XML 334 R34.htm IDEA: XBRL DOCUMENT
v3.22.4

Structured entities | 12 Months Ended
--- | ---
Dec. 31, 2022
Structured entities |
Structured entities | 23 Structured entities A structured entity (SE) is an entity that has been designed such that voting or similar rights are not the dominant factor in deciding who controls the entity, for example when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. SEs are usually established for a specific, limited purpose. They do not carry out a business or trade and typically have no employees. Securitisations In a securitisation, assets, or interests in a pool of assets, are transferred, or the credit risk is transferred via a derivative or financial guarantee to a SE which then issues liabilities to third party investors. NatWest Group’s involvement in client securitisations takes a number of forms. It may provide secured finance to, or purchase asset-backed notes from, client sponsored SEs secured on assets transferred by the client entity; purchase asset backed securities issued by client sponsored SEs in the primary or secondary markets; or provide liquidity facilities to client sponsored SEs. In addition, NatWest Group arranges or acts as lead manager or placement agent in client primary markets securitisations. NatWest Group provides portfolio structured derivative hedging solutions to clients. NatWest Group undertakes own-asset securitisations to transfer the credit risk on portfolios of financial assets. Other credit risk transfer securitisations NatWest Group transfers credit risk on originated loans and mortgages without the transfer of assets to a SE. As part of this, NatWest Group enters into credit derivative and financial guarantee contracts with consolidated SEs. At 31 December 2022, debt securities in issue by such SEs (and held by third parties) were £859 million (2021 - £867 million). The associated loans and mortgages at 31 December 2022 were £4,361 million (2021 - £7,137 million). At 31 December, ECL in relation to non-defaulted assets was reduced by £20 million (2021 - £28 million) as a result of financial guarantee contracts with consolidated SEs. Covered debt programme Group companies have assigned loans to customers and debt investments to bankruptcy remote limited liability partnerships to provide security for issues of debt securities. NatWest Group retains all of the risks and rewards of these assets and continues to recognise them. The partnerships are consolidated by NatWest Group and the related covered bonds included within other financial liabilities. At 31 December 2022, £8,156 million (2021 - £8,965 million) of loans to customers provided security for debt securities in issue and other borrowing of £4,132 million (2021 - £3,512 million). Lending of own issued securities NatWest Group has issued, retained, and lent debt securities under securities lending arrangements. Under standard terms in the UK and US markets, the recipient has an unrestricted right to sell or repledge collateral, subject to returning equivalent securities on maturity of the transaction. NatWest Group retains all of the risks and rewards of own issued liabilities lent under such arrangements and does not recognise them. At 31 December 2022, £2,419 million (2021 - £1,494 million) of secured own issued liabilities have been retained and lent under securities lending arrangements. At 31 December 2022, £2,244 million (2021 - £1,564 million) of loans and other debt instruments provided security for secured own issued liabilities that have been retained and lent under securities lending arrangements. Unconsolidated structured entities NatWest Group's interest in unconsolidated structured entities is analysed below. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2022 | ​ | 2021
​ | ​ | Asset | ​ | ​ | ​ | ​ | ​ | Asset | ​ | ​ | ​ | ​
​ | ​ | backed | ​ | Investment | ​ | ​ | ​ | backed | ​ | Investment | ​ | ​
​ | ​ | securitisation | ​ | funds and | ​ | ​ | ​ | securitisation | ​ | funds and | ​ | ​
​ | ​ | vehicles | ​ | others | ​ | Total | ​ | vehicles | ​ | others | ​ | Total
​ |  | £m |  | £m |  | £m |  | £m |  | £m |  | £m
Trading assets and derivatives |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Trading assets |  | 616 |  | 137 |  | 753 |  | 490 |  | 117 |  | 607
Derivative assets |  | 343 |  | — |  | 343 |  | 251 |  | 18 |  | 269
Derivative liabilities |  | (388) |  | (22) |  | (410) |  | (170) |  | (1) |  | (171)
Total |  | 571 |  | 115 |  | 686 |  | 571 |  | 134 |  | 705
|  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​
Non trading assets |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​
Loans to customers |  | 2,431 |  | 648 |  | 3,079 |  | 1,692 |  | 361 |  | 2,053
Other financial assets |  | 6,334 |  | 849 |  | 7,183 |  | 3,645 |  | 379 |  | 4,024
Total |  | 8,765 |  | 1,497 |  | 10,262 |  | 5,337 |  | 740 |  | 6,077
|  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​
Liquidity facilities/loan commitments |  | 1,723 |  | 320 |  | 2,043 |  | 1,403 |  | 135 |  | 1,538
Guarantees |  | — |  | 107 |  | 107 |  | — |  | — |  | —
Maximum exposure |  | 11,059 |  | 2,039 |  | 13,098 |  | 7,311 |  | 1,009 |  | 8,320
​

X
- Definition The entire disclosure for interests in other entities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 12 -IssueDate 2022-03-24 -Paragraph 1 -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2022-en-r&anchor=para_1&doctype=Standard -URIDate 2022-03-24 + Details
Name: | ifrs-full_DisclosureOfInterestsInOtherEntitiesExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | nwg_DisclosureOfInformationAboutStructuredEntitiesAbstract
Namespace Prefix: | nwg_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration