NatWest Group plc (Form: 20-F, Received: 02/23/2024 14:50:19)

Exhibit 15.2

customers Serving our every day NatWest Group plc 2023 Annual Report on Form 20-F - Exhibit 15.2

Annual Report and Accounts Climate-related Disclosures Report ESG Disclosures Report and ESG Frameworks Appendix Company Announcement and Financial Supplement NatWest Group plc 2023 Annual Report and Accounts customers Serving our every day NatWest Group plc 2023 Climate-related Disclosures Report customers Serving our every day NatWest Group plc 2023 Environmental, Social and Governance Disclosures Report customers Serving our every day for the year ended 31 December 2023 and Annual results Q4 2023 Financial Supplement NatWest Group plc Disclosures related to our strategic performance, governance and remuneration, risk and capital management, along with our financial statements and related notes, including the independent auditor’s report. Progress against our climate ambitions and Climate transition plan. Progress on Environmental, Social and Governance (ESG) matters and our frameworks appendix, prepared with reference to industry-wide sustainability standards. Our latest company information, including our financial performance for the year. Our 2023 reporting suite NatWest Group is a UK-focused banking organisation, serving over 19 million customers, with business operations stretching across retail, commercial and private banking markets. On the cover: Royal Bank of Scotland Personal Banker, Laura McWhinnie, at our Lanark branch. Laura works with customers to build their financial resilience and offers personalised support. Read the story on page 35.

Inside this report Approval of Strategic report By order of the Board Jan Cargill Chief Governance Officer and Company Secretary 15 February 2024 Chairman: Howard Davies Executive directors: Paul Thwaite (Group CEO) Katie Murray (Group CFO) Non-executive directors: Frank Dangeard Roisin Donnelly Patrick Flynn Rick Haythornthwaite Yasmin Jetha Stuart Lewis Mark Seligman Lena Wilson 1 Strategic report 3 Our 2023 performance 4 Chairman’s statement 6 Group Chief Executive’s review 8 Outlook statement 9 Our strategic framework 10 Our investment case and shareholder value 12 Our business model 14 Market environment 18 Delivering our strategy 20 Key performance indicators 24 Section 172(1) statement 26 Stakeholder engagement 30 Stakeholder focus areas 30 Investors 32 Customers 36 Colleagues 40 Regulators 41 Communities 43 Suppliers 43 Respecting Human Rights 44 Business performance 45 Retail Banking 46 Private Banking 47 Commercial & Institutional 48 NatWest Group’s climate strategy and progress highlights 50 Task-force on Climate-related Financial Disclosures (TCFD) overview STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 58 Our own operational footprint 60 Risk overview 66 Non-financial and sustainability information statement 68 Governance and remuneration 69 Our Board 73 Chairman’s introduction 74 Governance at a glance 90 Report of the Group Nominations and Governance Committee 95 Report of the Group Audit Committee 100 Report of the Group Board Risk Committee 107 Report of the Group Sustainable Banking Committee 112 Directors’ remuneration report 116 Remuneration at a glance 120 Wider workforce remuneration 123 Summary of Policy for executive directors 126 Annual remuneration report 147 Compliance report 150 Report of the directors 154 Statement of directors’ responsibilities 157 Risk management framework 166 Credit risk 228 Capital, liquidity and funding risk 247 Market risk 259 Pension risk 260 Compliance and conduct risk 261 Financial crime risk 262 Climate risk 264 Operational risk 266 Model risk 267 Reputational risk 155 Risk and capital management The Strategic report for the year ended 31 December 2023 set out on pages 1 to 67 was approved by the Board of directors on 15 February 2024. NatWest Group 2023 Annual Report on Form 20-F 1

We’re dedicated to serving our customers. By being there throughout their lives, we can build long-term value, invest for growth and drive attractive returns for shareholders. Our focus is to continue building a great bank, powered by great people and delivering fantastic service to our 19 million customers. Creating sustainable value customers Serving our every day Read the story on page 35. Read the story on page 17. Read the story on page 23. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 2

Loans to customers (amortised cost) Loan:deposit ratio (LDR) (excl. repos and reverse repos) £381.4bn (2022: £366.3bn) 84% (2022: 79%) £431.4bn (2022: £450.3bn) 144% (2022: 145%) Customer deposits Liquidity coverage ratio (LCR) Income Gross new mortgage lending in Retail Banking Total ordinary dividend(2) £14,752m (2022: £13,156m) £7,996m (2022: £7,687m) £6,178m (2022: £5,132m) £4,394m (2022: £3,340m) Operating expenses Assets Under Management (AUM) net flows Cost:income ratio (excl. litigation and conduct)(4) Commercial & Institutional customers actively using digital channels to interact with us £29.8bn (2022: £41.4bn) £1.5bn (2022: £1.3bn) £1.3bn (2022: £2.0bn) 51.8% (2022: 55.5%) £29.3bn(3) (2022: £24.5bn) £131.9bn 26.0% (2022: £129.9bn) 17.0p (2022: 13.5p) 86% (2022: 83%) 67% (2022: 63%) £7,641m (2022: £7,302m) Operating expenses (excl. litigation and conduct)(4) Profit before tax Profit attributable to shareholders Net loans to customers in Commercial & Institutional Dividend per ordinary share(2) Increase in ordinary dividend per share(2) Common Equity Tier 1 (CET1) ratio(1) 13.4% (2022: 14.2%) £3.6bn (2022: £5.1bn) £183.0bn (2022: £176.1bn) 17.8% (2022: 12.3%) Total capital returned to shareholders(2) Risk-weighted assets (RWAs)(1) Return on tangible equity (RoTE) Our 2023 performance (1) On 1 January 2022 the pro forma CET1 ratio was 15.9% and RWAs were £176.3 billion following regulatory changes. (2) Distributions paid and proposed. We paid a special dividend of £1.7 billion in 2022 as we returned surplus capital to shareholders. For full details of our distributions over the last five years refer to page 11. Strong financial performance Robust balance sheet underpinning growth Strong capital generation Supporting our customers Driving efficiency Delivering capital returns Buybacks £2.1bn (2022: £2.0bn) STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Climate and sustainable funding and financing Retail Banking customers exclusively using digital channels (3) Cumulative contribution of £61.9 billion towards £100 billion between 1 July 2021 and the end of 2025 target. (4) Litigation and conduct costs of £355 million (2022: £385 million). NatWest Group 2023 Annual Report on Form 20-F 3

‘Our capital generation remained strong, which allowed us to invest in the business and provide shareholders with attractive returns and distributions. We have created a strong track record of distributing surplus capital to shareholders and this intention has not changed; we remain committed to a ~40% pay-out ratio on distributions.’ In 2023, we announced £3.6 billion of capital returned to shareholders, including an interim dividend of £0.5 billion and a proposed final dividend of £1.0 billion. We were pleased to complete a directed buyback of £1.3 billion in May 2023 and the £0.5 billion on-market buyback announced in July 2023 which is expected to complete in Q1 2024. At full year 2023 we announced a new on-market buy back of £300 million, which we expect to be completed by the time we announce first-half results at the end of July 2024. We maintain capacity for further directed and on-market buy backs and will continue to consider them as appropriate. As a result of these actions, and following an extension to the UK Government’s trading plan, the UK Government’s shareholding in the bank reduced from 45.97% at the end of December 2022 to 37.97% by 31 December 2023. At the Autumn Statement in November 2023, the Chancellor announced that the Treasury remains committed to exiting its stake in the bank by 2025/26 and that it will explore options for a retail investor share sale in the next 12 months. Overall, good progress has been made in recent years and we believe the UK Government’s ambition to sell down its stake in NatWest Group in the next two years is in the best interests of the bank and its shareholders. This will be my last Chairman’s statement for NatWest Group after nine years in the role. As you will have seen, the bank announced in September 2023 that Rick Haythornthwaite who joined the Board as a non-executive director in January 2024, will take over as Chair in April 2024, ahead of our AGM. I am confident that Rick’s experience and range of skills will complement and further strengthen the Board in the years to come and support NatWest Group’s continued progress. 2023 has been a challenging year for some of our customers as well as for our industry and the UK’s economy. Inflation remained for much of the year and we saw 14 successive interest rate rises by the Bank of England, the fastest rate cycle since the 1970s. There are now, however, some grounds for optimism. Importantly, unemployment remains low and, by the end of 2023, inflation had started to come down, albeit still remaining well above the Bank of England’s 2% target. This uncertain environment has also had implications for the stability of a number of banks, both in Europe and in the United States. In general, banks in the UK have remained resilient. At NatWest Group, we have built a robust balance sheet with strong capital and liquidity, a largely secured retail loan book and well-diversified commercial lending. Disciplined risk management continued to underpin our strategy and helps to ensure we are well positioned for the future. We closely monitor customer activity and behaviours for signs of stress, with a focus on maintaining good credit quality. We have seen volatility in UK banking stocks prices through 2023, as the impact of changes in customer behaviour and market dynamics were reflected in the earnings outlook. However, against this challenging economic backdrop it is pleasing that NatWest Group performed well in 2023, with continued growth in our lending and progress against our strategy. In 2023, we delivered an operating profit of £6.2 billion, with an attributable profit of £4.4 billion. Our capital generation remained strong, which allowed us to invest in the business and provide shareholders with attractive returns and distributions. We have created a strong track record of distributing surplus capital to shareholders and this intention has not changed; we remain committed to a ~40% pay-out ratio on distributions. Chairman’s statement ‘At NatWest Group, we have built a robust balance sheet with strong capital and liquidity, a largely secured retail loan book and well-diversified commercial lending.’ STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 4

Graham Beale, who became the Senior Independent Director of NatWest Holdings Limited in 2018, also stood down on 31 August 2023. We thank him for his excellent work in that role. Mark Rennison joined the Board of NatWest Holdings Limited as an independent non-executive director and became a member of the NatWest Holdings Audit Committee, with effect from 1 September 2023. Mark joined the NatWest Holdings Performance & Remuneration Committee in December 2023. In July 2024, Geeta Gopalan will join the Board as an independent non-executive director. Geeta will be a valuable addition, bringing substantial financial and banking expertise, combined with a strong track record as a plc non-executive director. My own intention to step down from the Board before I reached my nine-year tenure in July 2024 was disclosed at our AGM in April 2023. The bank my successor inherits is very different to the one I joined in 2015. NatWest Group has returned to profitability, is more customer focused and is fundamentally stronger, delivering strong returns and regular distributions to shareholders. Despite the economic uncertainty that we have experienced in recent years, we remain well positioned to stand by our customers, to continue growing our lending responsibly and to play a vital role in the UK economy. I am proud of what we have achieved over the past nine years and I wish Paul and Rick every success in this next chapter in NatWest Group’s history. Howard Davies Chairman Following the departure of Alison Rose as our Group Chief Executive Officer in July 2023, we welcomed Paul Thwaite as our Chief Executive Officer for an initial period of 12 months. He had been identified as her immediate successor six months before and took over at once, which stabilised the bank at a difficult time. As is appropriate, it has fallen to my successor to manage the process of appointing a permanent CEO, supported by the Group Nominations and Governance Committee. The succession process has been completed and I am very pleased to see Paul secure the appointment. We can now look ahead to the future knowing we have both an incoming Chair and CEO with proven skills and who care deeply about this business and its customers. To understand the facts of what happened in relation to customer decision-making during the summer of 2023, the Board commissioned the legal firm, Travers Smith, to conduct an independent review over two phases. We have now received and published the findings of the independent review. Furthermore, the bank is committed to implementing all of the recommendations made by Travers Smith and we are making changes to our policies and procedures to deliver better, more consistent outcomes for customers. The Board also decided on how these findings would impact Alison Rose’s remuneration, which we announced to the market in November 2023. As well as changes to our management, a number of changes were made to the Board during the year. Mike Rogers and Morten Friis stepped down as directors on 25 April and 31 July 2023 respectively. I would like to record our thanks to them for their significant contributions to the Board during their tenures. Stuart Lewis was appointed as a director on 1 April 2023, succeeding Morten Friis as the Chair of the Group Board Risk Committee on 1 August 2023. Chairman’s statement continued ‘In 2023, we announced £3.6 billion of capital returned to shareholders, including an interim dividend of £0.5 billion and a proposed final dividend of £1.0 billion.’ STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 5

