82 314 Other regulatory adjustments ​ 18 ​ 457 Tier 2 capital 5,053 5,706 Total regulatory capital 33,920 38,748 ​ (1)

Memorandum items (Tables)

Memorandum items (Tables)	12 Months Ended
	Dec. 31, 2022
Memorandum items
Schedule of contingent liabilities and commitments	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £m ​ £m Guarantees 3,150 2,055 Other contingent liabilities 1,855 2,004 Standby facilities, credit lines and other commitments 121,576 121,308 Contingent liabilities and commitments 126,581 125,367 ​
Schedule of contractual obligations for future expenditure	​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ 2021 ​ £m £m Capital expenditure on property, plant and equipment 8 ​ 16 Contracts to purchase goods or services (1) 677 ​ 682 ​ 685 ​ 698 ​ (1) Of which due within 1 year: £321 million (2021 - £301 million).

Analysis of the net investmen_2

Analysis of the net investment in business interests and intangible assets (Tables)	12 Months Ended
	Dec. 31, 2022
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	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ £m £m £m Acquisition of interests in associates (1) — — Additional investment in associates ​ — ​ (51) ​ (40) Net assets/liabilities purchased ​ — ​ (3,128) ​ — Net outflow of cash in respect of acquisitions (1) (3,179) (40) ​ ​ ​ ​ ​ ​ ​ Sale of interests in associates — — 27 Disposal of net assets and liabilities 6,270 114 288 (Loss)/profit on disposal of net assets and liabilities (106) 55 3 Net inflow of cash in respect of disposals 6,164 169 318 ​ ​ ​ ​ ​ ​ ​ Cash expenditure on intangible assets (743) (479) (348) Net inflow/(outflow) of cash 5,420 (3,489) (70)

Analysis of changes in financ_2

Analysis of changes in financing during the year (Tables)	12 Months Ended
	Dec. 31, 2022
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 ​ 2022 2021 2020 2022 2021 2020 2022 2021 2020 ​ ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m ​ £m At 1 January 16,519 18,239 17,246 8,429 9,962 9,979 ​ 23,423 ​ 20,873 ​ 19,249 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issue of paid-in equity — 937 2,218 — — — ​ — ​ — ​ — Issue of subordinated liabilities ​ — ​ — ​ — ​ 648 ​ 1,634 ​ 1,631 ​ — ​ — ​ — Redemption of subordinated liabilities — — — (3,693) (4,765) (3,502) ​ — ​ — ​ — Interest on subordinated liabilities ​ — ​ — ​ — ​ (374) ​ (321) ​ (510) ​ — ​ — ​ — Issue of MRELs ​ — ​ — ​ — ​ — ​ — ​ — ​ 3,721 ​ 3,383 ​ 1,309 Maturity and redemption of MRELs ​ — ​ — ​ — ​ — ​ — ​ — ​ (4,992) ​ — ​ (2) Interest on MRELs ​ — ​ — ​ — ​ — ​ — ​ — ​ (703) ​ (647) ​ (671) Net cash inflow/(outflow) from financing — 937 2,218 (3,419) (3,452) (2,381) ​ (1,974) ​ 2,736 ​ 636 Ordinary shares issued ​ — ​ 87 ​ 52 ​ — ​ — ​ — ​ — ​ — ​ — Share cancellation ​ (929) ​ (698) ​ — ​ — ​ — ​ — ​ — ​ — ​ — Effects of foreign exchange — — — 597 (18) (234) ​ 1,889 ​ (190) ​ (514) Changes in fair value of subordinated liabilities and MRELs ​ — ​ — ​ — ​ (594) ​ (434) ​ 133 ​ (1,806) ​ (649) ​ 829 Preference shares reclassified to subordinated liabilities ​ — ​ — ​ — ​ 750 ​ — ​ — ​ — ​ — ​ — Paid in equity reclassified to subordinated liabilities ​ — ​ (2,046) ​ (1,277) ​ — ​ 1,915 ​ 1,632 ​ ​ ​ — ​ — Loss on sale of subordinated liabilities and MRELs ​ — ​ — ​ — ​ 161 ​ 145 ​ 324 ​ — ​ — ​ — Interest on subordinated liabilities and MRELs ​ — ​ — ​ — ​ 370 ​ 311 ​ 509 ​ 733 ​ 653 ​ 673 Other adjustments — — — (34) — — ​ — ​ — ​ — At 31 December 15,590 16,519 18,239 6,260 8,429 9,962 ​ 22,265 ​ 23,423 ​ 20,873

Analysis of cash and cash equ_2

Analysis of cash and cash equivalents (Tables)	12 Months Ended
	Dec. 31, 2022
Analysis of cash and cash equivalents
Schedule of the analysis of cash and cash equivalents	​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 ​ ​ £m ​ £m ​ £m At 1 January 190,706 139,199 100,588 Net (decrease)/increase in cash and cash equivalents (32,257) 51,507 38,611 At 31 December 158,449 190,706 139,199 ​ ​ ​ Comprising: ​ ​ ​ Cash and balances at central banks 144,832 177,757 124,489 Trading assets ​ 8,551 ​ 7,137 ​ 9,220 Other financial assets 19 16 173 Loans to banks (1) 5,047 5,796 5,317 Cash and cash equivalents 158,449 190,706 139,199 ​ (1) Includes cash collateral posted with bank counterparties in respect of derivative liabilities of £4,895 million (2021 - £4,293 million; 2020 - £7,592 million).

Directors' and key management_2

Directors' and key management remuneration (Tables)	12 Months Ended
	Dec. 31, 2022
Directors' and key management remuneration
Schedule of directors' remuneration	​ ​ ​ ​ ​ ​ ​ 2022 2021 Directors' remuneration ​ £000 ​ £000 Non-executive directors emoluments 1,685 1,641 Chairman and executive directors emoluments 5,804 4,688 ​ 7,489 6,329 Amounts receivable under long-term incentive plans and share option plans 542 549 Total 8,031 6,878 ​
Schedule of compensation of key management	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £000 ​ £000 Short-term benefits 22,175 17,303 Post-employment benefits 732 820 Share-based payments 2,547 2,491 ​ 25,454 20,614 ​

Transactions with directors a_2

Transactions with directors and key management (Tables)	12 Months Ended
	Dec. 31, 2022
Transactions with directors and key management
Schedule of transactions with directors and key management	​ ​ ​ ​ ​ ​ ​ 2022 2021 ​ ​ £000 ​ £000 Loans to customers - amortised cost 12,137 9,128 Customer deposits 47,866 51,018 ​

Accounting policies (Details)

Accounting policies (Details)	12 Months Ended
	Dec. 31, 2022 item
Credit cards
Loan impairment provisions
Write off period	4 years
Number of arrear cycles after which the financial asset is written off	12
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
Loan impairment provisions
Write off period	5 years
Maximum | Overdrafts and other unsecured loans
Loan impairment provisions
Write off period	6 years
Maximum | Commercial loans
Loan impairment provisions
Write off 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
	Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Net interest income
Balances at central banks and loans to banks - amortised cost	£ 1,987	£ 445		£ 336
Loans to customers - amortised cost	10,085	8,536		8,892
Other financial assets	565	253		483
Interest receivable	12,637	9,234	[1]	9,711	[1]
Deposits by banks	379	204		144
Customer deposits	785	556		911
Other financial liabilities	1,196	670		846
Subordinated liabilities	370	267		402
Internal funding of trading businesses	65	2		19
Interest payable	2,795	1,699	[1]	2,322	[1]
Net interest income	9,842	7,535	[1]	7,389	[1]
Finance income on the net investment in leases	£ 314	£ 298		£ 289
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Non-interest income (Details)

Non-interest income (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Disclosure of detailed information about financial instruments [line items]
Net fees and commissions	£ 2,292	£ 2,120		£ 1,982
Trading income
Foreign exchange	305	364		569
Interest rate	752	(130)		541
Credit	17	83		3
Changes in fair value of own debt and derivative liabilities attributable to own credit risk
-debt securities in issue	42	6		(24)
Equity, commodities and other	17			36
Trading income	1,133	323	[1]	1,125	[1]
Loss on redemption of own debt	(161)	(145)		(324)
Rental income on operating lease assets and investment property	230	225		232
Changes in fair value of financial assets and liabilities designated at fair value through profit or loss	17	(8)		(54)
Changes in fair value of other financial assets at fair value through profit or loss	(45)	5		2
Hedge ineffectiveness	(20)	25		24
Loss on disposal of amortised cost assets and liabilities	(15)	(15)		(18)
(Loss)/profit on disposal of fair value through other comprehensive income assets	(168)	117		96
(Loss)/profit on sale of property, plant and equipment (5)	(5)	(30)		13
Share of (losses)/profits of associated entities	(30)	216		(30)
Profit/(loss) on disposal of subsidiaries and associates		48		(16)
Other income	86	13		(18)
Other operating income	(111)	451	[1]	(93)	[1]
Non-interest income	3,314	2,894	[1]	£ 3,014	[1]
Loss on the purchase of freeholds for properties	44
Profit from insurance liabilities	92
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)
Derivatives notional (£bn)		£ 3,000
Financial assets that have been reclassified from amortised cost to fair value at profit or loss
Changes in fair value of own debt and derivative liabilities attributable to own credit risk
Gain on reclassification of mortgages	£ 19
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Operating expenses (Details)

Operating expenses (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Operating expenses
Salaries	£ 2,250	£ 2,295		£ 2,494
Bonus awards	334	267		232
Temporary and contract costs	234	240		258
Social security costs	328	300		316
Pension costs	363	354		340
- defined benefit schemes	205	215		215
- defined contribution schemes	158	139		125
Other	207	220		238
Staff costs	3,716	3,676	[1]	3,878	[1]
Premises and equipment	1,112	1,133	[1]	1,222	[1]
UK bank levy	101	99		167
Depreciation and amortisation	833	923	[1]	913	[1]
Other administrative expenses	1,925	1,927		1,678
Administrative expenses	3,971	4,082		3,980
Operating expenses	7,687	7,758	[1]	7,858	[1]
Impairment of goodwill	0	85
Depreciation on right of use assets	£ 119	£ 167		£ 209
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Operating expenses - Continuing

Operating expenses - Continuing operations (Details) - employee	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number and average number of employees
Average number of employees	60,000	59,200	61,400
Average number of temporary employees	2,500	2,500	3,200
Number of employees	61,000	57,800	59,200
UK
Number and average number of employees
Number of employees	41,200	40,600	42,500
USA
Number and average number of employees
Number of employees	300	300	300
India
Number and average number of employees
Number of employees	15,700	13,500	13,200
Poland
Number and average number of employees
Number of employees	1,500	1,400	1,200
Republic of Ireland
Number and average number of employees
Number of employees	1,400	1,200	1,400
Rest of the World
Number and average number of employees
Number of employees	900	800	600
Ulster Bank RoI
Number and average number of employees
Number of employees	2,200	2,400	2,600
Operating segment | Retail Banking
Number and average number of employees
Number of employees	14,800	15,800	17,200
Operating segment | Private Banking
Number and average number of employees
Number of employees	2,100	1,900	1,900
Operating segment | Commercial & Institutional
Number and average number of employees
Number of employees	12,200	11,400	13,300
Operating segment | Central items & other
Number and average number of employees
Number of employees	31,900	28,700	26,800
Discontinued operations | Ulster Bank RoI
Number and average number of employees
Number of employees	400	700	700

Operating expenses - Share-base

Operating expenses - Share-based payments (Details) £ / shares in Units, £ in Millions, Options in Millions, Option in Millions, EquityInstruments in Millions	12 Months Ended
	Dec. 31, 2022 GBP (£) EquityInstruments Options Option £ / shares	Dec. 31, 2021 GBP (£) EquityInstruments Option £ / shares	Dec. 31, 2020 GBP (£) EquityInstruments Option £ / shares
Shares awarded
Share-based payments, market price measurement period preceding grant date	5 days
Maximum
Shares awarded
Share-based payments, volatility measurement period	5 years
Sharesave
Average exercise price
At 1 January | £ / shares	£ 1.61	£ 1.64	£ 2.01
Granted | £ / shares	1.86	1.80	1.12
Exercised | £ / shares	1.88	1.76	1.83
Cancelled | £ / shares	1.60	2.02	2.20
At 31 December | £ / shares	£ 1.63	£ 1.61	£ 1.64
Shares under option
At 1 January | Option	95	96	84
Granted | Option	25	24	35
Exercised | Option	(15)	(10)
Cancelled | Option	(6)	(15)	(23)
At 31 December | Option	99	95	96
Options exercisable, vesting period	6 months
Options exercisable	5.1	6	6.3
Weighted average share price | £ / shares	£ 2.59	£ 2.19	£ 1.57
Weighted average remaining contractual life of outstanding share options	2 years	2 years 1 month 6 days	2 years 3 months 18 days
Fair value of options granted	£ 22.1	£ 17	£ 8
Shares awarded
Share-based payments, market price measurement period preceding grant date	3 days
Sharesave | Minimum
Shares under option
Exercise price of outstanding share options | £ / shares	£ 1.12	£ 1.12	£ 1.12
Sharesave | Maximum
Shares under option
Exercise price of outstanding share options | £ / shares	£ 2.27		£ 2.27
Deferred performance awards
Shares under option
Options exercisable, vesting period	3 years
Value at grant
At 1 January	£ 132	£ 169	£ 196
Granted	46	61	109
Forfeited	(4)	(10)	(5)
Vested	(81)	(88)	(131)
At 31 December	£ 93	£ 132	£ 169
Shares awarded
At 1 January (in shares) | EquityInstruments	65	77	76
Granted (in shares) | EquityInstruments	20	32	67
Forfeited (in shares) | EquityInstruments	(2)	(5)	(2)
Vested/exercised (in shares) | EquityInstruments	(37)	(39)	(64)
At 31 December (in shares) | EquityInstruments	46	65	77
Long-term incentives
Value at grant
At 1 January	£ 44	£ 50	£ 63
Granted	16	6	14
Vested	(10)	(12)	(17)
Lapsed	(1)		(10)
At 31 December	£ 49	£ 44	£ 50
Shares awarded
At 1 January (in shares) | EquityInstruments	21	24	25
Granted (in shares) | EquityInstruments	7	3	10
Vested/exercised (in shares) | EquityInstruments	(4)	(6)	(7)
Lapsed (in shares) | EquityInstruments	(1)		(4)
At 31 December (in shares) | EquityInstruments	23	21	24
Market value of awards vested and exercised	£ 11.7	£ 13	£ 13

Operating expenses - Bonus awar

Operating expenses - Bonus awards (Details) - GBP (£)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating expenses
Total Bonus awards	£ 370,000,000	£ 301,000,000	£ 206,000,000
Bonus awards as a % of operating profit before tax	7%	7%
Proportion of bonus awards that are deferred	89%	87%
Bonus awards
Operating expenses
Total Bonus awards	£ 370,000,000	£ 301,000,000
Change %	23%
Non-deferred cash awards
Operating expenses
Total Bonus awards	£ 40,000,000	38,000,000
Change %	5%
Total deferred bonus awards
Operating expenses
Total Bonus awards	£ 330,000,000	263,000,000
Change %	25%
Deferred cash awards
Operating expenses
Total Bonus awards	£ 270,000,000	£ 214,000,000
Change %	26%
Proportion of bonus awards that are deferred	82%	81%
Deferred share awards
Operating expenses
Total Bonus awards	£ 60,000,000	£ 49,000,000
Change %	22%
Proportion of bonus awards that are deferred	18%	19%
Maximum
Operating expenses
Cash awards	£ 2,000

Operating expenses - Bonus aw_2

Operating expenses - Bonus awards reconciliation (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating expenses
Bonus awarded	£ 370	£ 301	£ 206
Less: deferral of charge for amounts awarded for current year	(127)	(99)	(77)
Income statement charge for amounts awarded in current year	243	202	129
Add: current year charge for amounts deferred from prior years	94	80	114
Less: forfeiture of amounts deferred from prior years	(3)	(15)	(11)
Income statement charge for amounts deferred from prior years	91	65	103
Income statement charge for bonus awards	£ 334	£ 267	£ 232

Operating expenses - Bonus aw_3

Operating expenses - Bonus awards - Actual and Expected (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating expenses
Bonus awards deferred from 2020 and earlier			£ 19	£ 80	£ 114
Bonus awards deferred from 2021			75
Less: forfeiture of amounts deferred from prior years			(3)	(15)	(11)
Bonus awards for 2022 deferred			0
Income statement charge for amounts deferred from prior years			£ 91	£ 65	£ 103
Forecast
Operating expenses
Bonus awards deferred from 2020 and earlier	£ 4	£ 8
Bonus awards deferred from 2021	8	8
Less: forfeiture of amounts deferred from prior years	0	0
Bonus awards for 2022 deferred	22	105
Income statement charge for amounts deferred from prior years	£ 34	£ 121

Segmental analysis - Operating

Segmental analysis - Operating profit or (loss) before tax (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Segmental analysis
Net interest income	£ 9,842	£ 7,535	[1]	£ 7,389	[1]
Net fees and commissions	2,292	2,120		1,982
Other non-interest income	1,022	774		1,032
Total income	13,156	10,429	[1]	10,403	[1]
Depreciation and amortisation	(833)	(923)	[1]	(913)	[1]
Operating expenses				(6,945)
Other operating expenses	(6,854)	(6,835)
Impairment (losses)/releases	(337)	1,173	[1]	(3,098)	[1]
Operating (loss)/profit before tax	5,132	3,844	[1]	(553)	[1]
Retail Banking
Segmental analysis
Net interest income	5,224	4,074		3,868
Net fees and commissions	422	377		379
Other non-interest income		(6)		(66)
Total income	5,646	4,445		4,181
Depreciation and amortisation		(85)
Operating expenses				(2,540)
Other operating expenses	(2,593)	(2,428)
Impairment (losses)/releases	(229)	36		(792)
Operating (loss)/profit before tax	2,824	1,968		849
Private Banking
Segmental analysis
Net interest income	777	480		489
Net fees and commissions	250	258		257
Other non-interest income	29	78		17
Total income	1,056	816		763
Depreciation and amortisation				(8)
Operating expenses				(447)
Other operating expenses	(622)	(520)
Impairment (losses)/releases	2	54		(100)
Operating (loss)/profit before tax	436	350		208
Commercial & Institutional
Segmental analysis
Net interest income	4,171	2,974		3,054
Net fees and commissions	1,580	1,440		1,303
Other non-interest income	662	424		1,221
Total income	6,413	4,838		5,578
Depreciation and amortisation	(161)	(173)		(182)
Operating expenses				(3,849)
Other operating expenses	(3,583)	(3,584)
Impairment (losses)/releases	(122)	1,160		(2,074)
Operating (loss)/profit before tax	2,547	2,241		(527)
Central Items and other
Segmental analysis
Net interest income	(330)	7		(22)
Net fees and commissions	40	45		43
Other non-interest income	331	278		(140)
Total income	41	330		(119)
Depreciation and amortisation	(672)	(665)		(723)
Operating expenses				(109)
Other operating expenses	(56)	(303)
Impairment (losses)/releases	12	(77)		(132)
Operating (loss)/profit before tax	£ (675)	£ (715)		£ (1,083)
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Segmental analysis - Total reve

Segmental analysis - Total revenue (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segmental analysis
Total revenue	£ 16,574	£ 12,702	£ 13,447
Retail Banking
Segmental analysis
Total revenue	5,773	5,419	5,386
Private Banking
Segmental analysis
Total revenue	874	792	702
Commercial & Institutional
Segmental analysis
Total revenue	6,747	5,168	6,223
Central Items and other
Segmental analysis
Total revenue	3,180	1,323	1,136
Operating segment
Segmental analysis
Total revenue	16,574	12,702	13,447
Operating segment | Retail Banking
Segmental analysis
Total revenue	5,773	5,433	5,425
Operating segment | Private Banking
Segmental analysis
Total revenue	1,263	919	865
Operating segment | Commercial & Institutional
Segmental analysis
Total revenue	6,863	5,291	6,303
Operating segment | Central Items and other
Segmental analysis
Total revenue	2,675	1,059	854
Inter-segmental | Retail Banking
Segmental analysis
Total revenue		(14)	(39)
Inter-segmental | Private Banking
Segmental analysis
Total revenue	(389)	(127)	(163)
Inter-segmental | Commercial & Institutional
Segmental analysis
Total revenue	(116)	(123)	(80)
Inter-segmental | Central Items and other
Segmental analysis
Total revenue	£ 505	£ 264	£ 282

Segmental analysis - Total inco

Segmental analysis - Total income (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Segmental analysis
Total income	£ 13,156	£ 10,429	[1]	£ 10,403	[1]
Retail Banking
Segmental analysis
Total income	5,646	4,445		4,181
Private Banking
Segmental analysis
Total income	1,056	816		763
Commercial & Institutional
Segmental analysis
Total income	6,413	4,838		5,578
Central Items and other
Segmental analysis
Total income	41	330		(119)
Operating segment
Segmental analysis
Total income	13,156	10,429		10,403
Operating segment | Retail Banking
Segmental analysis
Total income	5,646	4,433		4,157
Operating segment | Private Banking
Segmental analysis
Total income	780	801		700
Operating segment | Commercial & Institutional
Segmental analysis
Total income	6,777	5,041		5,960
Operating segment | Central Items and other
Segmental analysis
Total income	(47)	154		(414)
Inter segment | Retail Banking
Segmental analysis
Total income		12		24
Inter segment | Private Banking
Segmental analysis
Total income	276	15		63
Inter segment | Commercial & Institutional
Segmental analysis
Total income	(364)	(203)		(382)
Inter segment | Central Items and other
Segmental analysis
Total income	£ 88	£ 176		£ 295
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Segmental analysis - Net fees a

Segmental analysis - Net fees and commissions (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Fees and commissions receivable
Payment services	£ 1,024	£ 967		£ 876
Credit and debit card fees	661	522		460
Lending and financing	701	670		676
Brokerage	93	96		155
Investment management, trustee and fiduciary services	269	280		271
Underwriting fees	120	127		183
Other	47	32		83
Total	2,915	2,694	[1]	2,704	[1]
Fees and commissions payable	(623)	(574)	[1]	(722)	[1]
Net fees and commissions	2,292	2,120		1,982
Retail Banking
Fees and commissions receivable
Payment services	314	306		264
Credit and debit card fees	401	344		299
Lending and financing	17	13		42
Brokerage	43	48		54
Investment management, trustee and fiduciary services	4	3		3
Other				1
Total	779	714		663
Fees and commissions payable	(357)	(337)		(284)
Net fees and commissions	422	377		379
Private Banking
Fees and commissions receivable
Payment services	25	35		28
Credit and debit card fees	15	10		9
Lending and financing	8	10		7
Brokerage	6	6		6
Investment management, trustee and fiduciary services	219	230		225
Other	3	35		26
Total	276	326		301
Fees and commissions payable	(26)	(68)		(44)
Net fees and commissions	250	258		257
Commercial & Institutional
Fees and commissions receivable
Payment services	642	577		543
Credit and debit card fees	227	149		131
Lending and financing	673	643		625
Brokerage	44	42		94
Investment management, trustee and fiduciary services	46	45		41
Underwriting fees	120	127		183
Other	88	109		89
Total	1,840	1,692		1,706
Fees and commissions payable	(260)	(252)		(403)
Net fees and commissions	1,580	1,440		1,303
Central Items and other
Fees and commissions receivable
Payment services	43	49		41
Credit and debit card fees	18	19		21
Lending and financing	3	4		2
Brokerage				1
Investment management, trustee and fiduciary services		2		2
Other	(44)	(112)		(33)
Total	20	(38)		34
Fees and commissions payable	20	83		9
Net fees and commissions	£ 40	£ 45		£ 43
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Segmental analysis - Assets and

