NatWest Group plc Interim Results 2026 - Part 2

About this update from Natwest Group Plc

[{"type":"text","content":"\n \n Condensed consolidated income statement \n for the period ended 30 June 2026 (unaudited) \n \n \n \n \n   \n \n \n   Half year ended   \n \n \n \n \n   \n \n \n 30 June \n \n \n 30 June \n \n \n \n \n   \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n   \n \n \n   £m   \n \n \n   £m   \n \n \n \n \n Interest receivable \n \n \n 13,043 \n \n \n 12,673 \n \n \n \n \n Interest payable \n \n \n (6,153) \n \n \n (6,553) \n \n \n \n \n Net interest income \n \n \n 6,890 \n \n \n 6,120 \n \n \n \n \n Fees and commissions receivable \n \n \n 1,710 \n \n \n 1,608 \n \n \n \n \n Fees and commissions payable \n \n \n (393) \n \n \n (368) \n \n \n \n \n Trading income \n \n \n 386 \n \n \n 575 \n \n \n \n \n Other operating income \n \n \n 269 \n \n \n 50 \n \n \n \n \n Non-interest income \n \n \n 1,972 \n \n \n 1,865 \n \n \n \n \n Total income \n \n \n 8,862 \n \n \n 7,985 \n \n \n \n \n Staff costs \n \n \n (2,134) \n \n \n (2,129) \n \n \n \n \n Premises and equipment \n \n \n (628) \n \n \n (587) \n \n \n \n \n Other administrative expenses \n \n \n (794) \n \n \n (745) \n \n \n \n \n Depreciation and amortisation \n \n \n (565) \n \n \n (557) \n \n \n \n \n Operating expenses \n \n \n (4,121) \n \n \n (4,018) \n \n \n \n \n Profit before impairment losses \n \n \n 4,741 \n \n \n 3,967 \n \n \n \n \n Impairment losses \n \n \n (423) \n \n \n (382) \n \n \n \n \n Operating profit before tax \n \n \n 4,318 \n \n \n   3,585   \n \n \n \n \n Tax charge \n \n \n (1,138) \n \n \n   (910) \n \n \n \n \n Profit for the period \n \n \n 3,180 \n \n \n   2,675   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Attributable to: \n \n \n   \n \n \n \n \n \n \n \n Ordinary shareholders \n \n \n 3,035 \n \n \n 2,488 \n \n \n \n \n Paid-in equity holders \n \n \n 149 \n \n \n 186 \n \n \n \n \n Non-controlling interests \n \n \n (4) \n \n \n 1 \n \n \n \n \n \n \n \n 3,180 \n \n \n 2,675 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Earnings per share attributable to ordinary shareholders - basic   \n \n \n 38.1p \n \n \n 30.9p \n \n \n \n \n Earnings per share attributable to ordinary shareholders - diluted \n \n \n 37.7p \n \n \n 30.5p \n \n \n \n \n   \n Condensed consolidated statement of comprehensive income \n for the period ended 30 June 2026 (unaudited) \n \n \n \n \n   \n \n \n Half year ended \n \n \n \n \n \n \n \n 30 June \n \n \n 30 June \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n \n \n \n £m   \n \n \n £m   \n \n \n \n \n Profit for the period \n \n \n 3,180 \n \n \n 2,675 \n \n \n \n \n Items that do not qualify for reclassification   \n \n \n   \n \n \n \n \n \n \n \n Remeasurement of retirement benefit schemes \n \n \n 7 \n \n \n 9 \n \n \n \n \n Changes in fair value of financial liabilities designated at fair value through profit or loss (FVTPL) due to changes in credit risk \n \n \n 6 \n \n \n (1) \n \n \n \n \n FVOCI financial assets \n \n \n 2 \n \n \n 49 \n \n \n \n \n Tax \n \n \n 1 \n \n \n (2) \n \n \n \n \n   \n \n \n 16 \n \n \n 55 \n \n \n \n \n Items that do qualify for reclassification   \n \n \n \n \n \n \n \n \n \n \n FVOCI financial assets \n \n \n 63 \n \n \n 63 \n \n \n \n \n Cash flow hedges   (1) \n \n \n (36) \n \n \n 658 \n \n \n \n \n Currency translation \n \n \n (153) \n \n \n (95) \n \n \n \n \n Tax \n \n \n (14) \n \n \n (192) \n \n \n \n \n \n \n \n (140) \n \n \n 434 \n \n \n \n \n Other comprehensive (losses)/income after tax \n \n \n (124) \n \n \n 489 \n \n \n \n \n Total comprehensive income for the period \n \n \n 3,056 \n \n \n 3,164 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Attributable to: \n \n \n   \n \n \n \n \n \n \n \n Ordinary shareholders \n \n \n 2,911 \n \n \n 2,977 \n \n \n \n \n Paid-in equity holders \n \n \n 149 \n \n \n 186 \n \n \n \n \n Non-controlling interests \n \n \n (4) \n \n \n 1 \n \n \n \n \n \n \n \n 3,056 \n \n \n 3,164 \n \n \n \n \n (1)     Refer to footnote 4 and 5 of the condensed consolidated statement of changes in equity. \n Condensed consolidated balance sheet \n as at 30 June 2026 (unaudited) \n \n \n \n \n   \n \n \n 30 June \n \n \n 31 December \n \n \n \n \n   \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n   \n \n \n £m   \n \n \n £m   \n \n \n \n \n Assets \n \n \n   \n \n \n \n \n \n \n \n Cash and balances at central banks \n \n \n 76,743 \n \n \n   85,182   \n \n \n \n \n Trading assets \n \n \n 47,366 \n \n \n   46,537   \n \n \n \n \n Derivatives \n \n \n 63,157 \n \n \n   60,789   \n \n \n \n \n Settlement balances \n \n \n 10,015 \n \n \n   645   \n \n \n \n \n Loans to banks - amortised cost \n \n \n 7,342 \n \n \n   6,958   \n \n \n \n \n Loans to customers - amortised cost \n \n \n 435,908 \n \n \n   418,881   \n \n \n \n \n Other financial assets \n \n \n 86,552 \n \n \n   79,770   \n \n \n \n \n Other assets (including intangible assets) \n \n \n 18,284 \n \n \n   15,791   \n \n \n \n \n Total assets \n \n \n 745,367 \n \n \n   714,553   \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Liabilities \n \n \n   \n \n \n \n \n \n \n \n Bank deposits \n \n \n 50,002 \n \n \n   44,092   \n \n \n \n \n Customer deposits \n \n \n 448,605 \n \n \n   442,998   \n \n \n \n \n Settlement balances \n \n \n 9,995 \n \n \n   942   \n \n \n \n \n Trading liabilities \n \n \n 50,637 \n \n \n   49,022   \n \n \n \n \n Derivatives \n \n \n 56,256 \n \n \n   53,974   \n \n \n \n \n Other financial liabilities \n \n \n 72,034 \n \n \n   67,599   \n \n \n \n \n Subordinated liabilities \n \n \n 6,606 \n \n \n   6,123   \n \n \n \n \n Notes in circulation \n \n \n 3,110 \n \n \n   3,164   \n \n \n \n \n Other liabilities \n \n \n 4,294 \n \n \n   4,026   \n \n \n \n \n Total liabilities \n \n \n 701,539 \n \n \n   671,940   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Equity \n \n \n   \n \n \n \n \n \n \n \n Ordinary shareholders' interests \n \n \n 38,748 \n \n \n   38,028   \n \n \n \n \n Other owners' interests \n \n \n 5,070 \n \n \n   4,571   \n \n \n \n \n Owners' equity \n \n \n 43,818 \n \n \n   42,599   \n \n \n \n \n Non-controlling interests \n \n \n 10 \n \n \n   14   \n \n \n \n \n Total equity \n \n \n 43,828 \n \n \n   42,613   \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Total liabilities and equity \n \n \n 745,367 \n \n \n   714,553   \n \n \n \n \n   \n Condensed consolidated statement of changes in equity \n for the period ended 30 June 2026 (unaudited) \n \n \n \n \n   \n \n \n Share   \n \n \n \n \n \n Other \n \n \n \n \n \n Other reserves \n \n \n Total \n \n \n Non \n \n \n   \n \n \n \n \n \n \n \n capital and \n \n \n Paid-in \n \n \n statutory \n \n \n Retained \n \n \n Fair \n \n \n Cash flow \n \n \n Foreign \n \n \n \n \n \n owners' \n \n \n controlling \n \n \n Total   \n \n \n \n \n \n \n \n share premium \n \n \n equity \n \n \n reserves (3) \n \n \n earnings \n \n \n   value \n \n \n hedging (4,5) \n \n \n exchange (6) \n \n \n Merger \n \n \n equity \n \n \n   interests \n \n \n equity \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n At 1 January 2026 \n \n \n 10,021 \n \n \n 4,571 \n \n \n 2,613 \n \n \n 14,419 \n \n \n 13 \n \n \n (752) \n \n \n 833 \n \n \n 10,881 \n \n \n 42,599 \n \n \n 14 \n \n \n 42,613 \n \n \n \n \n Profit attributable to ordinary shareholders \n \n \n   \n \n \n \n \n    and other equity owners \n \n \n   \n \n \n 3,184 \n \n \n   \n \n \n 3,184 \n \n \n (4) \n \n \n 3,180 \n \n \n \n \n Other comprehensive income \n \n \n   \n \n \n \n \n Remeasurement of retirement benefit schemes \n \n \n   \n \n \n 7 \n \n \n   \n \n \n 7 \n \n \n   \n \n \n 7 \n \n \n \n \n Changes in fair value of credit in financial liabilities \n \n \n   \n \n \n \n \n    designated at FVTPL due to own credit risk \n \n \n   \n \n \n 6 \n \n \n   \n \n \n 6 \n \n \n   \n \n \n 6 \n \n \n \n \n Unrealised gains \n \n \n   \n \n \n 91 \n \n \n   \n \n \n 91 \n \n \n   \n \n \n 91 \n \n \n \n \n Amounts recognised in equity \n \n \n   \n \n \n (201) \n \n \n   \n \n \n (201) \n \n \n   \n \n \n (201) \n \n \n \n \n Retranslation of net assets \n \n \n   \n \n \n (58) \n \n \n   \n \n \n (58) \n \n \n   \n \n \n (58) \n \n \n \n \n Gains on hedges of net assets \n \n \n   \n \n \n 36 \n \n \n   \n \n \n 36 \n \n \n   \n \n \n 36 \n \n \n \n \n Reclassification of OCI to Income statement \n \n \n   \n \n \n (26) \n \n \n 165 \n \n \n (131) \n \n \n   \n \n \n 8 \n \n \n   \n \n \n 8 \n \n \n \n \n Tax \n \n \n   \n \n \n (2) \n \n \n (14) \n \n \n 8 \n \n \n (5) \n \n \n   \n \n \n (13) \n \n \n   \n \n \n (13) \n \n \n \n \n Total comprehensive income/(losses) \n \n \n   \n \n \n 3,195 \n \n \n 51 \n \n \n (28) \n \n \n (158) \n \n \n - \n \n \n 3,060 \n \n \n (4) \n \n \n 3,056 \n \n \n \n \n \n \n \n   \n \n \n \n \n Transactions with owners \n \n \n   \n \n \n \n \n Ordinary share dividends paid \n \n \n   \n \n \n (1,835) \n \n \n   \n \n \n (1,835) \n \n \n - \n \n \n (1,835) \n \n \n \n \n Paid in equity dividends paid \n \n \n   \n \n \n (149) \n \n \n   \n \n \n (149) \n \n \n   \n \n \n (149) \n \n \n \n \n Paid-in equity issued   (1) \n \n \n   \n \n \n 499 \n \n \n   \n \n \n 499 \n \n \n   \n \n \n 499 \n \n \n \n \n Shares repurchased   (2) \n \n \n (85) \n \n \n   \n \n \n 85 \n \n \n (479) \n \n \n   \n \n \n (479) \n \n \n   \n \n \n (479) \n \n \n \n \n Sharing in success \n \n \n   \n \n \n (27) \n \n \n   \n \n \n (27) \n \n \n   \n \n \n (27) \n \n \n \n \n Employee share schemes \n \n \n   \n \n \n 45 \n \n \n   \n \n \n 45 \n \n \n   \n \n \n 45 \n \n \n \n \n Shares vested under employee share schemes \n \n \n   \n \n \n 114 \n \n \n   \n \n \n 114 \n \n \n   \n \n \n 114 \n \n \n \n \n Share-based remuneration \n \n \n   \n \n \n (9) \n \n \n   \n \n \n (9) \n \n \n   \n \n \n (9) \n \n \n \n \n At 30 June 2026 \n \n \n 9,936 \n \n \n 5,070 \n \n \n 2,812 \n \n \n 15,160 \n \n \n 64 \n \n \n (780) \n \n \n 675 \n \n \n 10,881 \n \n \n 43,818 \n \n \n 10 \n \n \n 43,828 \n \n \n \n \n For the notes to this table, refer to the following page. \n \n Condensed consolidated statement of changes in equity for the period ended 30 June 2026 (unaudited) continued \n \n \n \n \n   \n \n \n Share   \n \n \n \n \n \n Other \n \n \n \n \n \n Other reserves \n \n \n Total \n \n \n Non \n \n \n \n \n \n \n \n \n \n \n capital and \n \n \n Paid-in \n \n \n statutory \n \n \n Retained \n \n \n Fair \n \n \n Cash flow \n \n \n Foreign \n \n \n \n \n \n owners' \n \n \n controlling \n \n \n Total   \n \n \n \n \n \n \n \n share premium \n \n \n equity \n \n \n reserves (3) \n \n \n earnings \n \n \n   value \n \n \n hedging (4,5) \n \n \n exchange \n \n \n Merger \n \n \n equity \n \n \n   interests \n \n \n equity \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n At 1 January 2025 \n \n \n 10,133 \n \n \n 5,280 \n \n \n 2,350 \n \n \n 11,426 \n \n \n (103) \n \n \n (1,443) \n \n \n 826 \n \n \n 10,881 \n \n \n 39,350 \n \n \n 28 \n \n \n 39,378 \n \n \n \n \n Profit attributable to ordinary shareholders \n \n \n \n \n \n \n \n    and other equity owners \n \n \n \n \n \n 2,674 \n \n \n \n \n \n 2,674 \n \n \n 1 \n \n \n 2,675 \n \n \n \n \n Other comprehensive income \n \n \n \n \n \n \n \n Realised losses in period on FVOCI equity shares \n \n \n \n \n \n (2) \n \n \n 2 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n Remeasurement of retirement benefit schemes \n \n \n \n \n \n 9 \n \n \n \n \n \n 9 \n \n \n \n \n \n 9 \n \n \n \n \n Changes in fair value of credit in financial liabilities \n \n \n \n \n \n \n \n    designated at FVTPL due to own credit risk \n \n \n \n \n \n (1) \n \n \n \n \n \n (1) \n \n \n \n \n \n (1) \n \n \n \n \n Unrealised gains \n \n \n \n \n \n 116 \n \n \n \n \n \n 116 \n \n \n \n \n \n 116 \n \n \n \n \n Amounts recognised in equity \n \n \n \n \n \n 102 \n \n \n \n \n \n 102 \n \n \n \n \n \n 102 \n \n \n \n \n Retranslation of net assets \n \n \n \n \n \n (55) \n \n \n \n \n \n (55) \n \n \n \n \n \n (55) \n \n \n \n \n Losses on hedges of net assets \n \n \n \n \n \n (40) \n \n \n \n \n \n (40) \n \n \n \n \n \n (40) \n \n \n \n \n Amount transferred from equity to earnings \n \n \n \n \n \n (4) \n \n \n 556 \n \n \n - \n \n \n \n \n \n 552 \n \n \n \n \n \n 552 \n \n \n \n \n Tax \n \n \n \n \n \n (2) \n \n \n (19) \n \n \n (186) \n \n \n 13 \n \n \n \n \n \n (194) \n \n \n \n \n \n (194) \n \n \n \n \n Total comprehensive income/(losses) \n \n \n \n \n \n 2,678 \n \n \n 95 \n \n \n 472 \n \n \n (82) \n \n \n - \n \n \n 3,163 \n \n \n 1 \n \n \n 3,164 \n \n \n \n \n \n \n \n \n \n \n \n \n Transactions with owners \n \n \n \n \n \n \n \n Ordinary share dividends paid \n \n \n \n \n \n (1,250) \n \n \n \n \n \n (1,250) \n \n \n - \n \n \n (1,250) \n \n \n \n \n Paid in equity dividends \n \n \n \n \n \n (186) \n \n \n \n \n \n (186) \n \n \n \n \n \n (186) \n \n \n \n \n Paid-in equity issued   (1) \n \n \n \n \n \n 749 \n \n \n \n \n \n 749 \n \n \n \n \n \n 749 \n \n \n \n \n Purchase of non-controlling interest \n \n \n \n \n \n (10) \n \n \n \n \n \n (10) \n \n \n (11) \n \n \n (21) \n \n \n \n \n Employee share schemes \n \n \n \n \n \n 32 \n \n \n \n \n \n 32 \n \n \n \n \n \n 32 \n \n \n \n \n Shares vested under employee share schemes \n \n \n \n \n \n 121 \n \n \n \n \n \n 121 \n \n \n \n \n \n 121 \n \n \n \n \n Share-based remuneration \n \n \n \n \n \n (11) \n \n \n \n \n \n (11) \n \n \n \n \n \n (11) \n \n \n \n \n At 30 June 2025 \n \n \n 10,133 \n \n \n 6,029 \n \n \n 2,471 \n \n \n 12,679 \n \n \n (8) \n \n \n (971) \n \n \n 744 \n \n \n 10,881 \n \n \n 41,958 \n \n \n 18 \n \n \n 41,976 \n \n \n \n \n (1)     The issuance above is after netting of issuance fees of £1.5 million (2025 - £1.6 million), and the associated tax credit of £0.4 million (2025 - £0.4 million). \n \n \n   \n \n \n \n \n (2)     As part of the On Market Share Buyback Programmes NatWest Group plc repurchased and cancelled 78.5 million shares in 2026. The total consideration of these shares excluding fees was £474.3 million. The nominal value of the share cancellations was transferred to the capital redemption reserve. There were no outstanding share repurchases in June that settled in July 26. \n \n \n   \n \n \n \n \n (3)     Other statutory reserves consist of Capital redemption reserves of £3,415 million (2025 - £3,218 million) and Own shares held reserves of £603 million (2025 - £747 million). \n \n \n   \n \n \n \n \n (4)     The change in the cash flow hedging reserve is driven by realised accrued interest transferred to the income statement and an increase in swap rates in the period, where the portfolio of swaps are net receive fixed from an interest rate risk perspective. \n \n \n   \n \n \n \n \n (5)     The amount transferred from equity to the income statement is mostly recorded within net interest income mainly within loans to banks and customers - amortised cost, balances at central banks, bank deposits and customer deposits. \n (6)     Includes foreign exchange reserves recycling arising from the wind-down of Ulydien Designated Activity Company (£92 million) and capital repatriation from NatWest Markets Group Holdings Corporation (£38 million). \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n Condensed consolidated cash flow statement \n for the period ended 30 June 2026 (unaudited) \n \n \n \n \n \n \n \n Half year ended \n \n \n \n \n \n \n \n 30 June \n \n \n 30 June \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n Cash flows from operating activities \n \n \n   \n \n \n \n \n \n \n \n Operating profit before tax   \n \n \n 4,318 \n \n \n 3,585 \n \n \n \n \n Adjustments for non-cash and other items \n \n \n 774 \n \n \n 350 \n \n \n \n \n Net cash flows from trading activities \n \n \n 5,092 \n \n \n 3,935 \n \n \n \n \n Changes in operating assets and liabilities \n \n \n 1,163 \n \n \n 2,088 \n \n \n \n \n Net cash flows from operating activities before tax \n \n \n 6,255 \n \n \n 6,023 \n \n \n \n \n Income taxes paid \n \n \n (1,057) \n \n \n (906) \n \n \n \n \n Net cash flows from operating activities \n \n \n 5,198 \n \n \n 5,117 \n \n \n \n \n Net cash flows from investing activities \n \n \n (7,375) \n \n \n (7,896) \n \n \n \n \n Net cash flows from financing activities \n \n \n (4,026) \n \n \n 418 \n \n \n \n \n Effects of exchange rate changes on cash and cash equivalents \n \n \n (244) \n \n \n 391 \n \n \n \n \n Net decrease in cash and cash equivalents \n \n \n (6,447) \n \n \n (1,970) \n \n \n \n \n Cash and cash equivalents at beginning of period \n \n \n 95,433 \n \n \n 104,845 \n \n \n \n \n Cash and cash equivalents at end of period \n \n \n 88,986 \n \n \n 102,875 \n \n \n \n \n   \n \n \n Notes \n 1. Presentation of condensed consolidated financial statements \n \n \n The condensed consolidated financial statements should be read in conjunction with the NatWest Group plc 2025 Annual Report and Accounts. The accounting policies are the same as those applied in the consolidated financial statements except for the addition of Business combinations, noted below, resulting from the acquisition of Evelyn Partners on 30 June 2026. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. \n The condensed consolidated financial statements include the related notes, as well as the information marked as 'reviewed' within pages 21 to 68. \n The Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7 - issued May 2024) were adopted on 1 January 2026. NatWest Group has made an accounting policy election to derecognise financial liabilities before the settlement date where they are settled using electronic payment systems that satisfy the specified conditions in IFRS 9. The amendments had no material impact on the financial performance or position of NatWest Group. \n The directors have prepared the condensed consolidated 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 they are approved and in accordance with IAS 34 Interim Financial Reporting, as adopted by the UK and as issued by the International Accounting Standards Board (IASB). \n Business combinations \n Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value. Acquisition-related costs are recognised in profit or loss as incurred. \n At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition date, except that: \n ·     deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with IAS 12   Income Taxes   and IAS 19   Employee Benefits   respectively; and \n ·     liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2   Share-based Payment   at the acquisition date. \n \n The excess of the sum of the consideration transferred over the fair value of the identifiable assets acquired and the liabilities assumed is recognised as goodwill. \n The fair value measurement of identifiable assets acquired and liabilities assumed may be adjusted if additional information is obtained during the measurement period (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. \n In relation to the acquisition of Evelyn Partners, NatWest Group made significant judgements in respect of valuation techniques and modelling assumptions used to determine the fair value of identifiable assets acquired and liabilities assumed. \n NatWest Group has applied judgement in determining the allocation of acquired goodwill to the group of cash-generating units expected to benefit from the acquisition. \n Further information on the acquisition of Evelyn Partners during the current period is included in Note 2 . \n The estimated useful economic lives set out in the intangible assets accounting policy, would be expanded to include: \n Customer relationships                                      13 to 14 years \n Brand                                                                     10 years \n \n \n \n Notes continued \n 2. Acquisition of Evelyn Partners \n \n Acquisition overview \n On 30 June 2026, NatWest Group acquired 100% of the issued share capital of Evelyn Partners Group Limited (Evelyn Partners) for total consideration of £2.2 billion, determined by adjusting the enterprise value of £2.7 billion to reflect the cash, debt and working capital position of Evelyn Partners on acquisition date. \n Evelyn Partners is a UK-based wealth management and professional services business providing investment management, financial planning and advisory services to retail, mass affluent and high-net-worth clients. \n The acquisition accelerates NatWest Group's strategy, increasing the proportion of earnings generated from capital-light, fee-based income streams. \n The acquisition has been accounted for as a business combination using the acquisition method in accordance with IFRS 3 Business Combinations. \n Consideration transferred \n \n \n \n \n   \n \n \n £m \n \n \n \n \n Cash consideration \n \n \n   2,187   \n \n \n \n \n Share based payment awards attributable to pre-combination services \n \n \n   20   \n \n \n \n \n Total consideration transferred \n \n \n   2,207   \n \n \n \n \n   \n Provisional fair values of identifiable net assets acquired \n The fair values assigned to the identifiable assets