Group Chief Executive’s review ‘Our leading positions across our three customer businesses, and 19 million customer base provide strong foundations on which to create further long-term value for shareholders and make a meaningful contribution to the UK economy.’ Supporting our customers During a year of macroeconomic uncertainty, we focused on supporting our customers to better manage their finances. In 2023, we helped six million customers by conducting financial health checks, providing improved personal insights on credit scores, and helping customers to save for the first time. We were also one of the first high street banks to sign up to the Mortgage Charter in July 2023 to ease the pressure of increasing mortgage costs, and we allowed our customers to lock in their next mortgage up to six months before the end of a fixed-rate deal. Over 1.5 million new savings accounts were opened in 2023. By making our fixed term savings accounts available to more people, including those without an existing account with NatWest Group, and providing a broad range of flexible savings accounts, we met our goal to help two million people save more than £100 for the first time. We are the biggest supporter of UK businesses, serving more than 1.5 million businesses across the country. During 2023, our extensive network of relationship managers continued to help corporate customers grow, manage costs, find the right funding solutions, and reduce risk in volatile markets. In the context of macroeconomic volatility, we also provided centralised resources such as a cashflow tool, energy calculator and supply chain navigator to manage costs, in response to business customers’ demand for help on managing high energy prices. In response Overview NatWest Group performed well in 2023, delivering for our customers, our shareholders, and the wider UK economy. Despite the macroeconomic uncertainty, our customers remained resilient, navigating both inflation and rising interest rates. Throughout the year, we supported them to manage their finances, meeting our goal to help 2 million customers save over £100 for the first time(1), and lent an additional £9 billion to the UK economy. Our investment in digital and data capabilities continues to make it easier for our customers to manage their money, and for our colleagues to provide great service. As we look to 2024 and beyond, I am optimistic about the opportunities ahead for NatWest Group, building on our UK heritage, leading customer businesses, deep regional connections and financial strength. It is therefore an honour to be asked to lead the bank and to have the opportunity to shape the future of NatWest Group. Business performance Our disciplined approach to capital allocation and balance sheet management delivered attractive returns and distributions for our shareholders in 2023. We announced £3.6 billion of capital returns to shareholders, including an interim dividend of 5.5p at the half year and a proposed final dividend of 11.5p, bringing the total for 2023 to 17.0p, representing a 26% increase on 2022. Our business performance was grounded in helping customers. In 2023, we increased our lending to customers by £9 billion, opened over 100,000 new start-up accounts for entrepreneurs, and over a million new personal current accounts, as well as helping 379,000 Retail banking customers to buy or re-mortgage their home. We also made progress against our Climate transition plan in 2023, helping to build a more sustainable economy. We are working to support our customers’ transition to net zero across a range of sectors and we have been a leading loan arranger to the UK power infrastructure(2) and renewables sector over the last 10 years(3). We have now provided (1) 2020 goal: To help two million customers save over £100 for the first time with NatWest Group since 2020. (2) Power infrastructure comprise battery storage, electricity distribution, electricity smart meter and electricity transmission. (3) NatWest Group ranked first among Loan Arrangers by deal value for the period 2014-2023. Source: Infralogic 31 December 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Our overall operating profit of £6.2 billion was up 20% on 2022, our return on equity was 12.1% and our return on tangible equity was 17.8%, compared with 12.3% at the end of 2022. Income increased by 12.1% to £14.8 billion compared with 2022. Income excluding notable items, was up 10% on 2022 at £14.3 billion, with total expenses up 5%. ‘Our overall operating profit of £6.2 billion was up 20% on 2022, our return on equity was 12.1% and our return on tangible equity was 17.8%, compared with 12.3% at the end of 2022.’ NatWest Group 2023 Annual Report on Form 20-F 6 (4) The guidance, targets, expectations, and trends discussed in this section represent NatWest Group plc management’s current expectations and are subject to change, including as a result of the factors described in the Risk Factors section. These statements constitute forward-looking statements. Refer to Forward-looking statements in this document. £61.9 billion in climate and sustainable funding and financing against our target of £100 billion between 1 July 2021 and the end of 2025(4).

Chief Executive Officer review continued Investing for the future As set out in our Investment Case (refer to page 10), we have capacity for disciplined growth across our three customer businesses. Our focus is on delivering long-term value for our shareholders by putting our customers at the heart of our strategy and deepening our relationships with them to better meet their needs. Using data and technology will make the business more efficient and effective, making it easier for our customers to do business with us and improving engagement and productivity for our colleagues. Accompanied by a disciplined approach to cost, investment, and capital allocation, I am confident that these actions will deliver long-term sustainable value for our customers, shareholders, and the wider UK economy. Building our team and culture It is clear to me that our people are at the heart of our business, and I am grateful to our colleagues for their hard work, enthusiasm, and dedication throughout 2023. We have an engaged and resilient colleague base, and I am particularly pleased that our colleagues feel proud to deliver a great service to our customers. We are also continuing to invest in future talent by providing colleagues with the skills and capabilities to fulfil their potential and build a high-performing culture. This includes offering reskilling programmes to build skills in software and data engineering, testing automation and human-centred designs, supporting future talent through our early career programmes and developing a new approach to performance management. These initiatives are equipping our people with the tools and opportunities to develop their own careers. Conclusion Our leading positions across our three customer businesses, and 19 million customer base provide strong foundations on which to create further long-term value for shareholders. In 2024, we will focus on disciplined growth, improving bank-wide simplification to make it easier to do business with us, and deploying capital efficiently while maintaining strong risk management to drive strong capital generation. This will enable us to continue supporting our customers, reinvest in the business, generate attractive distributions to shareholders, and make a meaningful contribution to the UK economy. Paul Thwaite Group Chief Executive Officer to broader concerns from our SME customers, we collaborated with the Federation of Small Business to give them access to independent support and advice on topics such as obtaining funding and managing late payments. Our 19 million customer base means we are well-placed to support our customers to make sustainable choices, while driving value and growth from the commercial opportunities arising from the transition to a net-zero economy. Through initiatives such as partnering with WWF-UK and food manufacturer McCain we are reducing financial barriers for farmers transitioning to sustainable agricultural practices. Through Lombard, no.1 in UK asset finance, we supported customers with financing for electric vehicles, renewables, and cleaner energy alternatives. Simple for customers We want to make it easier for customers to do business with us and are investing in technology and partnerships to be a simple, safe, and smart bank, driven by data and digital innovation. We are also making it easier and quicker for our business customers to access financing with the launch of a new online lending platform, enabling customers to apply for a loan digitally in a matter of minutes. By harnessing digital capabilities, we have also improved our customer service and productivity. In 2023, we collaborated with technology partners to responsibly use artificial intelligence (AI) to enhance customer engagement and improve efficiency. This led to the development of new AI capabilities, analysing customer behaviour to help us detect scams and fraud earlier to reduce financial loss. ‘We want to make it easier for customers to do business with us and are investing in technology and partnerships to be a simple, safe, and smart bank, driven by data and digital innovation.’ STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 7 In 2023, our Retail Banking mobile app was used by more than 9.8 million customers and there were 10.9 million active digital users(5) of our online and mobile banking platforms. 94% of our retail customer needs are now met digitally – up from 53% in 2019. In Commercial & Institutional, 86% of customers are now actively using digital channels to interact with us, and our innovative card and payments solution, Tyl, continued to grow. We were one of the first banks to offer Apple and Android Tap to Pay, a low-cost service removing the need for businesses to use hardware to accept payments. (5) An active digital user is a customer who has accessed either their online banking platform or mobile banking app.

Outlook(1) (1) The guidance, targets, expectations, and trends discussed in this section represent NatWest Group plc management’s current expectations and are subject to change, including as a result of the factors described in the Risk Factors section. These statements constitute forward-looking statements. Refer to Forward-looking statements in this document. In 2024 we expect: – to achieve a return on tangible equity of around 12%. – income excluding notable items to be in the range of £13.0-13.5 billion. – NatWest Group operating costs, excluding litigation and conduct costs, to be broadly stable compared with 2023. – our loan impairment rate to be below 20 basis points. Capital – target a CET1 ratio in the range of 13-14%. – expect RWAs to be around £200 billion at the end of 2025, including the impact of Basel 3.1, however this remains subject to final rules and approval. – expect to pay ordinary dividends of around 40% of attributable profit and maintain capacity to participate in directed buybacks from the UK Government, recognising that any exercise of this authority would be dependent upon HMT’s intentions. We will also consider further on-market buybacks as appropriate. In 2026 we expect: – to achieve a return on tangible equity for the NatWest Group of greater than 13%. The economic outlook remains uncertain. We will monitor and react to market conditions and refine our internal forecasts as the economic position evolves. The following statements are based on our current expectations for interest rates and economic activity. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 8

Our strategic framework From supporting the day-to-day financial needs of 19 million customers to the other positive impacts we can have Our strategy is to grow our business by anticipating and meeting our customers’ needs, using data and technology to ensure we are simple to deal with, alongside a disciplined approach to cost, investment and capital allocation. Together these actions aim to deliver sustainable long-term value for our shareholders. We aim to balance the different interests of our stakeholders in all decision-making Creating a positive impact Serving our customers every day Enterprise Our ambition is to remove barriers to enterprise and to provide businesses in the UK the support they need to grow. Read more on pages 44 to 47 and in our 2023 ESG Disclosures Report. Climate We have made helping to address the climate challenge and supporting our customers in their transition to net zero a key strategic priority. Read more on pages 48 to 59 and in our 2023 Climate-related Disclosures Report. Learning We are helping people to take control of their finances, to make the most of their money, safely and securely – now and in the future. Read more on pages 32 to 33 and in our 2023 ESG Disclosures Report. Supporting customers at every stage of their lives Powered by people, technology, innovation and partnerships Simple to deal with Sharpened capital allocation We are informed by the needs of our stakeholders Read more on pages 26 to 43. Our values are central to how we work together to deliver our strategy Read more on pages 18 and 19. We champion potential, helping people, families, and businesses to thrive. Su ppliers Communities Regulators Colleag ues Investors Customers STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 9

With strong market positions across our three customer businesses, we have solid foundations on which to build and capacity for disciplined growth, positioning us well for 2024 and beyond. We are focused on continuing to simplify the business and controlling costs while actively managing our balance sheet so that we generate capital, allowing us to both deliver returns to shareholders and reinvest in the business. Attractive returns to shareholders Strong capital generation Active balance sheet and risk management Our focus is on creating sustainable long-term value for our shareholders Leading positions in an attractive UK market serving 19 million customers Underpinned by a robust balance sheet Target a CET1 ratio in the range of 13-14% Simplification and cost efficiency Reinvestment into the business Serving our customers well Our investment case Retail Banking Private Banking Commercial & Institutional Disciplined growth We expect a return on tangible equity of greater than 13% in 2026 Target an ordinary dividend payout ratio of ~40% with capacity for share buybacks STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 10

We have a strong track record of returning surplus capital to shareholders and remain committed to a ~40% payout ratio with capacity for buybacks whilst operating within our 13-14% CET1 ratio target range. £3.6bn Shareholder distributions in 2023(1) 17p Ordinary dividend per share in 2023, up 26% on the prior year Ordinary dividend per share (pence)(1) Ordinary shares outstanding(3) (bn) UK Government ownership(3) (%) Shareholder distributions 2019– 2023 (£bn)(1) Shareholder value £12.5bn total distributions to shareholders(1) including £5.8bn ordinary and special dividends(2) £6.7bn share buybacks 49.7%(4) Total shareholder return 28% reduction in share count(7) (1) Paid and proposed. (2) Does not cast due to rounding. (3) As at 31 December. (4) Source: Bloomberg. (5) Includes 2022 final dividend, 2023 interim dividend and directed buyback executed in May 2023. (6) In response to a formal request from the Prudential Regulation Authority, during the COVID-19 pandemic, the Board cancelled the final ordinary and special dividend payments in relation to the 2019 financial year. In 2020, NatWest Group plc decided not to undertake interim dividend payments or share buybacks. (7) Over the three year period since 31 December 2020. UK Government’s shareholding reduced to 37.97% at the end of December 2023 £1.8bn returned to the UK Government in 2023(5) 11.3bn 12.1bn 12.1bn 9.7bn 8.8bn 2023 2022 2021 2020 2019 £3.8bn 1.30.8 1.7 1.5 1.5 0.4 0.2 1.1 0.8 1.2 1.5 1.3 1.2 £5.1bn(2) £3.6bn £1.7bn(6) £0.4bn(6) Ordinary dividend Special dividend On-market buyback Directed buyback 2023 2022 2021 2020 2019 10.5p 11.5 10.0 7.5 3.0 2.0 5.5 3.5 3.0 13.5p 17.0p 2.0p(6) 3.0p(6) Interim dividend Final dividend 52.96% 61.91% 62.09% 45.97% 37.97% Shareholder returns for the three years 2021-2023 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION (8) The guidance, targets, expectations, and trends discussed in this section represent NatWest Group plc management’s current expectations and are subject to change, including as a result of the factors described in the Risk Factors section of the 2023 NatWest Group plc Annual Report on Form 20-F. These statements constitute forward-looking statements. Refer to Forward-looking statements in the Annual Report on Form 20-F. NatWest Group 2023 Annual Report on Form 20-F 11

Our business model We are a UK-focused bank, serving over 19 million customers. Our stakeholders Refer to our stakeholder focus areas on pages 30 to 43 for information on how we engage with all our stakeholders. Customers – We want to know what our customers think about us and actively seek feedback from them across all our operations. It helps us better understand their needs and improve the products and services we offer. Colleagues – By supporting our colleagues in what they do and by striving to make NatWest Group a great place to work, we can champion their potential and collectively deliver our strategy. Investors – We have an active programme of engagement with institutional and private shareholders, alongside fixed-income investors, and will continue to help support the reduction of the UK Government investment in NatWest Group. Communities – As a leading bank in the UK, we believe we can make a real and positive difference to people’s lives. Regulators – We understand the need to have an ongoing, constructive and open dialogue with all relevant regulatory bodies and embed this in our business as a priority. Suppliers – We are committed to creating a diverse and responsible supply chain, being fair and transparent with our suppliers and to reach net zero by 2050 across our operational value chain. Our key relationships and resources Relationships: – Strong and deep customer relationships so we can help them thrive. – Providing our colleagues with the capabilities and future skills they need to fulfil their potential. – Creative and innovative partnerships across the organisation. – Strong links to communities. – Diversifying our supply chain, ensuring focus on minority-owned, women-owned and socially/environmentally aware businesses. Resources: – Strong balance sheet and financial position with active balance sheet and risk management. – Targeted investment in data, technology, and digitalisation to develop infrastructure. – A highly engaged, customer-focused, diverse workforce with significant expertise and experience. Our distinct strengths collectively create a strong organisation: – We are the primary banking relationship(1) for 74% of our retail customers. – c.10% growth in customers investing digitally, with £40.8 billion Assets Under Management and Administration (AUMA) across our Private Banking segment. – 94% of our Retail Banking customer needs are now met digitally (up from 53% in 2019). – 86% of our Commercial & Institutional customers use digital channels to interact with us (up from 76% in 2019). (1) Where the customer initiated Money Transmission Account debit and credits and credit card debits is >=10 for the month across all accounts held. Student accounts >=5, youth accounts >=2. What we do Our strengths Our corporate governance framework helps support the effective implementation of our strategy and decision-making, and promotes long-term sustainable success: Commercial & Institutional We provide the expertise and tailored solutions needed by businesses, from entrepreneurs through to large corporate organisations, multi-nationals and financial institutions. Private Banking We provide private banking and wealth management services to UK-connected high-net-worth individuals and their business interests through the Coutts brand. As the Investment Centre of Expertise for NatWest Group, we service all client segments across Retail, Premier and Private Banking. Retail Banking Through the NatWest, Royal Bank of Scotland and Ulster Bank NI brands we provide a comprehensive range of banking products and related financial services including current accounts, mortgages, personal unsecured lending and personal deposits. We earn income from interest charged on lending to our customers and fees from transactions and other services. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Refer to pages 44 to 47 for our segment performance. NatWest Group 2023 Annual Report on Form 20-F 12

(1) Current account stock. Full year 2023 share based on November 2023 CACI data. (2) Stock share of Retail Banking and Private Banking mortgages, calculated as a percentage of Monthly amounts outstanding of total sterling net secured lending to individuals (in sterling millions) not seasonally adjusted as per December 2023 BoE data. (3) Based on Unsecured lending including Cards, Loans, Overdrafts and central items calculated as a percentage of Monthly amounts outstanding of total (excluding the Student Loans Company) sterling net unsecured lending to individuals not seasonally adjusted based on Dec’23 BoE data. (4) Based on customer deposits (£bn) for Commercial & Institutional excluding NatWest Markets and RBSI, calculated as a percentage of M4 liabilities for Private Non-financial Businesses (PNFC’s) as per December 2023 Bank of England data. (5) Based on gross loans and advances to customers at amortised cost for Commercial & Institutional excluding NWM and RBSI, calculated as a percentage of monthly amounts outstanding of sterling and all foreign currency loans to SMEs and large businesses as per December 2023 Bank of England data. (6) Based on the % of 647 businesses, less than two years old, that name a NatWest Group brand as their main bank (19%). Source: MarketVue Business Banking from Savanta, YE Q4 2023. Data weighted by region and turnover to be representative of businesses in Great Britain. (7) Represents approximate number of interventions delivered and individuals supported through enterprise programmes during 2023, which is based upon data provided by third parties. (8) For further details refer to the Stakeholder focus areas on pages 26 to 43. Strong businesses with capacity for growth Interventions delivered to start, run and grow a business(7,8) Direct community investment(8) 15,553 Young people supported through CareerSense 93% Our View colleague survey inclusion score(8) £3.8m raised for good causes and over 125,000 hours volunteered(8) 1.1m Young people reached through MoneySense(8) 0.6m Financial Health Checks delivered(8) (includes Digital Financial Health Checks) £3.6bn capital returned to shareholders Commercial & Institutional Start-ups to large corporates and financial institutions Private Banking Affluent to high net -worth Retail Banking Youth to mass affluent 15.6% share of current accounts(1) Award-winning UK Private Bank 25% share of deposits(4) 12.7% share of UK mortgages(2) £41bn AUMA 20% share of lending(5) 6.3% share of unsecured lending(3) Cushon Extending our capabilities to workplace pensions ~19% share of UK start ups(6) £5.9bn income £1.0bn income £7.4bn income £61.6bn risk-weighted assets £11.2bn risk-weighted assets £107.4bn risk-weighted assets 23.8% return on equity 14.8% return on equity 15.4% return on equity Creating value for our stakeholders Multi-channel brands serving our 19 million customers Strong market positions with extensive product and service offering Delivering strong returns in 2023 Our business model continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 300,771 £11.1m NatWest Group 2023 Annual Report on Form 20-F 13

Our response High interest rates and the rising cost of living have forced many people to re-evaluate the way they spend and save. In response to the changing needs of savers, we increased the interest rate on all variable savings products in 2023 and made our Fixed Term Savings Accounts available to more people, including those without an existing account with NatWest Group. We also spent time thinking about how we better communicate and engage with customers. In particular, through our digital platforms, to make sure that as rates changed we could provide customers with timely, personalised information. Support to our mortgage customers has included forbearance, breathing space (no charges or contact for 60 days while the customer is encouraged to seek money advice), repayment plans, or if it’s a right and affordable option for the customer, extending a mortgage term to spread payments, or a temporary switch to an interest-only mortgage. To support our business customers with high energy costs and deal with ongoing financial pressures, we launched a business Cost of Living Hub, providing helpful resources such as a free cash flow tool, energy calculator, supply chain navigator, sector support, and workplace wellbeing resources. We also announced a £1 million collaboration with the Federation of Small Businesses to provide NatWest Group business customers with access to independent support and education, covering areas such as getting ready for funding and managing late payments. During 2023, our extensive network of relationship managers continued to help our corporate business customers to grow stronger, manage costs, find the right funding solutions and reduce risk in volatile markets, including internationally. The environment we operate in is constantly changing. Understanding the multiple influences on our business and our customers enables us to be prepared for change, respond quickly and create value for the long term. Market environment Adapting to evolving market trends Economy Overview 2023 saw UK inflation start at very high levels of over 10% before falling through the year. Monetary policy was tightened substantially with the Bank of England’s base rate reaching 5.25% in August 2023. Interest rates rose for customers across most markets. These changes prompted a slowdown in the housing market with lenders’ indices of house prices falling. They also drove a shift into retail fixed-term saving products where balances grew rapidly. Businesses also managed their cash flows more tightly resulting in a weak environment for lending and falling deposit balances in the corporate sector. Business confidence fluctuated through the year, while wage growth was strong by historical standards and the number of job vacancies reduced. Sterling strengthened against both the US dollar and the euro, whilst the FTSE 100 index of shares closed modestly higher than it opened in 2023. Read more about our support for customers on pages 32 to 34. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 14

Market environment continued Technology, data and digital services Overview Business models and customer behaviours continue to evolve rapidly as the role of technology – in how our customers communicate, shop, do business and bank – continues to grow and progress at pace, with more sophisticated technology becoming available, in particular in the field of artificial intelligence (AI). We recognise the growing role of technology for our customers, suppliers and colleagues in everything from remote working and learning, to accessing and delivering goods and services. Cyber threats and digital security Overview Cyberattacks pose a constant risk to our operations, both directly in relation to our own digital estate and indirectly to our supply chain. Cybercrime continues to evolve rapidly, including geopolitical, ransomware and vulnerability management threats. Attacks may come from individuals or highly organised criminal groups intent on stealing money, sensitive data or potentially holding organisations to ransom. Through the COVID-19 pandemic, consumers quickly became increasingly reliant on digital channels and fraudsters responded just as quickly. In 2023, research commissioned by NatWest Group, combined with our own data, showed that almost two-thirds (63%) of people feel apprehensive about their financial online safety – with 60% worried about losing money to a scammer online. The importance of digital security, in both keeping our customers safe from criminals and ensuring the bank is compliant with regulatory and legal requirements, is paramount. Our response We continued the digital transformation of our systems in 2023 to make it easier for customers to access our services when and where they want. Through our payments service Tyl, we were one of the first banks to offer Apple and Android Tap to Pay, a low-cost service removing the need for any hardware to accept payments. For our Retail Banking customers, we further developed our mobile banking app and we’re using data ethically to better understand our customers’ needs and behaviours. This is to help keep their money safe, as well as offer personalised insights to support their financial wellbeing. We’re also focusing on how we use AI and machine-learning technologies safely and ethically to improve the support we can offer to our customers and ensure that our use of data continues to be secure, accountable, fair and ethical. In September 2023, we announced the expansion of our collaboration with Amazon Web Services Inc. to accelerate the use of, and develop, responsible AI products to help customers manage their financial wellbeing through personalised support. Through the collaboration, we have developed AI models that analyse customer behaviour and help us to detect if customers are being scammed, allowing us to intervene more quickly and reduce financial loss. We also, announced in November 2023, a collaboration with IBM on a generative AI initiative with enhancements to our virtual assistant Cora. This will provide our customers access to a wider range of information through conversational interactions with Cora+. We aim to harness the power of responsible and ethical AI to form part of our wider strategy, collaborating with IBM and other experts to help our customers achieve financial wellbeing through personalised support. Our response We use biometric security features to help make online banking more secure for our customers, deploy rigorous due diligence on third parties and work to protect and educate our colleagues and customers on fraud and scam activity. We regularly review, measure and test controls. In 2023, we created a ‘Security Profile’ tool on our mobile banking app that offers customers tailored security features and content designed to keep them safe. To provide service continuity for customers and limit disruption, we monitor and assess a diverse and evolving array of external and internal threats. We also develop, strengthen and adapt our existing control capability to absorb and adapt to disruptions that could impact our customers. While new technological advances, such as machine learning, bring new security challenges, they can also offer significant business opportunities when used safely. In addition to the standard security assessments performed on new technologies, our Digital Security team is working closely with the NatWest Group Artificial Intelligence Centre of Excellence and third parties to support their safe and secure deployment. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 15

Market environment continued Climate change Overview Climate change and environmental degradation are inextricably linked, and each require immediate and significant action to avert potentially irreversible impacts. Climate and nature-related risks have the potential to affect asset values, operational costs and business models, not only through increasing frequency and severity of extreme weather events and biodiversity loss, but also as the transition to a net-zero economy accelerates. These risks, transmitted through the economy to NatWest Group, continue to evolve, reflecting increasing regulatory, legislative, political and societal change. Likewise, our response continues to develop. Regulation Overview We operate in a highly regulated market which continues to evolve in scope. Areas of current regulatory focus include delivering good customer outcomes, in particular, the introduction of the Financial Conduct Authority’s (FCA) new requirements for a Consumer Duty, which expands its rules and principles to require firms to provide better consumer protection. Our response We have an ambition to be net zero across our financed emissions, assets under management and operational value chain by 2050, aligned with the UK’s legal commitment to be net zero by 2050. We continue to support our customers’ transition to a net zero economy and monitor further developments, including progress on supplier and fund decarbonisation. During 2023, we continued to implement our Climate transition plan, focusing on prioritising climate-related opportunities based on their relative commercial and decarbonisation potential to support our customers and the wider economy transition to net zero. We also recognise the role of partnerships and collaborations in the transition to net zero. We have now provided £61.9 billion in climate and sustainable funding and financing against our target of £100 billion between 1 July 2021 and the end of 2025. We have now analysed 90% of our loans and investments exposure as at 31 December 2022 for Scope 3 category 15 financed emissions and reduced our Scope 1 and location-based Scope 2 own operations emissions by 54% against a 2019 baseline. The achievement of NatWest Group’s Climate transition plan has a significant dependency on factors and uncertainties beyond our direct control, including timely and appropriate UK Government policies, technology developments, as well as supplier, customer and societal response. Delays to a range of net zero-related UK Government policies indicate the pace of implementation is slower than required for the net-zero transition as outlined in the UK Committee on Climate Change’s sixth carbon budget issued in 2020. As a result, NatWest Group considers achievement of the following ambitions increasingly challenging: (i) 50% of our mortgage portfolio to have an EPC rating of C or above by 2030 and (ii) to at least halve the climate impact of our financing activity by 2030, against a 2019 baseline. Our response We constantly monitor regulatory change and work with our regulators to help shape those developments that materially impact the bank, responding when necessary either bilaterally or in partnership with one of our affiliated industry bodies. We implement new regulatory requirements where applicable and use our frequent engagement meetings with regulators to discuss key regulatory priorities. Focus areas in 2023 were: – The implementation of the Smarter Regulatory Framework following Royal Assent of the Financial Services and Markets Bill. – Climate change and the development of the regulatory framework for sustainable finance (IFRS S1 & S2). – Fraud and financial crime, with a focus on protecting customers from ever more sophisticated scams. – Capital and liquidity management, including the UK’s approach to the implementation of Basel 3.1. – Following the European Central Bank’s (ECB) approval of the NatWest Group’s dual intermediate EU parent undertaking (IPU) structure, the ongoing consolidated direct supervision by the ECB for our five subsidiary entities in Europe, commenced on the 1 January 2024. – The risks and opportunities presented by ‘Big Tech’ companies’ entry into the retail financial services sector. – Responding to the consultation on improving diversity, equity and inclusion in financial services, through policy developments focused on improved data collection and reporting, and the use of targets for representation. Read more on pages 48 to 59 and in our 2023 Climate-related Disclosures Report. Read more about how we’ve responded to the implementation of the Consumer Duty on page 40. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 16

For Mikael Rosen, Relationship Director in Corporate & Commercial Banking, great service is about understanding our customers’ needs… Businesses come in all shapes and sizes. They face different challenges as they evolve and need different support as they grow. As a relationship manager, I’ve learned that there’s never a one-size-fits-all approach to helping our business customers. Often, it’s about providing a wide range of support, from meeting a business’s everyday banking needs to assisting with its longer-term goals for growth. In 2023, it was great to continue our work with South Coast Insulation Services (SCIS), a national, Trustmark-accredited energy efficiency provider. The business is ambitious about its growth journey and the role it could play in improving energy efficiency in the UK housing and property market. To support this, in 2023 SCIS acquired Cotswold Energy Group, a renewable energy specialist offering solar, ground and air source heat pumps, and electric vehicle solutions. We supported SCIS with the acquisition, providing a £6 million revolving credit facility to fund the transaction. We’ve worked with the customer for a long time and been able to build a good relationship. Our knowledge of the company meant that we could structure a deal which suited SCIS’s business model and expansion plans, providing funding for growth and supporting its working capital needs. We have since further supported SCIS, providing asset finance as it continues to scale its operations and national coverage. As one of the biggest banks for businesses in Great Britain, I like to think we champion our business customers by working with them to understand their needs, finding the right solutions to help them grow. Helping UK businesses to grow customers Serving our every day Supporting business in 2023 101,700 start-ups supported 95.1 million Tyl payments processed 24 months of free everyday business banking provided by our Current Account Switch Service launched in 2023 over 1,300 entrepreneurs supported via the NatWest Accelerator STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 17