Segmental analysis - Assets and liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segmental analysis
Assets	£ 720,053	£ 781,992	£ 799,491
Liabilities	683,557	740,189	755,667
Retail Banking
Segmental analysis
Assets	226,375	209,973	197,618
Liabilities	192,282	192,715	178,617
Private Banking
Segmental analysis
Assets	29,867	29,854	26,206
Liabilities	41,491	39,388	32,457
Commercial & Institutional
Segmental analysis
Assets	404,817	425,718	491,544
Liabilities	383,768	411,757	460,338
Central Items and other
Segmental analysis
Assets	58,994	116,447	84,123
Liabilities	£ 66,016	£ 96,329	£ 84,255

Segmental analysis - Goodwill (

Segmental analysis - Goodwill (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Analysis of goodwill
Carrying value of goodwill		£ 5,522
Retail Banking
Analysis of goodwill
Carrying value of goodwill	£ 2,607	2,607
Commercial & Institutional
Analysis of goodwill
Carrying value of goodwill		2,906
Private Banking
Analysis of goodwill
Carrying value of goodwill	£ 9	£ 9

Segmental analysis - Geographic

Segmental analysis - Geographical segments (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Geographical segments
Total revenue	£ 16,574	£ 12,702		£ 13,447
Interest receivable	12,637	9,234	[1]	9,711	[1]
Interest payable	(2,795)	(1,699)	[1]	(2,322)	[1]
Net fees and commissions	2,292	2,120		1,982
Trading income	1,133	323	[1]	1,125	[1]
Other operating income	(111)	451		(93)
Total income	13,156	10,429	[1]	10,403	[1]
Operating (loss)/profit before tax	5,132	3,844	[1]	(553)	[1]
Total assets	720,053	781,992		799,491
Total liabilities	683,557	740,189		755,667
Total liabilities of which total liabilities held for sale	15	5
Contingent liabilities and commitments	126,581	125,367		128,732
UK
Geographical segments
Total revenue	15,795	12,100		12,511
Interest receivable	12,242	8,949		9,479
Interest payable	(2,567)	(1,483)		(2,163)
Net fees and commissions	1,983	1,820		1,637
Trading income	1,208	247		911
Other operating income	(140)	387		(117)
Total income	12,726	9,920		9,747
Operating (loss)/profit before tax	5,716	4,143		(193)
Total assets	589,758	693,221		704,725
Total liabilities	579,476	676,684		686,500
Contingent liabilities and commitments	117,915	117,225		118,654
USA
Geographical segments
Total revenue	117	87		211
Interest receivable	37	20
Interest payable	(2)	(2)
Net fees and commissions	44	27		33
Trading income	1	53		170
Other operating income	14	2		(22)
Total income	94	100		181
Operating (loss)/profit before tax	(46)	48		(85)
Total assets	25,979	21,776		25,439
Total liabilities	27,039	23,286		26,932
Contingent liabilities and commitments		1
Europe
Geographical segments
Total revenue	558	482		551
Interest receivable	344	257		210
Interest payable	(221)	(211)		(158)
Net fees and commissions	207	231		215
Trading income	(104)	(1)		33
Other operating income	12	62		42
Total income	238	338		342
Operating (loss)/profit before tax	(620)	(387)		(363)
Total assets	101,164	64,415		66,884
Total liabilities	75,092	38,835		41,018
Contingent liabilities and commitments	8,649	8,114		10,068
RoW
Geographical segments
Total revenue	104	33		174
Interest receivable	14	8		22
Interest payable	(5)	(3)		(1)
Net fees and commissions	58	42		97
Trading income	28	24		11
Other operating income	3			4
Total income	98	71		133
Operating (loss)/profit before tax	82	40		88
Total assets	3,152	2,580		2,443
Total liabilities	1,950	1,384		1,217
Contingent liabilities and commitments	£ 17	£ 27		£ 10
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Pensions (Details)

Pensions (Details)	12 Months Ended
	Dec. 31, 2022 trustee
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%
Minimum
Pensions
Period during which defined benefit schemes have been closed to new entrants	10 years
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, 2022	Dec. 31, 2021
Pensions
Fair value of assets	£ 99,545	£ 106,139
Fair value of liabilities	£ 94,047	£ 100,835
Main Scheme
Pensions
Percentage of total plan assets	91%	90%
Equities	7.80%	8.40%
Index-linked bonds	37.70%	46.70%
Government bonds	18.40%	9.80%
Corporate and other bonds	22%	15.10%
Real estate	6%	4.40%
Derivatives	8.20%	8.80%
Cash and other assets	(0.10%)	6.80%
Total	100%	100%
Percentage of collateral	112%
Maximum percentage of indirect investment by trustees	5%
Main Scheme | Swap
Pensions
Derivatives notional (£bn)	£ 124,000	£ 192,000
Fair value of assets	2,642	4,573
Main Scheme | Inflation rate swaps
Pensions
Derivatives notional (£bn)	21,000	20,000
Fair value of assets	1,873	1,408
Fair value of liabilities	990	796
Main Scheme | Interest rate swaps
Pensions
Derivatives notional (£bn)	103,000	172,000
Fair value of assets	14,317	8,385
Fair value of liabilities	12,546	4,421
Main Scheme | Currency forwards
Pensions
Derivatives notional (£bn)	12,000	12,000
Fair value of assets	310	61
Fair value of liabilities	113	98
Main Scheme | Equity and bond call options
Pensions
Fair value of assets		1
Main Scheme | Equity and bond put options
Pensions
Fair value of assets	2	1
Fair value of liabilities	70	3
Main Scheme | Other
Pensions
Derivatives notional (£bn)	1,000	1,000
Fair value of assets	14	9
Fair value of liabilities	£ 19	£ 10
Quoted
Pensions
Equities	0.10%	3.70%
Index-linked bonds	37.70%	46.70%
Government bonds	18.40%	9.80%
Corporate and other bonds	15.30%	10.70%
Total	71.50%	70.90%
Unquoted
Pensions
Equities	7.70%	4.70%
Corporate and other bonds	6.70%	4.40%
Real estate	6%	4.40%
Derivatives	8.20%	8.80%
Cash and other assets	(0.10%)	6.80%
Total	28.50%	29.10%

Pensions - Changes in value of

Pensions - Changes in value of net pension assets/(liability) (Details) € in Millions, £ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2022 GBP (£) installment	Mar. 31, 2022 EUR (€) installment	Dec. 31, 2023 GBP (£)	Dec. 31, 2022 GBP (£)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 GBP (£)
Pensions
Balance at beginning of year	£ (488)		£ (220)	£ (488)		£ (602)
Currency translation and other adjustments				(2)		10
Net interest expense				(16)
Current service cost				(194)
Past service cost				6
Loss on curtailments and settlements				21
Income statement - operating expenses				205		215
Return on plan assets excluding recognised interest income				20,326
Experience gains and losses				(2,137)
Effect of changes in actuarial financial assumptions				(20,714)
Effect of changes in actuarial demographic assumptions				7
Asset ceiling adjustments				(916)
Statement of comprehensive income				(840)		(669)
Contributions by employer				775		780
Balance at end of year				(220)		(488)
Main Scheme
Pensions
Net interest expense				(8)
Current service cost				(143)
Past service cost				5
Income statement - operating expenses				140		159
Return on plan assets excluding recognised interest income				18,180
Experience gains and losses				(2,053)
Effect of changes in actuarial financial assumptions				(18,744)
Effect of changes in actuarial demographic assumptions				(23)
Asset ceiling adjustments				(898)
Statement of comprehensive income				(568)		(546)
Contributions by employer				708	€ 708	705
Contributions resulting from ring-fencing arrangements		€ 500		500		500
Contributions resulting from ring-fencing arrangements, number of instalments | installment	2	2
Main Scheme | Forecast
Pensions
Contributions expected to be paid to plan in 2023			196
Fair value of plan assets
Pensions
Balance at beginning of year	£ (57,787)		(37,598)	(57,787)		(57,249)
Currency translation and other adjustments				(78)		129
Net interest expense				(1,041)
Income statement - operating expenses				(1,041)		(795)
Return on plan assets excluding recognised interest income				20,326
Statement of comprehensive income				(20,326)		872
Contributions by employer				775		780
Contributions by plan participants and other scheme members				(13)		(13)
Assets/liabilities extinguished upon settlement				113
Benefits paid				1,657		1,793
Balance at end of year				(37,598)		(57,787)
Fair value of plan assets | Main Scheme
Pensions
Balance at beginning of year	(52,021)		(34,016)	(52,021)		(51,323)
Net interest expense				(932)
Income statement - operating expenses				(932)		(713)
Return on plan assets excluding recognised interest income				18,180
Statement of comprehensive income				(18,180)		841
Contributions by employer				708		705
Contributions by plan participants and other scheme members				(7)		(8)
Benefits paid				1,472		1,569
Balance at end of year				(34,016)		(52,021)
Present value of defined benefit obligation
Pensions
Balance at beginning of year	46,808		27,601	46,808		48,864
Currency translation and other adjustments				65		(116)
Net interest expense				834
Current service cost				(194)
Past service cost				6
Loss on curtailments and settlements				21
Income statement - operating expenses				1,055		901
Experience gains and losses				(2,137)
Effect of changes in actuarial financial assumptions				(20,714)
Effect of changes in actuarial demographic assumptions				7
Statement of comprehensive income				18,570		1,061
Contributions by plan participants and other scheme members				13		13
Assets/liabilities extinguished upon settlement				(113)
Benefits paid				(1,657)		(1,793)
Balance at end of year				27,601		46,808
Present value of defined benefit obligation | Main Scheme
Pensions
Balance at beginning of year	42,020		24,733	42,020		43,870
Net interest expense				744
Current service cost				(143)
Past service cost				5
Income statement - operating expenses				892		767
Experience gains and losses				(2,053)
Effect of changes in actuarial financial assumptions				(18,744)
Effect of changes in actuarial demographic assumptions				(23)
Statement of comprehensive income				16,714		1,056
Contributions by plan participants and other scheme members				7		8
Benefits paid				(1,472)		(1,569)
Balance at end of year				24,733		42,020
Asset ceiling/minimum funding
Pensions
Balance at beginning of year	10,491		9,777	10,491		7,783
Currency translation and other adjustments				11		(3)
Net interest expense				191
Income statement - operating expenses				191		109
Asset ceiling adjustments				(916)
Statement of comprehensive income				916		(2,602)
Balance at end of year				9,777		10,491
Asset ceiling/minimum funding | Main Scheme
Pensions
Balance at beginning of year	£ 10,001		£ 9,283	10,001		7,453
Net interest expense				180
Income statement - operating expenses				180		105
Asset ceiling adjustments				(898)
Statement of comprehensive income				898		(2,443)
Balance at end of year				£ 9,283		£ 10,001

Pensions - Amounts in the Finan

Pensions - Amounts in the Financial statements (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pensions
Fund assets at fair value	£ 37,598	£ 57,787	£ 57,249	£ 51,925	£ 48,752
Present value of fund liabilities	(27,601)	(46,808)	(48,864)	(44,115)	(39,607)
Net surplus	9,997	10,979	8,385	£ 7,810	£ 9,145
Net assets of schemes in surplus	318	602
Net liabilities of schemes in deficit	(98)	(114)
Retirement benefit liability	(220)	(488)	(602)
Asset ceiling/minimum funding
Pensions
Retirement benefit liability	£ 9,777	£ 10,491	£ 7,783

Pensions - Funding and contribu

Pensions - Funding and contributions by the Group and most significant assumptions used for the Main Scheme (Details) € in Millions, £ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022 EUR (€)	Dec. 31, 2022 GBP (£)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 GBP (£)	Dec. 31, 2020 GBP (£)
Pensions
Administrative expenses		£ 3,971		£ 4,082	£ 3,980
Contributions by employer		£ 775		£ 780
Fixed interest swap and guilt yields plus percentage		0.64%
Life expectancy of male employees after retirement who are currently at age 60		27 years 8 months 12 days	27 years 8 months 12 days
Life expectancy of female employees after retirement who are currently at age 60		29 years 4 months 24 days	29 years 4 months 24 days
Life expectancy of male employees after retirement who are currently aged 40		28 years 10 months 24 days	28 years 10 months 24 days
Life expectancy of female employees after retirement who are currently aged 40		30 years 8 months 12 days	30 years 8 months 12 days
Main Scheme
Pensions
Period of funding valuations (in years)		3 years	3 years
Funding level, as percent				104%
Future contribution to funding if distribution to shareholders are made, capped amount		£ 1,500
Contributions Resulting From Ring Fencing Arrangements	€ 500	500		£ 500
Pension liabilities				49,000
Deficit				2,000
Contributions by employer		£ 708	€ 708	£ 705
Average cost (as a percent)				49%
Main Scheme | Principal IAS 19 actuarial assumptions
Pensions
Discount rate		5%		1.80%
Inflation assumption (RPI)		3.20%		3.30%
Rate of increase in salaries		1.80%		1.80%
Rate of increase in deferred pensions		3.20%		3.70%
Rate of increase in pensions in payment		2.50%		2.50%
Proportion of pension converted to a cash lump sum at retirement		18%		18%
Longevity at age 60 for current pensioners (years), males		27 years 3 months 18 days	27 years 3 months 18 days	27 years 3 months 18 days
Longevity at age 60 for current pensioners (years), females		29 years 1 month 6 days	29 years 1 month 6 days	29 years
Longevity at age 60 for future pensioners currently aged 40 (years), males		28 years 3 months 18 days	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 1 month 6 days	30 years 1 month 6 days	30 years 1 month 6 days
Main Scheme | Maximum | Distributions to shareholders of an equal amount are made [Member]
Pensions
Future contribution to funding if distribution to shareholders are made		£ 500

Pensions - Sensitivities of the

Pensions - Sensitivities of the present value of defined benefit obligation (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Pensions
Weighted average duration of defined benefit obligation	15 years 3 months 19 days
Main Scheme
Pensions
Active members	8.40%	10.70%
Deferred members	41%	47.60%
Pensioners and dependants	50.60%	41.70%
Total proportions to the different classes of scheme	100%	100%
Discount rate | Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.25%	0.25%
(Decrease)/ increase in value of assets	£ (1,389)	£ (2,917)
(Decrease)/ increase in value of liabilities	907	1,926
Increase in net pension (obligations)/assets	£ 482	£ 991
Inflation | Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.25%	0.25%
(Decrease)/ increase in value of assets	£ 963	£ 1,883
(Decrease)/ increase in value of liabilities	(632)	(1,329)
Increase in net pension (obligations)/assets	£ (331)	£ (554)
Credit spreads | Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.25%	0.25%
(Decrease)/ increase in value of assets	£ (3)	£ (3)
(Decrease)/ increase in value of liabilities	907	1,926
Increase in net pension (obligations)/assets	(904)	(1,923)
Credit spreads | Actuarial assumption of longevity, decrease by 2 years | Main Scheme
Pensions
Increase in net pension (obligations)/assets	(3,200)	(6,900)
Net pension assets/obligations, assuming no change in one of the actuarial assumption	(1,600)	(3,600)
Increase in net pension (obligations)/assets	300	300
Credit spreads | Actuarial assumption of longevity, decrease by 1 year | Main Scheme
Pensions
Increase in net pension (obligations)/assets	(2,500)	(5,300)
Net pension assets/obligations, assuming no change in one of the actuarial assumption	(800)	(1,800)
Increase in net pension (obligations)/assets	1,200	2,400
Credit spreads | Actuarial assumption of longevity, no change | Main Scheme
Pensions
Increase in net pension (obligations)/assets	(1,800)	(3,800)
Increase in net pension (obligations)/assets	£ 2,000	4,500
Credit spreads | Actuarial assumption of longevity, increase by 1 year | Main Scheme
Pensions
Actuarial assumption of longevity increase	1 year
Increase in net pension (obligations)/assets	£ (1,100)	(2,300)
Net pension assets/obligations, assuming no change in one of the actuarial assumption	800	1,800
Increase in net pension (obligations)/assets	£ 2,800	6,600
Credit spreads | Actuarial assumption of longevity, increase by 2 years | Main Scheme
Pensions
Actuarial assumption of longevity increase	2 years
Increase in net pension (obligations)/assets	£ (400)	(800)
Net pension assets/obligations, assuming no change in one of the actuarial assumption	1,500	3,600
Increase in net pension (obligations)/assets	£ 3,600	£ 8,700
Longevity increase | Main Scheme
Pensions
Actuarial assumption of longevity increase	1 year	1 year
(Decrease)/ increase in value of liabilities	£ (767)	£ (1,790)
Increase in net pension (obligations)/assets	£ 767	£ 1,790
Pension increase | Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.25%	0.25%
(Decrease)/ increase in value of liabilities	£ (679)	£ (1,485)
Increase in net pension (obligations)/assets	£ 679	£ 1,485
Equity values | Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	10%	10%
(Decrease)/ increase in value of assets	£ 267	£ 442
Increase in net pension (obligations)/assets	£ (267)	£ (442)
0.5% increase in interest rates/discount rate | Main Scheme
Pensions
Increase in actuarial assumption (as a percent)	0.50%
(Decrease)/ increase in value of assets	£ (2,689)
(Decrease)/ increase in value of liabilities	£ 1,766

Pensions - History of defined b

Pensions - History of defined benefit schemes (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Pensions
Fair value of plan assets	£ 37,598	£ 57,787	£ 57,249	£ 51,925	£ 48,752
Present value of plan obligations	(27,601)	(46,808)	(48,864)	(44,115)	(39,607)
Net surplus	9,997	10,979	8,385	7,810	9,145
Actual return on plan assets	£ (19,285)	£ 1,667	£ 7,064	£ 4,930	£ (848)
Actual return on plan assets - %	(33.40%)	2.90%	13.60%	10.10%	(1.70%)
Plan liabilities
Pensions
Experience (losses)/gains	£ (2,137)	£ 237	£ 455	£ 279	£ (81)
Plan assets
Pensions
Experience (losses)/gains	(20,326)	872	6,027	3,556	(2,090)
Main Scheme
Pensions
Fair value of plan assets	34,016	52,021	51,323	46,555	43,806
Present value of plan obligations	(24,733)	(42,020)	(43,870)	(39,669)	(35,466)
Net surplus	9,283	10,001	7,453	6,886	8,340
Actual return on plan assets	£ (17,248)	£ 1,554	£ 6,422	£ 4,266	£ (768)
Actual return on plan assets - %	(33.20%)	3%	13.80%	9.70%	(1.70%)
Main Scheme | Plan liabilities
Pensions
Experience (losses)/gains	£ (2,053)	£ 241	£ 427	£ 275	£ (122)
Main Scheme | Plan assets
Pensions
Experience (losses)/gains	£ (18,180)	£ 841	£ 5,486	£ 3,021	£ (1,891)

Auditor's remuneration (Details

Auditor's remuneration (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Auditor's remuneration
Fees payable for the audit of NatWest Group's annual accounts	£ 4.7	£ 4.4	£ 4.7
Fees payable for the audit of NatWest Group plc's subsidiaries	31.9	29.6	30.6
Fees payable for audit-related assurance services	3.9	5.3	4.7
Total audit and audit-related assurance services fees	40.5	39.3	40
Other assurance services	1.2	0.4	0.6
Corporate finance services	0.5	0.5	0.4
Total other services	1.7	0.9	£ 1
Audit fees billed	16
Audit fees paid	13
Fees for review of interim financial information	1.1	1.1
Fees for reports to the regulatory	2.3	3.5
Fees for non-statutory audit opinions	0.4	0.7
Fees for the auditors as reporting accountants on debt and equity issuances	£ 0.5	£ 0.5

Tax - Tax charge (Details)

Tax - Tax charge (Details) - GBP (£) £ in Millions		12 Months Ended
	Oct. 27, 2022	Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Current tax
Charge for the year		£ (1,611)	£ (1,036)		£ (191)
Over provision in respect of prior years		100	31		86
Total current tax		(1,511)	(1,005)		(105)
Deferred tax
Credit/(charge) for the year		47	(185)		176
UK tax rate change impact		(10)	165		75
Net increase/(decrease) in the carrying value of deferred tax assets in respect of UK, Ireland and Netherlands losses		267	12		(130)
(Under)/over provision in respect of prior years		(68)	17		(90)
Tax charge for the year		£ (1,275)	£ (996)	[1]	£ (74)	[1]
UK corporation tax	8%	19%	19%		19%
Tax impact allocated across the RPI related uplift on index linked gilts		£ (135)
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Tax - Reconciliation (Details)

Tax - Reconciliation (Details) - GBP (£) £ in Millions			12 Months Ended
	Apr. 01, 2023	Oct. 27, 2022	Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Tax
UK corporation tax		8%	19%	19%		19%
Profit before tax			£ 5,132	£ 3,844	[1]	£ (553)	[1]
Expected tax (charge)/credit			(975)	(766)		92
Losses and temporary differences in year where no deferred tax asset recognised			(118)	(51)		(43)
Foreign profits taxed at other rates			(62)	(11)		(29)
Non deductible goodwill impairment				(16)
losses on disposals and write-downs			(10)	(55)		(22)
UK bank levy			(20)	(18)		(32)
regulatory and legal actions			(7)	(74)		14
other disallowable items			(51)	(28)		(70)
RPI related uplift on index linked gilts			67
other non-taxable items			29	73		28
Taxable foreign exchange movements			(19)	8		(3)
Unrecognised losses brought forward and utilised			6	10		16
Banking surcharge			(447)	(341)		(27)
Tax on paid-in equity dividends			43	48		61
UK tax rate change impact			(10)	165		75
Adjustments in respect of prior years			32	48		(4)
Tax charge for the year			(1,275)	(996)	[1]	(74)	[1]
Deferred tax assets			2,178	1,195
Deferred tax liabilities			227	359
Forecast
Tax
UK corporation tax	3%
UK
Tax
Profit before tax			5,716	4,143		(193)
Net increase/(decrease) in the carrying value of deferred tax assets in respect of:			272	(9)		7
Republic of Ireland
Tax
Net increase/(decrease) in the carrying value of deferred tax assets in respect of:			£ (5)	(27)		£ (137)
Netherlands
Tax
Net increase/(decrease) in the carrying value of deferred tax assets in respect of:				£ 48
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Tax - Analysis of deferred tax

Tax - Analysis of deferred tax (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax
Deferred tax asset	£ (2,178)	£ (1,195)
Deferred tax liability	227	359
Net deferred tax asset	£ (1,951)	£ (836)	£ (610)

Tax - Deferred tax reconciliati

Tax - Deferred tax reconciliation (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of net deferred tax asset
At 1 January	£ (836)	£ (610)
Charge/(credit) to income statement	(236)	(9)
(Credit)/charge to other comprehensive income	(916)	(224)
Currency translation and other adjustments	37	4
At 31 December	(1,951)	(836)
Discontinued operations
Reconciliation of net deferred tax asset
Charge/(credit) to income statement		3
Pension
Reconciliation of net deferred tax asset
At 1 January	24	(4)
Charge/(credit) to income statement	1	19
(Credit)/charge to other comprehensive income	(2)	10
Currency translation and other adjustments		(1)
At 31 December	23	24
Accelerated capital allowances
Reconciliation of net deferred tax asset
At 1 January	(42)	(64)
Charge/(credit) to income statement	(43)	21
Currency translation and other adjustments	10	1
At 31 December	(75)	(42)
Provisions
Reconciliation of net deferred tax asset
At 1 January	(97)	(85)
Charge/(credit) to income statement	14	(5)
(Credit)/charge to other comprehensive income	1	(7)
At 31 December	(82)	(97)
Fair value of financial instruments
Reconciliation of net deferred tax asset
At 1 January	248	480
Charge/(credit) to income statement	(171)	(10)
(Credit)/charge to other comprehensive income	(913)	(222)
Currency translation and other adjustments	31
At 31 December	(805)	248
Total losses carried forward
Reconciliation of net deferred tax asset
At 1 January	(899)	(905)
Charge/(credit) to income statement	(51)	(1)
Currency translation and other adjustments	(2)	4
At 31 December	(952)	(899)
Total losses carried forward | Discontinued operations
Reconciliation of net deferred tax asset
Charge/(credit) to income statement		3
Other
Reconciliation of net deferred tax asset
At 1 January	(70)	(32)
Charge/(credit) to income statement	14	(33)
(Credit)/charge to other comprehensive income	(2)	(5)
Currency translation and other adjustments	(2)
At 31 December	£ (60)	£ (70)