acquired and liabilities assumed at the acquisition date are provisional and may be adjusted during the measurement period of up to 12 months from the acquisition date as permitted by IFRS 3. \n A summary of the provisional fair values recognised is set out below: \n \n \n \n \n   \n \n \n £m \n \n \n \n \n Cash \n \n \n 172 \n \n \n \n \n Right of use assets \n \n \n 43 \n \n \n \n \n Property, plant and equipment \n \n \n 29 \n \n \n \n \n Identifiable intangible assets \n \n \n 1,260 \n \n \n \n \n Other assets \n \n \n 157 \n \n \n \n \n Borrowings \n \n \n (674) \n \n \n \n \n Deferred tax liabilities \n \n \n (299) \n \n \n \n \n Lease liabilities \n \n \n (57) \n \n \n \n \n Other liabilities \n \n \n (147) \n \n \n \n \n Net identifiable assets acquired \n \n \n 484 \n \n \n \n \n Goodwill recognised \n \n \n 1,723 \n \n \n \n \n   \n \n   \n The principal identifiable intangible assets recognised comprise: \n ·     customer relationships; \n ·     brand-related intangible assets; and \n ·     technology and software assets. \n The goodwill recognised is principally attributable to: \n ·     expected revenue synergies from combining NatWest Group's customer base with Evelyn Partners' wealth management and advice capabilities; \n ·     the value of the assembled workforce and management expertise of the acquired business; and \n ·     future growth opportunities and strategic benefits that do not meet the criteria for separate recognition as identifiable intangible assets. \n None of the goodwill recognised is expected to be deductible for tax purposes. \n Measurement period adjustments \n The purchase price allocation remains subject to refinement as NatWest Group finalises the valuation of acquired intangible assets and certain provisions and tax balances. \n The valuation of customer relationships and investment management contracts is sensitive to assumptions relating to: \n ·     expected future assets under management; \n ·     client retention; \n ·     fee margins; \n ·     discount rates; and \n ·     EBITDA margin. \n Any adjustments identified during the measurement period will be recognised retrospectively in accordance with IFRS 3. \n Transactions accounted for separately \n On acquisition date, the following transactions have been accounted for separately to the acquisition: \n ·     external debt held by Evelyn Partners amounting to £674 million was repaid, resulting in an outflow of cash and reduction in borrowings by £674 million; \n ·     management loans held by previous investors in Evelyn Partners amounting to £11 million were settled, resulting in a cash inflow of £11 million. \n   \n Notes continued \n 2. Acquisition of Evelyn Partners continued \n Impact on the consolidated income statement \n Evelyn Partners was acquired on 30 June 2026, therefore had no contribution to the income statement of NatWest Group as at 30 June 2026. \n During the period, NatWest Group recognised £28 million of acquisition-related costs within Operating expenses. \n Impact on the consolidated balance sheet \n As at the 30 June 2026, the acquisition resulted in an increase in NatWest Group's: \n ·     goodwill; \n ·     other intangible assets; and \n ·     other assets and liabilities associated with the acquired business. \n Impact on the cash flow statement \n \n \n \n \n   \n \n \n £m \n \n \n \n \n Cash consideration paid \n \n \n 2,187 \n \n \n \n \n Less: cash and cash equivalents acquired \n \n \n 172 \n \n \n \n \n Net cash outflow on acquisition \n \n \n 2,015 \n \n \n \n \n The net cash outflow on acquisition is presented within investing activities in the condensed consolidated cash flow statement. \n   \n Illustrative pro forma information \n Had the acquisition occurred on 1 January 2026, management estimates that NatWest Group would have reported: \n \n \n \n \n   \n \n \n £m \n \n \n \n \n Total income \n \n \n 9,139 \n \n \n \n \n Profit after tax \n \n \n 3,162 \n \n \n \n \n The pro forma information is presented for illustrative purposes only and is not necessarily indicative of the results of operations that would have been achieved had the acquisition been completed on that date, nor is it intended to be a projection of future results. \n In determining these amounts, management has assumed that the fair value adjustments that arose on acquisition as part of the purchase price allocation would have been the same and that the external debt would have still have been paid off immediately if the acquisition had occurred on 1 January 2026, resulting in an additional amortisation charge relating to the additional identifiable intangible assets recognised and a decrease in the interest expense recognised in relation to the external debt. \n Notes continued \n \n 3. Net interest income \n \n \n \n \n   \n \n \n Half year ended \n \n \n \n \n   \n \n \n 30 June \n \n \n 30 June \n \n \n \n \n   \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n   \n \n \n   £m   \n \n \n   £m   \n \n \n \n \n Balances at central banks and loans to banks - amortised cost \n \n \n 1,443 \n \n \n 1,769 \n \n \n \n \n Loans to customers - amortised cost \n \n \n 9,960 \n \n \n 9,412 \n \n \n \n \n Other financial assets \n \n \n 1,640 \n \n \n 1,492 \n \n \n \n \n Interest receivable \n \n \n 13,043 \n \n \n 12,673 \n \n \n \n \n Bank deposits \n \n \n 974 \n \n \n 854 \n \n \n \n \n Customer deposits \n \n \n 3,524 \n \n \n 3,918 \n \n \n \n \n Other financial liabilities \n \n \n 1,485 \n \n \n 1,579 \n \n \n \n \n Subordinated liabilities \n \n \n 170 \n \n \n 202 \n \n \n \n \n Interest payable \n \n \n 6,153 \n \n \n 6,553 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Net interest income \n \n \n 6,890 \n \n \n 6,120 \n \n \n \n \n 4. Non-interest income \n \n \n \n \n \n \n \n Half year ended \n \n \n \n \n \n \n \n 30 June \n \n \n 30 June \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n \n \n Net fees and commissions   (1) \n \n \n 1,317 \n \n \n 1,240 \n \n \n \n \n Foreign exchange \n \n \n 219 \n \n \n 232 \n \n \n \n \n Interest rate   (2) \n \n \n 153 \n \n \n 281 \n \n \n \n \n Credit \n \n \n 12 \n \n \n 57 \n \n \n \n \n Changes in fair value of own debt and derivative liabilities attributable to own credit risk - debt securities in issue \n \n \n 1 \n \n \n 3 \n \n \n \n \n Equities, commodities and other \n \n \n 1 \n \n \n 2 \n \n \n \n \n Income from trading activities \n \n \n 386 \n \n \n 575 \n \n \n \n \n Rental income on operating lease assets and investment property \n \n \n 115 \n \n \n 108 \n \n \n \n \n Changes in fair value of financial assets and liabilities designated at FVTPL   (3) \n \n \n (63) \n \n \n (85) \n \n \n \n \n Changes in fair value of other financial assets and liabilities designated at FVTPL   (4) \n \n \n 17 \n \n \n 22 \n \n \n \n \n Hedge ineffectiveness \n \n \n 15 \n \n \n (13) \n \n \n \n \n Profit on disposal of fair value through other comprehensive income asset \n \n \n 26 \n \n \n 4 \n \n \n \n \n Loss on disposal of subsidiaries and associates \n \n \n (15) \n \n \n - \n \n \n \n \n Share of profit of associated entities \n \n \n 18 \n \n \n 14 \n \n \n \n \n Foreign exchange recycling profit   (5) \n \n \n 133 \n \n \n 1 \n \n \n \n \n Other income \n \n \n 23 \n \n \n (1) \n \n \n \n \n Other operating income \n \n \n 269 \n \n \n 50 \n \n \n \n \n Non-interest income \n \n \n 1,972 \n \n \n 1,865 \n \n \n \n \n   \n (1)     Refer to Note 6 for further analysis. \n (2)     Includes fair value changes on derivatives not designated in a hedge accounting relationship, and gains and losses from structural hedges. \n (3)     Includes related derivatives. \n (4)     Includes instruments that have failed solely payments of principal and interest testing under IFRS 9. \n (5)     Refer to footnote 6 of the Condensed consolidated statement of changes in equity. \n \n \n Notes continued \n \n 5. Operating expenses \n \n \n \n \n   \n \n \n Half year ended \n \n \n \n \n   \n \n \n 30 June \n \n \n 30 June \n \n \n \n \n   \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n \n \n Salaries \n \n \n 1,209 \n \n \n 1,237 \n \n \n \n \n Bonus awards \n \n \n 296 \n \n \n 271 \n \n \n \n \n Temporary and contract costs \n \n \n 74 \n \n \n 79 \n \n \n \n \n Social security costs \n \n \n 227 \n \n \n 207 \n \n \n \n \n Pension costs \n \n \n 164 \n \n \n 173 \n \n \n \n \n   - defined benefit schemes \n \n \n 35 \n \n \n 52 \n \n \n \n \n   - defined contribution schemes \n \n \n 129 \n \n \n 121 \n \n \n \n \n Other \n \n \n 164 \n \n \n 162 \n \n \n \n \n Staff costs \n \n \n 2,134 \n \n \n 2,129 \n \n \n \n \n Premises and equipment \n \n \n 628 \n \n \n 587 \n \n \n \n \n Depreciation and amortisation   (1) \n \n \n 565 \n \n \n 557 \n \n \n \n \n Other administrative expenses \n \n \n 794 \n \n \n 745 \n \n \n \n \n Administrative expenses \n \n \n 1,987 \n \n \n 1,889 \n \n \n \n \n Operating expenses \n \n \n 4,121 \n \n \n 4,018 \n \n \n \n \n (1)     Includes depreciation of right of use assets of £43 million (30 June 2025 - £47 million). \n \n \n 6. Segmental analysis \n The business is organised into the following reportable segments: Retail Banking, Private Banking & Wealth Management, Commercial & Institutional and Central items & other. \n Analysis of operating profit/(loss) before tax \n The following tables provide a segmental analysis of operating profit/(loss) before tax by the main income statement captions. \n \n \n \n \n \n \n \n   \n \n \n Private Banking & \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Retail \n \n \n Wealth \n \n \n Commercial & \n \n \n Central items & \n \n \n \n \n \n \n \n \n \n \n Banking \n \n \n   Management \n \n \n Institutional \n \n \n   other \n \n \n Total \n \n \n \n \n Half year ended 30 June 2026 \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Net interest income \n \n \n 3,165 \n \n \n 398 \n \n \n 3,367 \n \n \n (40) \n \n \n 6,890 \n \n \n \n \n Net fees and commissions \n \n \n 265 \n \n \n 178 \n \n \n 871 \n \n \n 3 \n \n \n 1,317 \n \n \n \n \n Other non-interest income   \n \n \n 8 \n \n \n 19 \n \n \n 391 \n \n \n 237 \n \n \n 655 \n \n \n \n \n Total income \n \n \n 3,438 \n \n \n 595 \n \n \n 4,629 \n \n \n 200 \n \n \n 8,862 \n \n \n \n \n Depreciation and amortisation \n \n \n (13) \n \n \n (1) \n \n \n (62) \n \n \n (489) \n \n \n (565) \n \n \n \n \n Other operating expenses   \n \n \n (1,416) \n \n \n (376) \n \n \n (2,146) \n \n \n 382 \n \n \n (3,556) \n \n \n \n \n Impairment losses \n \n \n (280) \n \n \n (6) \n \n \n (137) \n \n \n - \n \n \n (423) \n \n \n \n \n Operating profit \n \n \n 1,729 \n \n \n 212 \n \n \n 2,284 \n \n \n 93 \n \n \n 4,318 \n \n \n \n \n \n Notes continued \n 6. Segmental analysis continued \n Analysis of operating profit/(loss) before tax \n \n \n \n \n \n \n \n \n \n \n Private Banking & \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Retail \n \n \n Wealth \n \n \n Commercial & \n \n \n Central items & \n \n \n \n \n \n \n \n \n \n \n Banking \n \n \n   Management \n \n \n Institutional \n \n \n   other \n \n \n Total \n \n \n \n \n Half year ended 30 June 2025 \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Net interest income \n \n \n 2,922 \n \n \n 363 \n \n \n 2,955 \n \n \n (120) \n \n \n 6,120 \n \n \n \n \n Net fees and commissions \n \n \n 213 \n \n \n 159 \n \n \n 865 \n \n \n 3 \n \n \n 1,240 \n \n \n \n \n Other non-interest income   \n \n \n (1) \n \n \n 17 \n \n \n 469 \n \n \n 140 \n \n \n 625 \n \n \n \n \n Total income \n \n \n 3,134 \n \n \n 539 \n \n \n 4,289 \n \n \n 23 \n \n \n 7,985 \n \n \n \n \n Depreciation and amortisation \n \n \n - \n \n \n - \n \n \n (71) \n \n \n (486) \n \n \n (557) \n \n \n \n \n Other operating expenses   \n \n \n (1,423) \n \n \n (359) \n \n \n (2,080) \n \n \n 401 \n \n \n (3,461) \n \n \n \n \n Impairment losses \n \n \n (226) \n \n \n (1) \n \n \n (154) \n \n \n (1) \n \n \n (382) \n \n \n \n \n Operating profit/(loss) \n \n \n 1,485 \n \n \n 179 \n \n \n 1,984 \n \n \n (63) \n \n \n 3,585 \n \n \n \n \n   \n Total revenue (1) \n \n \n \n \n   \n \n \n   \n \n \n Private Banking & \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n Retail \n \n \n Wealth \n \n \n Commercial & \n \n \n Central items & \n \n \n \n \n \n \n \n   \n \n \n Banking \n \n \n   Management \n \n \n Institutional \n \n \n   other \n \n \n Total \n \n \n \n \n Half year ended 30 June 2026 \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n External \n \n \n 5,312 \n \n \n 634 \n \n \n 6,631 \n \n \n 2,831 \n \n \n 15,408 \n \n \n \n \n Inter-segmental \n \n \n 7 \n \n \n 691 \n \n \n (665) \n \n \n (33) \n \n \n - \n \n \n \n \n Total \n \n \n 5,319 \n \n \n 1,325 \n \n \n 5,966 \n \n \n 2,798 \n \n \n 15,408 \n \n \n \n \n \n \n \n \n \n Half year ended 30 June 2025 \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n External \n \n \n 4,916 \n \n \n 617 \n \n \n 6,729 \n \n \n 2,644 \n \n \n 14,906 \n \n \n \n \n Inter-segmental \n \n \n 6 \n \n \n 774 \n \n \n (794) \n \n \n 14 \n \n \n - \n \n \n \n \n Total \n \n \n 4,922 \n \n \n 1,391 \n \n \n 5,935 \n \n \n 2,658 \n \n \n 14,906 \n \n \n \n \n (1)     Total revenue comprises interest receivable, fees and commissions receivable, income from trading activities and other operating income. \n Total assets and liabilities \n \n \n \n \n   \n \n \n   \n \n \n Private Banking & \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Retail \n \n \n Wealth   \n \n \n Commercial & \n \n \n Central items & \n \n \n \n \n \n \n \n Banking \n \n \n Management \n \n \n Institutional \n \n \n   other \n \n \n Total \n \n \n \n \n 30 June 2026 \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Assets \n \n \n 247,472 \n \n \n 32,899 \n \n \n 422,116 \n \n \n 42,880 \n \n \n 745,367 \n \n \n \n \n Liabilities \n \n \n 205,933 \n \n \n 42,139 \n \n \n 377,800 \n \n \n 75,667 \n \n \n 701,539 \n \n \n \n \n \n \n \n \n \n 31 December 2025 \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Assets \n \n \n   240,259   \n \n \n   30,457   \n \n \n   391,869   \n \n \n   51,968   \n \n \n   714,553   \n \n \n \n \n Liabilities \n \n \n   206,398   \n \n \n   42,895   \n \n \n   354,499   \n \n \n   68,148   \n \n \n   671,940   \n \n \n \n \n \n Notes continued \n 6. Segmental analysis continued \n Analysis of net fees and commissions \n \n \n \n \n \n \n \n   \n \n \n Private Banking \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Retail \n \n \n & Wealth   \n \n \n Commercial \n \n \n Central items \n \n \n \n \n \n \n \n   \n \n \n Banking \n \n \n Management \n \n \n & Institutional \n \n \n & other \n \n \n Total \n \n \n \n \n Half year ended 30 June 2026 \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Fees and commissions receivable \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n   - Payment services \n \n \n 191 \n \n \n 19 \n \n \n 358 \n \n \n - \n \n \n 568 \n \n \n \n \n   - Credit and debit card fees \n \n \n 207 \n \n \n 10 \n \n \n 133 \n \n \n - \n \n \n 350 \n \n \n \n \n   - Lending and financing \n \n \n 8 \n \n \n 4 \n \n \n 385 \n \n \n - \n \n \n 397 \n \n \n \n \n   - Brokerage \n \n \n 68 \n \n \n 6 \n \n \n 25 \n \n \n - \n \n \n 99 \n \n \n \n \n   - Investment management, trustee and fiduciary services   \n \n \n 2 \n \n \n 148 \n \n \n 27 \n \n \n 8 \n \n \n 185 \n \n \n \n \n   - Underwriting fees \n \n \n - \n \n \n - \n \n \n 93 \n \n \n - \n \n \n 93 \n \n \n \n \n   - Other \n \n \n 10 \n \n \n 3 \n \n \n 19 \n \n \n (14) \n \n \n 18 \n \n \n \n \n Total \n \n \n 486 \n \n \n 190 \n \n \n 1,040 \n \n \n (6) \n \n \n 1,710 \n \n \n \n \n Fees and commissions payable \n \n \n (221) \n \n \n (12) \n \n \n (169) \n \n \n 9 \n \n \n (393) \n \n \n \n \n Net fees and commissions \n \n \n 265 \n \n \n 178 \n \n \n 871 \n \n \n 3 \n \n \n 1,317 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Half year ended 30 June 2025 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fees and commissions receivable \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   - Payment services \n \n \n 176 \n \n \n 20 \n \n \n 355 \n \n \n - \n \n \n 551 \n \n \n \n \n   - Credit and debit card fees \n \n \n 203 \n \n \n 10 \n \n \n 133 \n \n \n - \n \n \n 346 \n \n \n \n \n   - Lending and financing \n \n \n 8 \n \n \n 4 \n \n \n 370 \n \n \n - \n \n \n 382 \n \n \n \n \n   - Brokerage \n \n \n 19 \n \n \n 5 \n \n \n 28 \n \n \n - \n \n \n 52 \n \n \n \n \n   - Investment management, trustee and fiduciary services   \n \n \n 1 \n \n \n 126 \n \n \n 25 \n \n \n 10 \n \n \n 162 \n \n \n \n \n   - Underwriting fees \n \n \n - \n \n \n - \n \n \n 88 \n \n \n - \n \n \n 88 \n \n \n \n \n   - Other \n \n \n 5 \n \n \n 2 \n \n \n 28 \n \n \n (8) \n \n \n 27 \n \n \n \n \n Total \n \n \n 412 \n \n \n 167 \n \n \n 1,027 \n \n \n 2 \n \n \n 1,608 \n \n \n \n \n Fees and commissions payable \n \n \n (199) \n \n \n (8) \n \n \n (162) \n \n \n 1 \n \n \n (368) \n \n \n \n \n Net fees and commissions \n \n \n 213 \n \n \n 159 \n \n \n 865 \n \n \n 3 \n \n \n 1,240 \n \n \n \n \n \n \n Notes continued \n 7. Tax \n The actual tax charge differs from the expected tax charge computed by applying the standard UK corporation tax rate of 25% (2025 - 25%), as analysed below: \n \n \n \n \n \n \n \n Half year ended \n \n \n \n \n \n \n \n 30 June \n \n \n 30 June \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n \n \n Profit before tax \n \n \n 4,318 \n \n \n 3,585 \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Expected tax charge \n \n \n (1,080) \n \n \n (896) \n \n \n \n \n Losses and temporary differences in period where no deferred tax assets recognised \n \n \n (3) \n \n \n (4) \n \n \n \n \n Foreign profits taxed at other rates \n \n \n 4 \n \n \n 21 \n \n \n \n \n Items not allowed for tax: \n \n \n   \n \n \n \n \n \n \n \n   - losses on disposals and write-downs \n \n \n (6) \n \n \n 5 \n \n \n \n \n   - UK bank levy \n \n \n (17) \n \n \n (17) \n \n \n \n \n   - regulatory and legal actions \n \n \n (3) \n \n \n (16) \n \n \n \n \n   - other disallowable items \n \n \n (24) \n \n \n (14) \n \n \n \n \n Non-taxable items: \n \n \n   \n \n \n \n \n \n \n \n   - FX recycling on Ulydien capital reduction \n \n \n 22 \n \n \n - \n \n \n \n \n   - RPI-related uplift on index-linked gilts \n \n \n 17 \n \n \n 9 \n \n \n \n \n   - other non-taxable items \n \n \n 5 \n \n \n 15 \n \n \n \n \n Taxable foreign exchange movements \n \n \n 1 \n \n \n (3) \n \n \n \n \n Unrecognised losses bought forward and utilised \n \n \n 23 \n \n \n 18 \n \n \n \n \n Net increase in the carrying value of deferred tax assets in respect of UK losses \n \n \n - \n \n \n 26 \n \n \n \n \n Banking surcharge \n \n \n (110) \n \n \n (95) \n \n \n \n \n Tax on paid-in equity dividends \n \n \n 37 \n \n \n 40 \n \n \n \n \n Adjustments in respect of prior years \n \n \n (4) \n \n \n 1 \n \n \n \n \n Actual tax charge \n \n \n (1,138) \n \n \n (910) \n \n \n \n \n At 30 June 2026, NatWest Group has recognised a deferred tax asset of £1,149 million (31 December 2025 - £1,252 million) and a deferred tax liability of £376 million (31 December 2025 - £104 million). These amounts include deferred tax assets recognised in respect of trading losses of £741 million (31 December 2025 - £814 million). NatWest Group has considered the carrying value of these assets as at 30 June 2026 and concluded that they are recoverable. \n Deferred tax liabilities of £299 million relate to the net identifiable assets acquired as part of the Evelyn Partners acquisition (refer to Note 2 for further information). \n \n \n Notes continued \n 8. Financial instruments - classification \n The following tables analyse financial assets and liabilities in accordance with the categories of financial instruments in IFRS 9. \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n Amortised \ncost \n \n \n Other \nassets \n \n \n   \n \n \n \n \n   \n \n \n MFVTPL \n \n \n DFV \n \n \n FVOCI \n \n \n Total \n \n \n \n \n Assets \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Cash and balances at central banks \n \n \n   \n \n \n   \n \n \n   \n \n \n 76,743 \n \n \n   \n \n \n 76,743 \n \n \n \n \n Trading assets \n \n \n 47,366 \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 47,366 \n \n \n \n \n Derivatives   (1) \n \n \n 63,157 \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 63,157 \n \n \n \n \n Settlement balances \n \n \n   \n \n \n   \n \n \n   \n \n \n 10,015 \n \n \n   \n \n \n 10,015 \n \n \n \n \n Loans to banks - amortised cost   (2) \n \n \n   \n \n \n   \n \n \n   \n \n \n 7,342 \n \n \n   \n \n \n 7,342 \n \n \n \n \n Loans to customers - amortised cost   (3) \n \n \n   \n \n \n   \n \n \n   \n \n \n 435,908 \n \n \n   \n \n \n 435,908 \n \n \n \n \n Other financial assets \n \n \n 810 \n \n \n 7 \n \n \n 50,647 \n \n \n 35,088 \n \n \n   \n \n \n 86,552 \n \n \n \n \n Intangible assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 10,205 \n \n \n 10,205 \n \n \n \n \n Other assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 8,079 \n \n \n 8,079 \n \n \n \n \n 30 June 2026 \n \n \n 111,333 \n \n \n 7 \n \n \n 50,647 \n \n \n 565,096 \n \n \n 18,284 \n \n \n 745,367 \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash and balances at central banks \n \n \n \n \n \n \n \n \n \n \n \n 85,182 \n \n \n \n \n \n 85,182 \n \n \n \n \n Trading assets \n \n \n 46,537 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 46,537 \n \n \n \n \n Derivatives   (1) \n \n \n 60,789 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 60,789 \n \n \n \n \n Settlement balances \n \n \n \n \n \n \n \n \n \n \n \n 645 \n \n \n \n \n \n 645 \n \n \n \n \n Loans to banks - amortised cost   (2) \n \n \n \n \n \n \n \n \n \n \n \n 6,958 \n \n \n \n \n \n 6,958 \n \n \n \n \n Loans to customers - amortised cost   (3) \n \n \n \n \n \n \n \n \n \n \n \n 418,881 \n \n \n \n \n \n 418,881 \n \n \n \n \n Other financial assets   \n \n \n 1,041 \n \n \n 3 \n \n \n 42,168 \n \n \n 36,558 \n \n \n \n \n \n 79,770 \n \n \n \n \n Intangible assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 7,292 \n \n \n 7,292 \n \n \n \n \n Other assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 8,499 \n \n \n 8,499 \n \n \n \n \n 31 December 2025 \n \n \n 108,367 \n \n \n 3 \n \n \n 42,168 \n \n \n 548,224 \n \n \n 15,791 \n \n \n 714,553 \n \n \n \n \n For the notes to this table refer to the following page. \n   \n Notes continued \n 8. Financial instruments - classification continued \n   \n \n \n \n \n   \n \n \n Held-for-trading \n \n \n   \n \n \n Amortised \ncost \n \n \n Other \nliabilities \n \n \n   \n \n \n \n \n   \n \n \n DFV \n \n \n Total \n \n \n \n \n Liabilities \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Bank deposits   (4) \n \n \n   \n \n \n   \n \n \n 50,002 \n \n \n   \n \n \n 50,002 \n \n \n \n \n Customer deposits \n \n \n   \n \n \n   \n \n \n 448,605 \n \n \n   \n \n \n 448,605 \n \n \n \n \n Settlement balances \n \n \n   \n \n \n   \n \n \n 9,995 \n \n \n   \n \n \n 9,995 \n \n \n \n \n Trading liabilities \n \n \n 50,637 \n \n \n   \n \n \n   \n \n \n   \n \n \n 50,637 \n \n \n \n \n Derivatives   (1) \n \n \n 56,256 \n \n \n   \n \n \n   \n \n \n   \n \n \n 56,256 \n \n \n \n \n Other financial liabilities   (5,7) \n \n \n   \n \n \n 4,790 \n \n \n 67,244 \n \n \n   \n \n \n 72,034 \n \n \n \n \n Subordinated liabilities \n \n \n   \n \n \n 230 \n \n \n 6,376 \n \n \n   \n \n \n 6,606 \n \n \n \n \n Notes in circulation \n \n \n   \n \n \n   \n \n \n 3,110 \n \n \n   \n \n \n 3,110 \n \n \n \n \n Other liabilities   (6) \n \n \n   \n \n \n   \n \n \n 600 \n \n \n 3,694 \n \n \n 4,294 \n \n \n \n \n 30 June 2026 \n \n \n 106,893 \n \n \n 5,020 \n \n \n 585,932 \n \n \n 3,694 \n \n \n 701,539 \n \n \n \n \n \n \n \n \n \n Bank deposits   (4) \n \n \n \n \n \n \n \n \n 44,092 \n \n \n \n \n \n 44,092 \n \n \n \n \n Customer deposits \n \n \n \n \n \n \n \n \n 442,998 \n \n \n \n \n \n 442,998 \n \n \n \n \n Settlement balances \n \n \n \n \n \n \n \n \n 942 \n \n \n \n \n \n 942 \n \n \n \n \n Trading liabilities \n \n \n 49,022 \n \n \n \n \n \n \n \n \n \n \n \n 49,022 \n \n \n \n \n Derivatives   (1) \n \n \n 53,974 \n \n \n \n \n \n \n \n \n \n \n \n 53,974 \n \n \n \n \n Other financial liabilities   (5,7) \n \n \n \n \n \n 4,617 \n \n \n 62,982 \n \n \n \n \n \n 67,599 \n \n \n \n \n Subordinated liabilities \n \n \n \n \n \n 237 \n \n \n 5,886 \n \n \n \n \n \n 6,123 \n \n \n \n \n Notes in circulation \n \n \n \n \n \n \n \n \n 3,164 \n \n \n \n \n \n 3,164 \n \n \n \n \n Other liabilities   (6) \n \n \n \n \n \n \n \n \n 594 \n \n \n 3,432 \n \n \n 4,026 \n \n \n \n \n 31 December 2025 \n \n \n 102,996 \n \n \n 4,854 \n \n \n 560,658 \n \n \n 3,432 \n \n \n 671,940 \n \n \n \n \n (1)     Includes net hedging derivative assets of £395 million (31 December 2025 - £535 million) and net hedging derivative liabilities of £319 million (31 December 2025 - £356 million). \n (2)     Includes items in the course of collection from other banks of £364 million (31 December 2025 - £166 million). \n (3)     Includes finance lease receivables of £9,206 million (31 December 2025 - £8,971 million). \n (4)     Includes items in the course of transmission to other banks of £200 million (31 December 2025 - £192 million). \n (5)     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. \n (6)     Includes lease liabilities of £538 million (31 December 2025 - £535 million), held at amortised cost. \n (7)     During the period ended 30 June 2026, there were debt issuances of £7.7 billion and debt repayments of £8.4 billion. Funding was also raised in other formats including commercial paper and certificates of deposit. \n \n Notes continued \n 9. Financial instruments - valuation \n Disclosures relating to the control environment, valuation techniques and related aspects pertaining to financial instruments measured at fair value are included in the NatWest Group plc 2025 Annual Report and Accounts. Valuation, sensitivity methodologies and inputs at 30 June 2026 are consistent with those described in Note 10 to the financial statements in the NatWest Group plc 2025 Annual Report and Accounts. \n Fair value hierarchy \n 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. \n \n \n \n \n \n \n \n 30 June 2026 \n \n \n   \n \n \n 31 December 2025 \n \n \n   \n \n \n \n \n \n \n \n Level 1 \n \n \n Level 2 \n \n \n Level 3 \n \n \n Total \n \n \n   \n \n \n Level 1 \n \n \n Level 2 \n \n \n Level 3 \n \n \n Total \n \n \n   \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n   \n \n \n \n \n Assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Trading assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   Loans \n \n \n - \n \n \n 29,022 \n \n \n 256 \n \n \n 29,278 \n \n \n \n \n \n - \n \n \n 33,556 \n \n \n 96 \n \n \n 33,652 \n \n \n   \n \n \n \n \n   Securities \n \n \n 13,811 \n \n \n 4,277 \n \n \n - \n \n \n 18,088 \n \n \n \n \n \n 9,586 \n \n \n 3,299 \n \n \n - \n \n \n 12,885 \n \n \n   \n \n \n \n \n Derivatives \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   Interest rate \n \n \n - \n \n \n 30,819 \n \n \n 337 \n \n \n 31,156 \n \n \n \n \n \n - \n \n \n 32,382 \n \n \n 360 \n \n \n 32,742 \n \n \n   \n \n \n \n \n   Foreign exchange \n \n \n - \n \n \n 31,850 \n \n \n 90 \n \n \n 31,940 \n \n \n \n \n \n - \n \n \n 27,878 \n \n \n 103 \n \n \n 27,981 \n \n \n   \n \n \n \n \n   Other \n \n \n - \n \n \n 49 \n \n \n 12 \n \n \n 61 \n \n \n \n \n \n - \n \n \n 57 \n \n \n 9 \n \n \n 66 \n \n \n   \n \n \n \n \n Other financial assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   Loans \n \n \n - \n \n \n 24 \n \n \n 829 \n \n \n 853 \n \n \n \n \n \n - \n \n \n 35 \n \n \n 533 \n \n \n 568 \n \n \n   \n \n \n \n \n   Securities \n \n \n 29,888 \n \n \n 20,606 \n \n \n 117 \n \n \n 50,611 \n \n \n \n \n \n 25,528 \n \n \n 16,964 \n \n \n 152 \n \n \n 42,644 \n \n \n   \n \n \n \n \n Total financial assets held at fair value \n \n \n 43,699 \n \n \n 116,647 \n \n \n 1,641 \n \n \n 161,987 \n \n \n \n \n \n 35,114 \n \n \n 114,171 \n \n \n 1,253 \n \n \n 150,538 \n \n \n   \n \n \n \n \n As a % of total fair value assets \n \n \n 27% \n \n \n 72% \n \n \n 1% \n \n \n   \n \n \n \n \n \n 23% \n \n \n 76% \n \n \n 1% \n \n \n \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Trading liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   Deposits \n \n \n - \n \n \n 40,399 \n \n \n - \n \n \n 40,399 \n \n \n \n \n \n - \n \n \n 41,284 \n \n \n - \n \n \n 41,284 \n \n \n   \n \n \n \n \n   Debt securities in issue \n \n \n - \n \n \n 215 \n \n \n - \n \n \n 215 \n \n \n \n \n \n - \n \n \n 234 \n \n \n - \n \n \n 234 \n \n \n   \n \n \n \n \n   Short positions \n \n \n 8,174 \n \n \n 1,848 \n \n \n 1 \n \n \n 10,023 \n \n \n \n \n \n 6,172 \n \n \n 1,331 \n \n \n 1 \n \n \n 7,504 \n \n \n   \n \n \n \n \n Derivatives \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   Interest rate \n \n \n - \n \n \n 25,284 \n \n \n 181 \n \n \n 25,465 \n \n \n \n \n \n - \n \n \n 26,589 \n \n \n 169 \n \n \n 26,758 \n \n \n   \n \n \n \n \n   Foreign exchange \n \n \n - \n \n \n 30,611 \n \n \n 52 \n \n \n 30,663 \n \n \n \n \n \n - \n \n \n 26,988 \n \n \n 54 \n \n \n 27,042 \n \n \n   \n \n \n \n \n   Other \n \n \n - \n \n \n 100 \n \n \n 28 \n \n \n 128 \n \n \n \n \n \n - \n \n \n 119 \n \n \n 55 \n \n \n 174 \n \n \n   \n \n \n \n \n Other financial liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   Debt securities in issue \n \n \n - \n \n \n 2,338 \n \n \n 3 \n \n \n 2,341 \n \n \n \n \n \n - \n \n \n 2,302 \n \n \n 3 \n \n \n 2,305 \n \n \n   \n \n \n \n \n   Other deposits \n \n \n - \n \n \n 2,423 \n \n \n 26 \n \n \n 2,449 \n \n \n \n \n \n - \n \n \n 2,285 \n \n \n 27 \n \n \n 2,312 \n \n \n   \n \n \n \n \n   Subordinated liabilities \n \n \n - \n \n \n 230 \n \n \n - \n \n \n 230 \n \n \n \n \n \n - \n \n \n 237 \n \n \n - \n \n \n 237 \n \n \n   \n \n \n \n \n Total financial liabilities held at fair value \n \n \n 8,174 \n \n \n 103,448 \n \n \n 291 \n \n \n 111,913 \n \n \n \n \n \n 6,172 \n \n \n 101,369 \n \n \n 309 \n \n \n 107,850 \n \n \n   \n \n \n \n \n As a % of total fair value liabilities \n \n \n 7% \n \n \n 93% \n \n \n 0% \n \n \n   \n \n \n \n \n \n 6% \n \n \n 94% \n \n \n 0% \n \n \n \n \n \n   \n \n \n \n \n (1)     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. \n 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 \n 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 \n commitments and most OTC derivatives. \n Level 3 - Instruments valued using a valuation technique where at least one input which could have a significant effect on the instrument's valuation, is not based on observable market data. Examples include non-derivative \n instruments which trade infrequently, certain syndicated and commercial mortgage loans, private equity, and derivatives with unobservable model inputs. \n \n \n \n \n (2)     Transfers between levels are deemed to have occurred at the beginning of the quarter in which the instrument was transferred. \n \n \n \n \n (3)     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 Capital and risk management - Credit risk. \n \n \n \n \n \n \n Notes continued \n 9. Financial instruments - valuation continued \n Valuation adjustments \n 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. \n 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. For further information refer to the descriptions of valuation adjustments within 'Financial instruments - valuation' on page 334 of the NatWest Group plc 2025 Annual Report and Accounts. \n \n \n \n \n \n \n \n 30 June \n \n \n 31 December \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n Funding - FVA \n \n \n (16) \n \n \n (11) \n \n \n \n \n Credit - CVA \n \n \n 174 \n \n \n 179 \n \n \n \n \n Bid - Offer \n \n \n 61 \n \n \n 60 \n \n \n \n \n Product and deal specific \n \n \n 96 \n \n \n 124 \n \n \n \n \n Total \n \n \n 315 \n \n \n 352 \n \n \n \n \n The decrease in FVA and CVA was driven by exposure changes arising from the increase in interest rates. The decrease in product and deal specific was driven by the amortisation of deferred trade inception profits. \n \n Notes continued \n 9. Financial instruments - valuation continued \n Level 3 sensitivities \n The table below shows the favourable and unfavourable range of fair value of the level 3 assets and liabilities. \n \n \n \n \n \n \n \n 30 June 2026 \n \n \n   \n \n \n 31 December 2025 \n \n \n \n \n \n \n \n Level 3 \n \n \n Favourable \n \n \n Unfavourable \n \n \n   \n \n \n Level 3 \n \n \n Favourable \n \n \n Unfavourable \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Assets \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trading assets \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Loans \n \n \n 256 \n \n \n - \n \n \n - \n \n \n \n \n \n 96 \n \n \n - \n \n \n - \n \n \n \n \n Derivatives \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Interest rate \n \n \n 337 \n \n \n 10 \n \n \n (10) \n \n \n \n \n \n 360 \n \n \n 20 \n \n \n (10) \n \n \n \n \n   Foreign exchange \n \n \n 90 \n \n \n - \n \n \n - \n \n \n \n \n \n 103 \n \n \n 10 \n \n \n (10) \n \n \n \n \n   Other \n \n \n 12 \n \n \n - \n \n \n - \n \n \n \n \n \n 9 \n \n \n - \n \n \n - \n \n \n \n \n Other financial assets \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Loans \n \n \n 829 \n \n \n 10 \n \n \n (10) \n \n \n \n \n \n 533 \n \n \n - \n \n \n (10) \n \n \n \n \n   Securities \n \n \n 117 \n \n \n 10 \n \n \n (20) \n \n \n \n \n \n 152 \n \n \n 10 \n \n \n (20) \n \n \n \n \n Total financial assets held at fair value \n \n \n 1,641 \n \n \n 30 \n \n \n (40) \n \n \n \n \n \n 1,253 \n \n \n 40 \n \n \n (50) \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trading liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Short positions \n \n \n 1 \n \n \n - \n \n \n - \n \n \n \n \n \n 1 \n \n \n - \n \n \n - \n \n \n \n \n Derivatives \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Interest rate \n \n \n 181 \n \n \n 10 \n \n \n (10) \n \n \n \n \n \n 169 \n \n \n 10 \n \n \n (10) \n \n \n \n \n   Foreign exchange \n \n \n 52 \n \n \n - \n \n \n - \n \n \n \n \n \n 54 \n \n \n - \n \n \n - \n \n \n \n \n   Other \n \n \n 28 \n \n \n - \n \n \n - \n \n \n \n \n \n 55 \n \n \n - \n \n \n - \n \n \n \n \n Other financial liabilities   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Debt securities in issue \n \n \n 3 \n \n \n - \n \n \n - \n \n \n \n \n \n 3 \n \n \n - \n \n \n - \n \n \n \n \n   Other deposits \n \n \n 26 \n \n \n - \n \n \n - \n \n \n \n \n \n 27 \n \n \n - \n \n \n (20) \n \n \n \n \n Total financial liabilities held at fair value \n \n \n 291 \n \n \n 10 \n \n \n (10) \n \n \n \n \n \n 309 \n \n \n 10 \n \n \n (30) \n \n \n \n \n Alternative assumptions \n 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. \n   \n Notes continued \n 9. Financial instruments - valuation continued \n Movement in level 3 assets and liabilities \n The following table shows the movement in level 3 assets and liabilities. \n \n \n \n \n \n \n \n   \n \n \n Other \n \n \n Other \n \n \n   \n \n \n   \n \n \n Other \n \n \n Other \n \n \n   \n \n \n \n \n \n \n \n Derivatives \n \n \n trading \n \n \n financial \n \n \n Total \n \n \n Derivatives \n \n \n trading \n \n \n financial \n \n \n Total \n \n \n \n \n \n \n \n assets \n \n \n assets (2) \n \n \n assets (3) \n \n \n assets \n \n \n liabilities \n \n \n liabilities (2) \n \n \n liabilities \n \n \n liabilities \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n At 1 January 2026 \n \n \n 472 \n \n \n 96 \n \n \n 685 \n \n \n 1,253 \n \n \n 278 \n \n \n 1 \n \n \n 30 \n \n \n 309 \n \n \n \n \n Amounts recorded in the income statement   (1) \n \n \n (30) \n \n \n 13 \n \n \n 1 \n \n \n (16) \n \n \n (26) \n \n \n - \n \n \n (1) \n \n \n (27) \n \n \n \n \n Amount recorded in the statement of comprehensive income \n \n \n - \n \n \n - \n \n \n 2 \n \n \n 2 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Level 3 transfers in \n \n \n 41 \n \n \n - \n \n \n 45 \n \n \n 86 \n \n \n 20 \n \n \n - \n \n \n - \n \n \n 20 \n \n \n \n \n Level 3 transfers out \n \n \n (50) \n \n \n - \n \n \n (41) \n \n \n (91) \n \n \n (1) \n \n \n - \n \n \n - \n \n \n (1) \n \n \n \n \n Purchases/originations \n \n \n 39 \n \n \n 157 \n \n \n 336 \n \n \n 532 \n \n \n 22 \n \n \n - \n \n \n - \n \n \n 22 \n \n \n \n \n Settlements/other decreases \n \n \n - \n \n \n (10) \n \n \n (1) \n \n \n (11) \n \n \n (14) \n \n \n - \n \n \n - \n \n \n (14) \n \n \n \n \n Sales \n \n \n (33) \n \n \n - \n \n \n (81) \n \n \n (114) \n \n \n (17) \n \n \n - \n \n \n - \n \n \n (17) \n \n \n \n \n Foreign exchange and other adjustments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1) \n \n \n - \n \n \n - \n \n \n (1) \n \n \n \n \n At 30 June 2026 \n \n \n 439 \n \n \n 256 \n \n \n 946 \n \n \n 1,641 \n \n \n 261 \n \n \n 1 \n \n \n 29 \n \n \n 291 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Amounts recorded in the income statement in respect of balances held   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n   at period end - unrealised \n \n \n 66 \n \n \n 13 \n \n \n 3 \n \n \n 82 \n \n \n 18 \n \n \n (1) \n \n \n (0) \n \n \n 17 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n At 1 January 2025 \n \n \n 630 \n \n \n 278 \n \n \n 774 \n \n \n 1,682 \n \n \n 465 \n \n \n 1 \n \n \n 28 \n \n \n 494 \n \n \n \n \n Amounts recorded in the income statement   (1) \n \n \n (65) \n \n \n 2 \n \n \n (1) \n \n \n (64) \n \n \n (94) \n \n \n - \n \n \n 1 \n \n \n (93) \n \n \n \n \n Amount recorded in the statement of comprehensive income \n \n \n - \n \n \n - \n \n \n 11 \n \n \n 11 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Level 3 transfers in \n \n \n 40 \n \n \n - \n \n \n - \n \n \n 40 \n \n \n 7 \n \n \n - \n \n \n 25 \n \n \n 32 \n \n \n \n \n Level 3 transfers out \n \n \n (6) \n \n \n - \n \n \n (16) \n \n \n (22) \n \n \n (11) \n \n \n - \n \n \n - \n \n \n (11) \n \n \n \n \n Purchases/originations \n \n \n 70 \n \n \n 89 \n \n \n 59 \n \n \n 218 \n \n \n 47 \n \n \n - \n \n \n - \n \n \n 47 \n \n \n \n \n Settlements/other decreases \n \n \n (2) \n \n \n (31) \n \n \n - \n \n \n (33) \n \n \n (34) \n \n \n - \n \n \n - \n \n \n (34) \n \n \n \n \n Sales \n \n \n (31) \n \n \n (97) \n \n \n (125) \n \n \n (253) \n \n \n (40) \n \n \n - \n \n \n - \n \n \n (40) \n \n \n \n \n Foreign exchange and other adjustments \n \n \n 1 \n \n \n 2 \n \n \n 1 \n \n \n 4 \n \n \n 2 \n \n \n - \n \n \n 1 \n \n \n 3 \n \n \n \n \n At 30 June 2025 \n \n \n 637 \n \n \n 243 \n \n \n 703 \n \n \n 1,583 \n \n \n 342 \n \n \n 1 \n \n \n 55 \n \n \n 398 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Amounts recorded in the income statement in respect of balances held   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   at period end - unrealised \n \n \n 57 \n \n \n 1 \n \n \n (3) \n \n \n 55 \n \n \n (10) \n \n \n - \n \n \n - \n \n \n (10) \n \n \n \n \n (1)     There were £9 million net gains on trading assets and liabilities (30 June 2025 - £31 million net gains) recorded in income from trading activities. Net gains on other instruments of £2 million (30 June 2025 - £2 million net losses) were recorded in other operating income and interest income as appropriate. \n \n \n   \n \n \n \n \n (2)     Other trading assets and other trading liabilities comprise assets and liabilities held at fair value in trading portfolios. \n \n \n   \n \n \n \n \n (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. \n \n \n   \n \n \n \n \n (4)     During the period ended 30 June 2026, £61 million of assets and liabilities transferred into Level 3 driven by decrease in observability of swaps and increase in the proportion of trades with unobservable inputs in structured netting. £51 million of assets and liabilities transferred out of Level 3 driven by decrease in observability of inputs. \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Notes continued \n \n 9. Financial instruments - valuation continued \n Fair value of financial instruments measured at amortised cost on the balance sheet \n \n The following table shows the carrying value and fair value of financial instruments carried at amortised cost on the balance sheet. \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Carrying \n \n \n   \n \n \n \n \n \n \n \n value \n \n \n Fair value \n \n \n \n \n 30 June 2026 \n \n \n £bn \n \n \n £bn \n \n \n \n \n Financial assets \n \n \n   \n \n \n   \n \n \n \n \n Loans to banks \n \n \n 7.3 \n \n \n 7.4 \n \n \n \n \n Loans to customers \n \n \n 435.9 \n \n \n 430.7 \n \n \n \n \n Other financial assets - securities \n \n \n 35.1 \n \n \n 35.0 \n \n \n \n \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n \n \n \n Financial assets \n \n \n   \n \n \n \n \n Loans to banks \n \n \n 7.0 \n \n \n 6.9 \n \n \n \n \n Loans to customers \n \n \n 418.9 \n \n \n 414.5 \n \n \n \n \n Other financial assets - securities \n \n \n 36.6 \n \n \n 36.6 \n \n \n \n \n \n \n \n \n \n 30 June 2026 \n \n \n   \n \n \n \n \n Financial liabilities \n \n \n   \n \n \n   \n \n \n \n \n Bank deposits \n \n \n 50.0 \n \n \n 50.0 \n \n \n \n \n Customer deposits \n \n \n 448.6 \n \n \n 448.6 \n \n \n \n \n Other financial liabilities \n \n \n   \n \n \n   \n \n \n \n \n    - debt securities in issue \n \n \n 67.2 \n \n \n 67.7 \n \n \n \n \n Subordinated liabilities \n \n \n 6.4 \n \n \n 6.5 \n \n \n \n \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n \n \n \n Financial liabilities \n \n \n   \n \n \n \n \n Bank deposits \n \n \n 44.1 \n \n \n 44.1 \n \n \n \n \n Customer deposits \n \n \n 443.0 \n \n \n 424.4 \n \n \n \n \n Other financial liabilities \n \n \n \n \n \n \n \n \n \n \n    - debt securities in issue \n \n \n 63.0 \n \n \n 63.6 \n \n \n \n \n Subordinated liabilities \n \n \n 5.9 \n \n \n 6.1 \n \n \n \n \n \n The assumptions and methodologies underlying the calculation of fair values of financial instruments at the balance sheet date are as follows: \n Loans to banks and customers \n 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: contractual cash flows and expected cash flows. \n Debt securities and