Supporting customers at every stage of their lives We believe that sustainable growth will come from building closer relationships with our customers and our ability to better serve them at every stage of their lives. Progress in 2023 – We continue to help future generations develop good money habits through our Youth accounts – including Rooster Money – which have now grown to over 574,000 customers, a 1-in-5 share of the youth market.(1) – In 2023, we increased our lending to customers by £9 billion, up 3% compared with 2022. – To help our customers feel more money confident, have greater control of their day-to-day finances and plan for the future, we launched the Insights feature in our Retail Banking mobile app in November 2023. The feature had 3.6 million users at the end of 2023. – As a committed champion of new businesses, we supported 101,700 start-ups finance their operations in 2023. Delivering our strategy It’s our focus on our strategic priorities that underpins our progress. Our business is resilient and we’re supporting growth with our long-term investment plans and our digital transformation. Progress in 2023 – As one of the first banks in the UK to offer Apple and Android Tap to Pay, we made payments easier, faster and cheaper for businesses in 2023 by removing the need for hardware and providing a low-cost, pay-as-you-go service. – More than 100,000 customers now invest through our digital investment service provided by the Coutts Investment Centre of Expertise and over 93% of payments in Private Banking are now made digitally. – We have created 17.2 million positive interactions with customers through personalised messages. Simple to deal with By being simple to deal with we will improve both customer journeys and colleague engagement, providing an easier and more intuitive banking experience. Our focused investment allows us to further simplify processes and deliver cost efficiency. Outcome We can leverage the expertise we have across our bank to deliver products and services that are relevant throughout the lifecycles of our customers. Outcome Through understanding our customers better and being simple to deal with we can offer more relevant products, more quickly and at the right time. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION – In 2023, we helped c.6 million Retail Banking customers with their financial wellbeing. We also carried out over 300,000 business support interventions through initiatives such as Dream Bigger and Business Builder, providing advice to help start, run or grow a business. – In 2023, Cora, our AI virtual assistant, handled 10.8 million Retail Banking conversations, almost half of which required no human input. – We now have 10.9 million active digital users(2). We have 9.8 million customers who have accessed the Retail Banking mobile app and 3.5 million customers who have accessed online banking in 2023. (1) As at October 23 (latest available), Sources: CACI – UK youth flow share (11-18 years old) cash card and no overdraft; NatWest Rooster Money (11+ years old) accounts opened (12 months rolling). (2) An active digital user is a customer who has accessed either their online banking platform or mobile banking app. NatWest Group 2023 Annual Report on Form 20-F 18

Progress in 2023 – Our capital generation remained strong in 2023 and as a result, £3.6 billion shareholder distributions were paid and proposed in 2023. – We invested £1.3 billion in our business during 2023 across growth, simplification, technology enablement and keeping our business safe and secure. – Our continuing exit from the Republic of Ireland has resulted in a reduction in RWAs during 2023 from £5.4 billion to £1.4 billion, with the close-down process substantially complete. The sale of performing tracker and linked mortgages to AIB announced in Q2 2022 is now 79% complete. The remaining migration is expected to occur during 2024. Meanwhile, the sale of the portfolio of mostly non-performing mortgages, unsecured personal loans and commercial facilities to CarVal announced in Q3 2023 is now 71% complete. Two further migrations will take place during 2024 to complete this transaction. In addition, the sale of non-tracker mortgages, micro-SME loans and the Asset Finance business to Permanent TSB Group Holdings plc was completed in 2023. Sharpened capital allocation Through balance sheet growth we use our capital to invest in the people and infrastructure of our organic business. This allows us to react to regulatory change and to distribute capital to our shareholders while operating in a 13–14% CET1 ratio range. Delivering our strategy continued Outcome We aim to continue to deploy our financial capital to create value for our stakeholders and society over the long term as well as generating sustainable returns. Learn more about our strategy Powered by people, technology, innovation and partnerships We need to continually evolve our capabilities, investing in people, technology and partnerships so we can be a simple, safe and smart bank that is driven by data and digital innovation. Progress in 2023 – In June 2023, we completed our acquisition of a majority shareholding in the workplace savings and pensions fintech, Cushon. The acquisition enables us to offer a suite of financial wellbeing services to our Commercial & Institutional and Private Banking customers. – To reduce financial barriers for farmers transitioning to sustainable agricultural practices, we announced strategic partnerships with WWF-UK and with food manufacturer McCain. – In collaboration with the University of Edinburgh, NatWest Group announced in June 2023 the investment of £2 million to create a Centre for Purpose-Driven Innovation in Banking. – In November 2023, we announced the launch of our Home Energy Hub – a one-stop shop for home energy improvements, enabling customers to connect to an ecosystem of suppliers including British Gas, TrustMark, Vibrant, Wickes and Snugg. Outcome By scaling new and existing relationships through technological and digital expertise, we aim to meet our customers’ evolving needs and fulfil our growth ambitions. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION – We have now provided £61.9 billion in climate and sustainable funding and financing (£29.3 billion in 2023) towards our £100 billion target between 1 July 2021 and the end of 2025. How we measure our progress: refer to our Key performance indicators on pages 20 to 22. How we shape our decisions: refer to our Market environment section on pages 14 to 16. How we balance our actions: refer to our Risk management overview section on pages 60 to 65. How we reward for progress: refer to our Annual remuneration report on pages 126 to 146. NatWest Group 2023 Annual Report on Form 20-F 19

CET1 ratio Operate with a CET1 ratio in the range of 13-14% over the medium term. Our performance The CET1 ratio remains strong at 13.4%, or 13.2% excluding IFRS 9 transitional relief. The 80 basis point reduction compared with 31 December 2022 principally reflected proposed distributions deducted from capital of c.200 basis points, and increased RWAs of c.50 basis points, partially offset by the attributable profit. Measuring our performance Key performance indicators Financial measures Income (excluding notable items) Cost:income ratio (excl. litigation and conduct) Expect total income excluding notable items to be around £14.8 billion in 2023. Achieve a cost:income ratio (excl. litigation and conduct) below c.52% or c.£7.6 billion of operating costs in 2023. Our performance (1) Notable items of £413 million (2022: £95 million). Our performance Supporting customers at every stage of their lives Enterprise Powered by people, technology, innovation and partnerships Simple to deal with Climate Learning Sharpened capital allocation Key Achieved On track 2023 2022 2021 £13,061m £10,184m £14,339m 2023 2022 2021 55.5% 69.9% 51.8% 2023 2022 2021 14.2% 18.2% 13.4% Alignment with our strategic framework How we measure our progress and our future priorities In 2024 we expect income, excluding notable items, to be in the range of £13.0-13.5 billion. Alignment with our strategic framework How we measure our progress and our future priorities In 2024 we expect operating costs, excluding litigation and conduct costs, to be broadly stable compared with 2023. Alignment with our strategic framework How we measure our progress and our future priorities Target a CET1 ratio in the range of 13-14%. Below guidance provided in 2022. In line with Q3 2023 guidance STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Total income increased by 12.1% to £14.8 billion compared to 2022. Total income, excluding notable items(1) of £14,339 million, was £1,278 million, or 9.8% higher than 2022, but was below our guidance of around £14.8 billion given in our 2022 year end results. In our Q3 2023 results we updated our guidance to around £14.3 billion reflecting changes in customer behaviour and revised assumptions on interest rates. The cost:income ratio was 54.2% compared with 58.4% in 2022. The cost:income ratio (excl. litigation and conduct) was 51.8% compared with 55.5% for 2022. Total operating expenses were £309 million higher than 2022. Other operating expenses were £339 million, or 4.6%, higher for the year at £7,641 million. The increase was principally due to higher staff costs, including a payment to support our colleagues with cost of living challenges, inflationary pressures on utility and contract costs and a property impairment. Read more: Our investment case on page 10 and in our Outlook statement on page 8. For details on how the KPIs are aligned to executive directors’ remuneration refer to our Annual remuneration report on pages 126 to 146. NatWest Group 2023 Annual Report on Form 20-F 20 (1) The guidance, targets, expectations, and trends discussed in this section represent NatWest Group plc management’s current expectations and are subject to change, including as a result of the factors described in the Risk Factors section. These statements constitute forward-looking statements. Refer to Forward-looking statements in this document.

Supporting customers at every stage of their lives Enterprise Powered by people, technology, innovation and partnerships Simple to deal with Climate Learning Sharpened capital allocation Key Achieved On track Key performance indicators continued Non-financial measures Return on tangible equity Climate and sustainable funding and financing(1) Achieve return on tangible equity target of 14-16% over the medium term. Provide £100 billion of climate and sustainable funding and financing between 1 July 2021 and the end of 2025. As part of this we aim to provide at least £10 billion in lending for EPC A and B rated residential properties between 1 January 2023 and the end of 2025. Our performance Our performance How we measure our progress and our future priorities Funding and financing provided to support climate and sustainable activities in line with our climate and sustainable funding and financing inclusion (CSFFI) criteria.(1) Read more: Our climate-related disclosures on pages 48 to 59 and in our 2023 Climate-related Disclosures Report. Supporting enterprise through unique programmes Support removal of barriers to UK enterprise growth through provision of learning, networking, and funding interventions. Our performance How we measure our progress and our future priorities Support provided through enterprise programmes and customer interactions to start, run or grow a business. How we measure our progress and our future priorities In 2026 we expect to achieve a return on tangible equity of greater than 13%. 2023 2022 2021 12.3% 9.4% 17.8% 2023 2022 2021 £24.5bn £9.4bn £8.1bn 2023 2022 2021 53,000 c.55,000 45,000 (1) For the year ended 31 December 2023, the NatWest Group CSFFI criteria published in December 2022 has been used to determine the assets, activities and companies that are eligible to be counted. For the year ended 31 December 2022, our CSFFI criteria published in October 2021 was applied. For the year ended 31 December 2021, the CSFFI criteria published in February 2021 was applied. The CSFFI criteria includes lending to personal customers for properties with EPC A and B ratings, and these were included within climate and sustainable funding and financing reporting from 1 July 2021. NatWest Group’s own Green, Social and Sustainability (GSS) bond issuances are not included in the figures above. Financial measures Alignment with our strategic framework Alignment with our strategic framework Alignment with our strategic framework Below guidance provided in 2022. In line with Q3 2023 guidance STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION £29.3bn In 2023 we provided £29.3 billion of climate and sustainable funding and financing towards our £100 billion target. This took our cumulative total since July 2021 to £61.9 billion towards our target to provide £100 billion of climate and sustainable funding and financing by the end of 2025. – 34% were from ethnic minority backgrounds. – 55% support provided to women. – 75% were in regions outside London and south-east England. In 2023 we have supported 57,155 young people and 45,263 individuals and businesses through our enterprise programmes with 300,771 customer interventions delivered. Of those supported: Return on equity was 12.1% in 2023. Return on tangible equity was 17.8%, above our guided range, compared with 12.3% in 2022. Read more: Our Annual remuneration report on pages 126 to 146 and in our 2023 ESG Disclosures Report. NatWest Group 2023 Annual Report on Form 20-F 21 (2) The guidance, targets, expectations, and trends discussed in this section represent NatWest Group plc management’s current expectations and are subject to change, including as a result of the factors described in the Risk Factors section. These statements constitute forward-looking statements. Refer to Forward-looking statements in this document.

Build and strengthen a healthy culture(1) Net Promoter Score® (NPS) Retail(2) Net Promoter Score® (NPS)(2) Business Commercial Mid-Market Achieve our culture target of 80 points as measured through the Our View colleague engagement survey. Achieve 2023 NPS targets for our core customer-facing businesses. Achieve 2023 NPS targets for our core customer-facing businesses. Our performance In 2023, we exceeded our target on Culture by 3 points. We have introduced an experimentation index to support leaders to assess the extent to which colleagues have an experimentation mindset, feel empowered to drive change and try new ways of thinking. Our View survey results across 2023 show that our experimentation culture is improving. Alignment with our strategic framework Alignment with our strategic framework Alignment with our strategic framework Our performance 2023 was a high-profile year for the retail banking industry with rates being a key focal point for customers over the 12 months. Against this backdrop, the NPS for NatWest Retail Banking dropped slightly from 22 in Q4 of 2022 to 21 in Q4 of 2023. Our performance Businesses continued to face into elevated rate conditions in 2023. NPS for NatWest Business dropped two points from -6 in Q4 of 2022 to -8 in Q4 of 2023 and the NPS for Commercial Mid-Market Banking dropped from 16 in Q4 of 2022 to 8 in Q4 of 2023. Compared with other banks, our ranking in Business Banking has not changed; we remain a leader in Commercial Mid-Market. Our focus in 2024 is to enhance customer journeys and platforms, deepen relationships and free up front-line capacity. Key performance indicators continued Non-financial measures (1) The culture index used to measure culture consists of 10 questions as defined and measured in Our View, our colleague engagement survey. All scores shown are for NatWest Group and include Ulster Bank RoI. To enable like-for-like year-on-year comparisons, all scores shown are based on the Willis Towers Watson (WTW) calculation methodology. (2) NPS® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld. (3) During 2022, a methodological change was made to retail NPS measurement which resulted in an uplift in NPS scores for all brands including NatWest. 2022 performance has been measured removing the impact of this positive change. 2023 goals have been set from a new +22 baseline which takes into account the positive impact of the methodological change. How we measure our progress and our future priorities 2024 NatWest Business Banking NPS -6. 2024 NatWest Commercial Banking NPS 11. How we measure our progress and our future priorities 2024 NatWest Retail Banking NPS 22. How we measure our progress and our future priorities Achieve our culture target as measured through our colleague engagement survey, Our View. 2023 2022 2021 82 83 83 2023 2022(3) 2021 22 13 21 2023 2022 2021 -6 -3 -8 2023 2022 2021 16 13 8 Supporting customers at every stage of their lives Enterprise Powered by people, technology, innovation and partnerships Simple to deal with Climate Learning Sharpened capital allocation Key Achieved On track Below guidance provided in 2022. In line with Q3 2023 guidance STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Read more: Our colleagues section on page 36 to 39, Annual remuneration report on pages 126 to 146 and in our 2023 ESG Disclosures Report. Read more: Our customers section on pages 32 to 34 and our Annual remuneration report on pages 126 to 146. Read more: Our customers section on pages 32 to 34 and our Annual remuneration report on pages 126 to 146. NatWest Group 2023 Annual Report on Form 20-F 22 (4) The guidance, targets, expectations, and trends discussed in this section represent NatWest Group plc management’s current expectations and are subject to change, including as a result of the factors described in the Risk Factors section. These statements constitute forward-looking statements. Refer to Forward-looking statements in this document.