Tax - Tax losses (Details)

Tax - Tax losses (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Unused tax losses
Deferred tax asset	£ 2,178	£ 1,195
Total losses carried forward
Unused tax losses
Deferred tax asset	952	899
Total losses carried forward | UK
Unused tax losses
Deferred tax asset	900	840
Total losses carried forward | UK | NatWest Markets Plc
Unused tax losses
Deferred tax asset	3	56
Total losses carried forward | UK | National Westminster Bank Plc
Unused tax losses
Deferred tax asset	445	608
Total losses carried forward | UK | RBS plc
Unused tax losses
Deferred tax asset	452	176
Total losses carried forward | Ireland | UBIDAC
Unused tax losses
Deferred tax asset	6	11
Total losses carried forward | Ireland | NWM N.V.
Unused tax losses
Deferred tax asset	£ 46	£ 48

Tax - Other (Details)

Tax - Other (Details) - GBP (£) £ in Millions			12 Months Ended
	Apr. 01, 2023	Oct. 27, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax
Deferred tax asset			£ 2,178	£ 1,195
Deferred tax liability			£ 227	£ 359
UK corporation tax		8%	19%	19%	19%
Charge/(credit) to income statement			£ (236)	£ (9)
(Credit)/charge to other comprehensive income			(916)	(224)
UK tax rate change impact			10	(165)	£ (75)
Deferred tax assets that have not been recognised			5,534	5,437	4,965
Tax losses and other temporary differences for which no deferred tax asset has been recognised			25,742	24,699	25,091
Deferred tax liabilities not recognised			257	302	242
Expected future taxation from unrecognised deferred tax liabilities			0
Temporary differences associated with investments in subsidiaries and branches			1,010	1,032	1,021
Underlying temporary differences in respect of retained earnings of overseas subsidiaries and held-over gains on the incorporation of certain overseas branches			1,010	1,032	1,021
UK banking surcharge		8%
Deferred tax assets that have not been recognised			25,742	24,699	£ 25,091
Forecast
Deferred tax
UK corporation tax	3%
UK banking surcharge	3%
within 5 years
Deferred tax
Tax losses and other temporary differences for which no deferred tax asset has been recognised			75
Deferred tax assets that have not been recognised			75
After 5 years
Deferred tax
Tax losses and other temporary differences for which no deferred tax asset has been recognised			4,774
Deferred tax assets that have not been recognised			4,774
Total losses carried forward
Deferred tax
Deferred tax asset			952	899
Charge/(credit) to income statement			£ (51)	(1)
Country of domicile
Deferred tax
Limit of offset of losses carried forward (as a percent)			25%
Country of domicile | Total losses carried forward
Deferred tax
Deferred tax asset			£ 900	840
NatWest Markets Plc | Total losses carried forward
Deferred tax
Deferred tax asset			3	56
Tax losses for which deferred tax assets are recognised			12
Tax losses and other temporary differences for which no deferred tax asset has been recognised			5,538
Deferred tax assets that have not been recognised			5,538
National Westminster Bank Plc | Total losses carried forward
Deferred tax
Deferred tax asset			445	608
Tax losses carried forward			2,718
Tax losses for which deferred tax assets are recognised			1,847
RBS plc | Total losses carried forward
Deferred tax
Deferred tax asset			452	176
Tax losses carried forward			3,692
Tax losses for which deferred tax assets are recognised			1,821
UBIDAC | Total losses carried forward
Deferred tax
Deferred tax asset			6	£ 11
Tax losses for which deferred tax assets are recognised			48
NWM N.V.
Deferred tax
Deferred tax asset			48
NWM N.V. | Total losses carried forward
Deferred tax
Deferred tax asset			46
Tax losses carried forward			2,914
Tax losses for which deferred tax assets are recognised			£ 186

Discontinued operations and a_3

Discontinued operations and assets and liabilities of disposal groups (Details) € in Millions, £ in Millions		1 Months Ended		12 Months Ended
		Jan. 31, 2023	Nov. 30, 2022 EUR (€)	Dec. 31, 2022 GBP (£) item	Dec. 31, 2022 EUR (€) item	Dec. 31, 2021 GBP (£)	[1]	Dec. 31, 2020 GBP (£)	[1]
Disclosure of analysis of single amount of discontinued operations [line items]
Number of legally binding agreements for sale of business | item				3	3
Profit/(loss) from continuing operations | £				£ 3,857		£ 2,848		£ (627)
Profit (loss) from discontinued operations | £	[2]			£ (262)		£ 464		£ 193
AIB
Disclosure of analysis of single amount of discontinued operations [line items]
Number of performing commercial loans successfully migrated | item				6	6
Amount of gross performing loans fully migrated by year-end | €					€ 2,100
Losses on disposal | €					(123)
AIB | Binding agreement for the sale of performing tracked and linked mortgages to AIB | Representation of comparatives
Disclosure of analysis of single amount of discontinued operations [line items]
Profit/(loss) from continuing operations | £				£ (188)
Profit (loss) from discontinued operations | £				£ 188
Permanent TSB p.l.c.
Disclosure of analysis of single amount of discontinued operations [line items]
Amount of gross performing non-tracker mortgages migrated | €			€ 5,000
Reduction in mortgage financial assets amortised cost | €					€ 453
Permanent TSB p.l.c. | Disposals of assets
Disclosure of analysis of single amount of discontinued operations [line items]
Number of branches transferred in sales agreement		25
Permanent TSB p.l.c. | Binding agreement for sale of UBIDAC business to Permanent TSB
Disclosure of analysis of single amount of discontinued operations [line items]
Number of branches transferred in sales agreement | item				25	25
Permanent TSB p.l.c. | UBIDAC
Disclosure of analysis of single amount of discontinued operations [line items]
Losses on disposal				£ 20	€ 24
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements. The results of discontinued operations, comprising the post-tax profit, is shown as a single amount on the face of the income statement. An analysis of this amount is presented in Note 8 to the consolidated financial statements.

Discontinued operations and a_4

Discontinued operations and assets and liabilities of disposal groups - Profit (loss) from discontinued operations, net of tax (Details) - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021		Dec. 31, 2020
Disclosure of analysis of single amount of discontinued operations [line items]
Interest receivable		£ 12,637	£ 9,234	[1]	£ 9,711	[1]
Net interest income		9,842	7,535	[1]	7,389	[1]
Non-interest income		3,314	2,894	[1]	3,014	[1]
Total income		13,156	10,429	[1]	10,403	[1]
Operating expenses		(7,687)	(7,758)	[1]	(7,858)	[1]
Profit before impairment losses/releases		5,469	2,671	[1]	2,545	[1]
Impairment releases		337	(1,173)	[1]	3,098	[1]
Operating (loss)/profit before tax		5,132	3,844	[1]	(553)	[1]
(Loss)/profit from discontinued operations, net of tax	[2]	(262)	464	[1]	193	[1]
Discontinued operations
Disclosure of analysis of single amount of discontinued operations [line items]
Interest receivable		177	339		360
Net interest income		177	339		360
Non-interest income		(472)	13		33
Total income		(295)	352		393
Operating expenses		(38)	(47)		(47)
Profit before impairment losses/releases		(333)	305		346
Impairment releases		(71)	(162)		144
Operating (loss)/profit before tax		(262)	467		202
Tax charge			(3)		(9)
(Loss)/profit from discontinued operations, net of tax		£ (262)	£ 464		£ 193
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements. The results of discontinued operations, comprising the post-tax profit, is shown as a single amount on the face of the income statement. An analysis of this amount is presented in Note 8 to the consolidated financial statements.

Discontinued operations and a_5

Discontinued operations and assets and liabilities of disposal groups - Assets and liabilities of disposal groups (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Assets of disposal groups
Loans to customers - amortised cost	£ 366,340	£ 358,990
Derivatives	99,545	106,139
Other assets	9,176	8,242
Total assets of disposal groups	6,861	9,015
Liabilities of disposal groups
Other liabilities	5,346	5,797
Total liabilities of disposal groups	15	5
Assets and liabilities of disposal groups
Assets of disposal groups
Loans to customers - amortised cost	1,458	9,002
Other financial assets - loans to customers	5,397
Derivatives		5
Other assets	6	8
Total assets of disposal groups	6,861	9,015
Liabilities of disposal groups
Other liabilities	15	5
Total liabilities of disposal groups	15	5
Net assets of disposal groups	£ 6,846	£ 9,010

Discontinued operations and a_6

Discontinued operations and assets and liabilities of disposal groups - Operating cash flows attributable to discontinued operations (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Noncurrent assets or disposal groups classified as held for sale
Net cash flows from investing activities	£ 6,164
Discontinued operations
Noncurrent assets or disposal groups classified as held for sale
Net cash flows from operating activities	1,090	£ 2,212	£ (816)
Net increase in cash and cash equivalents	£ 7,254	£ 2,212	£ (816)

Earnings per share (Details)

Earnings per share (Details) £ in Millions, shares in Millions		12 Months Ended
	Aug. 30, 2022	Dec. 31, 2022 GBP (£) shares	Dec. 31, 2021 GBP (£) shares		Dec. 31, 2020 GBP (£) shares
Earnings per share
Profit/(loss) from continuing operations attributable to ordinary shareholders | £		£ 3,602	£ 2,486		£ (946)
(Loss)/profit from discontinued operations attributable to ordinary shareholders | £		(262)	464		193
Profit/(loss) attributable to ordinary shareholders | £		£ 3,340	£ 2,950	[1]	£ (753)	[1]
Weighted average number of shares
Weighted average number of ordinary shares outstanding during the year | shares		9,872	10,792		11,231
Effect of dilutive share options and convertible securities | shares		57	45
Diluted weighted average number of ordinary shares outstanding during the year | shares		9,929	10,837		11,231
Share consolidation ratio	0.9286
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements.

Financial instruments - class_3

Financial instruments - classification - Assets (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financial instruments
Assets	£ 720,053	£ 781,992	£ 799,491
Cash and balances at central banks
Financial instruments
Assets	144,832	177,757
Financial Assets	144,832	177,757
Trading assets
Financial instruments
Assets	45,577	59,158
Financial Assets	45,577	59,158
Derivatives
Financial instruments
Assets	99,545	106,139
Net hedging derivative assets	143	44
Financial Assets	99,545	106,139
Settlement balances
Financial instruments
Assets	2,572	2,141
Financial Assets	2,572	2,141
Loans to banks - amortised cost
Financial instruments
Assets	7,139	7,682
Items in course of collection from other banks	229	67
Loans to customers - amortised cost
Financial instruments
Assets	366,340	358,990
Other financial assets
Financial instruments
Assets	30,895	46,145
Financial Assets	30,895	46,145
Intangible assets other than goodwill
Financial instruments
Assets	7,116	6,723
Other assets
Financial instruments
Assets	9,176	8,242
Assets of Disposal Groups [Member]
Financial instruments
Assets	6,861	9,015
Financial assets that have been reclassified from amortised cost to fair value at profit or loss
Financial instruments
Assets of disposal groups	5,397
Other assets
Financial instruments
Assets	23,153	23,980
Other assets | Cash and balances at central banks
Financial instruments
Assets	0
Other assets | Trading assets
Financial instruments
Assets	0
Other assets | Derivatives
Financial instruments
Assets	0
Other assets | Settlement balances
Financial instruments
Assets	0
Other assets | Loans to banks - amortised cost
Financial instruments
Assets	0
Other assets | Loans to customers - amortised cost
Financial instruments
Assets	0
Other assets | Other financial assets
Financial instruments
Assets	0
Other assets | Intangible assets other than goodwill
Financial instruments
Assets	7,116	6,723
Other assets | Other assets
Financial instruments
Assets	9,176	8,242
Other assets | Assets of Disposal Groups [Member]
Financial instruments
Assets	6,861	9,015
MVFTPL
Financial instruments
Assets	145,909	165,614
Financial Assets	145,800	165,600
MVFTPL | Cash and balances at central banks
Financial instruments
Assets	0
MVFTPL | Trading assets
Financial instruments
Assets	45,577	59,158
MVFTPL | Derivatives
Financial instruments
Assets	99,545	106,139
MVFTPL | Settlement balances
Financial instruments
Assets	0
MVFTPL | Loans to banks - amortised cost
Financial instruments
Assets	0
MVFTPL | Loans to customers - amortised cost
Financial instruments
Assets	0
MVFTPL | Other financial assets
Financial instruments
Assets	787	317
MVFTPL | Intangible assets other than goodwill
Financial instruments
Assets	0
MVFTPL | Other assets
Financial instruments
Assets	0
MVFTPL | Assets of Disposal Groups [Member]
Financial instruments
Assets	0
FVOCI
Financial instruments
Assets	16,973	37,266
FVOCI | Cash and balances at central banks
Financial instruments
Assets	0
FVOCI | Trading assets
Financial instruments
Assets	0
FVOCI | Derivatives
Financial instruments
Assets	0
FVOCI | Settlement balances
Financial instruments
Assets	0
FVOCI | Loans to banks - amortised cost
Financial instruments
Assets	0
FVOCI | Loans to customers - amortised cost
Financial instruments
Assets	0
FVOCI | Other financial assets
Financial instruments
Assets	16,973	37,266
FVOCI | Intangible assets other than goodwill
Financial instruments
Assets	0
FVOCI | Other assets
Financial instruments
Assets	0
FVOCI | Assets of Disposal Groups [Member]
Financial instruments
Assets	0
Amortised cost
Financial instruments
Assets	534,018	555,132
Amortised cost | Cash and balances at central banks
Financial instruments
Assets	144,832	177,757
Amortised cost | Trading assets
Financial instruments
Assets	0
Amortised cost | Derivatives
Financial instruments
Assets	0
Amortised cost | Settlement balances
Financial instruments
Assets	2,572	2,141
Amortised cost | Loans to banks - amortised cost
Financial instruments
Assets	7,139	7,682
Amortised cost | Loans to customers - amortised cost
Financial instruments
Assets	366,340	358,990
Amortised cost | Other financial assets
Financial instruments
Assets	13,135	£ 8,562
Amortised cost | Intangible assets other than goodwill
Financial instruments
Assets	0
Amortised cost | Other assets
Financial instruments
Assets	0
Amortised cost | Assets of Disposal Groups [Member]
Financial instruments
Assets	£ 0

Financial instruments - class_4

Financial instruments - classification - Liabilities (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financial instruments
Liabilities	£ 683,557	£ 740,189	£ 755,667
Other comprehensive income, before tax, change in fair value of financial liability attributable to change in credit risk of liability	50	(29)	£ (52)
Lease liabilities	1,118	1,263
Bank deposits
Financial instruments
Liabilities	20,441	26,279
Financial Liabilities	20,441	26,279
Items in course of transmission to other banks	242	56
Customer deposits
Financial instruments
Liabilities	450,318	479,810
Settlement balances
Financial instruments
Liabilities	2,012	2,068
Trading liabilities
Financial instruments
Liabilities	52,808	64,598
Financial Liabilities	52,808	64,598
Derivatives
Financial instruments
Liabilities	94,047	100,835
Financial Liabilities	94,047	100,835
Net hedging derivative liabilities	132	120
Other financial liabilities
Financial instruments
Liabilities	49,107	49,326
Financial Liabilities	49,107	49,326
Subordinated liabilities
Financial instruments
Liabilities		8,429
Financial Liabilities	6,260	8,429
Notes in circulation
Financial instruments
Liabilities	3,218	3,047
Financial Liabilities	3,218	3,047
Other Financial liabilities
Financial instruments
Liabilities	5,346	5,797
Loans to customers - amortised cost
Financial instruments
Finance lease receivable	8,402	8,531
Other liabilities
Financial instruments
Liabilities	4,141	4,441
Other liabilities | Customer deposits
Financial instruments
Liabilities	0
Other liabilities | Settlement balances
Financial instruments
Liabilities	0
Other liabilities | Trading liabilities
Financial instruments
Liabilities	0
Other liabilities | Derivatives
Financial instruments
Liabilities	0
Other liabilities | Other financial liabilities
Financial instruments
Liabilities	0
Other liabilities | Subordinated liabilities
Financial instruments
Liabilities	0
Other liabilities | Notes in circulation
Financial instruments
Liabilities	0
Other liabilities | Other Financial liabilities
Financial instruments
Liabilities	4,141	4,441
Held-for-trading
Financial instruments
Liabilities	146,855	165,433
Financial Liabilities	146,700	165,300
Held-for-trading | Customer deposits
Financial instruments
Liabilities	0
Held-for-trading | Settlement balances
Financial instruments
Liabilities	0
Held-for-trading | Trading liabilities
Financial instruments
Liabilities	52,808	64,598
Held-for-trading | Derivatives
Financial instruments
Liabilities	94,047	100,835
Held-for-trading | Other financial liabilities
Financial instruments
Liabilities	0
Held-for-trading | Subordinated liabilities
Financial instruments
Liabilities	0
Held-for-trading | Notes in circulation
Financial instruments
Liabilities	0
Held-for-trading | Other Financial liabilities
Financial instruments
Liabilities	0
DFV
Financial instruments
Liabilities	2,722	2,374
DFV | Customer deposits
Financial instruments
Liabilities	0
DFV | Settlement balances
Financial instruments
Liabilities	0
DFV | Trading liabilities
Financial instruments
Liabilities	0
DFV | Derivatives
Financial instruments
Liabilities	0
DFV | Other financial liabilities
Financial instruments
Liabilities	2,377	1,671
Increase (decrease) in fair value of financial liability, attributable to changes in credit risk of liability	0
DFV | Subordinated liabilities
Financial instruments
Liabilities	345	703
DFV | Notes in circulation
Financial instruments
Liabilities	0
DFV | Other Financial liabilities
Financial instruments
Liabilities	0
Amortised cost
Financial instruments
Liabilities	529,839	567,941
Lease liabilities	1,118	1,263
Amortised cost | Bank deposits
Financial instruments
Liabilities	20,441	26,279
Amortised cost | Customer deposits
Financial instruments
Liabilities	450,318	479,810
Amortised cost | Settlement balances
Financial instruments
Liabilities	2,012	2,068
Amortised cost | Trading liabilities
Financial instruments
Liabilities	0
Amortised cost | Derivatives
Financial instruments
Liabilities	0
Amortised cost | Other financial liabilities
Financial instruments
Liabilities	46,730	47,655
Amortised cost | Subordinated liabilities
Financial instruments
Liabilities	5,915	7,726
Amortised cost | Notes in circulation
Financial instruments
Liabilities	3,218	3,047
Amortised cost | Other Financial liabilities
Financial instruments
Liabilities	1,205	1,356
Amortised cost | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Bank deposits
Financial instruments
Financial Liabilities	15,700	21,400
Amortised cost | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Customer deposits
Financial instruments
Financial Liabilities	43,300	37,400
Amortised cost | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | Subordinated liabilities
Financial instruments
Financial Liabilities	£ 5,900	£ 7,700

Financial instruments - class_5

Financial instruments - classification - Reclassification of mortgages from amortised cost to fair value through profit or loss (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
MFVTPL
Reclassification of mortgages from amortised cost to fair value through profit or loss
Financial assets	£ 145,800	£ 165,600
Financial assets that have been reclassified from amortised cost to fair value at profit or loss
Reclassification of mortgages from amortised cost to fair value through profit or loss
Change in value	(274)
Financial assets that have been reclassified from amortised cost to fair value at profit or loss | Amortised cost
Reclassification of mortgages from amortised cost to fair value through profit or loss
Amounts reclassified on balance sheet	11,263
Financial assets that have been reclassified from amortised cost to fair value at profit or loss | MFVTPL
Reclassification of mortgages from amortised cost to fair value through profit or loss
Amounts reclassified on balance sheet	10,989
Loans to customers - amortised cost
Reclassification of mortgages from amortised cost to fair value through profit or loss
Change in value	19
Loans to customers - amortised cost | Amortised cost
Reclassification of mortgages from amortised cost to fair value through profit or loss
Amounts reclassified on balance sheet	587
Loans to customers - amortised cost | MFVTPL
Reclassification of mortgages from amortised cost to fair value through profit or loss
Amounts reclassified on balance sheet	606
Assets of disposal groups
Reclassification of mortgages from amortised cost to fair value through profit or loss
Change in value	(293)
Assets of disposal groups | Amortised cost
Reclassification of mortgages from amortised cost to fair value through profit or loss
Amounts reclassified on balance sheet	10,676
Assets of disposal groups | MFVTPL
Reclassification of mortgages from amortised cost to fair value through profit or loss
Amounts reclassified on balance sheet	£ 10,383

Financial instruments - class_6

Financial instruments - classification - Amount receivable under finance leases (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Amount receivable under finance leases
Lease payments total	£ 9,251	£ 9,368
Unguaranteed residual values	(171)	(225)
Future drawdowns	(13)	(21)
Unearned income	(889)	(891)
Present value of lease payments	8,520	8,681
Impairments	(118)	(150)
Net investment in finance lease	8,402	8,531
Within 1 year
Amount receivable under finance leases
Lease payments total	3,235	3,272
1 to 2 years
Amount receivable under finance leases
Lease payments total	2,254	2,044
2 to 3 years
Amount receivable under finance leases
Lease payments total	1,388	1,443
3 to 4 years
Amount receivable under finance leases
Lease payments total	833	757
4 to 5 years
Amount receivable under finance leases
Lease payments total	411	429
After 5 years
Amount receivable under finance leases
Lease payments total	£ 1,130	£ 1,423

Financial instruments - class_7

Financial instruments - classification - Reverse repos and repos (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Bank deposits
Financial instruments
Repos	£ 1,446	£ 7,912
Customer deposits
Financial instruments
Repos	9,829	14,541
Trading liabilities
Financial instruments
Repos	23,740	19,389
Trading assets
Financial instruments
Reverse repos	21,537	20,742
Loans to banks - amortised cost
Financial instruments
Reverse repos	277	189
Loans to customers - amortised cost
Financial instruments
Reverse repos	£ 19,750	£ 25,962