subordinated liabilities \n Most debt securities are valued using quoted prices in active markets or from quoted prices of similar financial instruments in active markets. For the remaining population, fair values are determined using market standard valuation techniques, such as discounted cash flows. \n Bank and customer deposits \n Fair value of deposits is estimated using discounted cash flow valuation techniques. \n Other financial instruments \n For certain short-term financial instruments: cash and balances at central banks, items in the course of collection from other banks, items in the course of transmission to other banks, customer demand deposits and notes in circulation, carrying value is deemed a reasonable approximation of fair value. \n \n \n Notes continued \n \n 10. Trading assets and liabilities \n Trading assets and liabilities comprise assets and liabilities held at fair value in trading portfolios. \n \n \n \n \n \n \n \n 30 June \n \n \n 31 December \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n Assets \n \n \n £m \n \n \n £m \n \n \n \n \n Loans \n \n \n   \n \n \n \n \n \n \n \n    Reverse repos \n \n \n 22,704 \n \n \n 27,656 \n \n \n \n \n    Cash Collateral given \n \n \n 6,048 \n \n \n 5,701 \n \n \n \n \n    Other loans \n \n \n 526 \n \n \n 295 \n \n \n \n \n Total loans \n \n \n 29,278 \n \n \n 33,652 \n \n \n \n \n Securities \n \n \n   \n \n \n \n \n \n \n \n    Central and local government \n \n \n   \n \n \n \n \n \n \n \n      - UK \n \n \n 2,508 \n \n \n 2,120 \n \n \n \n \n      - US \n \n \n 4,129 \n \n \n 4,153 \n \n \n \n \n      - Other \n \n \n 8,380 \n \n \n 4,135 \n \n \n \n \n    Financial institutions and Corporate \n \n \n 3,071 \n \n \n 2,477 \n \n \n \n \n Total securities \n \n \n 18,088 \n \n \n 12,885 \n \n \n \n \n Total \n \n \n 47,366 \n \n \n 46,537 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Liabilities \n \n \n   \n \n \n \n \n \n \n \n Deposits \n \n \n   \n \n \n \n \n \n \n \n    Repos \n \n \n 27,626 \n \n \n 28,578 \n \n \n \n \n    Cash Collateral received \n \n \n 11,889 \n \n \n 11,966 \n \n \n \n \n    Other deposits \n \n \n 884 \n \n \n 740 \n \n \n \n \n Total deposits \n \n \n 40,399 \n \n \n 41,284 \n \n \n \n \n Debt securities in issue \n \n \n 215 \n \n \n 234 \n \n \n \n \n Short positions \n \n \n   \n \n \n \n \n \n \n \n     Central and local government \n \n \n   \n \n \n \n \n \n \n \n       - UK \n \n \n 2,411 \n \n \n 1,504 \n \n \n \n \n       - US \n \n \n 2,100 \n \n \n 1,161 \n \n \n \n \n       - Other \n \n \n 4,954 \n \n \n 4,137 \n \n \n \n \n     Financial institutions and Corporate \n \n \n 558 \n \n \n 702 \n \n \n \n \n Total short positions \n \n \n 10,023 \n \n \n 7,504 \n \n \n \n \n Total \n \n \n 50,637 \n \n \n 49,022 \n \n \n \n \n \n \n Notes continued \n 11. Loan impairment provisions \n Loan exposure and impairment metrics \n The table below summarises loans and related credit impairment measures on an IFRS 9 basis. \n \n \n \n \n \n \n \n 30 June \n \n \n 31 December \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n Loans - amortised cost and FVOCI   (1,2) \n \n \n \n \n \n \n \n \n \n \n Stage 1 \n \n \n 398,096 \n \n \n 386,651 \n \n \n \n \n Stage 2 \n \n \n 44,915 \n \n \n 38,582 \n \n \n \n \n Stage 3 \n \n \n 4,691 \n \n \n 4,683 \n \n \n \n \n Of which: individual \n \n \n 1,176 \n \n \n 1,456 \n \n \n \n \n Of which: collective \n \n \n 3,515 \n \n \n 3,227 \n \n \n \n \n \n \n \n 447,702 \n \n \n 429,916 \n \n \n \n \n ECL provisions   (3) \n \n \n   \n \n \n \n \n \n \n \n Stage 1 \n \n \n 616 \n \n \n 614 \n \n \n \n \n Stage 2 \n \n \n 872 \n \n \n 796 \n \n \n \n \n Stage 3 \n \n \n 2,074 \n \n \n 2,175 \n \n \n \n \n Of which: individual \n \n \n 492 \n \n \n 598 \n \n \n \n \n Of which: collective \n \n \n 1,582 \n \n \n 1,577 \n \n \n \n \n \n \n \n 3,562 \n \n \n 3,585 \n \n \n \n \n ECL provisions coverage   (4) \n \n \n   \n \n \n \n \n \n \n \n Stage 1 (%) \n \n \n 0.15 \n \n \n 0.16 \n \n \n \n \n Stage 2 (%) \n \n \n 1.94 \n \n \n 2.06 \n \n \n \n \n Stage 3 (%) \n \n \n 44.21 \n \n \n 46.44 \n \n \n \n \n \n \n \n 0.80 \n \n \n 0.83 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Half year ended \n \n \n \n \n \n \n \n 30 June \n \n \n 30 June \n \n \n \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n Impairment losses   \n \n \n   \n \n \n \n \n \n \n \n ECL charge/(release)   (5) \n \n \n 423 \n \n \n 382 \n \n \n \n \n Stage 1 \n \n \n (77) \n \n \n (67) \n \n \n \n \n Stage 2 \n \n \n 283 \n \n \n 165 \n \n \n \n \n Stage 3 \n \n \n 217 \n \n \n 284 \n \n \n \n \n Of which: individual \n \n \n 48 \n \n \n 194 \n \n \n \n \n Of which: collective \n \n \n 169 \n \n \n 90 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Amounts written off \n \n \n 487 \n \n \n 192 \n \n \n \n \n Of which: individual \n \n \n 168 \n \n \n 61 \n \n \n \n \n Of which: collective \n \n \n 319 \n \n \n 131 \n \n \n \n \n (1)       The table shows gross loans only and excludes amounts that were outside the scope of the ECL framework. Other financial assets within the scope of the IFRS 9 ECL framework were cash and balances at central banks totalling £75.9 billion (31 December 2025 - £84.1 billion) and debt securities of £85.2 billion (31 December 2025 - £78.4 billion). \n (2)       Fair value through other comprehensive income (FVOCI). Includes loans to customers and banks. \n (3)       Includes £10 million (31 December 2025 - £6 million) related to assets classified as FVOCI and £0.1 billion (31 December 2025 - £0.1 billion) related to off-balance sheet exposures. \n (4)       ECL provisions coverage is calculated as ECL provisions divided by loans - amortised cost and FVOCI. It is calculated on loans and total ECL provisions, including ECL for other (non-loan) assets and unutilised exposure. \n (5)       Includes a £2 million release (June 2025 - £1 million release) related to other financial assets, of which £2 million charges (June 2025 - £0 million release) related to assets classified as FVOCI and includes a £0 million charge (June 2025 - £10 million charge) related to contingent liabilities. \n \n Notes continued \n 12. Provisions for liabilities and charges \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n Financial \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n Customer \n \n \n Litigation and \n \n \n   \n \n \n commitments \n \n \n   \n \n \n \n \n   \n \n \n redress \n \n \n other regulatory \n \n \n Property \n \n \n and guarantees \n \n \n Other (1) \n \n \n Total \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n At 1 January 2026 \n \n \n 282 \n \n \n 64 \n \n \n 73 \n \n \n 58 \n \n \n 142 \n \n \n 619 \n \n \n \n \n Expected credit losses impairment charge \n \n \n - \n \n \n - \n \n \n - \n \n \n 5 \n \n \n - \n \n \n 5 \n \n \n \n \n Currency translation and other movements \n \n \n - \n \n \n 1 \n \n \n - \n \n \n - \n \n \n (1) \n \n \n - \n \n \n \n \n Acquisition of companies and businesses \n \n \n 8 \n \n \n - \n \n \n 7 \n \n \n - \n \n \n 4 \n \n \n 19 \n \n \n \n \n Charge to income statement \n \n \n 6 \n \n \n 12 \n \n \n 5 \n \n \n - \n \n \n 244 \n \n \n 267 \n \n \n \n \n Release to income statement \n \n \n (23) \n \n \n (3) \n \n \n (7) \n \n \n - \n \n \n (44) \n \n \n (77) \n \n \n \n \n Provisions utilised \n \n \n (92) \n \n \n (1) \n \n \n (7) \n \n \n (1) \n \n \n (60) \n \n \n (161) \n \n \n \n \n At 30 June 2026 \n \n \n 181 \n \n \n 73 \n \n \n 71 \n \n \n 62 \n \n \n 285 \n \n \n 672 \n \n \n \n \n (1)     Other materially comprises of provisions relating to restructuring costs, historical VAT matters and Bank of England levy. \n   \n 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. \n \n 13. Dividends \n The 2025 final dividend was approved by shareholders at the Annual General Meeting on 28 April 2026 and the payment made on 5 May 2026 to shareholders on the register at the close of business on 20 March 2026. \n NatWest Group plc announces an interim dividend for 2026 of £955 million or 12.0 pence per ordinary share. The interim dividend will be paid on 18 September 2026 to shareholders on the register at close of business on 14 August 2026. The ex-dividend date will be 13 August 2026. \n \n 14. Contingent liabilities and commitments \n The amounts shown in the table below are intended only to provide an indication of the volume of business outstanding at 30 June 2026. 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. \n \n \n \n \n \n \n \n 30 June \n \n \n 31 December \n \n \n \n \n 2026 \n \n \n 2025 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n Contingent liabilities and commitments \n \n \n   \n \n \n \n \n \n \n \n Guarantees \n \n \n 2,790 \n \n \n 2,810 \n \n \n \n \n Other contingent liabilities \n \n \n 1,559 \n \n \n 1,548 \n \n \n \n \n Standby facilities, credit lines and other commitments \n \n \n 147,827 \n \n \n 142,765 \n \n \n \n \n Total \n \n \n 152,176 \n \n \n 147,123 \n \n \n \n \n Commitments and contingent obligations are subject to NatWest Group's normal credit approval processes. \n \n \n Notes continued \n 15. Litigation and regulatory matters \n NatWest Group plc and certain members of NatWest Group are party to various legal proceedings and are involved in, or subject to, various 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. \n 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. \n In many of the 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 the probability of a liability, if any, arising can reasonably be estimated in respect of any Matter. 