Images TBU Lead Product Owner in our Digital Channels team, Sue Duka, explains how she’s helping mobile banking customers take control of their digital security… Mobile apps have become fundamental to many people’s lives. They’re now an essential offering of banking services, giving customers control of their finances and the freedom to bank where and when they want to. With nearly 10 million customers regularly using our mobile banking service, we know how important digital security is. We’ve invested significantly in digital security and our mobile banking apps are built with sophisticated levels of protection. Despite this, new scams emerge every day and fraudsters are learning new and inventive ways to exploit customers’ vulnerabilities, with potentially devastating financial and emotional impacts. It’s not always easy for customers to know what they can do to protect themselves. That’s why in 2023 we created Security Profile, a dedicated space in our mobile banking app where customers can see how we safeguard them and what they can do to stay secure. Security Profile shows customers steps they can take to improve their security, such as setting controls like transaction notifications and turning on biometric approvals. We’ve also added personalised education to help customers avoid fraud and scams. Our approach to developing Security Profile has customers at its heart, and I’ve worked closely with our Digital Security and Fraud colleagues, along with many other teams from across the bank, to respond to our customers’ needs and feedback. This work has included improving our biometric approvals to make them more secure and easier to use. We’ve enhanced these features to better spot things such as deep fake technology that could be used in fraudulent transactions. We’ve also removed the need for customers to blink when they use the feature, making it more accessible to people who can’t complete this action. Being part of such important work is something I really value. It’s hugely rewarding to know about the impact these features have on our customers and the difference they make in helping us to prevent fraud. Keeping our customers digitally secure Enabling digital security in 2023 9.8 million Retail Banking customers used mobile banking in 2023 3.1 million customers used Security Profile in 2023 1.8 million customer actions to boost security on Security Profile in 2023 customers Serving our every day STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 23

In this statement, we describe how our directors have had regard to the matters set out in section 172(1) (a) to (f) of the Companies Act 2006 (section 172) when performing their duty to promote the success of the company. The Board reviews and confirms its key stakeholder groups for the purposes of section 172 annually. For 2023, they remained investors, customers, colleagues, regulators, communities and suppliers. Our Board and committee terms of reference (available at natwestgroup.com) reinforce the importance of considering the matters set out in section 172 (the s172 factors, as set out below). Our paper template also supports consideration of stakeholders and enables good decision-making. The spotlights on this page provide illustrative examples of how the section 172 factors were considered by the Board during 2023. They describe how the Board played an important oversight role in relation to key focus areas for the bank and its customers. On the following page we provide insights into how two principal decisions were made by the Board during the year, on capital distributions and Chair succession. Principal decisions are those decisions taken by the Board that are material or of strategic importance to the company, or are significant to NatWest Group’s key stakeholders. The s172 factors Likely long-term consequences Employee interests Relationships with customers, suppliers and others The impact on community and environment Maintaining a reputation for high standards of business conduct Acting fairly between members of the company Section 172(1) statement Artificial intelligence (AI) and data During a two-day strategy session the Board held with executive management in June 2023 there was significant focus on the impact of emerging technologies, including AI and digital currencies. Customer and colleague impacts were an important consideration, particularly over the longer term. This session was supplemented by two Board deep dives during the year on the Digital X strategy, which management refreshed in March 2023. The Board noted that the change in strategy for the function would position it well to meet future customer needs and offered the opportunity to double the number of engineering roles over three years. Nature Consumer Duty Having previously approved the plan to comply with the Consumer Duty by July 2023, the Board closely monitored management’s progress towards the initial regulatory deadline and the future milestones. Directors considered how good customer outcomes would be measured and documented, and how to ensure colleagues have the tools to fulfil their roles and responsibilities to best serve customers. A dedicated training session on the requirements was provided by the external consultancy Oxera to build directors’ understanding of the requirements and how the bank can best deliver good customer outcomes. The Board appointed Roisin Donnelly as NatWest Group Consumer Duty Board Champion from 26 April 2023. Ms Donnelly also joined the Group Sustainable Banking Committee which supports the Board in the oversight of Consumer Duty. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Our directors are mindful that it is not always possible to achieve an outcome which meets the expectations of all stakeholders who may be impacted, and that there may be impacted stakeholders outside the six key groups the Board has identified. Examples of how the Board has engaged with stakeholders can be found in this statement and in the Corporate governance report pages 86 and 87. The Board provided oversight of various matters relating to nature throughout 2023, reflecting the growing understanding of the importance of this element of sustainability and its potential long-term impacts. In July 2023 the Board discussed strategic ambitions with management, and the opportunities available to the bank to take action in this area. Bespoke Board training on nature and biodiversity later in 2023 helped to build directors’ knowledge of the impact on local communities and how the bank might support efforts in this area. Given the increasing importance of nature and biodiversity, when reviewing the Board skills matrix for 2023, directors were also invited to consider their experience in this area in the context of ESG. The Board skills matrix is on page 75. NatWest Group 2023 Annual Report on Form 20-F 24

Section 172(1) statement continued Capital distributions What was the decision-making process? The Board approved a number of external capital distributions in 2023. These included full-year and interim dividends and participating in a directed buyback of ordinary shares held by HM Treasury. In addition, two on-market buybacks of ordinary shares were approved during 2023. As part of our quarterly results announcements the Board also approved external guidance on capital distributions. The Board considered the proposed distributions in the context of the agreed budget and capital plans for the year, including current and future regulatory capital requirements and the available funds for distribution. Consideration was also given to the macro-economic environment including the impact of higher interest rates on customer behaviour. The Group Board Risk Committee reviewed all capital distribution proposals prior to submission to the Board, making appropriate recommendations informed by the views of the second and third lines of defence. How did the directors fulfil their duties under section 172? How were stakeholders considered? The decisions in relation to capital distributions fulfilled the commitment made in the NatWest Group plc 2022 Annual Report and Accounts to return significant capital to shareholders through 2023 in line with our strategy for growth which drives attractive returns to shareholders. The Board was particularly focused on ensuring the proposed distributions would support the long-term success of the company to the benefit of all stakeholders. Feedback gained via ongoing investor engagement by executive directors regarding the capital distribution narrative also informed the Board’s decision-making. A key consideration in the decision to use capital to undertake the two on-market buybacks was the share price – the valuation on each occasion meant that this course of action would be materially more accretive than alternative options. Investors, and their expectations in terms of capital distributions, were another important factor. The Board considered the financial implications the distributions might have and any potential impact on the bank’s ability to serve our customers every day. Actions and outcomes The final dividend of 10 pence per ordinary share was approved by shareholders at the Annual General Meeting in April 2023 and an interim dividend of 5.5 pence per ordinary share was approved by the Board in July 2023. In May 2023 the Board approved participation in a standalone directed buyback of 469,200,081 ordinary shares (worth £1.3 billion) in the company from HM Treasury. Two on-market buybacks were approved by the Board – the first in February 2023, up to a value of £800 million, and the second in July 2023, up to a value of £500 million. These actions were in line with the external guidance provided in February 2023, and reviewed as part of each results announcement. Chair succession What was the decision-making process? On 6 September 2023 the Board approved the appointment of Rick Haythornthwaite as the next Chair of NatWest Group plc. Rick joined the Board as an independent non-executive director and Chair Designate on 8 January 2024 and will succeed Howard Davies as Chair on 15 April 2024. The appointment followed a rigorous search process led by the Senior Independent Directors of NatWest Group plc and NatWest Holdings Limited, overseen by the Group Nominations and Governance Committee (N&G), and supported by an external search firm. The wider Board was closely involved through regular updates and broader discussions. To support the Board’s decision, a detailed paper described the N&G process leading to Mr Haythornthwaite’s identification as the preferred candidate. This included our role-specification criteria, how candidate long and short lists were compiled and reviewed, directors’ interview feedback on skills, experience and suitability, and a review of external appointments, time commitment and independence. The Board approved the appointment, noting that Mr Haythornthwaite was a highly experienced Chair who combines a successful commercial career with a deep knowledge of financial services markets and technology. He also has a strong track record of delivery at significant customer-facing organisations. How did the directors fulfil their duties under section 172? How were stakeholders considered? The Senior Independent Director updated regulators and institutional investors at appropriate points during the Chair search process. The Board carefully considered Mr Haythornthwaite’s fitness and propriety, supported by references from Mr Haythornthwaite’s current and previous boards, alongside other background reports. The Board noted that Mr Haythornthwaite’s appointment would ensure a smooth and orderly handover of the Chair role, providing stability and ensuring strong leadership. Actions and outcomes Mr Haythornthwaite started his induction shortly after the September 2023 announcement, meeting internal and external stakeholders to cover an agreed list of topics, to which Mr Haythornthwaite contributed. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Further details of the Chair search process can be found in the N&G report on pages 90 and 94, and the induction programme is described in more detail on page 81. Mr Haythornthwaite’s biography is on page 71. NatWest Group 2023 Annual Report on Form 20-F 25

Investors Customers Colleagues Regulators Communities Suppliers Our business is made up of a network of relationships. Listening, engaging and partnering with stakeholders helps us to address our business impacts and improve outcomes for our customers. On pages 27 to 29 we highlight our key stakeholders and provide examples of how we have collaborated with them to create value. Stakeholder engagement We understand the importance of responsible environmental, social, and governance (ESG) practices to our strategy and how our stakeholders play an essential role in ensuring we can succeed. We engage with our stakeholders to review the key ESG-related topics that matter most to them. This may allow us to better address sustainability related matters of interest to our key stakeholders and supports our voluntary ESG disclosures in our 2023 ESG Disclosures Report. Key ESG topics for our stakeholders Stakeholder focus areas Engaging with our stakeholders is vital to the success of our business. It helps us improve outcomes for our customers, communities, and the environment. On pages 30 to 43, we look at some of the ways that we supported our stakeholders’ needs in 2023. Learn more about our stakeholder engagement STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION For further information on how stakeholder considerations influenced the Board’s discussions and decision-making: refer to our Section 172(1) statement on pages 24 and 25, and in our Corporate governance report on pages 86 and 87. NatWest Group 2023 Annual Report on Form 20-F 26

Investors Providers of our capital and funding How we engaged Outcome of engagements The Chairman, Group CEO and Group CFO took part in a programme of engagement through quarterly results presentations and meetings with our largest shareholders. An open dialogue was maintained with our institutional shareholders, updating them on progress against our strategic priorities and financial targets. 180 meetings were hosted by the Chairman, CEO and CFO during 2023 which also gave investors the opportunity to provide feedback to the Board. Meetings with our wider senior management team, presentations at industry conferences and an investor spotlight on our climate strategy. Institutional shareholders, fixed income investors and research analysts gained a deeper understanding of our business and were able to ask questions of the wider management team to inform their investment decisions. Programme of meetings for our largest institutional shareholders with the Senior Independent Director upon announcement of the new Chair. Institutional shareholders were able to discuss the appointment process for the new Chair and share their feedback with the Board. In addition to the AGM, our Chairman and Group CEO represented the Board at a virtual shareholder event with private shareholders. Private shareholders had the opportunity to engage with Board members on topics including the cost of living crisis, our strategy and our ambition to be a leading bank in the UK helping to address the climate challenge. Challenges we faced: On 26 July 2023, the Board announced that Alison Rose had agreed by mutual consent to step down as CEO of NatWest Group and that Paul Thwaite had been appointed as CEO for an initial period of 12 months. It was recognised that the unexpected change in management was likely to generate a number of questions for investors, and so it was important to engage quickly. After the news had been communicated to the market, we contacted our largest shareholders to offer them a meeting with the Chairman. A number of investors then spoke with Howard Davies, with discussions focusing on the events surrounding the CEO’s departure and the scope of the independent review that would take place. In September 2023, Paul Thwaite began a programme of meetings with our largest shareholders to discuss his immediate priorities and listen to their feedback on the business. Customers The people and businesses we serve How we engaged Outcome of engagements Through our Carbon Planner, a free digital tool designed to help UK businesses reduce their carbon footprint, and our Carbon Footprint Tracker for retail customers. We have made helping to address the climate challenge and supporting our customers in their transition to net zero a strategic priority. Our tools could help customers and UK businesses to understand and reduce their carbon footprint. Customer listening programme, delivered through small focus groups of six to eight customers discussing their experiences. In 2023, we held customer listening sessions on fraud, financial capability among customers in vulnerable situations, financial management apps, financial networks and finance and investment planning for people over the age of 55. These sessions were attended by ExCo members and other senior leaders across NatWest Group. We launched an intranet page to share the content from these sessions with all colleagues and now provide a range of media for colleagues, including reports, videos and podcasts. Through our customer-facing websites and written communications, detailing our support in response to the UK Government’s Mortgage Charter. We offered our customers additional support in response to the charter, building on our existing features for mortgage customers who may be facing financial difficulties. In 2023, our mortgage cost of living support web pages were visited over 57,000 times, with more than 30,000 customers utilising one of our additional support features. NatWest Accelerator, Entrepreneur hubs and key commercial partnerships. We continued to collaborate with organisations such as Business in the Community, Hatch, Digital Boost, Women in Business, and the Centre for Research in Ethnic Minority Entrepreneurship to support entrepreneurs from a diverse range of backgrounds and sectors. In 2023, we supported over 1,300 entrepreneurs via the NatWest Accelerator, of which businesses 56% were led by women and 21% by people from ethnic minority backgrounds. Challenges we faced: With the rapid rise in interest rates from late 2022 into 2023, customers urgently needed our support to understand the potential impacts and make informed decisions about their savings. We mobilised with a combination of new products and engaging communications, resulting in existing customers taking action and over 100,000 new customers joining the bank to take advantage of our savings products. This engagement strategy will continue to play a major role in supporting our customers as we help them to navigate the anticipated base rate changes over the coming 12 to 18 months. Stakeholder engagement continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 27