Financial Instruments - class_8

Financial Instruments - classification - IBOR reform (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
IBOR reform
Financial instruments by type of interest rate
Loan commitments		£ 7,437
Other IBOR
Financial instruments by type of interest rate
Loan commitments		55
GBP LIBOR
Financial instruments by type of interest rate
Loan commitments		1,016
USD IBOR
Financial instruments by type of interest rate
Loan commitments		6,366
Bank deposits
Financial instruments by type of interest rate
Financial Liabilities	£ 20,441	26,279
Bank deposits | IBOR reform
Financial instruments by type of interest rate
Financial Liabilities		37
Bank deposits | USD IBOR
Financial instruments by type of interest rate
Financial Liabilities		37
Trading liabilities. | IBOR reform
Financial instruments by type of interest rate
Financial Liabilities		197
Trading liabilities. | GBP LIBOR
Financial instruments by type of interest rate
Financial Liabilities		31
Trading liabilities. | USD IBOR
Financial instruments by type of interest rate
Financial Liabilities		166
Other financial liabilities
Financial instruments by type of interest rate
Financial Liabilities	49,107	49,326
Other financial liabilities | IBOR reform
Financial instruments by type of interest rate
Financial Liabilities		9,544
Other financial liabilities | Other IBOR
Financial instruments by type of interest rate
Financial Liabilities		131
Other financial liabilities | GBP LIBOR
Financial instruments by type of interest rate
Financial Liabilities		2,390
Other financial liabilities | USD IBOR
Financial instruments by type of interest rate
Financial Liabilities		7,023
Subordinated Liabilities | IBOR reform
Financial instruments by type of interest rate
Financial Liabilities		90
Subordinated Liabilities | USD IBOR
Financial instruments by type of interest rate
Financial Liabilities		90
Trading assets. | IBOR reform
Financial instruments by type of interest rate
Financial Assets		152
Trading assets. | GBP LIBOR
Financial instruments by type of interest rate
Financial Assets		62
Trading assets. | USD IBOR
Financial instruments by type of interest rate
Financial Assets		90
Loans to banks - amortised cost. | IBOR reform
Financial instruments by type of interest rate
Financial Assets		11
Loans to banks - amortised cost. | USD IBOR
Financial instruments by type of interest rate
Financial Assets		11
Loans to customers - amortised cost. | IBOR reform
Financial instruments by type of interest rate
Financial Assets		9,620
Loans to customers - amortised cost. | Other IBOR
Financial instruments by type of interest rate
Financial Assets		267
Loans to customers - amortised cost. | GBP LIBOR
Financial instruments by type of interest rate
Financial Assets		4,788
Loans to customers - amortised cost. | USD IBOR
Financial instruments by type of interest rate
Financial Assets		4,565
Other financial assets
Financial instruments by type of interest rate
Financial Assets	£ 30,895	46,145
Other financial assets | IBOR reform
Financial instruments by type of interest rate
Financial Assets		1,632
Other financial assets | GBP LIBOR
Financial instruments by type of interest rate
Financial Assets		864
Other financial assets | USD IBOR
Financial instruments by type of interest rate
Financial Assets		768
Derivatives [Member] | IBOR reform
Financial instruments by type of interest rate
Derivatives notional (£bn)		1,156,000
Derivatives [Member] | GBP LIBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		4,000
Derivatives [Member] | USD IBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		1,152,000
Currency swaps of GBP LIBOR with USD IBOR and Other IBOR | Other IBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		500
Currency swaps of GBP LIBOR with USD IBOR and Other IBOR | GBP LIBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		8,700
Currency swaps of GBP LIBOR with USD IBOR and Other IBOR | USD IBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		8,200
Currency swaps of USD IBOR with GBP LIBOR and Other IBOR | Other IBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		25,300
Currency swaps of USD IBOR with GBP LIBOR and Other IBOR | GBP LIBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		91,700
Currency swaps of USD IBOR with GBP LIBOR and Other IBOR | USD IBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		117,000
Currency swaps of Other IBOR with USD IBOR | Other IBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		400
Currency swaps of Other IBOR with USD IBOR | GBP LIBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		100
Currency swaps of Other IBOR with USD IBOR | EUR IBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		100
Currency swaps of Other IBOR with USD IBOR | USD IBOR
Financial instruments by type of interest rate
Derivatives notional (£bn)		£ 400

Financial Instruments - class_9

Financial Instruments - classification - AT1 issuances (Details) - US$1.15 billion 8% notes £ in Millions, $ in Millions	Dec. 31, 2021 GBP (£)	Dec. 31, 2021 USD ($)
Disclosure of Financial Assets and Liabilities [Line Items]
Financial Liabilities | £	£ 734
Notional amount | $		$ 1,150
Interest Rate	8%	8%

Financial Instruments - clas_10

Financial Instruments - classification - Offsetable assets and liabilities (Details) £ in Millions	Dec. 31, 2022 GBP (£)	Dec. 31, 2022 $ / shares	Dec. 31, 2021 GBP (£)
Instruments which can be offset
IFRS offset	£ 3,381		£ 607
Non-cumulative preference shares of US$0.01
Potential for offset not recognised by IFRS
Par value per share | $ / shares		$ 0.01
Derivatives [Member]
Instruments which can be offset
Gross	2,429		4,626
IFRS offset	3,381		607
Balance sheet	5,810		5,233
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements	0
Cash collateral	(4,318)		(5,126)
Securities collateral	(3,386)		485
Net amount after the effect of netting arrangements and related collateral	(1,894)		592
Instruments outside netting arrangements	(312)		71
Balance sheet total	5,498		5,304
Trading reverse repos/repos
Instruments which can be offset
Gross	1,845		1,865
IFRS offset	0
Balance sheet	1,845		1,865
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements	0
Cash collateral	0
Securities collateral	(1,646)		(1,795)
Net amount after the effect of netting arrangements and related collateral	199		70
Instruments outside netting arrangements	(4,048)		(512)
Balance sheet total	(2,203)		1,353
Non trading reverse repos / repos
Instruments which can be offset
Gross	8,653		3,682
IFRS offset	0
Balance sheet	8,653		3,682
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements	0
Cash collateral	0
Securities collateral	(8,653)		(3,682)
Net amount after the effect of netting arrangements and related collateral	0
Instruments outside netting arrangements	98		16
Balance sheet total	8,751		3,698
Derivatives [Member]
Instruments which can be offset
Gross	115,177		108,594
IFRS offset	(22,111)		(8,568)
Balance sheet	93,066		100,026
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements	(77,365)		(85,006)
Cash collateral	(9,761)		(9,909)
Other financial collateral	(1,185)		(2,913)
Net amount after the effect of netting arrangements and related collateral	4,755		2,198
Instruments outside netting arrangements	981		809
Balance sheet total	94,047		100,835
Trading repos
Instruments which can be offset
Gross	33,767		42,664
IFRS offset	(14,510)		(24,422)
Balance sheet	19,257		18,242
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements	(2,445)		(900)
Cash collateral	0
Other financial collateral	(16,812)		(17,341)
Net amount after the effect of netting arrangements and related collateral	0		1
Instruments outside netting arrangements	4,483		1,147
Balance sheet total	23,740		19,389
Non trading repos
Instruments which can be offset
Gross	16,977		30,047
IFRS offset	(5,702)		(7,594)
Balance sheet	11,275		22,453
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements	0
Cash collateral	0
Other financial collateral	(11,275)		(22,453)
Net amount after the effect of netting arrangements and related collateral	0
Instruments outside netting arrangements	0
Balance sheet total	11,275		22,453
Trading reverse repos
Instruments which can be offset
Gross	35,612		44,529
IFRS offset	(14,510)		(24,422)
Balance sheet	21,102		20,107
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements	(2,445)		(900)
Other financial collateral	(18,458)		(19,136)
Net amount after the effect of netting arrangements and related collateral	199		71
Instruments outside netting arrangements			635
Balance sheet total			20,742
Potential for offset not recognised by IFRS
Cash collateral	0
Instruments outside netting arrangements	435
Balance sheet total	21,537
Derivatives [Member]
Instruments which can be offset
Gross	117,606		113,220
IFRS offset	(18,730)		(7,961)
Balance sheet	98,876		105,259
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements	(77,365)		(85,006)
Cash collateral	(14,079)		(15,035)
Other financial collateral	(4,571)		(2,428)
Net amount after the effect of netting arrangements and related collateral	2,861		2,790
Instruments outside netting arrangements	669		880
Balance sheet total	99,545		106,139
Potential for offset not recognised by IFRS
Financial Assets	99,545		106,139
Trading assets
Potential for offset not recognised by IFRS
Financial Assets	45,577		59,158
Non trading reverse repos
Instruments which can be offset
Gross	25,630		33,729
IFRS offset	(5,702)		(7,594)
Balance sheet	19,928		26,135
Potential for offset not recognised by IFRS
Effect of master netting agreement and similar agreements	0
Cash collateral	0
Other financial collateral	(19,928)		(26,135)
Net amount after the effect of netting arrangements and related collateral	0
Instruments outside netting arrangements	98		16
Balance sheet total	£ 20,026		£ 26,151

Financial instruments_ valuatio

Financial instruments: valuation - Hierarchy of assets (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair value of assets
Assets	£ 162,882	£ 202,880
Trading loans
Fair value of assets
Assets	35,655	34,203
Trading securities
Fair value of assets
Assets	9,922	24,955
Derivatives [Member]
Fair value of assets
Financial assets	99,545	106,139
Assets	99,545	106,139
Financial assets (Other)
Fair value of assets
Financial assets	30,895	46,145
Other loans
Fair value of assets
Assets	899	566
Other securities
Fair value of assets
Assets	16,861	37,017
Level 1
Fair value of assets
Assets	£ 17,848	£ 48,443
As % of Total Fair Value Assets	11%	24%
Level 1 | Trading securities
Fair value of assets
Assets	£ 7,463	£ 19,563
Level 1 | Derivatives [Member]
Fair value of assets
Assets	5
Level 1 | Other securities
Fair value of assets
Assets	10,380	28,880
Level 2
Fair value of assets
Assets	£ 142,701	£ 152,385
As % of Total Fair Value Assets	88%	75%
Level 2 | Trading loans
Fair value of assets
Assets	£ 35,260	£ 33,482
Level 2 | Trading securities
Fair value of assets
Assets	2,458	5,371
Level 2 | Derivatives [Member]
Fair value of assets
Assets	98,533	105,222
Level 2 | Other loans
Fair value of assets
Assets	172	359
Level 2 | Other securities
Fair value of assets
Assets	6,278	7,951
Level 3
Fair value of assets
Assets	£ 2,333	£ 2,052	£ 1,723
As % of Total Fair Value Assets	1%	1%
Level 3 | Trading loans
Fair value of assets
Assets	£ 395	£ 721
Level 3 | Trading securities
Fair value of assets
Assets	1	21
Level 3 | Derivatives [Member]
Fair value of assets
Assets	1,007	917
Level 3 | Other loans
Fair value of assets
Assets	727	207
Level 3 | Other securities
Fair value of assets
Assets	£ 203	£ 186

Financial instruments_ valuat_2

Financial instruments: valuation - Hierarchy of liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair value of liabilities
Liabilities	£ 149,577	£ 167,807
Trading deposits
Fair value of liabilities
Liabilities	42,487	38,660
Debt securities in issue, trading
Fair value of liabilities
Liabilities	797	974
Short positions, trading
Fair value of liabilities
Liabilities	9,524	24,964
Derivatives [Member]
Fair value of liabilities
Financial liabilities	94,047	100,835
Liabilities	94,047	100,835
Financial liabilities (other)
Fair value of liabilities
Financial liabilities	49,107	49,326
Other financial liabilities - Debt securities in issue
Fair value of liabilities
Liabilities	1,327	1,103
Other deposits
Fair value of liabilities
Liabilities	1,050	568
Financial liabilities, subordinated
Fair value of liabilities
Financial liabilities	6,260	8,429
Liabilities	345	703
Level 1
Fair value of liabilities
Liabilities	£ 7,464	£ 20,507
As % of Total FV Assets	5%	12%
Level 1 | Short positions, trading
Fair value of liabilities
Liabilities	£ 7,462	£ 20,507
Level 1 | Derivatives [Member]
Fair value of liabilities
Liabilities	2
Level 2
Fair value of liabilities
Liabilities	£ 141,137	£ 146,691
As % of Total FV Assets	94%	88%
Level 2 | Trading deposits
Fair value of liabilities
Liabilities	£ 42,486	£ 38,658
Level 2 | Debt securities in issue, trading
Fair value of liabilities
Liabilities	797	974
Level 2 | Short positions, trading
Fair value of liabilities
Liabilities	2,062	4,456
Level 2 | Derivatives [Member]
Fair value of liabilities
Liabilities	93,070	100,229
Level 2 | Other financial liabilities - Debt securities in issue
Fair value of liabilities
Liabilities	1,327	1,103
Level 2 | Other deposits
Fair value of liabilities
Liabilities	1,050	568
Level 2 | Financial liabilities, subordinated
Fair value of liabilities
Liabilities	345	703
Level 3
Fair value of liabilities
Liabilities	£ 976	£ 609	£ 894
As % of Total FV Assets	1%	0%
Level 3 | Trading deposits
Fair value of liabilities
Liabilities	£ 1	£ 2
Level 3 | Short positions, trading
Fair value of liabilities
Liabilities		1
Level 3 | Derivatives [Member]
Fair value of liabilities
Liabilities	£ 975	£ 606

Financial instruments_ valuat_3

Financial instruments: valuation - Adjustments (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Adjustments
Funding - FVA	£ 173	£ 90
Credit - CVA	300	390
Bid - Offer	130	113
Product and deal specific	141	119
Financial instruments valuation adjustments	744	712
Financial liabilities at fair value through profit or loss
Product and deal specific
Net (gains) carried forward	74	71
Net gains deferred	97	103
Net gains recognized in the income statement	£ 94	£ 94

Financial instruments_ valuat_4

Financial instruments: valuation - Valuation techniques (Details) - Level 3	Dec. 31, 2022	Dec. 31, 2022 GBP (£)	Dec. 31, 2021	Dec. 31, 2021 GBP (£)
Loans | Price | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	1.13		1.06
Loans | Discount margin | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments			0.0046
Loans | Discount margin | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments			0.0055
Loans | Credit spreads | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.0056		0.0040
Loans | Credit spreads | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.0114		0.0102
Debt securities | Price | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	2.25		2.40
Equity shares | Price | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.30	34,027	0.07	30,378
Equity shares | Discount margin | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.06		0.06
Equity shares | Discount margin | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.08		0.08
Equity shares | Fund NAV | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.80		0.80
Equity shares | Fund NAV | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	1.20		1.20
Credit derivatives | Correlation | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	(0.15)		(0.15)
Credit derivatives | Correlation | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.95		0.95
Credit derivatives | Credit spreads | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.0007		0.0006
Credit derivatives | Credit spreads | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.0530		0.0635
Credit derivatives | Volatility | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.30		0.30
Credit derivatives | Volatility | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.80		1.08
Credit derivatives | Upfront points | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.99		1
Credit derivatives | Recovery rate | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.60		0.60
Interest rate and FX derivatives | Correlation | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	(0.50)		(0.50)
Interest rate and FX derivatives | Correlation | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	1		1
Interest rate and FX derivatives | Volatility | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.30		0.17
Interest rate and FX derivatives | Volatility | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	1.27		0.77
Interest rate and FX derivatives | Constant Prepayment Rate | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.02		0.02
Interest rate and FX derivatives | Constant Prepayment Rate | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.21		0.16
Interest rate and FX derivatives | Mean Reversal | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.92		0.92
Interest rate and FX derivatives | Inflation volatility | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.01		0.01
Interest rate and FX derivatives | Inflation volatility | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.02		0.02
Interest rate and FX derivatives | Inflation rate | Minimum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.02		0.02
Interest rate and FX derivatives | Inflation rate | Maximum
Disclosure of Sensitivity Analysis Of Fair Value Measurement To Changes In Unobservable Inputs, Assets and Liabilities
Significant unobservable input, financial instruments	0.03		0.03

Financial instruments_ valuat_5

Financial instruments: valuation - Level 3 Sensitivities of Assets (Details) - GBP (£) £ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022
Fair value of assets
Financial assets, at fair value	£ 202,880		£ 162,882
Trading securities [Member]
Fair value of assets
Financial assets, at fair value	24,955		9,922
Derivatives [Member]
Fair value of assets
Financial assets	106,139		99,545
Financial assets, at fair value	106,139		99,545
Financial assets (Other)
Fair value of assets
Financial assets	46,145		30,895
Other loans
Fair value of assets
Financial assets, at fair value	566		899
Other equity securities [member]
Fair value of assets
Financial assets, at fair value	37,017		16,861
Level 3
Fair value of assets
Financial assets, at fair value	2,052	£ 1,723	2,333
Sensitivity favourable	80	100
Sensitivity unfavourable	100	110
Level 3 | Loans
Fair value of assets
Financial assets, at fair value	721		395
Sensitivity favourable	10	10
Sensitivity unfavourable	10	10
Level 3 | Trading securities [Member]
Fair value of assets
Financial assets, at fair value	21		1
Level 3 | Derivatives [Member]
Fair value of assets
Financial assets, at fair value	917		1,007
Sensitivity favourable	50	60
Sensitivity unfavourable	50	70
Level 3 | Other loans
Fair value of assets
Financial assets, at fair value	207		727
Sensitivity favourable		10
Sensitivity unfavourable	10	10
Level 3 | Other equity securities [member]
Fair value of assets
Financial assets, at fair value	186		£ 203
Sensitivity favourable	20	20
Sensitivity unfavourable	£ 30	£ 20

Financial instruments_ valuat_6

Financial instruments: valuation - Level 3 Sensitivities of Liabilities (Details) - GBP (£) £ in Millions			12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022
Fair value of liabilities
Liabilities	£ 167,807		£ 149,577
Specified target level of certainty for assumptions of unobservable inputs			90%
Derivatives
Fair value of liabilities
Financial liabilities	100,835		£ 94,047
Liabilities	100,835		94,047
Other financial liabilities
Fair value of liabilities
Financial liabilities	49,326		49,107
Level 3
Fair value of liabilities
Liabilities	609	£ 894	976
Sensitivity favourable	30	30
Sensitivity unfavourable	30	30
Level 3 | Deposits
Fair value of liabilities
Liabilities	2		1
Level 3 | Short Positions
Fair value of liabilities
Liabilities	1
Level 3 | Derivatives
Fair value of liabilities
Liabilities	606		£ 975
Sensitivity favourable	30	30
Sensitivity unfavourable	£ 30	£ 30

Financial instruments_ valuat_7

Financial instruments: valuation - Movement in Level 3 portfolios - Assets (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Movement in level 3 assets
At 1 January	£ 202,880
At 31 December	162,882	£ 202,880
Level 3
Movement in level 3 assets
At 1 January	2,052	1,723
Amounts recorded in the income statement	143	(122)
Amounts recorded in the statement of comprehensive income	(20)	23
Level 3 transfers in	726	128
Level 3 transfers out	(337)	(109)
Purchases/Originations	814	1,416
Settlements/Other decreases	(115)	(411)
Sales	(958)	(590)
Foreign exchange and other adjustments	28	(6)
At 31 December	2,333	2,052
Level 3 | Financial assets, class [member]
Movement in level 3 assets
Amounts recorded in the income statement in respect of balances held at year end - unrealised	141	(126)
Level 3 | Trading assets
Movement in level 3 assets
At 1 January	1,658	1,388
Amounts recorded in the income statement	157	(93)
Amounts recorded in the statement of comprehensive income	0	0
Level 3 transfers in	194	125
Level 3 transfers out	(269)	(104)
Purchases/Originations	629	965
Settlements/Other decreases	(115)	(47)
Sales	(857)	(573)
Foreign exchange and other adjustments	6	(3)
At 31 December	1,403	1,658
Amounts recorded in the income statement in respect of balances held at year end - unrealised	157	(93)
Level 3 | Financial assets, other
Movement in level 3 assets
At 1 January	394	335
Amounts recorded in the income statement	(14)	(29)
Amounts recorded in the statement of comprehensive income	(20)	23
Level 3 transfers in	532	3
Level 3 transfers out	(68)	(6)
Purchases/Originations	185	452
Settlements/Other decreases		(364)
Sales	(101)	(17)
Foreign exchange and other adjustments	22	(3)
At 31 December	930	394
Amounts recorded in the income statement in respect of balances held at year end - unrealised	£ (16)	£ (32)

Financial instruments_ valuat_8

Financial instruments: valuation - Movement in Level 3 portfolios - Liabilities (Details) - Level 3 - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Movement in level 3 liabilities
Amounts recorded in the income statement	£ 381	£ (90)
Amounts recorded in the statement of comprehensive income	0	0
Level 3 transfers in	81	20
Level 3 transfers out	(64)	(168)
Purchases/Originations	382	305
Settlements/Other decreases	(41)	(28)
Sales	(378)	(321)
Foreign exchange and other adjustments	6	(3)
Financial liabilities, class [member]
Movement in level 3 liabilities
Amounts recorded in the income statement in respect of balances held at year end - unrealised	381	(90)
Other operating income and interest income | Other financial instruments
Movement in level 3 liabilities
Gains Losses Recognised In Profit Or Loss Fair Value measurement Assets and Liabilities	(14)	(29)
Income from trading activities | Trading assets and liabilities
Movement in level 3 liabilities
Gains Losses Recognised In Profit Or Loss Fair Value measurement Assets and Liabilities	£ (224)	£ (3)

Financial instruments_ valuat_9

Financial instruments: valuation - Assets at Amortised Cost (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair value of assets
Financial assets, at fair value	£ 162,882	£ 202,880
Level 1
Fair value of assets
Financial assets, at fair value	17,848	48,443
Level 2
Fair value of assets
Financial assets, at fair value	142,701	152,385
Level 3
Fair value of assets
Financial assets, at fair value	2,333	2,052	£ 1,723
Financial liabilities (other)
Fair value of assets
Carrying value, Financial liabilities	49,107	49,326
Cash and balances at central banks
Fair value of assets
Financial Assets	144,832	177,757
Loans to banks - amortised cost | Financial assets at amortised cost
Fair value of assets
Financial Assets	7,139	7,682
Loans to customers - amortised cost | Financial assets at amortised cost
Fair value of assets
Financial Assets	366,340	358,990
Other equity securities [member]
Fair value of assets
Financial assets, at fair value	16,861	37,017
Other equity securities [member] | Level 1
Fair value of assets
Financial assets, at fair value	10,380	28,880
Other equity securities [member] | Level 2
Fair value of assets
Financial assets, at fair value	6,278	7,951
Other equity securities [member] | Level 3
Fair value of assets
Financial assets, at fair value	203	186
Items where fair value approximates carrying value | Cash and balances at central banks | Financial assets at amortised cost
Fair value of assets
Financial Assets	144,800	177,800
Items where fair value approximates carrying value | Settlement balances | Financial assets at amortised cost
Fair value of assets
Financial Assets	2,600	2,100
Items where fair value approximates carrying value | Loans to banks - amortised cost | Financial assets at amortised cost
Fair value of assets
Financial Assets	100	100
Not measured at fair value in statement of financial position but for which fair value is disclosed | Loans to banks - amortised cost | Financial assets at amortised cost
Fair value of assets
Financial Assets	7,000	7,500
Financial assets, at fair value	7,000	7,500
Not measured at fair value in statement of financial position but for which fair value is disclosed | Loans to banks - amortised cost | Level 2 | Financial assets at amortised cost
Fair value of assets
Financial assets, at fair value	4,200	5,000
Not measured at fair value in statement of financial position but for which fair value is disclosed | Loans to banks - amortised cost | Level 3 | Financial assets at amortised cost
Fair value of assets
Financial assets, at fair value	2,800	2,500
Not measured at fair value in statement of financial position but for which fair value is disclosed | Loans to customers - amortised cost | Financial assets at amortised cost
Fair value of assets
Financial Assets	366,300	359,000
Financial assets, at fair value	354,500	354,100
Not measured at fair value in statement of financial position but for which fair value is disclosed | Loans to customers - amortised cost | Level 2 | Financial assets at amortised cost
Fair value of assets
Financial assets, at fair value	20,300	28,000
Not measured at fair value in statement of financial position but for which fair value is disclosed | Loans to customers - amortised cost | Level 3 | Financial assets at amortised cost
Fair value of assets
Financial assets, at fair value	334,200	326,100
Not measured at fair value in statement of financial position but for which fair value is disclosed | Other financial assets - securities | Financial assets at amortised cost
Fair value of assets
Financial Assets	13,100	8,600
Financial assets, at fair value	12,800	8,600
Not measured at fair value in statement of financial position but for which fair value is disclosed | Other financial assets - securities | Level 1 | Financial assets at amortised cost
Fair value of assets
Financial assets, at fair value	3,600	4,400
Not measured at fair value in statement of financial position but for which fair value is disclosed | Other financial assets - securities | Level 2 | Financial assets at amortised cost
Fair value of assets
Financial assets, at fair value	3,200	700
Not measured at fair value in statement of financial position but for which fair value is disclosed | Other financial assets - securities | Level 3 | Financial assets at amortised cost
Fair value of assets
Financial assets, at fair value	£ 6,000	£ 3,500

Financial instruments_ valua_10

Financial instruments: valuation - Liabilities at Amortised Cost (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair value of liabilities
Fair value, Financial liabilities	£ 149,577	£ 167,807
Level 1
Fair value of liabilities
Fair value, Financial liabilities	7,464	20,507
Level 2
Fair value of liabilities
Fair value, Financial liabilities	141,137	146,691
Level 3
Fair value of liabilities
Fair value, Financial liabilities	976	609	£ 894
Deposits by banks
Fair value of liabilities
Financial Liabilities	20,441	26,279
Financial liabilities (other)
Fair value of liabilities
Financial Liabilities	49,107	49,326
Financial liabilities, subordinated
Fair value of liabilities
Financial Liabilities	6,260	8,429
Fair value, Financial liabilities	345	703
Financial liabilities, subordinated | Level 2
Fair value of liabilities
Fair value, Financial liabilities	345	703
Notes in circulation
Fair value of liabilities
Financial Liabilities	3,218	3,047
Items where fair value approximates carrying value | Deposits by banks | Financial liabilities at amortised cost
Fair value of liabilities
Financial Liabilities	4,700	4,900
Items where fair value approximates carrying value | Customer deposits | Financial liabilities at amortised cost
Fair value of liabilities
Financial Liabilities	407,000	442,400
Items where fair value approximates carrying value | Settlement balances liabilities | Financial liabilities at amortised cost
Fair value of liabilities
Financial Liabilities	2,000	2,100
Items where fair value approximates carrying value | Notes in circulation | Financial liabilities at amortised cost
Fair value of liabilities
Financial Liabilities		3,000
Fair value, Financial liabilities	3,200
Not measured at fair value in statement of financial position but for which fair value is disclosed | Deposits by banks | Financial liabilities at amortised cost
Fair value of liabilities
Financial Liabilities	15,700	21,400
Fair value, Financial liabilities	15,300	21,000
Not measured at fair value in statement of financial position but for which fair value is disclosed | Deposits by banks | Level 2 | Financial liabilities at amortised cost
Fair value of liabilities
Fair value, Financial liabilities	13,100	18,700
Not measured at fair value in statement of financial position but for which fair value is disclosed | Deposits by banks | Level 3 | Financial liabilities at amortised cost
Fair value of liabilities
Fair value, Financial liabilities	2,200	2,300
Not measured at fair value in statement of financial position but for which fair value is disclosed | Customer deposits | Financial liabilities at amortised cost
Fair value of liabilities
Financial Liabilities	43,300	37,400
Fair value, Financial liabilities	43,300	37,600
Not measured at fair value in statement of financial position but for which fair value is disclosed | Customer deposits | Level 2 | Financial liabilities at amortised cost
Fair value of liabilities
Fair value, Financial liabilities	12,700	18,100
Not measured at fair value in statement of financial position but for which fair value is disclosed | Customer deposits | Level 3 | Financial liabilities at amortised cost
Fair value of liabilities
Fair value, Financial liabilities	30,600	19,500
Not measured at fair value in statement of financial position but for which fair value is disclosed | Other financial liabilities - debt securities in issue | Financial liabilities at amortised cost
Fair value of liabilities
Financial Liabilities	46,700	47,700
Fair value, Financial liabilities	46,100	48,600
Not measured at fair value in statement of financial position but for which fair value is disclosed | Other financial liabilities - debt securities in issue | Level 2 | Financial liabilities at amortised cost
Fair value of liabilities
Fair value, Financial liabilities	40,700	41,400
Not measured at fair value in statement of financial position but for which fair value is disclosed | Other financial liabilities - debt securities in issue | Level 3 | Financial liabilities at amortised cost
Fair value of liabilities
Fair value, Financial liabilities	5,400	7,200
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities, subordinated | Financial liabilities at amortised cost
Fair value of liabilities
Financial Liabilities	5,900	7,700
Fair value, Financial liabilities	5,600	8,300
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities, subordinated | Level 2 | Financial liabilities at amortised cost
Fair value of liabilities
Fair value, Financial liabilities	5,500	8,200
Not measured at fair value in statement of financial position but for which fair value is disclosed | Financial liabilities, subordinated | Level 3 | Financial liabilities at amortised cost
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, 2022	Dec. 31, 2021
Deposits by banks
Financial instruments
Financial Liabilities	£ 20,441	£ 26,279
Derivatives [Member]
Financial instruments
Financial Liabilities	94,047	100,835
Customer accounts
Financial instruments
Financial Liabilities	450,318	479,810
Settlement balances and short positions
Financial instruments
Financial Liabilities	2,012	2,068
Trading liabilities
Financial instruments
Financial Liabilities	52,808	64,598
Financial liabilities (other)
Financial instruments
Financial Liabilities	49,107	49,326
Financial liabilities, subordinated
Financial instruments
Financial Liabilities	6,260	8,429
Notes in circulation
Financial instruments
Financial Liabilities	3,218	3,047
Lease liabilities.
Financial instruments
Financial Liabilities	1,118	1,263
Less than 12 months | Deposits by banks
Financial instruments
Financial Liabilities	7,799	13,715
Less than 12 months | Derivatives [Member]
Financial instruments
Financial Liabilities	39,331	34,593
Less than 12 months | Customer accounts
Financial instruments
Financial Liabilities	448,821	478,801
Less than 12 months | Settlement balances and short positions
Financial instruments
Financial Liabilities	2,012	2,068
Less than 12 months | Trading liabilities
Financial instruments
Financial Liabilities	42,760	41,664
Less than 12 months | Financial liabilities (other)
Financial instruments
Financial Liabilities	13,796	16,060
Less than 12 months | Financial liabilities, subordinated
Financial instruments
Financial Liabilities	973	1,375
Less than 12 months | Notes in circulation
Financial instruments
Financial Liabilities	3,218	3,047
Less than 12 months | Lease liabilities.
Financial instruments
Financial Liabilities	137	238
More than 12 months | Deposits by banks
Financial instruments
Financial Liabilities	12,642	12,564
More than 12 months | Derivatives [Member]
Financial instruments
Financial Liabilities	54,716	66,242
More than 12 months | Customer accounts
Financial instruments
Financial Liabilities	1,497	1,009
More than 12 months | Trading liabilities
Financial instruments
Financial Liabilities	10,048	22,934
More than 12 months | Financial liabilities (other)
Financial instruments
Financial Liabilities	35,311	33,266
More than 12 months | Financial liabilities, subordinated
Financial instruments
Financial Liabilities	5,287	7,054
More than 12 months | Lease liabilities.
Financial instruments
Financial Liabilities	981	1,025
Cash and balances at central banks
Financial instruments
Financial Assets	144,832	177,757
Cash and balances at central banks | Less than 12 months
Financial instruments
Financial Assets	144,832	177,757
Trading assets
Financial instruments
Financial Assets	45,577	59,158
Trading assets | Less than 12 months
Financial instruments
Financial Assets	35,944	40,263
Trading assets | More than 12 months
Financial instruments
Financial Assets	9,633	18,895
Derivatives [Member]
Financial instruments
Financial Assets	99,545	106,139
Derivatives [Member] | Less than 12 months
Financial instruments
Financial Assets	38,107	34,538
Derivatives [Member] | More than 12 months
Financial instruments
Financial Assets	61,438	71,601
Settlement balances
Financial instruments
Financial Assets	2,572	2,141
Settlement balances | Less than 12 months
Financial instruments
Financial Assets	2,572	2,141
Loans and advances to banks [Member] | Financial assets at amortised cost
Financial instruments
Financial Assets	7,139	7,682
Loans and advances to banks [Member] | Less than 12 months | Financial assets at amortised cost
Financial instruments
Financial Assets	6,872	7,425
Loans and advances to banks [Member] | More than 12 months | Financial assets at amortised cost
Financial instruments
Financial Assets	267	257
Loans and advances to customers [Member] | Financial assets at amortised cost
Financial instruments
Financial Assets	366,340	358,990
Loans and advances to customers [Member] | Less than 12 months | Financial assets at amortised cost
Financial instruments
Financial Assets	84,289	103,689
Loans and advances to customers [Member] | More than 12 months | Financial assets at amortised cost
Financial instruments
Financial Assets	282,051	255,301
Financial assets (Other)
Financial instruments
Financial Assets	30,895	46,145
Financial assets (Other) | Less than 12 months
Financial instruments
Financial Assets	6,128	11,151
Financial assets (Other) | More than 12 months
Financial instruments
Financial Assets	£ 24,767	£ 34,994

Provisions for liabilities and

Provisions for liabilities and charges - Roll-forward (Details) £ in Millions	12 Months Ended
	Dec. 31, 2022 GBP (£)
Provisions for liabilities and charges
Balance at beginning of the period	£ 1,268
Expected credit losses impairment release	(6)
Currency translation and other movements	29
Charge to income statement	438
Release to income statement	(190)
Provisions utilised	(401)
Balance at end of the period	1,138
Customer redress
Provisions for liabilities and charges
Balance at beginning of the period	474
Currency translation and other movements	2
Charge to income statement	178
Release to income statement	(45)
Provisions utilised	(178)
Balance at end of the period	431
Legal proceedings provision
Provisions for liabilities and charges
Balance at beginning of the period	277
Currency translation and other movements	20
Charge to income statement	36
Release to income statement	(14)
Provisions utilised	(79)
Balance at end of the period	240
Property
Provisions for liabilities and charges
Balance at beginning of the period	231
Currency translation and other movements	0
Charge to income statement	31
Release to income statement	(71)
Provisions utilised	(37)
Balance at end of the period	154
Financial commitments and guarantees
Provisions for liabilities and charges
Balance at beginning of the period	93
Expected credit losses impairment release	(6)
Currency translation and other movements	0
Balance at end of the period	87
Other
Provisions for liabilities and charges
Balance at beginning of the period	193
Currency translation and other movements	7
Charge to income statement	193
Release to income statement	(60)
Provisions utilised	(107)
Balance at end of the period	£ 226

Financial Instruments - matur_4

Financial Instruments - maturity analysis - Contractual Maturity (Details) - GBP (£) £ in Millions	Dec. 31, 2021	Dec. 31, 2022
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
0-3 months | Financial assets, class [member]
Financial instruments
Undiscounted cash flows, assets	£ 255,584	£ 206,578
0-3 months | Cash and balances at central banks
Financial instruments
Undiscounted cash flows, assets	177,757	144,832
0-3 months | Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	(23)	130
0-3 months | Settlement balances
Financial instruments
Undiscounted cash flows, assets	2,141	2,572
0-3 months | Loans and advances to banks [Member]
Financial instruments
Undiscounted cash flows, assets	5,735
0-3 months | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets	65,760
0-3 months | Financial assets (Other)
Financial instruments
Undiscounted cash flows, assets	3,924	2,771
0-3 months | Finance lease
Financial instruments
Undiscounted cash flows, assets	290	96
0-3 months | Financial liabilities, class [member]
Financial instruments
Undiscounted cash flows, liabilities	498,580	456,887
0-3 months | Deposits by banks
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	13,292	6,690
0-3 months | Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	473,123	437,830
0-3 months | Settlement balances liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	2,068	2,012
0-3 months | Derivatives held for hedging
Financial instruments
Undiscounted cash flows, derivative financial liabilities	(57)	280
0-3 months | Financial liabilities (other)
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	6,967	6,720
0-3 months | Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	66	96
0-3 months | Notes in circulation
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	3,047	3,218
0-3 months | Lease liabilities.
Financial instruments
Undiscounted cash flows, derivative financial liabilities	74	41
0-3 months | Guarantees and Commitments
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	120,591	121,929
0-3 months | Guarantees
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	2,055	3,150
0-3 months | Commitments
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	118,536	118,779
3-12 months | Financial assets, class [member]
Financial instruments
Undiscounted cash flows, assets	52,717	50,157
3-12 months | Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	(32)	345
3-12 months | Loans and advances to banks [Member]
Financial instruments
Undiscounted cash flows, assets	1,689
3-12 months | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets	43,144
3-12 months | Financial assets (Other)
Financial instruments
Undiscounted cash flows, assets	7,576	4,507
3-12 months | Finance lease
Financial instruments
Undiscounted cash flows, assets	340	267
3-12 months | Financial liabilities, class [member]
Financial instruments
Undiscounted cash flows, liabilities	16,888	20,289
3-12 months | Deposits by banks
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	421	1,445
3-12 months | Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	5,440	11,389
3-12 months | Derivatives held for hedging
Financial instruments
Undiscounted cash flows, derivative financial liabilities	(31)	(371)
3-12 months | Financial liabilities (other)
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	9,293	6,640
3-12 months | Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	1,604	1,073
3-12 months | Lease liabilities.
Financial instruments
Undiscounted cash flows, derivative financial liabilities	161	113
More than 1 year but less than 3 years | Financial assets, class [member]
Financial instruments
Undiscounted cash flows, assets	75,285	85,571
More than 1 year but less than 3 years | Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	72	28
More than 1 year but less than 3 years | Loans and advances to banks [Member]
Financial instruments
Undiscounted cash flows, assets	21
More than 1 year but less than 3 years | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets	63,979
More than 1 year but less than 3 years | Financial assets (Other)
Financial instruments
Undiscounted cash flows, assets	10,467	8,391
More than 1 year but less than 3 years | Finance lease
Financial instruments
Undiscounted cash flows, assets	746	857
More than 1 year but less than 3 years | Financial liabilities, class [member]
Financial instruments
Undiscounted cash flows, liabilities	22,936	29,283
More than 1 year but less than 3 years | Deposits by banks
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	566	5,662
More than 1 year but less than 3 years | Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	1,155	1,252
More than 1 year but less than 3 years | Derivatives held for hedging
Financial instruments
Undiscounted cash flows, derivative financial liabilities	561	586
More than 1 year but less than 3 years | Financial liabilities (other)
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	16,953	18,833
More than 1 year but less than 3 years | Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	3,481	2,690
More than 1 year but less than 3 years | Lease liabilities.
Financial instruments
Undiscounted cash flows, derivative financial liabilities	220	260
More than 3 years but less than 5 years | Financial assets, class [member]
Financial instruments
Undiscounted cash flows, assets	53,624	63,774
More than 3 years but less than 5 years | Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	15	41
More than 3 years but less than 5 years | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets	45,057
More than 3 years but less than 5 years | Financial assets (Other)
Financial instruments
Undiscounted cash flows, assets	8,048	7,835
More than 3 years but less than 5 years | Finance lease
Financial instruments
Undiscounted cash flows, assets	504	482
More than 3 years but less than 5 years | Financial liabilities, class [member]
Financial instruments
Undiscounted cash flows, liabilities	24,630	24,817
More than 3 years but less than 5 years | Deposits by banks
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	12,003	8,503
More than 3 years but less than 5 years | Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	73	2
More than 3 years but less than 5 years | Derivatives held for hedging
Financial instruments
Undiscounted cash flows, derivative financial liabilities	155	306
More than 3 years but less than 5 years | Financial liabilities (other)
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	10,062	13,906
More than 3 years but less than 5 years | Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	2,170	1,897
More than 3 years but less than 5 years | Lease liabilities.
Financial instruments
Undiscounted cash flows, derivative financial liabilities	167	203
5-10 years | Financial assets, class [member]
Financial instruments
Undiscounted cash flows, assets	81,202	91,249
5-10 years | Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	10	(44)
5-10 years | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets	73,044
5-10 years | Financial assets (Other)
Financial instruments
Undiscounted cash flows, assets	7,444	5,706
5-10 years | Finance lease
Financial instruments
Undiscounted cash flows, assets	704	549
5-10 years | Financial liabilities, class [member]
Financial instruments
Undiscounted cash flows, liabilities	9,534	9,439
5-10 years | Deposits by banks
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities		89
5-10 years | Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	4	14
5-10 years | Derivatives held for hedging
Financial instruments
Undiscounted cash flows, derivative financial liabilities	(152)	116
5-10 years | Financial liabilities (other)
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	7,905	7,361
5-10 years | Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	1,496	1,541
5-10 years | Lease liabilities.
Financial instruments
Undiscounted cash flows, derivative financial liabilities	281	318
10-20 years | Financial assets, class [member]
Financial instruments
Undiscounted cash flows, assets	96,032	102,948
10-20 years | Derivative held for hedging
Financial instruments
Undiscounted cash flows, assets	17	43
10-20 years | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets	90,115
10-20 years | Financial assets (Other)
Financial instruments
Undiscounted cash flows, assets	5,523	2,524
10-20 years | Finance lease
Financial instruments
Undiscounted cash flows, assets	377	296
10-20 years | Financial liabilities, class [member]
Financial instruments
Undiscounted cash flows, liabilities	927	981
10-20 years | Customer accounts
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	19	20
10-20 years | Derivatives held for hedging
Financial instruments
Undiscounted cash flows, derivative financial liabilities	(198)	85
10-20 years | Financial liabilities (other)
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	292	294
10-20 years | Subordinated Liabilities
Financial instruments
Undiscounted cash flows, non-derivative financial liabilities	563	328
10-20 years | Lease liabilities.
Financial instruments
Undiscounted cash flows, derivative financial liabilities	251	254
Financial liabilities at fair value through profit or loss that meet definition of held for trading, category [member]
Financial instruments
Financial Liabilities	165,300	146,700
Financial assets at fair value through profit or loss, mandatorily measured at fair value, category [member]
Financial instruments
Financial Assets	£ 165,600	145,800
Financial assets at amortised cost | 0-3 months | Loans and advances to banks [Member]
Financial instruments
Undiscounted cash flows, assets		5,254
Financial assets at amortised cost | 0-3 months | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets		50,923
Financial assets at amortised cost | 3-12 months | Loans and advances to banks [Member]
Financial instruments
Undiscounted cash flows, assets		1,621
Financial assets at amortised cost | 3-12 months | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets		43,417
Financial assets at amortised cost | More than 1 year but less than 3 years | Loans and advances to banks [Member]
Financial instruments
Undiscounted cash flows, assets		17
Financial assets at amortised cost | More than 1 year but less than 3 years | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets		76,278
Financial assets at amortised cost | More than 3 years but less than 5 years | Loans and advances to banks [Member]
Financial instruments
Undiscounted cash flows, assets		288
Financial assets at amortised cost | More than 3 years but less than 5 years | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets		55,128
Financial assets at amortised cost | 5-10 years | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets		85,038
Financial assets at amortised cost | 10-20 years | Loans and advances to customers [Member]
Financial instruments
Undiscounted cash flows, assets		£ 100,085

Trading assets and liabilitie_2

Trading assets and liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Securities
Total	£ 45,577	£ 59,158
Deposits
Total	52,808	64,598
Trading liabilities
Deposits
Repos	23,740	19,389
Collateral received	17,680	17,718
Other deposits	1,067	1,553
Total deposits	42,487	38,660
Debt securities in issue	797	974
Short positions	9,524	24,964
Total	52,808	64,598
Trading assets
Loans
Reverse repos	21,537	20,742
Collateral given	13,005	12,047
Other loans	1,113	1,414
Total loans	35,655	34,203
Securities
Financial institutions and corporate	2,573	3,778
Total securities	9,922	24,955
Total	45,577	59,158
UK | Trading assets
Securities
Central and local government securities	2,205	6,919
USA | Trading assets
Securities
Central and local government securities	2,345	3,329
Other | Trading assets
Securities
Central and local government securities	£ 2,799	£ 10,929

Derivatives - Summary of deriva

Derivatives - Summary of derivatives held for hedging (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivatives
Fair value of the hedging derivative
Net hedging derivative assets	£ 99,545	£ 106,139
Net hedging derivative liabilities	£ 94,047	£ 100,835
Exchange rate contracts
Fair value of the hedging derivative
Notional amount	3,168,000	3,167,000
Net hedging derivative assets	£ 45,829	£ 38,517
Net hedging derivative liabilities	£ 45,237	£ 39,286
Interest rate Contracts
Fair value of the hedging derivative
Notional amount	10,742,000	8,919,000
Net hedging derivative assets	£ 53,480	£ 67,458
Net hedging derivative liabilities	£ 48,535	£ 61,206
Credit derivatives
Fair value of the hedging derivative
Notional amount	15,000	14,000
Net hedging derivative assets	£ 236	£ 154
Net hedging derivative liabilities	£ 275	343
Equity and commodity contracts
Fair value of the hedging derivative
Net hedging derivative assets		£ 10
Derivatives held for hedging before IFRS netting | Derivatives
Fair value of the hedging derivative
Notional amount	233,100	206,500
Net hedging derivative assets	£ 4,378	£ 2,169
Net hedging derivative liabilities	9,337	3,316
Changes in fair value used for hedge ineffectiveness	(2,859)
IFRS netting/Clearing house settlements
Fair value of the hedging derivative
Net hedging derivative assets	(4,235)	(2,125)
Net hedging derivative liabilities	(9,205)	(3,196)
Derivatives after IFRS netting
Fair value of the hedging derivative
Net hedging derivative assets	143	44
Net hedging derivative liabilities	132	120
Derivatives
Fair value of the hedging derivative
Net hedging derivative liabilities	132	120
Fair value hedging
Fair value of the hedging derivative
Changes in fair value used for hedge ineffectiveness	£ (442)	£ (846)	£ 877
Fair value hedging | Interest rate Contracts
Fair value of the hedging derivative
Notional amount	58,700	65,600
Net hedging derivative assets	£ 1,554	£ 1,176
Net hedging derivative liabilities	3,009	2,057
Changes in fair value used for hedge ineffectiveness	£ 482	£ 897
Cash flow hedging | Exchange rate contracts
Fair value of the hedging derivative
Notional amount	6,300	7,300
Net hedging derivative assets	£ 142	£ 30
Net hedging derivative liabilities	112	109
Changes in fair value used for hedge ineffectiveness	£ (3)	£ 27
Cash flow hedging | Interest rate Contracts
Fair value of the hedging derivative
Notional amount	167,600	133,100
Net hedging derivative assets	£ 2,681	£ 952
Net hedging derivative liabilities	6,207	1,149
Changes in fair value used for hedge ineffectiveness	£ (3,342)	£ (931)
Net investment hedging | Exchange rate contracts
Fair value of the hedging derivative
Notional amount	500	500
Net hedging derivative assets	£ 1	£ 11
Net hedging derivative liabilities	9	1
Changes in fair value used for hedge ineffectiveness	4	7
Derivatives
Fair value of the hedging derivative
Net hedging derivative assets	£ 143	£ 44