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 Matters that are at an early stage in their development or where claimants seek substantial or indeterminate damages. \n 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 or contesting Matters, even for those for which NatWest Group believes it has credible defences and should prevail on the merits. The uncertainties inherent in all Matters affect the amount and timing of any potential economic outflows both for Matters with respect to which provisions have been established and other contingent liabilities in respect of any such Matter. \n It is not practicable to provide an aggregate estimate of potential liability for our Matters as a class of contingent liabilities. \n The future economic outflow in respect of any Matter may ultimately prove to be substantially greater than, or less than, the aggregate provision, if any, that NatWest Group has recognised in respect of such Matter. Where a reliable estimate of the economic outflow cannot be reasonably made, no provision has been recognised. NatWest Group expects that in future periods, additional provisions and economic outflows relating to Matters that may or may not be currently known by NatWest \n \n Group will be necessary, in amounts that are expected to be substantial in some instances. Refer to Note 12 for information on material provisions. \n Matters which are, or could be, material, either individually or in aggregate, 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. \n For a discussion of certain risks associated with NatWest Group's litigation and regulatory matters (including the Matters), refer to the Risk Factor relating to legal, regulatory and governmental actions and investigations set out on pages 417 to 419 of the NatWest Group plc 2025 Annual Report and Accounts. \n London Interbank Offered Rate (LIBOR) and other rates litigation \n NatWest Group plc and certain other members of NatWest Group, including NWM Plc, are defendants in a number of claims pending in the United States District Court for the Southern District of New York (SDNY) with respect to the setting of USD LIBOR. The complainants 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. \n The co-ordinated proceeding in the SDNY relating to USD LIBOR now includes one remaining class action, which is on behalf of persons who purchased LIBOR-linked instruments from defendants and bonds issued by defendants, as well as two non-class actions. \n On 25 September 2025, the SDNY granted summary judgment to the defendants on the issue of liability and dismissed all claims in both the class action and the non-class actions. The decision is being appealed in the United States Court of Appeals for the Second Circuit (US Court of Appeals). \n In addition to the USD LIBOR cases described above, there are two other IBOR-related class actions involving NWM Plc. First, there is a class action relating to derivatives allegedly tied to JPY LIBOR and Euroyen TIBOR, which was dismissed by the SDNY in relation to NWM Plc and other NatWest Group companies in September 2021. That dismissal is now the subject of an appeal to the US Court of Appeals. \n Second, there is a class action concerning alleged manipulation of Euribor. On 22 August 2025, the US Court of Appeals reversed the SDNY's decision in the Euribor case, reinstating claims against NWM plc. That case has therefore returned to the SDNY for further proceedings. \n   \n Notes continued \n 15. Litigation and regulatory matters continued \n Foreign exchange litigation \n NatWest Group plc, NWM Plc and/or NWMSI are defendants in several cases relating to NWM Plc's foreign exchange (FX) business. \n 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. \n In May 2025, NWM Plc executed an agreement to settle the claim in the Federal Court of Australia, which the court approved in August 2025. The settlement amount is covered in full by an existing provision. In July 2026, the court formally dismissed the claim. \n In July and December 2019, two separate applications seeking opt-out collective proceedings orders were filed in the UK Competition Appeal Tribunal (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 European Economic Area with a relevant financial institution or on an electronic communications network. \n In March 2022, the CAT declined to certify either application as collective proceedings on an opt-out basis. This decision was appealed by the applicants and was the subject of an application for judicial review. The CAT, in its judgment, allowed the applicants three months in which to reformulate their claims as opt-in claims. \n In its amended judgment in November 2023, the Court of Appeal allowed the appeal and decided that the claims should proceed on an opt-out basis. Separately, the court determined which of the two competing applicants can proceed as class representative and dismissed the application for judicial review of the CAT's decision. The other applicant has discontinued its claim and withdrawn from the proceedings. The banks sought permission to appeal the Court of Appeal decision directly to the UK Supreme Court, which was granted in April 2024. The appeal was heard in April 2025. \n In December 2025, the UK Supreme Court reinstated the CAT's decision to refuse the application for a collective proceedings order on an opt-out basis. The applicant is seeking permission from the CAT to file a revised application for a collective proceedings order. NatWest Group Plc and NWM Plc have made an application to the CAT for dismissal of the application for a collective proceedings order in its entirety. \n \n   \n 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. \n The applicants sought the court's permission to amend their motions to certify the class actions. NWM Plc 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 February 2024, NWM Plc executed an agreement to settle the claim, subject to court approval. The settlement amount is covered in full by an existing provision. \n In December 2021, a summons was served in the Netherlands against NatWest Group plc, NWM Plc and NWM N.V. by Stichting FX Claims on behalf of a number of parties, seeking declarations from the court concerning liability for anti-competitive FX market conduct described in decisions of the European Commission (EC) of 16 May 2019, along with unspecified damages. The claimant amended its claim to also refer to a 2 December 2021 decision by the EC, which described anti-competitive FX market conduct. NatWest Group plc, NWM Plc and other defendants contested the jurisdiction of the Dutch court. \n In March 2023, the district court in Amsterdam accepted that it has jurisdiction to hear claims against NWM N.V. but refused jurisdiction to hear any claims against the other defendant banks (including NatWest Group plc and NWM Plc) brought on behalf of the parties represented by the claimant that are domiciled outside of the Netherlands. The claimant is appealing that decision. \n The defendant banks have brought cross-appeals which seek a ruling that the Dutch court has no jurisdiction to hear any claims against the defendant banks domiciled outside of the Netherlands, irrespective of whether the claim has been brought on behalf of a party represented by the claimant that is domiciled within or outside of the Netherlands. The Amsterdam Court of Appeal has stayed these appeal proceedings until the Court of Justice of the European Union has answered preliminary questions that have been referred to it in another matter. \n   \n Notes continued \n 15. Litigation and regulatory matters continued \n In September 2023, a second summons was served by Stichting FX Claims on NatWest Group plc, NWM Plc and NWM N.V., on behalf of a new group of parties. The claimant seeks declarations from the district court in Amsterdam concerning liability for anti-competitive FX market conduct described in the above referenced decisions of the EC of 16 May 2019 and 2 December 2021, along with unspecified damages. NatWest Group plc, NWM Plc and other defendants are contesting the Dutch court's jurisdiction. The district court has stayed the proceedings pending judgment in the above-mentioned appeals. \n In January 2025, a third summons was served by Stichting FX Claims on NatWest Group plc, NWM Plc and NWM N.V., on behalf of another new group of parties. \n The claimant seeks similar declarations from the district court in Amsterdam to those being sought in the above-mentioned claims, along with unspecified damages. \n NatWest Group plc, NWM Plc and other defendants are contesting the Dutch court's jurisdiction. The district court has stayed the proceedings pending judgment in the above-mentioned appeals. \n 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. \n Swaps antitrust litigation \n 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. Three swap execution facilities (TeraExchange, Javelin, and trueEx) allege that they 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 is complete though expert discovery is ongoing and, in March 2026, defendants filed a motion for summary judgment seeking dismissal of the claims, which is pending. \n 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. \n   \n In May 2025, the US Court of Appeals affirmed a January 2024 decision by the SDNY which barred the plaintiffs in the New Mexico case from pursuing claims based on conduct occurring before 30 June 2014 on the ground that such claims were extinguished by a 2015 settlement agreement that resolved a prior class action relating to credit default swaps. \n The case in New Mexico (which had been stayed pending the appeal of the SDNY's decision) has now resumed. The defendants have filed a motion to dismiss, which is pending. \n Spoofing litigation \n 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. \n In July 2022, the 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. The motion to dismiss remains pending. \n Madoff \n 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$300 million (plus pre-judgment interest) that NWM N.V. allegedly received from certain Madoff feeder funds and certain swap counterparties. \n The claims were previously dismissed, but as a result of an August 2021 decision by the US Court of Appeals, they are now proceeding in the discovery phase in the bankruptcy court, where they have been consolidated into one action. \n \n   \n Notes continued \n 15. Litigation and regulatory matters continued \n Offshoring VAT assessments \n HMRC, as part of an industry-wide review, 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 for the period from 1 January 2014 until 31 December 2017 inclusive. 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. \n In order to lodge the appeal with the Tax Tribunal, NatWest Group plc was required to pay amounts totalling £153 million (including statutory interest) to HMRC in December 2020 and May 2022. The appeal and the application for judicial review were previously stayed behind a separate case involving another bank.   \n NatWest Group plc was informed in late 2024 that the other bank had settled its case with HMRC by agreement. NatWest Group plc is progressing its appeal before the Tax Tribunal in its own name. NatWest Group plc will also continue to review next steps relevant to the judicial review. \n The amount of £153 million continues to be recognised as an asset that NatWest Group plc expects to recover. Since 1 January 2018, NatWest Group plc has paid VA...

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