Stakeholder engagement continued Colleagues The people who deliver our strategy How we engaged Outcome of engagements Our View colleague engagement survey. Our View September 2023 response rate was 84%, our highest-ever participation rate. The survey provided insights to support leaders in developing clear action plans and improve the colleague experience across NatWest Group. Understanding sentiment and using insight to drive people-based decisions means we are better equipped to help our colleagues to thrive. By understanding where we can improve the colleague experience, we are better placed to champion our colleagues’ potential, supporting them to do the same for our customers. Wellbeing Champions, Inclusion Champions, Our Colleague Experience Squad and employee-led networks. We continued to support our employee-led networks (ELNs), which collectively have over 24,000 members globally. We launched our global ELN event calendar continuing to promote cultural diversity and faith celebrations focusing on impact and engagement. Through our Climate Change Fundamentals education programme. In 2023, we committed to educate all colleagues through our Climate Change Fundamentals programme which was completed by c.55,000 colleagues across the bank. The 60-minute programme, created in partnership with University of Edinburgh Centre for Business, Climate Change and Sustainability, focused on building awareness of our climate ambitions whilst helping colleagues build their own knowledge, skills, and behaviours to understand their role in climate change. Challenges we faced: The unprecedented rise in the cost of living experienced by our colleagues created new challenges in 2023 through rising inflation and energy prices. We provided financial support to our colleagues most likely to be impacted by making a significant investment in our annual pay review effective April 2023, and we continue to support colleagues with our suite of financial wellbeing materials. Focusing on our lowest paid colleagues, we immediately implemented the changes to the real living wage and also increased our lowest starting salary to £22,000 effective April 2023, an increase of 16% since April 2022. For 2024 this will further increase to £23,500, with a significant wider investment in colleague pay recognising the pressures colleagues continue to face. 2023 also saw the announcement of our Sharing in Success (SiS) scheme which is intended to be a valuable addition to our colleague pay proposition. Regulators Whose rules and expectations we seek to comply with How we engaged Outcome of engagements With the FCA on its Discussion Papers and Call for Inputs on Big Tech firms entering the financial services sector. Regulators have greater insight into the risks and opportunities posed by Big Tech firms’ entry into the sector and the potential ramification of their use of technology. Engagement with the Prudential Regulation Authority (PRA) on the latest Basel 3.1 capital proposals. We are awaiting final rules from the PRA; however, through our discussions with the regulator we have highlighted the potential impacts on the real economy of increased capital requirements of the wider management team to inform their investment decisions. Engagement with the Financial Conduct Authority (FCA) on our implementation of the new Consumer Duty. Transparency on our implementation, consistent with the FCA’s stated ambition to iterate on approach with firms. Challenges we faced: NatWest Group has been keen to support the FCA in understanding the potential competition impacts of Big Tech’s entry in retail financial services. As such, we responded to the FCA’s October 2022 Discussion Paper on ‘The potential competition impacts of Big Tech entry and expansion in retail financial services’, and are now subsequently working with the regulator on its more recent November 2023 Call for Input on the ‘Potential competition impacts from the data asymmetry between Big Tech and firms in financial services’. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Colleague Advisory Panel (CAP). The CAP continued to provide an important communication channel between the Board and colleagues. Panel members and directors shared views on executive remuneration and the wider workforce, ESG, Consumer Duty, and human rights. Discussions are reported to the Board by the CAP Chair, who also subsequently updates panel members. Refer to page 87 for more details on Board-level engagement. 2023 Annual Report on Form 20-F NatWest Group 28

Stakeholder engagement continued Communities The places where we have an impact How we engaged Outcome of engagements Meetings, roundtable events and working groups with the UK Government, engagement with personnel within the government and the opposition. Stakeholder engagement, combined with analysis of customer data, enabled us to better support those impacted by increased cost of living. We issued regular communications on the economy, the cost of living support we provide, and guidance about managing finances to MPs and researchers. We met with MPs and local groups and representatives to discuss alternative ways of banking in areas affected by branch closures. We collaborated with partners through the Sustainable Homes and Buildings Coalition and the Energy Efficiency Taskforce. We continued to help to address the climate challenge, focusing on helping customers reduce energy costs by supporting behavioural change and adapting their homes. We hosted events at Westminster in conjunction with former MP, Chris Skidmore and the UK Net Zero Coalition – where we published the third Home is Where the Heat is report. We also continued to progress our home retrofit plans and we participated in the UK’s representation at COP28. We continued a regular series of constituency roundtable events and visits, bringing together business customers and local politicians to discuss the issues that matter most to them. We participated in events on fraud awareness, cost of living support and help with banking for senior citizens through constituency engagement and liaison with local MPs. We demonstrated how NatWest Group adds value to local economies by creating jobs and offering apprenticeships, as well as by supporting and nurturing startups and small businesses. Establishing and building charity relationships to explore how we can help communities to thrive through customer giving, colleague fundraising and volunteering. Through our colleague Do Good Feel Good campaign, good causes received £3.8 million and 125,026 hours of volunteering time. Through our reward account, charities have received £987,000 in customer donations to support their vital work. We are a long-standing partner of the Disasters Emergency Committee (DEC) and our campaign for the Turkey–Syria Earthquake Appeal led to donations of over £3 million, which includes £1.87 million raised through our donation facility on our mobile banking app. Challenges we faced: Cost of living challenges following so quickly on from COVID-19 mean that charities continue to face challenges on fundraising while facing increased demand for their services. We have collaborated with charities working most closely with those impacted by cost of living to explore ways we can support more. Suppliers Where we source our goods and services How we engaged Outcome of engagements Our Supplier Charter. We have amended the intent of the Supplier Charter to create a ’one-stop-shop’ for our suppliers. The charter highlights our ambition to create a diverse and responsible supply chain and in 2023 we added new guidance around digital accessibility, including valuable learning opportunities for our suppliers to share with their wider value chain. Supplier Decarbonisation Programme pilot group. Our Supplier Decarbonisation Programme was formed to help us achieve our ambition to reduce our operational value chain scope 3 emissions by 50% by 2030, against a 2019 baseline, and achieve net zero by 2050 across our operational value chain. The programme enabled colleagues to work with a test group of suppliers to understand the most effective way to build awareness and capability and, ultimately, to have deeper and more informed conversations with suppliers about climate-related matters. Refer to page 58 for further details on our Operational value chain. Evidence-based supply chain sustainability assessments for our suppliers by third-party provider, EcoVadis. 528 of our suppliers participated in an EcoVadis assessment in 2023. Where a supplier falls below the global EcoVadis average (45.9%), a corrective plan is initiated and, if appropriate, is discussed at supplier meetings. Challenges we faced: Customers, employees, investors and governments increasingly demand that companies demonstrate how they’re working to be socially responsible and provide greater environmental stewardship. With new sustainability legislation, standards and guidelines, the need to do more to support our suppliers is clear. That’s why in 2023, we’ve continued to enhance our Supplier Charter to include guidance on digital accessibility, new developments and valuable learning opportunities for suppliers to share with their wider value chain. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Board sessions with suppliers. In 2023, the Board met with representatives of suppliers to strengthen relationships, to understand their experiences of working with NatWest Group and to identify future opportunities and challenges. Refer to page 86 for details on Board-level engagement. NatWest Group 2023 Annual Report on Form 20-F 29

Private shareholders We engaged with our private shareholders through our Annual General Meeting (AGM), virtual shareholder events and our annual and strategic report communications. The AGM was held in April 2023 in person at our headquarters in Edinburgh and available to watch live online via webcast. We also held a live virtual shareholder event before the AGM to give shareholders the opportunity to engage with our Chairman and CEO prior to voting on the business of the AGM. Virtual shareholder events remain a key component of our stakeholder engagement programme. They provide an opportunity for shareholders to hear from, and ask questions of, Board members and senior management on topics such as innovation, enterprise, sustainability and our financial performance (including changes in the macro economy and the impact on deposit offers and customer behaviour). We intend to deliver further virtual events in 2024. Shareholder updates and recordings of our AGM and virtual shareholder events can be found on our website at natwestgroup.com. Institutional shareholders and fixed-income investors Our well-established programme of global institutional investor engagement saw management host 373 meetings with institutional shareholders and 324 meetings with fixed-income investors in 2023. The financial year began with a presentation on our annual results in February 2023, hosted by our Chairman, CEO and CFO. This live event took place virtually and included an interactive question and answer session to give research analysts, shareholders and fixed-income investors an opportunity to engage with our management team. Further quarterly results presentations took place virtually alongside the release of our financial results in April, July and October 2023. Our CEO and CFO engaged regularly with UK Government Investments and our largest active institutional shareholders throughout the year to update them on our progress. As in-person contact continued in 2023, we hosted a hybrid programme of in-person and virtual one-to-one and group meetings with institutional shareholders from around the world. Meetings with shareholders and fixed-income investors covered key topics such as progress against our financial targets, interest rate sensitivity, capital return policy, regulation and the macroeconomic environment. Environmental, Social and Governance (ESG) issues were regularly discussed at our one-to-one meetings. We participated in several ESG focused roadshows and investor events and we continued to engage with sustainability rating agencies and data providers. In 2023, NatWest Group won the 2023 Finance for the Future Awards for ‘Embedding an Integrated Approach’ and ‘Communicating Integrated Thinking’. We were also named as a Climate Leader at the 2023 Finance for the Future Awards, recognising our progress in integrating sustainability into financial decision-making. Our ongoing Investor Relations programme also allows investors the opportunity to hear from the wider management team. In March 2023 we hosted a spotlight event, inviting shareholders, fixed-income investors and research analysts to join a presentation on our climate strategy. Throughout the year, our business CEOs and CFOs attended industry conferences and hosted broker-organised meetings to talk about their strategic priorities and recent business performance with groups of investors. Change in management On 26 July 2023, the Board announced that Alison Rose had stepped down as CEO of NatWest Group and that Paul Thwaite had been appointed as CEO for an initial period of 12 months. After the news had been communicated to the market, we contacted our largest shareholders to offer them a meeting with the Chairman. A number of investors took up the offer and spoke with Howard Davies over the days and weeks that followed. Discussions focused on the events surrounding the CEO’s departure and the scope of the independent review that would take place. Shareholders gave their feedback directly to the Chairman and he was able to provide them with reassurance about the appointment of the new CEO and the strength of the underlying business. In September 2023, Paul Thwaite began a programme of meetings with our largest shareholders to discuss his immediate priorities and listen to their feedback on the business. On 6 September 2023, the Board also announced that Rick Haythornthwaite will succeed Howard Davies as Chair. Rick joined the Board of NatWest Group plc as an independent non-executive director on 8 January 2024 and following a handover period will take over as Chair on 15 April 2024, when Howard Davies will stand down from the Board. Highlights Share count reduction We reduced the number of ordinary shares outstanding by 9% over the year through our directed and on-market share buyback programmes. This contributed to a 26% increase in total dividend per share in 2023 compared with 2022. Virtual shareholder events in 2023 We hosted live online events for our retail shareholders in April and December 2023, which remain a key component of our stakeholder engagement programme. Strong attendance for our investor events on climate A wide audience including equity and fixed-income investors, ESG specialists and sell-side analysts attended our climate-focused event in March 2023. Investors We continued to return capital to shareholders through a combination of dividends and buybacks over the course of 2023. A £1.3 billion directed buyback of shares held by the UK Government in May 2023 helped to reduce the UK Government’s stake in NatWest Group to 37.97% at the end of 2023. Stakeholder focus areas STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 30

Stakeholder focus areas continued Our Investor Relations programme is planned to inform existing shareholders and potential new investors about our financial performance, strategic progress and investment case. To support our quarterly results presentation, we proactively organise investor roadshows covering the major financial centres, further deepening engagement by joining broker-organised conferences, sales force presentations with major investment banks and round tables with sell-side analysts who publish research on NatWest Group. Our calendar also includes stewardship meetings with shareholders on ESG topics and corporate governance. Private shareholders have the opportunity to engage directly with our management team and Board members at the Annual General Meeting and virtual shareholder events held throughout the year. February March April May June July August September October November December 17 February: Annual results 30 March: Climate Spotlight Management roadshows and conferences 18 April: Virtual Shareholder Event 28 April: Q1 results Corporate Governance meetings with investors (Chairman) 25 April: Annual General Meeting Management roadshows and conferences 28 July: H1 results Management roadshows and conferences Shareholder meetings with Chairman on change of CEO Shareholder meetings with Senior Independent Director to the Board on appointment of new Chair 27 October: Q3 results Management roadshows and conferences 4 December: Virtual Shareholder Event 2023 Investor Engagement Roadmap STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 31