Derivatives - Impact of the acc

Derivatives - Impact of the accumulated amount of fair hedge adjustments (Details) £ in Millions	12 Months Ended
	Dec. 31, 2022 GBP (£)	Dec. 31, 2022 GBP (£) ₨ / £	Dec. 31, 2022 GBP (£) $ / £	Dec. 31, 2022 GBP (£) SFr / £	Dec. 31, 2022 GBP (£) ¥ / £	Dec. 31, 2022 GBP (£) ¥ / $	Dec. 31, 2022 GBP (£) kr / $	Dec. 31, 2022 GBP (£) kr / £	Dec. 31, 2022 GBP (£) kr / £	Dec. 31, 2022 GBP (£) د.إ / $	Dec. 31, 2021 GBP (£)	Dec. 31, 2021 GBP (£) ₨ / £	Dec. 31, 2021 GBP (£) $ / £	Dec. 31, 2021 GBP (£) SFr / £	Dec. 31, 2021 GBP (£) ¥ / £	Dec. 31, 2021 GBP (£) ¥ / £	Dec. 31, 2021 GBP (£) kr / £	Dec. 31, 2021 GBP (£) kr / £	Dec. 31, 2021 GBP (£) kr / £	Dec. 31, 2021 GBP (£) د.إ / $
Derivatives
Carrying value of hedged liabilities											£ 69,389	£ 69,389	£ 69,389	£ 69,389	£ 69,389	£ 69,389	£ 69,389	£ 69,389	£ 69,389	£ 69,389
Hedging liabilities
Derivatives
Changes in fair value used for hedge ineffectiveness											(1,105)
Bank and customer deposits
Derivatives
Carrying value of hedged liabilities											68,383	68,383	68,383	68,383	68,383	68,383	68,383	68,383	68,383	68,383
Changes in fair value used for hedge ineffectiveness											(1,084)
Financial liabilities (other) | Debt securities in issue
Derivatives
Carrying value of hedged liabilities											1,006	1,006	1,006	1,006	1,006	1,006	1,006	1,006	1,006	1,006
Changes in fair value used for hedge ineffectiveness											(21)
Fair value hedging | Interest rate risk
Derivatives
Carrying value of hedged assets	£ 18,661	£ 18,661	£ 18,661	£ 18,661	£ 18,661	£ 18,661	£ 18,661	£ 18,661	£ 18,661	£ 18,661	37,485	37,485	37,485	37,485	37,485	37,485	37,485	37,485	37,485	37,485
Carrying value of hedged liabilities	41,925	41,925	41,925	41,925	41,925	41,925	41,925	41,925	41,925	41,925	40,606	40,606	40,606	40,606	40,606	40,606	40,606	40,606	40,606	40,606
Impact on hedged items included in carrying value, assets	(1,448)	(1,448)	(1,448)	(1,448)	(1,448)	(1,448)	(1,448)	(1,448)	(1,448)	(1,448)	1,219	1,219	1,219	1,219	1,219	1,219	1,219	1,219	1,219	1,219
Impact on hedged items included in carrying value, liabilities											445	445	445	445	445	445	445	445	445	445
Impact on hedged items ceased to be adjusted for hedging gains or losses, assets	61	61	61	61	61	61	61	61	61	61	69	69	69	69	69	69	69	69	69	69
Fair value hedging | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	19,800	19,800	19,800	19,800	19,800	19,800	19,800	19,800	19,800	19,800	30,200	30,200	30,200	30,200	30,200	30,200	30,200	30,200	30,200	30,200
Changes in fair value used for hedge ineffectiveness	(3,761)										(2,054)
Fair value hedging | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	38,900	38,900	38,900	38,900	38,900	38,900	38,900	38,900	38,900	38,900
Impact on hedged items included in carrying value, liabilities	(2,772)	(2,772)	(2,772)	(2,772)	(2,772)	(2,772)	(2,772)	(2,772)	(2,772)	(2,772)
Changes in fair value used for hedge ineffectiveness	3,319										1,208
Fair value hedging | Interest rate risk | Bank and customer deposits
Derivatives
Carrying value of hedged assets	565	565	565	565	565	565	565	565	565	565
Impact on hedged items included in carrying value, liabilities	(3)	(3)	(3)	(3)	(3)	(3)	(3)	(3)	(3)	(3)
Changes in fair value used for hedge ineffectiveness	3
Fair value hedging | Interest rate risk | Financial liabilities (other) | Debt securities in issue
Derivatives
Carrying value of hedged liabilities	35,856	35,856	35,856	35,856	35,856	35,856	35,856	35,856	35,856	35,856	34,371	34,371	34,371	34,371	34,371	34,371	34,371	34,371	34,371	34,371
Impact on hedged items included in carrying value, liabilities	(2,222)	(2,222)	(2,222)	(2,222)	(2,222)	(2,222)	(2,222)	(2,222)	(2,222)	(2,222)	454	454	454	454	454	454	454	454	454	454
Changes in fair value used for hedge ineffectiveness	2,790										953
Fair value hedging | Interest rate risk | Financial liabilities, subordinated
Derivatives
Carrying value of hedged liabilities	5,504	5,504	5,504	5,504	5,504	5,504	5,504	5,504	5,504	5,504	6,235	6,235	6,235	6,235	6,235	6,235	6,235	6,235	6,235	6,235
Impact on hedged items included in carrying value, liabilities	(547)	(547)	(547)	(547)	(547)	(547)	(547)	(547)	(547)	(547)	(9)	(9)	(9)	(9)	(9)	(9)	(9)	(9)	(9)	(9)
Changes in fair value used for hedge ineffectiveness	526										255
Fair value hedging | Interest rate risk | Loans to banks and customers | Amortised cost
Derivatives
Carrying value of hedged assets	5,764	5,764	5,764	5,764	5,764	5,764	5,764	5,764	5,764	5,764	6,603	6,603	6,603	6,603	6,603	6,603	6,603	6,603	6,603	6,603
Impact on hedged items included in carrying value, assets	(526)	(526)	(526)	(526)	(526)	(526)	(526)	(526)	(526)	(526)	701	701	701	701	701	701	701	701	701	701
Changes in fair value used for hedge ineffectiveness	(1,236)										(478)
Impact on hedged items ceased to be adjusted for hedging gains or losses, assets	63	63	63	63	63	63	63	63	63	63	69	69	69	69	69	69	69	69	69	69
Fair value hedging | Interest rate risk | Other financial assets - Securities
Derivatives
Carrying value of hedged assets	12,897	12,897	12,897	12,897	12,897	12,897	12,897	12,897	12,897	12,897	30,882	30,882	30,882	30,882	30,882	30,882	30,882	30,882	30,882	30,882
Impact on hedged items included in carrying value, assets	(922)	(922)	(922)	(922)	(922)	(922)	(922)	(922)	(922)	(922)	518	518	518	518	518	518	518	518	518	518
Changes in fair value used for hedge ineffectiveness	(2,525)										(1,576)
Impact on hedged items ceased to be adjusted for hedging gains or losses, assets	(2)	(2)	(2)	(2)	(2)	(2)	(2)	(2)	(2)	(2)
Fair value hedging | Average fixed interest rate | Hedging liabilities
Derivatives
Derivatives notional (£bn)											35,400	35,400	35,400	35,400	35,400	35,400	35,400	35,400	35,400	35,400
Fair value hedging | 0-3 months | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	500	500	500	500	500	500	500	500	500	500	900	900	900	900	900	900	900	900	900	900
Fair value hedging | 0-3 months | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000	1,000
Fair value hedging | 0-3 months | Average fixed interest rate | Hedging liabilities
Derivatives
Derivatives notional (£bn)											1,100	1,100	1,100	1,100	1,100	1,100	1,100	1,100	1,100	1,100
Fair value hedging | 3-12 months | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	1,900	1,900	1,900	1,900	1,900	1,900	1,900	1,900	1,900	1,900	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500
Fair value hedging | 3-12 months | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	2,900	2,900	2,900	2,900	2,900	2,900	2,900	2,900	2,900	2,900
Fair value hedging | 3-12 months | Average fixed interest rate | Hedging liabilities
Derivatives
Derivatives notional (£bn)											4,200	4,200	4,200	4,200	4,200	4,200	4,200	4,200	4,200	4,200
Fair value hedging | More than 1 year but less than 3 years | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	4,700	4,700	4,700	4,700	4,700	4,700	4,700	4,700	4,700	4,700	5,500	5,500	5,500	5,500	5,500	5,500	5,500	5,500	5,500	5,500
Fair value hedging | More than 1 year but less than 3 years | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	14,600	14,600	14,600	14,600	14,600	14,600	14,600	14,600	14,600	14,600
Fair value hedging | More than 1 year but less than 3 years | Average fixed interest rate | Hedging liabilities
Derivatives
Derivatives notional (£bn)											11,800	11,800	11,800	11,800	11,800	11,800	11,800	11,800	11,800	11,800
Fair value hedging | More than 3 years but less than 5 years | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	4,900	4,900	4,900	4,900	4,900	4,900	4,900	4,900	4,900	4,900	5,700	5,700	5,700	5,700	5,700	5,700	5,700	5,700	5,700	5,700
Fair value hedging | More than 3 years but less than 5 years | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	10,300	10,300	10,300	10,300	10,300	10,300	10,300	10,300	10,300	10,300
Fair value hedging | More than 3 years but less than 5 years | Average fixed interest rate | Hedging liabilities
Derivatives
Derivatives notional (£bn)											9,300	9,300	9,300	9,300	9,300	9,300	9,300	9,300	9,300	9,300
Fair value hedging | 5-10 years | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	4,200	4,200	4,200	4,200	4,200	4,200	4,200	4,200	4,200	4,200	6,200	6,200	6,200	6,200	6,200	6,200	6,200	6,200	6,200	6,200
Fair value hedging | 5-10 years | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	9,600	9,600	9,600	9,600	9,600	9,600	9,600	9,600	9,600	9,600
Fair value hedging | 5-10 years | Average fixed interest rate | Hedging liabilities
Derivatives
Derivatives notional (£bn)											8,400	8,400	8,400	8,400	8,400	8,400	8,400	8,400	8,400	8,400
Fair value hedging | 10-20 years | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	4,900	4,900	4,900	4,900	4,900	4,900	4,900	4,900	4,900	4,900
Fair value hedging | 10-20 years | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	500	500	500	500	500	500	500	500	500	500
Fair value hedging | 10-20 years | Average fixed interest rate | Hedging liabilities
Derivatives
Derivatives notional (£bn)											600	600	600	600	600	600	600	600	600	600
Fair value hedging | 20+ years | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	1,100	1,100	1,100	1,100	1,100	1,100	1,100	1,100	1,100	1,100	4,500	4,500	4,500	4,500	4,500	4,500	4,500	4,500	4,500	4,500
Fair value hedging | 20+ years | Average fixed interest rate | Hedging liabilities
Derivatives
Derivatives notional (£bn)											0	0	0	0	0	0	0	0	0	0
Cash flow hedging | Interest rate risk
Derivatives
Carrying value of hedged assets	94,388	94,388	94,388	94,388	94,388	94,388	94,388	94,388	94,388	94,388	63,739	63,739	63,739	63,739	63,739	63,739	63,739	63,739	63,739	63,739
Carrying value of hedged liabilities	73,181	73,181	73,181	73,181	73,181	73,181	73,181	73,181	73,181	73,181
Cash flow hedging | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	£ 94,500	£ 94,500	£ 94,500	£ 94,500	£ 94,500	£ 94,500	£ 94,500	£ 94,500	£ 94,500	£ 94,500	£ 63,700	£ 63,700	£ 63,700	£ 63,700	£ 63,700	£ 63,700	£ 63,700	£ 63,700	£ 63,700	£ 63,700
Average fixed interest rate	1.72%	1.72%	1.72%	1.72%	1.72%	1.72%	1.72%	1.72%	1.72%	1.72%	0.97%	0.97%	0.97%	0.97%	0.97%	0.97%	0.97%	0.97%	0.97%	0.97%
Changes in fair value used for hedge ineffectiveness	£ 5,336										£ 2,010
Cash flow hedging | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 73,100	£ 73,100	£ 73,100	£ 73,100	£ 73,100	£ 73,100	£ 73,100	£ 73,100	£ 73,100	£ 73,100	£ 69,400	£ 69,400	£ 69,400	£ 69,400	£ 69,400	£ 69,400	£ 69,400	£ 69,400	£ 69,400	£ 69,400
Average fixed interest rate	1.63%	1.63%	1.63%	1.63%	1.63%	1.63%	1.63%	1.63%	1.63%	1.63%	0.44%	0.44%	0.44%	0.44%	0.44%	0.44%	0.44%	0.44%	0.44%	0.44%
Changes in fair value used for hedge ineffectiveness	£ (2,054)
Cash flow hedging | Interest rate risk | Bank and customer deposits
Derivatives
Carrying value of hedged liabilities	72,610	£ 72,610	£ 72,610	£ 72,610	£ 72,610	£ 72,610	£ 72,610	£ 72,610	£ 72,610	£ 72,610
Changes in fair value used for hedge ineffectiveness	(2,008)
Cash flow hedging | Interest rate risk | Financial liabilities (other) | Debt securities in issue
Derivatives
Carrying value of hedged liabilities	571	571	571	571	571	571	571	571	571	571
Changes in fair value used for hedge ineffectiveness	(46)
Cash flow hedging | Interest rate risk | Loans to banks and customers | Amortised cost
Derivatives
Carrying value of hedged assets	93,212	93,212	93,212	93,212	93,212	93,212	93,212	93,212	93,212	93,212	£ 63,025	£ 63,025	£ 63,025	£ 63,025	£ 63,025	£ 63,025	£ 63,025	£ 63,025	£ 63,025	£ 63,025
Changes in fair value used for hedge ineffectiveness	5,263										1,984
Cash flow hedging | Interest rate risk | Other financial assets - Securities
Derivatives
Carrying value of hedged assets	1,176	£ 1,176	£ 1,176	£ 1,176	£ 1,176	£ 1,176	£ 1,176	1,176	1,176	1,176	714	£ 714	£ 714	£ 714	£ 714	£ 714	714	714	714	714
Changes in fair value used for hedge ineffectiveness	73										26
Cash flow hedging | Exchange rate risk
Derivatives
Average foreign exchange rate		100.54	1.29	1.15	132.89	128.29	9.21					106.58	1.38	1.25	132.93	8.74
Carrying value of hedged assets											23	£ 23	£ 23	£ 23	£ 23	£ 23	23	23	23	23
Carrying value of hedged liabilities	4,345	£ 4,345	£ 4,345	£ 4,345	£ 4,345	£ 4,345	£ 4,345	4,345	4,345	4,345	7,279	7,279	7,279	7,279	7,279	7,279	7,279	7,279	7,279	7,279
Cash flow hedging | Exchange rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	100	100	100	100	100	100	100	100	100	100
Cash flow hedging | Exchange rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	6,200	6,200	6,200	6,200	6,200	6,200	6,200	6,200	6,200	6,200	7,300	7,300	7,300	7,300	7,300	7,300	7,300	7,300	7,300	7,300
Changes in fair value used for hedge ineffectiveness	3										(27)
Cash flow hedging | Exchange rate risk | Financial liabilities (other)
Derivatives
Carrying value of hedged liabilities	204	204	204	204	204	204	204	204	204	204	200	200	200	200	200	200	200	200	200	200
Changes in fair value used for hedge ineffectiveness	5										(10)
Cash flow hedging | Exchange rate risk | Financial liabilities (other) | Debt securities in issue
Derivatives
Carrying value of hedged liabilities	4,141	4,141	4,141	4,141	4,141	4,141	4,141	4,141	4,141	4,141	6,337	6,337	6,337	6,337	6,337	6,337	6,337	6,337	6,337	6,337
Changes in fair value used for hedge ineffectiveness	(2)										(5)
Cash flow hedging | Exchange rate risk | Financial liabilities, subordinated
Derivatives
Carrying value of hedged liabilities											742	742	742	742	742	742	742	742	742	742
Changes in fair value used for hedge ineffectiveness											(12)
Cash flow hedging | Exchange rate risk | Loans to banks and customers | Amortised cost
Derivatives
Carrying value of hedged assets											21	21	21	21	21	21	21	21	21	21
Cash flow hedging | Exchange rate risk | Other financial assets - Securities
Derivatives
Carrying value of hedged assets											2	2	2	2	2	2	2	2	2	2
Cash flow hedging | 0-3 months | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	£ 6,600	£ 6,600	£ 6,600	£ 6,600	£ 6,600	£ 6,600	£ 6,600	£ 6,600	£ 6,600	£ 6,600	£ 5,400	£ 5,400	£ 5,400	£ 5,400	£ 5,400	£ 5,400	£ 5,400	£ 5,400	£ 5,400	£ 5,400
Average fixed interest rate	1.36%	1.36%	1.36%	1.36%	1.36%	1.36%	1.36%	1.36%	1.36%	1.36%	1.40%	1.40%	1.40%	1.40%	1.40%	1.40%	1.40%	1.40%	1.40%	1.40%
Cash flow hedging | 0-3 months | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 17,300	£ 17,300	£ 17,300	£ 17,300	£ 17,300	£ 17,300	£ 17,300	£ 17,300	£ 17,300	£ 17,300	£ 8,800	£ 8,800	£ 8,800	£ 8,800	£ 8,800	£ 8,800	£ 8,800	£ 8,800	£ 8,800	£ 8,800
Average fixed interest rate	1.27%	1.27%	1.27%	1.27%	1.27%	1.27%	1.27%	1.27%	1.27%	1.27%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%	0.50%
Cash flow hedging | 0-3 months | Exchange rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100
Cash flow hedging | 0-3 months | Exchange rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)											£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100	£ 100
Cash flow hedging | 3-12 months | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	£ 9,400	£ 9,400	£ 9,400	£ 9,400	£ 9,400	£ 9,400	£ 9,400	£ 9,400	£ 9,400	£ 9,400	£ 8,100	£ 8,100	£ 8,100	£ 8,100	£ 8,100	£ 8,100	£ 8,100	£ 8,100	£ 8,100	£ 8,100
Average fixed interest rate	1.98%	1.98%	1.98%	1.98%	1.98%	1.98%	1.98%	1.98%	1.98%	1.98%	1.19%	1.19%	1.19%	1.19%	1.19%	1.19%	1.19%	1.19%	1.19%	1.19%
Cash flow hedging | 3-12 months | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 26,800	£ 26,800	£ 26,800	£ 26,800	£ 26,800	£ 26,800	£ 26,800	£ 26,800	£ 26,800	£ 26,800	£ 21,100	£ 21,100	£ 21,100	£ 21,100	£ 21,100	£ 21,100	£ 21,100	£ 21,100	£ 21,100	£ 21,100
Average fixed interest rate	0.95%	0.95%	0.95%	0.95%	0.95%	0.95%	0.95%	0.95%	0.95%	0.95%	0.24%	0.24%	0.24%	0.24%	0.24%	0.24%	0.24%	0.24%	0.24%	0.24%
Cash flow hedging | 3-12 months | Exchange rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 1,100	£ 1,100	£ 1,100	£ 1,100	£ 1,100	£ 1,100	£ 1,100	£ 1,100	£ 1,100	£ 1,100	£ 2,400	£ 2,400	£ 2,400	£ 2,400	£ 2,400	£ 2,400	£ 2,400	£ 2,400	£ 2,400	£ 2,400
Cash flow hedging | More than 1 year but less than 3 years | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	£ 46,500	£ 46,500	£ 46,500	£ 46,500	£ 46,500	£ 46,500	£ 46,500	£ 46,500	£ 46,500	£ 46,500	£ 14,300	£ 14,300	£ 14,300	£ 14,300	£ 14,300	£ 14,300	£ 14,300	£ 14,300	£ 14,300	£ 14,300
Average fixed interest rate	1.71%	1.71%	1.71%	1.71%	1.71%	1.71%	1.71%	1.71%	1.71%	1.71%	1.35%	1.35%	1.35%	1.35%	1.35%	1.35%	1.35%	1.35%	1.35%	1.35%
Cash flow hedging | More than 1 year but less than 3 years | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 15,700	£ 15,700	£ 15,700	£ 15,700	£ 15,700	£ 15,700	£ 15,700	£ 15,700	£ 15,700	£ 15,700	£ 33,000	£ 33,000	£ 33,000	£ 33,000	£ 33,000	£ 33,000	£ 33,000	£ 33,000	£ 33,000	£ 33,000
Average fixed interest rate	2.75%	2.75%	2.75%	2.75%	2.75%	2.75%	2.75%	2.75%	2.75%	2.75%	0.41%	0.41%	0.41%	0.41%	0.41%	0.41%	0.41%	0.41%	0.41%	0.41%
Cash flow hedging | More than 1 year but less than 3 years | Exchange rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 2,800	£ 2,800	£ 2,800	£ 2,800	£ 2,800	£ 2,800	£ 2,800	£ 2,800	£ 2,800	£ 2,800	£ 3,500	£ 3,500	£ 3,500	£ 3,500	£ 3,500	£ 3,500	£ 3,500	£ 3,500	£ 3,500	£ 3,500
Cash flow hedging | More than 3 years but less than 5 years | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	£ 21,900	£ 21,900	£ 21,900	£ 21,900	£ 21,900	£ 21,900	£ 21,900	£ 21,900	£ 21,900	£ 21,900	£ 24,500	£ 24,500	£ 24,500	£ 24,500	£ 24,500	£ 24,500	£ 24,500	£ 24,500	£ 24,500	£ 24,500
Average fixed interest rate	2.04%	2.04%	2.04%	2.04%	2.04%	2.04%	2.04%	2.04%	2.04%	2.04%	0.65%	0.65%	0.65%	0.65%	0.65%	0.65%	0.65%	0.65%	0.65%	0.65%
Cash flow hedging | More than 3 years but less than 5 years | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 5,100	£ 5,100	£ 5,100	£ 5,100	£ 5,100	£ 5,100	£ 5,100	£ 5,100	£ 5,100	£ 5,100	£ 3,300	£ 3,300	£ 3,300	£ 3,300	£ 3,300	£ 3,300	£ 3,300	£ 3,300	£ 3,300	£ 3,300
Average fixed interest rate	1.03%	1.03%	1.03%	1.03%	1.03%	1.03%	1.03%	1.03%	1.03%	1.03%	0.47%	0.47%	0.47%	0.47%	0.47%	0.47%	0.47%	0.47%	0.47%	0.47%
Cash flow hedging | More than 3 years but less than 5 years | Exchange rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 2,100	£ 2,100	£ 2,100	£ 2,100	£ 2,100	£ 2,100	£ 2,100	£ 2,100	£ 2,100	£ 2,100	£ 1,300	£ 1,300	£ 1,300	£ 1,300	£ 1,300	£ 1,300	£ 1,300	£ 1,300	£ 1,300	£ 1,300
Cash flow hedging | 5-10 years | Interest rate risk | Hedging assets
Derivatives
Derivatives notional (£bn)	£ 10,100	£ 10,100	£ 10,100	£ 10,100	£ 10,100	£ 10,100	£ 10,100	£ 10,100	£ 10,100	£ 10,100	£ 11,400	£ 11,400	£ 11,400	£ 11,400	£ 11,400	£ 11,400	£ 11,400	£ 11,400	£ 11,400	£ 11,400
Average fixed interest rate	1.02%	1.02%	1.02%	1.02%	1.02%	1.02%	1.02%	1.02%	1.02%	1.02%	0.82%	0.82%	0.82%	0.82%	0.82%	0.82%	0.82%	0.82%	0.82%	0.82%
Cash flow hedging | 5-10 years | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 7,500	£ 7,500	£ 7,500	£ 7,500	£ 7,500	£ 7,500	£ 7,500	£ 7,500	£ 7,500	£ 7,500	£ 2,500	£ 2,500	£ 2,500	£ 2,500	£ 2,500	£ 2,500	£ 2,500	£ 2,500	£ 2,500	£ 2,500
Average fixed interest rate	2.68%	2.68%	2.68%	2.68%	2.68%	2.68%	2.68%	2.68%	2.68%	2.68%	1.01%	1.01%	1.01%	1.01%	1.01%	1.01%	1.01%	1.01%	1.01%	1.01%
Cash flow hedging | 5-10 years | Exchange rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 200	£ 200	£ 200	£ 200	£ 200	£ 200	£ 200	£ 200	£ 200	£ 200
Cash flow hedging | 10-20 years | Interest rate risk | Hedging assets
Derivatives
Average fixed interest rate	3.12%	3.12%	3.12%	3.12%	3.12%	3.12%	3.12%	3.12%	3.12%	3.12%
Cash flow hedging | 10-20 years | Interest rate risk | Hedging liabilities
Derivatives
Derivatives notional (£bn)	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700	£ 700
Average fixed interest rate	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%	4.55%
Net investment hedging | Exchange rate risk
Derivatives
Derivatives notional (£bn)	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500
Average foreign exchange rate			1.20					13.23	12.34	4.42			1.32				11.74	8.85	12.12	3.67
Net investment hedging | 0-3 months | Exchange rate risk
Derivatives
Derivatives notional (£bn)	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500	£ 500

Derivatives - Analysis of cash

Derivatives - Analysis of cash flow reserve and foreign exchange reserve (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disclosure of detailed information about hedged items [line items]
Pre-tax cash flow hedge reserve	£ (3,837)	£ (559)
Pre-tax foreign exchange hedge reserve	(965)	(706)
Amount recognised in equity, cash flow hedges	(2,973)	(687)
Amount recognised in equity, foreign exchange hedge reserve	(266)	88
Amount transferred from equity to earnings, cash flow hedges	304	161
Amount transferred from equity to earnings, foreign exchange hedge reserve	(7)
Interest rate risk
Disclosure of detailed information about hedged items [line items]
Continuing cash flow hedge reserve	(3,576)	(295)
De-designated cash flow hedge reserve	(297)	(297)
Amount recognised in equity, cash flow hedges	(2,997)	(700)
Amount recognised in equity, foreign exchange hedge reserve	(64)
Interest rate risk | Net interest income
Disclosure of detailed information about hedged items [line items]
Amount transferred from equity to earnings, cash flow hedges	252	181
Interest rate risk | Non interest income
Disclosure of detailed information about hedged items [line items]
Amount transferred from equity to earnings, cash flow hedges	21	(20)
Interest rate risk | Operating expenses
Disclosure of detailed information about hedged items [line items]
Amount transferred from equity to earnings, cash flow hedges	(14)
Exchange rate risk
Disclosure of detailed information about hedged items [line items]
Continuing cash flow hedge reserve	16	23
Continuing foreign exchange hedge reserve	(85)	53
De-designated cash flow hedge reserve	20	10
De-designated foreign exchange hedge reserve	(880)	(759)
Amount recognised in equity, cash flow hedges	24	13
Amount recognised in equity, foreign exchange hedge reserve	(202)	88
Exchange rate risk | Net interest income
Disclosure of detailed information about hedged items [line items]
Amount transferred from equity to earnings, cash flow hedges	29	4
Amount transferred from equity to earnings, foreign exchange hedge reserve		(2)
Exchange rate risk | Non interest income
Disclosure of detailed information about hedged items [line items]
Amount transferred from equity to earnings, cash flow hedges	(15)	(1)
Amount transferred from equity to earnings, foreign exchange hedge reserve	(7)	2
Exchange rate risk | Operating expenses
Disclosure of detailed information about hedged items [line items]
Amount transferred from equity to earnings, cash flow hedges	£ 3	£ (3)

Derivatives - Hedge ineffective

Derivatives - Hedge ineffectiveness recognised (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disclosure of detailed information about hedged items
Hedging ineffectiveness	£ (20)	£ 25	£ 24
Fair value hedging
Disclosure of detailed information about hedged items
(Loss)/gain on hedged items attributable to the hedged risk	(442)	(846)	877
Gain/(loss) on the hedging instruments	482	897	(875)
Hedging ineffectiveness	40	51	2
Cash flow hedging
Disclosure of detailed information about hedged items
Hedging ineffectiveness	(60)	(26)	22
Cash flow hedging | Interest rate risk
Disclosure of detailed information about hedged items
Hedging ineffectiveness	£ (60)	£ (26)	£ 22

Loan impairment provisions (Det

Loan impairment provisions (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Off-Balance Sheet Exposures
Loan impairment provisions
ECL provisions	£ 100	£ 100
Contingent Liability
Loan impairment provisions
ECL (release)/charge	(5)	(34)
Financial assets (Other)
Loan impairment provisions
Financial Assets	30,895	46,145
ECL (release)/charge	3	3
FVOCI
Loan impairment provisions
ECL provisions	3	5
FVOCI | Financial assets (Other)
Loan impairment provisions
ECL (release)/charge	0	(2)
Loans and advances | Financial assets at amortised cost and fair value through other comprehensive income
Loan impairment provisions
Financial Assets	377,153	369,827
ECL provisions	£ 3,434	£ 3,806
Expected Credit Loss, Provision Coverage	0.91%	1.03%
ECL (release)/charge	£ 337	£ (1,173)
Amounts written off	482	876
Loans and advances | Financial assets at amortised cost and fair value through other comprehensive income | Individual
Loan impairment provisions
Amounts written off	168	455
Loans and advances | Financial assets at amortised cost and fair value through other comprehensive income | Collective
Loan impairment provisions
Amounts written off	314	421
Cash at central banks | Financial assets (Other)
Loan impairment provisions
Financial Assets	143,300	176,300
Debt securities | Financial assets (Other)
Loan impairment provisions
Financial Assets	29,900	44,900
Business loans
Loan impairment provisions
ECL provisions	3,434	3,806
Stage 1 | Loans and advances | Financial assets at amortised cost and fair value through other comprehensive income
Loan impairment provisions
Financial Assets	325,224	330,824
ECL provisions	£ 632	£ 302
Expected Credit Loss, Provision Coverage	0.19%	0.09%
ECL (release)/charge	£ (290)	£ (1,317)
Stage 2 | Loans and advances | Financial assets at amortised cost and fair value through other comprehensive income
Loan impairment provisions
Financial Assets	46,833	33,981
ECL provisions	£ 1,043	£ 1,478
Expected Credit Loss, Provision Coverage	2.23%	4.35%
ECL (release)/charge	£ 393	£ (164)
Stage 3 | Loans and advances | Financial assets at amortised cost and fair value through other comprehensive income
Loan impairment provisions
Financial Assets	5,096	5,022
ECL provisions	£ 1,759	£ 2,026
Expected Credit Loss, Provision Coverage	34.52%	40.34%
ECL (release)/charge	£ 234	£ 308
Stage 3 | Loans and advances | Financial assets at amortised cost and fair value through other comprehensive income | Individual
Loan impairment provisions
Financial Assets	1,121	1,215
ECL provisions	287	363
ECL (release)/charge	54	20
Stage 3 | Loans and advances | Financial assets at amortised cost and fair value through other comprehensive income | Collective
Loan impairment provisions
Financial Assets	3,975	3,807
ECL provisions	1,472	1,663
ECL (release)/charge	£ 180	£ 288

Other financial assets (Details

Other financial assets (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disclosure Of Detailed Information About Hedging Instruments LineItems
Other financial assets	£ 30,895	£ 46,145
Equity shares
Disclosure Of Detailed Information About Hedging Instruments LineItems
Other financial assets	360	325
Permanent TSB p.l.c.
Disclosure Of Detailed Information About Hedging Instruments LineItems
Amount of shares acquired	146
Vondeno Limited
Disclosure Of Detailed Information About Hedging Instruments LineItems
Amount of shares acquired	26
VISA
Disclosure Of Detailed Information About Hedging Instruments LineItems
Disposal of shares	99
UBS Equity Funds
Disclosure Of Detailed Information About Hedging Instruments LineItems
Disposal of shares	69
Other loans
Disclosure Of Detailed Information About Hedging Instruments LineItems
Other financial assets	899	566
MFVTPL
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	2	6
Other financial assets	787	317
MFVTPL | Other financial institutions
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	2	6
MFVTPL | Equity shares
Disclosure Of Detailed Information About Hedging Instruments LineItems
Other financial assets	3	13
MFVTPL | Other loans
Disclosure Of Detailed Information About Hedging Instruments LineItems
Other financial assets	782	298
FVOCI
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	16,499	36,686
Other financial assets	16,973	37,266
FVOCI | Central and local government | UK
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	802	11,938
FVOCI | Central and local government | USA
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	7,175	10,086
FVOCI | Central and local government | Countries other than the US and the UK
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	1,757	5,604
FVOCI | Other financial institutions
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	6,765	9,058
FVOCI | Equity shares
Disclosure Of Detailed Information About Hedging Instruments LineItems
Other financial assets	357	312
FVOCI | Other loans
Disclosure Of Detailed Information About Hedging Instruments LineItems
Other financial assets	117	268
Amortised cost
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	13,135	8,562
Other financial assets	13,135	8,562
Amortised cost | Central and local government | UK
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	2,562	3,821
Amortised cost | Central and local government | USA
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	937	156
Amortised cost | Central and local government | Countries other than the US and the UK
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	54	81
Amortised cost | Other financial institutions
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	9,582	4,504
Debt securities
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	29,636	45,254
Debt securities | Central and local government | UK
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	3,364	15,759
Debt securities | Central and local government | USA
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	8,112	10,242
Debt securities | Central and local government | Countries other than the US and the UK
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	1,811	5,685
Debt securities | Other financial institutions
Disclosure Of Detailed Information About Hedging Instruments LineItems
Debt instruments held	£ 16,349	£ 13,568

Intangible assets (Details)

Intangible assets (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Intangible assets
At beginning of period	£ 6,723
At end of period	7,116	£ 6,723
Impairment loss of goodwill	£ 0	85
Goodwill		£ 5,522
Expected growth rate	1.40%	1.60%
Retail Banking
Intangible assets
Impairment loss of goodwill		£ 85
Goodwill	£ 2,607	2,607
Commercial Banking
Intangible assets
Goodwill	£ 2,606	£ 2,606
Retail Banking, Commercial Banking and Private Banking
Intangible assets
Pre-tax discount rate	15.30%	13.90%
Private Banking
Intangible assets
Goodwill	£ 9	£ 9
RBS International
Intangible assets
Goodwill	£ 300	£ 300
Pre-tax discount rate	14%	12.10%
Gross Carrying Amount [Member]
Intangible assets
At beginning of period	£ 12,989	£ 12,531
Currency translation and other adjustments	(11)	29
Additions	743	479
Disposals and write-off of fully amortised assets	(27)	(50)
At end of period	13,694	12,989
Accumulated impairment, depreciation and amortisation
Intangible assets
At beginning of period	(6,266)	(5,876)
Currency translation and other adjustments	12	(31)
Disposals and write-off of fully amortised assets	17	28
Impairment of intangible assets		87
Amortisation charge for the year	341	300
At end of period	(6,578)	(6,266)
Goodwill
Intangible assets
At beginning of period	5,522
At end of period	5,522	5,522
Goodwill | Gross Carrying Amount [Member]
Intangible assets
At beginning of period	9,939	9,939
Currency translation and other adjustments	(8)
At end of period	9,931	9,939
Goodwill | Accumulated impairment, depreciation and amortisation
Intangible assets
At beginning of period	(4,417)	(4,332)
Currency translation and other adjustments	8
Impairment of intangible assets		85
At end of period	(4,409)	(4,417)
Intangible assets other than goodwill
Intangible assets
At beginning of period	1,201
At end of period	1,594	1,201
Intangible assets other than goodwill | Gross Carrying Amount [Member]
Intangible assets
At beginning of period	3,050	2,592
Currency translation and other adjustments	(3)	29
Additions	743	479
Disposals and write-off of fully amortised assets	(27)	(50)
At end of period	3,763	3,050
Intangible assets other than goodwill | Accumulated impairment, depreciation and amortisation
Intangible assets
At beginning of period	(1,849)	(1,544)
Currency translation and other adjustments	4	(31)
Disposals and write-off of fully amortised assets	17	28
Impairment of intangible assets		2
Amortisation charge for the year	341	300
At end of period	£ (2,169)	£ (1,849)

Other assets (Details)

Other assets (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Other assets
Interests in associates	£ 688	£ 716
Property, plant and equipment	4,240	4,230
Pension schemes in net surplus	318	602
Prepayments	340	360
Accrued income	327	248
Tax recoverable	279	190
Deferred tax	2,178	1,195
Acceptances	237	225
Other	569	476
Other assets	£ 9,176	8,242
Freehold buildings and long leaseholds
Other assets
Estimated useful lives	50 years
Short leaseholds for unexpired period of lease and property adaption costs | Maximum
Other assets
Estimated useful lives	15 years
Short leaseholds for unexpired period of lease and property adaption costs | Minimum
Other assets
Estimated useful lives	10 years
Other equipment | Maximum
Other assets
Estimated useful lives	15 years
Other equipment | Minimum
Other assets
Estimated useful lives	4 years
Computers equipment | Maximum
Other assets
Estimated useful lives	5 years
Business Growth Fund
Other assets
Interests in associates	£ 677	£ 700

Other financial liabilities (De

Other financial liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Disclosure of financial liabilities
Total	£ 49,107	£ 49,326
MRELs
Disclosure of financial liabilities
Total	22,265	23,422
Other medium term notes
Disclosure of financial liabilities
Total	16,419	12,430
Commercial paper and certificates of deposit
Disclosure of financial liabilities
Total	5,672	9,153
Covered bonds
Disclosure of financial liabilities
Total	2,842	2,886
Securitisation
Disclosure of financial liabilities
Total	859	867
Financial liabilities at fair value through profit or loss | Customer accounts
Disclosure of financial liabilities
Total	£ 1,050	£ 568

Subordinated liabilities (Detai

Subordinated liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Subordinated liabilities
Dated loan capital	£ 5,968	£ 8,051
Undated loan capital	173	259
Preference shares	119	119
Total subordinated liabilities	£ 6,260	£ 8,429

Subordinated liabilities - Rede

Subordinated liabilities - Redemption (Details) € in Millions, £ in Millions, $ in Millions	Dec. 31, 2022 GBP (£)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 GBP (£)
Subordinated liabilities
Dated loan capital	£ 6,266			£ 8,647
Undated loan capital	173			259
Preference shares	119			119
Impact on carrying value due to fair value hedging	(298)			(596)
Subordinated liabilities	6,260			8,429
NatWest Group plc
Subordinated liabilities
Dated loan capital	£ 5,820			7,689
Natwest Group plc, $2,250 million 6.13% notes Maturity dated Dec-2022
Subordinated liabilities
Notional amount | $		$ 2,250
Interest rate	6.13%	6.13%	6.13%
Dated loan capital				986
Natwest Group plc, $2,250 million 5.13% notes Maturity dated May-2024
Subordinated liabilities
Notional amount | $		$ 2,250
Interest rate	5.13%	5.13%	5.13%
Dated loan capital	£ 706			956
Natwest Group plc, $2,000 million 6.00% notes Maturity dated Dec-2023
Subordinated liabilities
Notional amount | $		$ 2,000
Interest rate	6%	6%	6%
Dated loan capital	£ 536			1,073
Natwest Group plc, £1,000 million 3.622% notes Maturity dated Aug 2030
Subordinated liabilities
Notional amount	£ 1,000
Interest rate	3.622%	3.622%	3.622%
Dated loan capital	£ 964			995
Natwest Group plc, £1,000 million 2.105% notes Maturity dated Nov-2031
Subordinated liabilities
Notional amount	£ 1,000
Interest rate	2.105%	2.105%	2.105%
Dated loan capital	£ 1,001			999
Natwest Group plc, $1,000 million 6.10% notes Maturity dated Jun-2023
Subordinated liabilities
Notional amount | $		$ 1,000
Interest rate	6.10%	6.10%	6.10%
Dated loan capital	£ 126			354
Natwest Group plc, $850 million 3.032% notes Maturity dated Nov-2035
Subordinated liabilities
Notional amount | $		$ 850
Interest rate	3.032%	3.032%	3.032%
Dated loan capital	£ 555			584
Natwest Group plc, €750 million 1.043% notes Maturity dated Sep-2032
Subordinated liabilities
Notional amount | €			€ 750
Interest rate	1.043%	1.043%	1.043%
Dated loan capital	£ 665			630
Natwest Group plc, $750 million 3.754% notes Maturity dated Nov-2029
Subordinated liabilities
Notional amount | $		$ 750
Interest rate	3.754%	3.754%	3.754%
Dated loan capital	£ 626			558
Natwest Group plc, £650 million 7.416% notes Maturity dated Jun-2023
Subordinated liabilities
Notional amount	£ 650
Interest rate	7.416%	7.416%	7.416%
Dated loan capital	£ 641
Natwest Group plc, $650 million 6.425% notes Maturity dated Jan-2043
Subordinated liabilities
Notional amount | $		$ 650
Interest rate	6.425%	6.425%	6.425%
Dated loan capital				554
Other subsidiaries, $650 million 6.3% notes Maturity dated Dec-2043
Subordinated liabilities
Notional amount | $		$ 650
Interest rate	6.30%	6.30%	6.30%
Dated loan capital				39
Other subsidiaries, €300 million Floating rate notes Maturity dated jun-2022
Subordinated liabilities
Notional amount | €			€ 300
Dated loan capital				252
Other subsidiaries, €170 million Floating rate notes Maturity dated Feb-2041
Subordinated liabilities
Notional amount | €			€ 170
Dated loan capital	£ 223			331
Other subsidiaries, $150 million 7.125% notes Maturity dated Oct-93
Subordinated liabilities
Notional amount | $		$ 150
Interest rate	7.125%	7.125%	7.125%
Dated loan capital	£ 18			113
Other subsidiaries, €145.6 Million Floating rate notes Maturity dated Apr-2023
Subordinated liabilities
Notional amount | €			€ 145.6
Dated loan capital	£ 122			119
Other subsidiaries, $136 million 7.75% notes Maturity dated May-2023
Subordinated liabilities
Notional amount | $		$ 136
Interest rate	7.75%	7.75%	7.75%
Dated loan capital	£ 83			104
Natwest Group plc, $762 million 7.648% notes
Subordinated liabilities
Notional amount | $		$ 762
Interest rate	7.648%	7.648%	7.648%
Undated loan capital				51
Other Subsidiaries 16 Million 5.63 Notes [Member]
Subordinated liabilities
Notional amount	£ 16
Interest rate	5.63%	5.63%	5.63%
Undated loan capital	£ 18			20
Other Subsidiaries, £19 million, 5.63% notes
Subordinated liabilities
Notional amount	£ 19
Interest rate	5.63%	5.63%	5.63%
Undated loan capital				1
Other Subsidiaries, £21 Million 6.2% Notes [Member]
Subordinated liabilities
Notional amount	£ 21
Interest rate	6.20%	6.20%	6.20%
Undated loan capital				22
Other Subsidiaries 31 Million 7.38 Notes [Member]
Subordinated liabilities
Notional amount	£ 31
Interest rate	7.38%	7.38%	7.38%
Undated loan capital	£ 2			1
Other subsidiaries, £53 million 7.125% notes
Subordinated liabilities
Notional amount	£ 53
Interest rate	7.125%	7.125%	7.125%
Undated loan capital				56
Other subsidiaries, €31 million 11.375% notes
Subordinated liabilities
Notional amount | €			€ 31
Interest rate	11.375%	11.375%	11.375%
Undated loan capital	£ 48			45
Other subsidiaries, £35 million 11.5% notes
Subordinated liabilities
Notional amount	£ 35
Interest rate	11.50%	11.50%	11.50%
Undated loan capital	£ 72			31
Other subsidiaries, £11 million 11.75% notes
Subordinated liabilities
Notional amount	£ 11
Interest rate	11.75%	11.75%	11.75%
Undated loan capital	£ 25			24
Other subsidiaries, £1.1 million SONIA + 2.8266% notes
Subordinated liabilities
Notional amount	1.1
Undated loan capital	£ 2			2
Other subsidiaries, £1.1 million SONIA + 2.8266% notes | SONIA
Subordinated liabilities
Borrowings, adjustment to interest rate basis	2.8266%	2.8266%	2.8266%
Other subsidiaries, 2.5% fixed notes
Subordinated liabilities
Notional amount	£ 4.9
Interest rate	2.50%	2.50%	2.50%
Undated loan capital	£ 6			6
Other subsidiaries, £140 million Non-cumulative preference shares of £1
Subordinated liabilities
Notional amount	140
Preference shares	£ 119			£ 119

Other liabilities (Details)

Other liabilities (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Other liabilities.
Lease liabilities	£ 1,118	£ 1,263
Provisions for liabilities and charges	1,138	1,268
Retirement benefit liabilities	98	114
Accruals	1,407	1,508
Deferred income	355	319
Current tax	55	12
Deferred tax	227	359
Acceptances	237	225
Other liabilities	711	729
Total other liabilities	5,346	5,797
Liabilities of disposal groups	£ 15	£ 5

Other liabilities - Provision f

Other liabilities - Provision for liabilities and charges (Details) £ in Millions	12 Months Ended
	Dec. 31, 2022 GBP (£)
Provisions for liabilities and charges
Balance at beginning of the period	£ 1,268
Expected credit losses impairment release	(6)
Currency translation and other movements	29
Charge to income statement	438
Release to income statement	(190)
Provisions utilised	(401)
Balance at end of the period	1,138
Customer redress
Provisions for liabilities and charges
Balance at beginning of the period	474
Currency translation and other movements	2
Charge to income statement	178
Release to income statement	(45)
Provisions utilised	(178)
Balance at end of the period	431
Legal proceedings provision
Provisions for liabilities and charges
Balance at beginning of the period	277
Currency translation and other movements	20
Charge to income statement	36
Release to income statement	(14)
Provisions utilised	(79)
Balance at end of the period	240
Property
Provisions for liabilities and charges
Balance at beginning of the period	231
Currency translation and other movements	0
Charge to income statement	31
Release to income statement	(71)
Provisions utilised	(37)
Balance at end of the period	154
Financial commitments and guarantees
Provisions for liabilities and charges
Balance at beginning of the period	93
Expected credit losses impairment release	(6)
Currency translation and other movements	0
Balance at end of the period	87
Other
Provisions for liabilities and charges
Balance at beginning of the period	193
Currency translation and other movements	7
Charge to income statement	193
Release to income statement	(60)
Provisions utilised	(107)
Balance at end of the period	£ 226

Share capital and other equit_2

Share capital and other equity (Details) £ / shares in Units, shares in Thousands, £ in Millions	Dec. 31, 2022 GBP (£) £ / shares shares	Dec. 31, 2022 $ / shares	Aug. 26, 2022 £ / shares	Aug. 25, 2022 £ / shares	Dec. 31, 2021 GBP (£) shares	Dec. 31, 2020 GBP (£)
Share capital
Value of shares | £	£ 36,496				£ 41,803	£ 43,824
Ordinary shares
Share capital
Value of shares | £	£ 10,539				£ 11,468	£ 12,129
Number of shares | shares	9,786,024				11,467,982
Par value per share | £ / shares	£ 1.076923076923077		£ 1.0769	£ 1
Non-cumulative preference shares of US$0.01
Share capital
Number of shares | shares					10
Par value per share | $ / shares		$ 0.01
Cumulative preference shares of 1
Share capital
Value of shares | £	£ 0.5				£ 0.5
Number of shares | shares	483				483
Par value per share | £ / shares	£ 1

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, 2022	Dec. 31, 2021
Value of shares
At 1 January	£ 41,803	£ 43,824
At 31 December	36,496	41,803
Ordinary shares
Value of shares
At 1 January	11,468	12,129
Ordinary shares issued		38
Shares cancellation	(929)	(699)
At 31 December	£ 10,539	£ 11,468
Number of shares
At 1 January	11,467,982	12,129,165
Shares issued		(37,584)
Shares cancellation	(929,188)	(698,767)
Share consolidation	752,770
At 31 December	9,786,024	11,467,982