Stakeholder focus areas continued Building financial wellbeing and resilience A tough economic environment means that we need to be there for our customers more than ever. In 2023, we reached our goal, set in 2020, to help 2 million people build a savings habit and resilience for the future by saving more than £100 for the first time with NatWest Retail Banking since 2020. Now, we have set a 2027 ambition to help 10 million people to manage their financial wellbeing. We’re aiming to reach this target through digital tools and personalised engagements with customers, like our Financial Health Checks and the Know Your Credit Score tool, which is now available free to anyone over 18 living in the UK, even if they’re not a customer.(1) Developing a savings habit is an essential element of building financial resilience. Tools like the Savings Goal feature in our mobile banking app can help customers to understand and organise their spending, identify savings opportunities and set realistic savings goals for the short and long term. Our Round Ups tool is also helping customers boost their savings. Available in our mobile banking app, Round Ups allow customers to round up their spending to the nearest pound, with the spare change directed to their savings account. During 2023, over 394,000 customers have turned on savings Round Ups. NatWest Group plays a vital role in supporting financial inclusion and giving customers access to the cash they need. Short-term borrowing can be a valuable tool to help manage financial wellbeing. We offer different short-term borrowing propositions to suit our customers’ needs. These include instalment plans, which let customers pay off large credit card purchases by making fixed repayments over a set period of time in return for a lower interest rate. Highlights Helping 2 million people save £100 for the first time We reached our 2020 goal to help more people build a savings habit. Saving more than £100 for the first time with NatWest Retail Banking since 2020. Fuel and electric vehicle (EV) charging cashback for business customers We helped business customers offset their costs when they use their business credit card. Empowering more people to understand their credit score We made our Know Your Credit Score tool available to everyone in the UK, even if they’re not a customer.(1) Support for customers in vulnerable situations We launched new training for our colleagues to help customers in vulnerable situations. Customers We’re working to meet our customers’ needs and provide better, more personalised products and services. Understanding the trends shaping young people’s finances We want to be the easiest bank for parents to interact with and the most relevant for young people. That’s why we’re working hard to know our customers better. In May 2023 we published the NatWest Rooster Money Pocket Money Index. It’s a study of activity of over 125,000 NatWest Rooster Money app users between March 2022 and February 2023 and reveals the trends shaping young people’s finances – from average earnings to the importance of saving. The index showed that children’s average earnings increased by 11% to £338.84 a year (or £6.42 per week), outpacing Consumer Price Index (CPI) inflation for the period of the study. As the cost of living crisis continued, far fewer families committed to a regular pocket money allowance, while children were more entrepreneurial than ever, earning 16% more in 2022/23 than the previous year from side hustles like babysitting or reselling old clothes and games. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION For our personal customers, we’ve also provided breathing space in times of financial difficulty. Where customers have missed several payments on unsecured debt, like a loan or an overdraft, we extended the time they have to repay from 18 to 24 months. We also offered tailored support to personal mortgage customers in persistent financial difficulty who are receiving help from our specialist Financial Health and Support teams. In 2023, we delivered 4.3 million financial capability interactions, with a cumulative total of 18.4 million interactions delivered between 2020 and 2023 against our strategic target of 15 million interactions by 2023. This includes use of our financial capability programmes, services, products and features. (1) Free for ages 18+ with a UK, Channel Islands or Isle of Man address, following successful registration. Data provided by TransUnion. NatWest Group 2023 Annual Report on Form 20-F 32

Stakeholder focus areas continued We monitor usage of these propositions closely and have processes in place to protect customers. These help us quickly identify anyone who could be facing financial difficulty or using our products in a way that could create longer-term problems – for instance, by paying for gambling or cryptocurrency. We’ve listened to business customers about the challenges they face. With one in three business customers telling us that reduced banking fees would help them deal with ongoing pressures, in January 2023 we launched fuel and EV charging cashback on our Business Credit Cards to help offset the cost of doing business. In July 2023, we launched a new business banking switcher offer for SMEs. Customers with a turnover of up to £2 million who switch to NatWest, Royal Bank of Scotland or Ulster Bank NI using the Current Account Switch Service will get 24 months of free everyday business banking. The new offer is expected to save business customers on average around £2,000 over two years, depending on the size of the business turnover and its transaction activity.(1) Business Account customers could also benefit from a range of features to support their growth, including access to FreeAgent accounting software; Business Builder, an online platform packed full of business tools and tips; and MentorDigital, which helps businesses navigate the world of human resources, health and safety and employment law. Delivering personalisation to help customers meet their goals We’ve also championed Open Banking through the development of new Application Programming Interfaces – pieces of code also known as APIs. APIs allow applications to connect and talk to each other, letting us bring digitised services to more of the online channels our customers use. They’re helping us to create better digital experiences for our customers, like enabling our pioneering payments solution Payit. Putting accessibility at the heart of banking It’s important that we create experiences that work for all our customers. We want to be accessible by design and make this part of our culture and mindset across the bank. In 2023, we established our Digital Accessibility team to monitor digital accessibility across the bank’s customer journeys. This team delivers the vision of creating an accessible bank by design through embedding repeatable processes and practices. We’re also working with our Inclusive Design Panel, which brings together customers and colleagues to provide feedback on new ideas, products, tools and communications. The panel share different perspectives to help us make more informed decisions when it comes to delivering inclusive and accessible services. We know that at any time, our customers could find themselves in a vulnerable situation where they need extra support. In 2023, the impact of the rising cost of living meant that for many, this was a reality. We’ve provided more training to all our colleagues to help them recognise and respond to customers in vulnerable situations. Our Banking My Way service allows our customers to tell us more about themselves so we can provide the right support in the future. It’s a free service that allows customers to record information about their situation – for instance a change to their finances or a diagnosis of a serious illness – as well as the support and adjustments they need. Creating a unified brand experience We track the performance of our brands and campaigns each month, speaking to hundreds of people, businesses and customers. In March 2023, we relaunched our Royal Bank of Scotland brand and Ulster Bank brand in Northern Ireland. We’re now using our Tomorrow Begins Today brand position across the UK, creating a consistent look and feel and a more unified experience for our customers, no matter where they live in the UK. Insights gathered independently and analysed by our Brand Insights team six months after launch showed increased levels of branded communication awareness, particularly among under-35s in Scotland and Northern Ireland. Offering greater choice to mortgage customers In August 2023, we launched the Coutts NatWest Mortgage to give our Coutts clients an improved choice of mortgage options and access to NatWest Group’s One Bank Mortgage Centre of Expertise. The Coutts NatWest Mortgage will offer Coutts clients access to NatWest mortgage products through our broker channel or one of our Coutts mortgage specialists. It means that clients with straightforward lending requirements will benefit from having access to the full NatWest mortgage range, while those with more complex needs will still have access to the tailored solutions already offered by Coutts. (1) £2,000 over two years is based on existing NatWest, Royal Bank of Scotland or Ulster Bank NI business customers in June 2023 with a £1.95m–£2m turnover who currently pay an average of £909 per year in charges (NatWest and RBS customers) and £1,017 per year in charges for Ulster Bank NI customers. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION We’ve worked to enhance our customers’ experience through greater personalisation and by embedding our services in their digital lives. In 2023, our retail mobile banking app was regularly used by 9.8 million customers and there were more than 10 million active digital users of our online and mobile banking platforms. Tools like the Spending and Budget Tracker features in our mobile banking app give customers a personalised view of their spending and how they’re doing against budgets they’ve set for the month. NatWest Group 2023 Annual Report on Form 20-F 33

Customer trust and advocacy Stakeholder focus areas continued Listening to our customers We monitor a framework of independent customer feedback surveys to measure customer satisfaction, advocacy and trust for our key brands and services. These insights are reported at the most senior levels of the bank and play a crucial role in how we address the evolving needs of our customers. Customer trust Overall trust in the sector has remained broadly stable among the general public. During 2023, our trust scores slightly declined by 3 points for NatWest and by 4 points for Royal Bank year on year. NatWest tracked in line with the sector average score of 72% for 2023. Customer advocacy We track customer advocacy for our key brands using the Net Promoter Score® (NPS), a commonly used metric in banking and other industries across the world(1). Royal Bank NPS increased for Retail and Business Banking, but fell for Commercial Mid-Markets. For NatWest we have seen a decline in NPS. In Retail NatWest remained in 3rd place compared to our peers. Businesses continued to face a challenging economic environment in 2023. Our ranking in Business Banking is unchanged, and we remain a leader in Commercial Mid-Market compared to our peers. (1) NPS® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld. NatWest Royal Bank of Scotland Q4 2023 72% Q4 2022 75% Source: Yonder reputation tracker, GB, Trust among Retail Banking customers, 12-month rolling Q4 2023 63% Q4 2022 67% Source: Yonder reputation tracker, GB, Trust among Retail Banking customers, 12-month rolling Overall Net Promoter Score® Retail Banking Retail Banking Retail Banking - key measures NatWest Royal Bank of Scotland Business Banking Business Banking Commercial Mid-Market Banking Commercial Mid-Market Banking Q4 2023 21 Q4 2022 22 Q4 2023 18 Q4 2022 10 Q4 2023 -8 Q4 2022 -6 Q4 2023 -5 Q4 2022 -6 Q4 2023 8 Q4 2022 16 Q4 2023 7 Q4 2022 12 Source: Strategic NPS benchmarking study run through InMoment, England & Wales, 12-month rolling Source: Strategic NPS benchmarking study run through InMoment, Scotland, 12-month rolling Source: MarketVue Business Banking from Savanta, England & Wales, Businesses with a turnover up to £750k, 12-month rolling Source: MarketVue Business Banking from Savanta, Scotland, Businesses with a turnover up to £750k, 12-month rolling Source: MarketVue Business Banking from Savanta, England & Wales, Businesses with a turnover above £750k, 12-month rolling Source: MarketVue Business Banking from Savanta, Scotland, Businesses with a turnover above £750k, 12-month rolling Mortgages Account opening Mobile banking Online banking Q4 2023 23 Q4 2022 24 Q4 2023 34 Q4 2022 32 Q4 2023 47 Q4 2022 49 Q4 2023 31 Q4 2022 33 Source: NatWest Strategic NPS benchmarking study run through InMoment, England & Wales, 12-month rolling Source: NatWest Strategic NPS benchmarking study run through InMoment, Current Account & Savings Account opening, England & Wales, 12-month rolling Source: NatWest Strategic NPS benchmarking study run through InMoment, England & Wales, 12-month rolling Source: NatWest Strategic NPS benchmarking study run through InMoment, England & Wales, 12-month rolling STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 34

Laura McWhinnie, a Royal Bank of Scotland Personal Banker, explains how we’re continuing to help customers deal with financial pressures… We’re working to build financial resilience and offer personalised support to the people who need it most. In 2023, NatWest Group announced new support focused on financial wellbeing for both our customers and people who don’t bank with us. This has included opening our Know Your Credit Score tool to non-customers in the UK, providing breathing space for personal customers in financial difficulty and extra training for colleagues, like me, to help customers with money management and fraud awareness. The way I help customers with financial wellbeing is by discussing it openly, and one of the main tools I use is the free Financial Health Check. It’s open to anyone, not just our customers. During the Financial Health Check, we review the participant’s personal finances and go through how we could help them to save money. We can also look at ways to make banking easier for them and offer helpful tips and ideas to help them get financially fitter, both now and in the future. I’ve seen first-hand the positive impact a Financial Health Check can have. After a regular customer became unemployed due to ill health, it was clear that he was seriously worried about money. I offered him a Financial Health Check. Together, we discussed budget saving options and cancelled small direct debits he didn’t need. We also set up separate accounts for his bills, so he could budget better. A few months later, you could see he had a spring in his step again. The change was just fantastic. It gives me a great sense of achievement when I can help customers with their financial wellbeing. Building financial resilience customers Serving our every day Our support for financial wellbeing in 2023 c.6 million Retail Banking customers helped with their financial wellbeing 175,112 customers used our Savings Goal tool 4.2 million people used Know Your Credit Score 394,863 customers who have switched on theRound Ups feature in the mobile banking app STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 35