Share capital and other equit_4

Share capital and other equity - Ordinary shares (Details) - GBP (£)				5 Months Ended	6 Months Ended	12 Months Ended
	Aug. 26, 2022	Mar. 28, 2022	Feb. 06, 2019	Jul. 15, 2022	Jan. 18, 2022	Dec. 31, 2022	Dec. 31, 2021	Aug. 25, 2022	Apr. 30, 2022	Jul. 30, 2021
Own shares held | Share awards and options
Share capital
Par value						£ 1.0769
Ordinary shares
Share capital
Percentage of individual shares being consolidated into one intermediary ordinary share	7.1429%
Number of new ordinary shares resulting from the conversion of each individual intermediary ordinary share	13
Par value	£ 1.0769					£ 1.076923076923077		£ 1
Authorized share capital						£ 0
Authorized share capital granted						561,452,512		£ 520,306,980
Percentage of outstanding ordinary share capital that company is authorized to repurchase in any 12-month period through off-market transactions			4.99%
Number of own shares purchased		549,851,147		346,835,822	340,537,460
Nominal value of own shares purchased		£ 549,851,147		£ 346,835,822	£ 340,537,460
Purchase price per share		£ 2.205		£ 2.162406	£ 2.200199
Consideration paid for repurchase of own shares		£ 1,212,421,779		£ 749,999,999	£ 749,250,031
Percentage of issued shares repurchased		4.91%
Maximum number of ordinary shares purchased under Programme									1,122,905,024	1,157,583,542
Maximum amount for share buy back programme										£ 750,000,000
Interim dividend paid						£ 364,000,000	£ 347,000,000
Interim dividend per share						£ 0.035	£ 0.03
Special dividend paid						£ 1,750,000,000
Special dividend per share						£ 0.168
Final dividend recommended						£ 1,000,000,000	£ 844,000,000
Final dividend recommended, per share						£ 0.100	£ 0.075
Ordinary shares | Ordinary share buyback program
Share capital
Percentage of issued shares repurchased				0.1123%
Intermediary ordinary shares
Share capital
Par value	£ 14

Share capital and other equit_5

Share capital and other equity - Cumulative preference shares (Details)	1 Months Ended
	Dec. 31, 2021 shares
5 1/2% Cumulative Preference Shares
Number of own shares purchased	157,546
Dividend rate	5.50%
11% Cumulative Preference Shares
Number of own shares purchased	259,314
Dividend rate	0.11%

Share capital and other equit_6

Share capital and other equity - Non-cumulative preference shares (Details) $ / shares in Units, £ in Millions	Mar. 31, 2022 $ / shares	Dec. 31, 2022 GBP (£)	Mar. 30, 2022 USD ($)	Dec. 31, 2021 GBP (£)	Dec. 31, 2020 GBP (£)
Share capital
Value of shares | £		£ 36,496		£ 41,803	£ 43,824
Series U Dollar Non-cumulative Preference Shares
Share capital
Value of shares | $			$ 1,013,000,000
Redemption price per share	$ 100,000
Accrued dividends per share	$ 635.94

Share capital and other equit_7

Share capital and other equity - Paid-in equity (Details) £ / shares in Units, $ / shares in Units, £ in Millions, $ in Millions	Dec. 31, 2022 GBP (£) £ / shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 GBP (£)	Dec. 31, 2020 GBP (£)	Dec. 31, 2019 GBP (£)
Borrowings
Equity | £	£ 36,496		£ 41,803	£ 43,824
Paid-in equity
Borrowings
Equity | £	£ 3,890		3,890	4,999	£ 4,058
Paid-in equity | Additional tier 1 note callable August, 2020, USD
Borrowings
Conversion rate | $ / shares		$ 3.295
Par value | £ / shares	£ 1
Paid-in equity | Additional tier 1 note callable August, 2025, USD
Borrowings
Equity | £	£ 735		735	735
Notional amount	£ 1,150	$ 2,650
Interest rate	8%	8%
Paid-in equity | Additional tier 1 note callable August, 2021, USD
Borrowings
Equity | £				2,046
Notional amount | $		$ 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		1,220	1,220
Notional amount | $		$ 1,500
Interest rate	6%	6%
Conversion rate | £ / shares	£ 2.179
Par value | £ / shares	£ 1
Paid-in equity | Additional tier1 note callable May - November 2027, GBP
Borrowings
Equity | £	£ 998		998	£ 998
Notional amount | £	£ 1,000
Interest rate	5.125%	5.125%
Conversion rate | £ / shares	£ 1.754
Par value | £ / shares	£ 1
Paid-in equity | Additional tier 1 notes, march 2021 issuance, GBP
Borrowings
Equity | £	£ 399		399
Notional amount | £	£ 400
Conversion rate | £ / shares	£ 1.754
Par value | £ / shares	£ 1
Paid-in equity | Additional tier 1 notes, June 2021 issuance, USD
Borrowings
Equity | £	£ 538		£ 538
Notional amount | $		$ 750
Conversion rate | £ / shares	£ 2.448
Par value | £ / shares	£ 1
Paid-in equity | Minimum | Instruments are converted to into ordinary shares at fixed price
Borrowings
CET1 ratio (as a percent)	7%	7%

Share capital and other equit_8

Share capital and other equity - Reserves (Details)			1 Months Ended	12 Months Ended				22 Months Ended
		Aug. 30, 2022	Mar. 31, 2021 shares	Dec. 31, 2022 GBP (£) £ / shares shares	Dec. 31, 2021 GBP (£) £ / shares		Dec. 31, 2020 GBP (£) £ / shares shares	Dec. 31, 2022 £ / shares shares	Aug. 26, 2022 £ / shares	Aug. 25, 2022 £ / shares
Ordinary share from discontinued operations basic | £ / shares				£ (0.027)	£ 0.043	[1]	£ 0.017
Ordinary share from discontinued operations dilutive | £ / shares				£ (0.026)	£ 0.043	[1]	£ 0.017
Share consolidation ratio		0.9286
Ordinary shares
Own shares held				114,011,084				114,011,084
Own shares acquired | £				£ 0
Par value | £ / shares				£ 1.076923076923077				£ 1.076923076923077	£ 1.0769	£ 1
Number of shares transferred to treasury			200,000,000
Number of shares used to satisfy the exercise of options and vesting of awards								76,513,524
Own shares held
Own shares acquired | £	[2]				£ 383,000,000		£ 77,000,000
Share consolidation ratio		0.9286
Share awards and options | Own shares held
Own shares held				13,000,000			15,000,000	13,000,000
Par value | £ / shares				£ 1.0769				£ 1.0769
Delivery of own shares held				2,000,000
[1] Comparative results have been re-presented from those previously published to reclassify certain items as discontinued operations as described in Note 8 to the consolidated financial statements. In March 2022, there was an agreement with HM Treasury to buy 549.9 million (March 2021 - 591 million) ordinary shares in NatWest Group plc from UK Government Investments Ltd, at 220.5 pence per share (March 2021 - 190.5 pence per share) for the total consideration of £ 1.22 billion (March 2021 - £ 1.13 billion). NatWest Group cancelled all 549.9 million of the purchased ordinary shares (March 2021 - NatWest Group cancelled 391 million of the purchased ordinary shares and held the remaining 200 million in own shares held). The nominal value of the share cancellation has been transferred to the capital redemption reserve.

Structured entities - Own asset

Structured entities - Own asset securitisations (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Structured entities
Loans and advances to customers	£ 366,340	£ 358,990
Consolidated structured entities | Other credit risk transfer securitizations
Structured entities
Loans and advances to customers	4,361	7,137
ECL in relation to non-defaulted assets	20	28
Consolidated structured entities | Covered Bond Programme
Structured entities
Loans and advances to customers	8,156	8,965
Other borrowings	4,132	3,512
Consolidated structured entities | Lending of own issued securities
Structured entities
Debt securities in issue	2,244	1,564
Consolidated structured entities | Lending of own issued securities | Secured
Structured entities
Debt securities in issue	2,419	1,494
Held by Third party | Other credit risk transfer securitizations
Structured entities
Debt securities in issue	£ 859	£ 867

Structured entities - Unconsoli

Structured entities - Unconsolidated structured entities (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Unconsolidated structured entities
Structured entities
Liquidity facilities/loan commitments	£ 2,043	£ 1,538
Guarantees	107
Maximum exposure	13,098	8,320
Unconsolidated structured entities | Trading assets and derivatives
Structured entities
Assets recognised related to structured entities	686	705
Unconsolidated structured entities | Trading assets
Structured entities
Assets recognised related to structured entities	753	607
Unconsolidated structured entities | Derivative assets
Structured entities
Assets recognised related to structured entities	343	269
Unconsolidated structured entities | Derivative liabilities
Structured entities
Liabilities recognised related to structured entities	(410)	(171)
Unconsolidated structured entities | Non trading assets
Structured entities
Assets recognised related to structured entities	10,262	6,077
Unconsolidated structured entities | Loans to customers
Structured entities
Assets recognised related to structured entities	3,079	2,053
Unconsolidated structured entities | Other financial assets
Structured entities
Assets recognised related to structured entities	7,183	4,024
Asset backed securitisation vehicles
Structured entities
Liquidity facilities/loan commitments	1,723	1,403
Maximum exposure	11,059	7,311
Asset backed securitisation vehicles | Trading assets and derivatives
Structured entities
Assets recognised related to structured entities	571	571
Asset backed securitisation vehicles | Trading assets
Structured entities
Assets recognised related to structured entities	616	490
Asset backed securitisation vehicles | Derivative assets
Structured entities
Assets recognised related to structured entities	343	251
Asset backed securitisation vehicles | Derivative liabilities
Structured entities
Liabilities recognised related to structured entities	(388)	(170)
Asset backed securitisation vehicles | Non trading assets
Structured entities
Assets recognised related to structured entities	8,765	5,337
Asset backed securitisation vehicles | Loans to customers
Structured entities
Assets recognised related to structured entities	2,431	1,692
Asset backed securitisation vehicles | Other financial assets
Structured entities
Assets recognised related to structured entities	6,334	3,645
Investment funds and other
Structured entities
Liquidity facilities/loan commitments	320	135
Guarantees	107
Maximum exposure	2,039	1,009
Investment funds and other | Trading assets and derivatives
Structured entities
Assets recognised related to structured entities	115	134
Investment funds and other | Trading assets
Structured entities
Assets recognised related to structured entities	137	117
Investment funds and other | Derivative assets
Structured entities
Assets recognised related to structured entities		18
Investment funds and other | Derivative liabilities
Structured entities
Liabilities recognised related to structured entities	(22)	(1)
Investment funds and other | Non trading assets
Structured entities
Assets recognised related to structured entities	1,497	740
Investment funds and other | Loans to customers
Structured entities
Assets recognised related to structured entities	648	361
Investment funds and other | Other financial assets
Structured entities
Assets recognised related to structured entities	£ 849	£ 379

Asset transfers (Details)

Asset transfers (Details) - Securities repurchase agreements or lending transactions - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	£ 9,983	£ 26,705
Fair value of associated liabilities	9,501	24,747
Trading assets
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	6,668	13,084
Loans to banks - amortised cost
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	16	38
Loans to customers - amortised cost
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	398	1,837
Other financial assets
Securities repurchase agreements or lending transactions
Fair value of transferred financial asset not derecognised	£ 2,901	£ 11,746

Asset transfers - Assets pledge

Asset transfers - Assets pledged as collateral (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Asset transfers
Assets pledged against liabilities	£ 35,972	£ 47,395
Loans to customers and debt instruments transferred to provide collateral for issue of debt	8,156	8,965
Debt securities and other borrowings issued for which collateral is provided by transferred assets	4,132	3,512
Trading assets
Asset transfers
Assets pledged against liabilities	15,062	23,601
Loans to banks - amortised cost
Asset transfers
Assets pledged against liabilities	66	62
Loans to customers - amortised cost
Asset transfers
Assets pledged against liabilities	17,493	20,108
Other financial assets
Asset transfers
Assets pledged against liabilities	£ 3,351	£ 3,624

Capital resources (Details)

Capital resources (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Shareholders' equity (excluding non-controlling interests)
Shareholders' equity	£ 36,488	£ 41,796
Capital resources under the Prudential Regulation Authority requirements
Shareholders' equity (excluding non-controlling interests)
Shareholders' equity	36,488	41,796
Preference shares - equity	0	(494)
Other equity instruments	(3,890)	(3,890)
Shareholders' equity (excluding non-controlling interests)	32,598	37,412
Regulatory adjustments and deductions
Own credit	(58)	21
Defined benefit pension fund adjustment	(227)	(465)
Cash flow hedging reserve	2,771	395
Deferred tax assets	(912)	(761)
Prudential valuation adjustments	(275)	(274)
Goodwill and other intangible assets	(7,116)	(6,312)
Foreseeable ordinary dividends and pension contributions	(967)	(1,211)
Adjustment for trust assets	(365)
Foreseeable charges - on-market share buyback programme	(800)	(825)
Adjustment under IFRS 9 transitional arrangements	361	621
Insufficient coverage for non-performing exposures	(18)	(5)
Total regulatory adjustments and deductions	(7,606)	(8,816)
CET1 capital	24,992	28,596
Additional Tier 1 (AT1) capital
Qualifying instruments and related share premium	3,875	3,875
Qualifying instruments and related share premium subject to phase out	0	571
AT1 capital	3,875	4,446
Tier 1 capital	28,867	33,042
Qualifying Tier 2 capital
Qualifying instruments and related share premium	4,953	4,935
Qualifying instruments issued by subsidiaries and held by third parties	82	314
Other regulatory adjustments	18	457
Tier 2 capital	5,053	5,706
Total regulatory capital	£ 33,920	£ 38,748
Minimum pillar 1 capital ratio	8%
Minimum tier 1 component ratio	4.50%

Memorandum items - Contingent l

Memorandum items - Contingent liabilities and commitments (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Contingent liabilities and commitments
Standby facilities, credit lines and other commitments	£ 121,576	£ 121,308
Contingent liabilities and commitments	126,581	125,367	£ 128,732
Guarantees
Contingent liabilities and commitments
Estimated net exposure	3,150	2,055
Other contingent liabilities
Contingent liabilities and commitments
Estimated net exposure	£ 1,855	£ 2,004

Memorandum items - Contractual

Memorandum items - Contractual obligations of future (Details) - GBP (£) £ in Millions	Dec. 31, 2022	Dec. 31, 2021
Contractual obligations for future expenditure
Capital expenditure on property, plant and equipment	£ 8	£ 16
Contracts to purchase goods or services	677	682
Total capital commitments	685	698
Within 1 year
Contractual obligations for future expenditure
Contracts to purchase goods or services	£ 321	£ 301

Memorandum items - Additional i

Memorandum items - Additional information (Details) £ in Millions, $ in Millions, $ in Millions

1 Months Ended

6 Months Ended

12 Months Ended

36 Months Ended

Dec. 31, 2021 action item

Dec. 31, 2020 GBP (£)

Oct. 31, 2020 GBP (£)

May 31, 2019 AUD ($)

Jan. 31, 2017

Dec. 31, 2019

Dec. 31, 2022 GBP (£) action item

Dec. 31, 2022 USD ($) action item

Dec. 31, 2021 GBP (£)

Dec. 31, 2020 GBP (£)

Dec. 31, 2018 GBP (£)

Dec. 31, 2015 USD ($) company

Dec. 31, 2009

Dec. 31, 2011 USD ($)

Trustee and other fiduciary activities

Fee income | £

£ 266

£ 280

£ 245

US investigations relating to fixed-income securities

FX litigation

Period during which entity is suspected of fraudulent trading

3 months

Number of wire fraud

1

Number of securities frauds

1

Number of years probation

3 years

FDIC | Litigation and regulatory matters

The Financial Services Compensation Scheme

Number of banks for which claims have been dropped

20

20

Number of remaining claimant banks

19

19

Other IBOR cases

The Financial Services Compensation Scheme

Number of class action lawsuits

2

London Interbank Offered Rate (LIBOR)

The Financial Services Compensation Scheme

Number of non-class action | action

24

24

JPY LIBOR and Euroyen TIBOR

The Financial Services Compensation Scheme

Number of class action lawsuits

2

2

FX antitrust litigation

FX litigation

Settlement amount paid | $

$ 255

Federal Court of Australia FX antitrust litigation

FX litigation

Number of other parties subject to lawsuit or legal investigation

4

Maximum total transaction value | $

$ 0.5

UK Competition Appeal Tribunal

FX litigation

Number of applications for opt-out collective proceedings

2

Tel Aviv District Court FX antitrust litigations | NatWest Markets Plc

FX litigation

Number of pending motions

1

1

Swaps antitrust litigation

FX litigation

Number of swap execution facilities

3

3

Spoofing litigation

The Financial Services Compensation Scheme

Number of class action lawsuits | action

3

Madoff

The Financial Services Compensation Scheme

Number of class action lawsuits | action

2

2

FX litigation

Damages claimed | $

$ 298

EUA trading litigation

FX litigation

Number of claimants | company

10

Period during which entity is suspected of fraudulent trading

7 days

Damages quantified | £

£ 45

1MDB litigation | Coutts & Co Ltd

FX litigation

Contested amount received and paid out | $

$ 1,000

Offshoring VAT assessments | HMRC

FX litigation

Claimed unpaid VAT after tax assessment | £

£ 143

Payments for tax assessments | £

£ 143

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, 2022	Dec. 31, 2021	Dec. 31, 2020
Analysis of the net investment in business interests and intangible assets
Acquisition of interests in associates	£ (1)
Additional investment in associates		£ (51)	£ (40)
Net assets/liabilities purchased		(3,128)
Net outflow of cash in respect of acquisitions	1	3,179	40
Sale of interests in associates			27
Disposal of net assets and liabilities	6,270	114	288
(Loss)/profit on disposal of net assets and liabilities	(106)	55	3
Net inflow of cash in respect of disposals	6,164	169	318
Cash expenditure on intangible assets	(743)	(479)	(348)
Net inflow/(outflow) of cash	£ 5,420	£ (3,489)	£ (70)

Analysis of changes in financ_3

Analysis of changes in financing during the year - Share capital, share premium and paid-in equity (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
At 1 January	£ 41,803	£ 43,824
At 31 December	36,496	41,803	£ 43,824
Share capital, share premium and paid-in equity
At 1 January	16,519	18,239	17,246
Issue of paid-in equity		937	2,218
Net cash inflow/(outflow) from financing		937	2,218
Share cancellation	(929)	(698)
Paid in equity reclassified to subordinated liabilities		(2,046)	(1,277)
At 31 December	£ 15,590	£ 16,519	£ 18,239

Analysis of changes in financ_4

Analysis of changes in financing during the year - Subordinated liabilities and MRELs (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Subordinated Liabilities
Analysis of changes in financing during the year
At 1 January	£ 8,429	£ 9,962	£ 9,979
Issue of subordinated liabilities	648	1,634	1,631
Redemption of subordinated liabilities	(3,693)	(4,765)	(3,502)
Interest on subordinated liabilities	(374)	(321)	(510)
Net cash inflow/(outflow) from financing	(3,419)	(3,452)	(2,381)
Effects of foreign exchange	597	(18)	(234)
Changes in fair value of subordinated liabilities and MRELs	(594)	(434)	133
Preference shares reclassified to subordinated liabilities	750
Paid in equity reclassified to subordinated liabilities		1,915	1,632
Loss on sale of subordinated liabilities and MRELs	161	145	324
Interest on subordinated liabilities and MRELs	370	311	509
Other adjustments	(34)
At 31 December	6,260	8,429	9,962
MRELs
Analysis of changes in financing during the year
At 1 January	23,423	20,873	19,249
Issue of MRELs	3,721	3,383	1,309
Maturity and redemption of MRELs	(4,992)		(2)
Interest on MRELs	(703)	(647)	(671)
Net cash inflow/(outflow) from financing	(1,974)	2,736	636
Effects of foreign exchange	1,889	(190)	(514)
Changes in fair value of subordinated liabilities and MRELs	(1,806)	(649)	829
Interest on subordinated liabilities and MRELs	733	653	673
At 31 December	£ 22,265	23,423	20,873
Share capital, share premium and paid-in equity
Analysis of changes in financing during the year
Increase through issue of paid in equity		937	2,218
Ordinary shares issued		87	52
Net cash inflow/(outflow) from financing		937	2,218
Paid in equity reclassified to subordinated liabilities		£ (2,046)	£ (1,277)

Analysis of cash and cash equ_3

Analysis of cash and cash equivalents (Details) € in Millions, £ in Millions	12 Months Ended
	Dec. 31, 2022 GBP (£)	Dec. 31, 2021 GBP (£)	Dec. 31, 2020 GBP (£)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 EUR (€)	Dec. 31, 2020 EUR (€)
Analysis of cash and cash equivalents
Cash and cash equivalents at beginning of period	£ 190,706	£ 139,199	£ 100,588
Net (decrease)/increase in cash and cash equivalents	(32,257)	51,507	38,611
Cash and cash equivalents at end of period	158,449	190,706	139,199
Cash and balances at central banks	144,832	177,757	124,489
Trading assets	8,551	7,137	9,220
Other financial assets	19	16	173
Loans to banks	5,047	5,796	5,317
Total cash and cash equivalents	158,449	190,706	139,199
Cash collateral posted with bank counterparties	4,895	4,293	7,592
NWM N.V.
Cash
Mandatory reserve deposits at central banks | €				€ 64	€ 60	€ 81
Royal Bank of Scotland International (Holdings) Limited
Cash
Mandatory reserve deposits at central banks	£ 108	£ 123	£ 59

Directors' and key management_3

Directors' and key management remuneration - Directors (Details) - GBP (£) £ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Directors' and key management remuneration
Non-executive directors emoluments	£ 1,685	£ 1,641
Chairman and executive directors emoluments	5,804	4,688
Short-term compensation expense, directors	7,489	6,329
Amounts receivable under long-term incentive plans and share option plans	542	549
Total	8,031	6,878
Key management personnel compensation, post-employment benefits	£ 732	£ 820

Directors' and key management_4

Directors' and key management remuneration - Key management (Details) - GBP (£) £ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Directors' and key management remuneration
Short-term benefits	£ 22,175	£ 17,303
Post-employment benefits	732	820
Share-based payments	2,547	2,491
Total remuneration	£ 25,454	£ 20,614

Directors' and key management_5

Directors' and key management remuneration - (Details)	12 Months Ended
	Dec. 31, 2022
Directors' and key management remuneration
Short term benefits include benefits expected term	12 months

Transactions with directors a_3

Transactions with directors and key management (Details) £ in Thousands	Dec. 31, 2022 GBP (£) director	Dec. 31, 2021 GBP (£)
Transactions with directors and key management
Loans to customers - amortised cost	£ 366,340,000	£ 358,990,000
Customer deposits	450,318,000	479,810,000
key management personnel
Transactions with directors and key management
Loans to customers - amortised cost	12,137	9,128
Customer deposits	47,866	£ 51,018
Directors
Transactions with directors and key management
Loans to directors	£ 9,636,586
Number of directors with outstanding loans | director	8

Related parties (Details)

Related parties (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Related party transactions
Cash ratio deposits		0.403%
Threshold eligible liabilities		£ 600
Forecast | Main Scheme
Related party transactions
Transfer of amount to reservoir trust to meet potential future contributions	£ 471
HM Treasury
Related party transactions
Proportion of ordinary shares held		45.97%
Other interests
Related party transactions
Investments and other assets, related parties		£ 871
Liabilities		£ 4.5

Post balance sheet events (Deta

Post balance sheet events (Details) - Agreement with the trustees of the Main Section of the Group pension scheme £ in Millions	Feb. 06, 2023 GBP (£)
Post balance sheet events
Maximum amount of contribution, not expected to be required	£ 471
Amount of assets to hold as per new legal structure	£ 471