Stakeholder focus areas continued Listening to our colleagues We listen to our colleagues and use this insight to attract, engage and retain the best talent for the future. Our colleague listening strategy contributes to our deeper understanding of colleague sentiment and includes: our colleague opinion surveys including pulse surveys; a Colleague Advisory Panel (CAP) that connects colleagues directly with our Board; the Colleague Experience Squad, a group of colleagues who volunteer to provide feedback on colleague products and services; and Engage, our social media platform. We also track metrics and key performance indicators which we can benchmark with sector and high-performing comparisons. Over 51,000 colleagues across all countries and levels participated in our September 2023 Our View colleague engagement survey.(1) At 84%, this is our highest ever participation rate. Despite tough economic conditions, our results remain strong showing an average +1 percentage point improvement across the survey compared to September 2022. While purposeful leadership fell marginally, our culture and purpose measures have improved, exceeding NatWest Group targets. Across all comparable categories, NatWest Group sits an average of eight percentage points above the Global Financial Services Norm (GFSN) and three percentage points above the Global High Performing Norm (GHPN). Regular interactions with our employee representatives such as trade unions, elected employee bodies and works councils are a vital means of transparency and engagement for us and we remain committed to respecting our employees’ rights of freedom of association across all our businesses. Supporting our colleagues’ wellbeing Our initiative, Live Well Being You, helps our colleagues to bring the best of themselves to work, to thrive and be healthy. We recognise that taking proactive action to support positive mental health and wellbeing plays a crucial part in achieving our strategy and purpose. We have launched our most comprehensive mental health learning programme, working with Steps Drama to provide a set of eight modules. We have also extended our partnership with Just Ask A Question (JAAQ), an interactive mental health and wellbeing platform that provides information from trusted experts, academics and people with lived experience. In addition to our mental health awareness we continue to focus on Menopause, with 2,700 colleagues now accessing and interacting with the Peppy Health App for personal support and access to specialist clinicians. To support our colleagues’ financial wellbeing, our NatWest Group Benefits Hub online platform allows employees to manage their benefits, pension, healthcare and lifestyle options, including NatWest Group offers and discounts. We also have a financial wellbeing zone available, which includes tailored guides and support for all colleagues and their families. Our market-leading Partner Leave policies launched in January 2023 and as at 31 December 2023, over 1,200 colleagues have benefited from the policy. For full details of our partner leave policy and our wellbeing focus, including financial wellbeing, refer to our 2023 ESG Disclosures Report. Highlights Partner Leave policies to help families to spend more time together after the arrival of a child. Launched Beyond our new approach to managing performance. 93% Our View Inclusion score remained strong +7 vs GHPN (Global High Performance Norm) and +10 vs GFSN (Global Financial Services Norm). 1,435 graduates, apprentices and interns hired compared to 1,135 in 2022. 301 Colleagues re-skilled as part of a formal programme since 2022. Colleagues Our colleagues are the heart of our business. By supporting them in what they do and by ensuring that NatWest Group is a great place to work with a healthy culture, we can champion their potential and collectively deliver our strategy and purpose. ‘An opportunity that I couldn’t pass up’ Since January 2023, we’ve offered new Partner Leave policies to help families to spend more time together after the arrival of a child. The policies are open to same sex and heterosexual parents, and offer support for eligible fathers, partners of mothers and other new parents, regardless of whether the child has arrived through birth, adoption or surrogacy. Our Partner Leave policies offer eligible colleagues significantly enhanced pay and leave to share the caring responsibilities. For John, who works in Retail Banking, Partner Leave meant he could take up to 52 weeks off, while receiving full pay for the first six months and the equivalent of Statutory Maternity Pay for just under four months. ‘When I found out that Partner Leave was available, I just thought it was an amazing opportunity that I couldn’t pass up,’ says John. ‘It lets us be a lot more flexible, support each other much better and spend time together as a family’. (1) NatWest Group Our View results exclude Ulster Bank RoI. (2) Colleagues mean all permanent employees and, in some instances, members of the wider workforce e.g. temporary employees and agency workers. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 36

Performance Management: Beyond In December 2023, we launched Beyond, our brand new performance management approach. In 2024, working with MindGym, we will be upskilling colleagues on the six conditions from MindGym’s research that are key to performing at your best – purpose, challenge, attention, growth, recognition and choice. We are going to take our time making the change, launching in four chapters, so we can really upskill and practice the new way of doing performance management. These chapters are: 1. Setting the ambition – Goals that are created collaboratively by colleagues and managers, making them meaningful, adjustable and better aligned to the team and wider business. 2. Creating meaningful conversations – Proper coaching check-ins that happen at least four times a year and focus on the whole self, how colleagues impact others, and how they are doing against their goals. 3. Unlocking talent and growth – Revamping the calibration process, we will no longer have ratings, we will shift the focus to having deeper conversations about the performance and potential of our people. 4. Assessing reward choices – We’re keeping the relationship between performance and pay but will no longer focus on a rating. We know that regular, timely and quality feedback is critical to unlocking great performance. This is why there will be a continued focus on feedback throughout each chapter. What this means to our colleagues is that we will cultivate a culture where feedback is provided continuously, given/asked for in a timely and proactive way and can be received from anyone in the organisation. Stakeholder focus areas continued Performance and reward We continue to ensure employees are paid fairly for the work they do and are supported by simple and transparent pay structures in line with industry best practices. We keep our policies and processes under review to make sure we do so. We are proud to be accredited as a Living Wage Employer by the Living Wage Foundation, demonstrating our commitment to paying wages that meet the true cost of living in the UK, our rates of pay continue to exceed the Living Wage Foundation benchmarks. For our hubs outside the UK, we continue to pay above the minimum and living wage rates. In 2023, we furthered our commitment to fair pay by achieving accreditation as a Regional Living Wage Employer from the Fair Wage Network and are now recognised as a Global Living Wage Employer. This demonstrates how we take steps, in every location we operate, to ensure our colleagues are paid enough to have a decent standard of living, including food, water, housing, education, healthcare, transport, clothing and other essential needs, such as provision for unexpected events. We help colleagues to have an awareness of financial and economic factors affecting our performance through quarterly Results Explained communications and Workplace Live events with our Group Chief Executive Officer and Group Chief Financial Officer. Refer to our Directors’ remuneration report for full details on our remuneration policies and employee share plans. Helping colleagues realise their potential We’re investing in our workforce to deliver long-term, sustainable performance by providing our colleagues with the capabilities and future skills they need to fulfil their potential. It’s why we give everyone a minimum of two dedicated learning days, annually, to build the skills they need, underpinned by our ambition to be a learning organisation. We’re supporting our businesses to close the future skills gap, through our reskilling programmes. Predominantly focused in data and digital, teaching colleagues all the skills they need to take their careers in a new direction. Since 2022, 301 colleagues have completed rapid reskilling programmes to build skills in software and data engineering, testing automation, human centred design and MS Dynamics with 153 starting programmes in 2023. We’re continuing to invest in building future talent capability through our early career programmes. In 2023, we increased our intake across all programmes; hiring over 1,400 graduates, interns and apprentices, including 158 apprentices from a lower-income socio-economic background. Since 2022, we have also improved our gender and ethnicity representation within our graduate intake. For a full breakdown of our early career programme profiles, refer to our Non-Financial information datasheet at natwestgroup.com. Over 5,000 of our leaders have enrolled on the Thrive Leadership experience, giving them opportunities to learn and experiment in order to lead successfully. Thrive Leadership sits alongside our Leadership Fundamentals programme, which was launched in 2023, to provide a blended learning offering for new and aspiring leaders. We are also developing the strategic leadership skills of a targeted group of our most senior leaders in the One Bank Leadership Team (OBLT). Following the launch of our refreshed values in 2022, we have focused on embedding these values in 2023. Our values are an integral part of the Thrive Leadership journey and feature heavily in the priorities of our OBLT programme. They have also been translated into One Bank Leadership Behaviours. Our bank wide recognition programme on our values, Living Our Values (LOV), continues to recognise colleagues for the great work they have done to support each other, the communities we serve and our customers. In December 2023, our LOV awards were a great testament to how colleagues are demonstrating our refreshed values. We will continue to prioritise embedding further in 2024. We continue to embed our One Bank talent cycle, including succession planning, which drives talent activity throughout the year – proactively spotting, developing, and mobilising a diverse pool of our most promising talent supported by our Executive Committee and leaders across NatWest Group. Refer to our 2023 ESG Disclosures Report for full details on how we support colleagues to realise their potential. We’re going Beyond STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 37

Core to our strategy and purpose as a bank, Diversity, Equity and Inclusion (DE&I) is part of our collective identity. Our business needs to reflect the communities we serve, so that we cater to them to the best of our ability. Our contribution towards an inclusive workplace The One Bank Diversity, Equity & Inclusion Action Committee chaired by Jen Tippin (Chief People & Transformation Officer), and Marg Jobling (Chief Marketing Officer), and made up of senior leaders from across the bank as well as colleague representatives, has a vision for DE&I to be everyone’s experience, every day. The committee aims to share best practice, agree, and drive a focused, action-orientated and impactful One Bank approach to DE&I. The committee has three workstreams that are continuing to drive action to create a diverse, equitable and inclusive workplace: recruitment and attraction; learning and development; and leadership and retention. Recruitment and Attraction To make our recruitment processes as inclusive as possible, we have improved and mandated our interview skills training to ensure DE&I is front of mind for hiring managers during the recruitment process. This complements the Recruitment Yes Check which all colleagues can use in every hiring scenario. We have trained a new cohort of Inclusive Interview Ambassadors, increasing our team of ambassadors to over 600. For further details on recruitment refer to our 2023 ESG Disclosures Report. Learning and Development We have several learning and development opportunities to encourage building a more inclusive workplace at NatWest Group. Over 53,000 colleagues completed our enhanced learning module, Choose to Challenge, which is a 24 percentage point increase from 2022. It features real-world scenarios and educates participants in the importance of challenging non-inclusive behaviours. We have also encouraged colleagues to enrol in other learning modules, such as LGBT+ Awareness (81% completion since January 2022 launch, and a 37 percentage point increase Stakeholder focus areas continued since December 2022) and Disability Smart (79% completion since December 2021 launch, and a 33 percentage point increase since December 2022). Leadership and Retention Sponsorship plays a key role in breaking down barriers to help under-represented groups progress to senior leadership roles. In 2023, our ExCo members sponsored 29 colleagues from ethnic minority groups. We use our best practice Sponsorship guide to support leaders to take responsibility for supporting and advancing individuals. We have supported 322 colleagues through our Ignite development programmes for gender and ethnicity since its launch in 2022, accelerating the advancement of diverse talent. We continuously support our eight Employee-Led Networks (ELNs), which collectively have over 24,000 members. Our ELNs are made up of volunteer colleagues from across the bank who play a key role in delivering, raising awareness of, and influencing our bank-wide DE&I strategy, providing development and networking opportunities for members. We also support a community of c.1,000 Inclusion Champions, who take action to create a culture where our colleagues and customers feel they are treated fairly and respectfully. Gender We celebrated International Women’s Day in March 2023, themed around Embracing Equity, and International Men’s Day in November 2023, with a spotlight on male suicide. A variety of events and activities were held to connect colleagues across the globe, educate and raise awareness. We are a signatory of HM Treasury’s Women in Finance Charter and our Executive Sponsor for Gender, David Lindberg (CEO, Retail Banking), is part of the Accountable Executive Taskforce for the Charter. We have utilised the Women in Finance Blueprint, alongside other external benchmarks, to ensure we remain focused on the interventions that will make the most difference. Ethnicity This year we welcomed a new Executive Sponsor for Ethnicity, Keiran Foad (Group Chief Risk Officer), working alongside Scott Marcar (Group Chief Information Officer). We celebrated Race Equality Week in February 2023, with the theme of Its Everyone’s Business, and Black History Month in October 2023, with the theme of Saluting Our Sisters. Leveraging our partnership with Team GB, we held an event with former athlete Christine Ohuruogu, MBE, which c.500 colleagues attended. Our Ethnicity Advisory Council comprises nominated external specialists from different industries who meet regularly to provide critical challenge, guidance, and direction to our strategy. They will work in collaboration with three newly appointed Racial Equality Taskforce Leads who will continue to listen to the experience of our colleagues from ethnic minority groups and identify the steps we will take to support colleagues, customers, and communities. We are a signatory of the Business in the Community Race at Work Charter and we have also been recognised as a Top 25 Outstanding Employer based on our submission to the Investing in Ethnicity Maturity Matrix. LGBT+ As well as celebrating Pride, NatWest India launched a second cohort of TRANSpire to promote employability skills for the transgender community and partnered with Pride Circle to host a Rainbow Bazaar championing LGBT+ entrepreneurs. For the sixth time NatWest Poland organised the LGBT+ Diamond Awards to recognise individuals and organisations making a significant contribution to LGBT+ awareness. Our LGBT+ Executive Sponsor, Jen Tippin (Group Chief People and Transformation Officer), continues to be recognised for her equality efforts through the Involve Top Ally Executive Role Model list for a second year in a row, and shortlisted in the 2023 Diva Awards for LGBT+ Allyship. Disability We celebrated International Day of Persons with Disabilities with the theme of Enable Don’t Disable in December 2023. During the year, Enable, our Disability & Neurodiversity Network, sponsored by our Executive Sponsor for Disability, Olly Holbourn (CEO, RBS International), hosted several events which celebrated and recognised the power of role models with disabilities in society, and focused on the importance of creating an accessible bank for our colleagues and customers. We were privileged to sponsor and host the Business Disability Forum’s annual conference in 2023. We were recognised as a Disability Confident Leader in the UK Government’s Disability Confident scheme and introduced a Neuro-Developmental Pathway through our Private Medical cover. Diversity, equity and inclusion STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 38

As at 31 December 2023, we have 1.9% of colleagues who identify as Black in CEO-5 positions in the UK, which is a 0.4 percentage point increase from 2022. Overall, of those who disclose their ethnicity, 3% of all our colleagues in the UK identify as Black. We are committed to achieving our current targets, and to ensuring that they evolve appropriately. Our full Banking on Racial Equality Report can be found at natwestgroup.com. For a full breakdown of our colleague data, including our gender and ethnicity profiles by level, refer to our Non-financial information datasheet at natwestgroup.com. Companies Act 2006, section 414C (8)(c) disclosure Male # Female # Directors of the company 6 4 Executive employees 63 29 Directors of subsidiaries 180 67 Permanent employees (active and inactive) 32,400 30,100 13 Directors of subsidiaries have not declared their sex. There were 352 senior managers (in accordance with the definition contained within the relevant Companies Act legislation), which comprises our executive population and individuals who are directors of our subsidiaries. UK Corporate Governance Code Provision 23: As at 31 December 2023, the gender balance of senior management and their direct reports was 39% female and 61% male. For the purposes of this note, senior management means our executive management team (which includes the Company Secretary). Our partners and recognition Stakeholder focus areas continued Socio-Economic With the support of our Executive sponsor, Matt Austen (Director of Strategy & Corporate Development), we have continued to gather data on the socio-economic diversity of our workforce and supported the compiling of an industry perspective with our trusted partners. We continue to use insight gained from our colleague engagement survey, Our View, to form future solutions that will ensure opportunities to advance for all colleagues. For further details on diversity, equity and inclusion refer to our 2023 ESG Disclosures Report. Our progress and targets Colleague sentiment on inclusivity remained strong in 2023,93% of colleagues told us that they believe NatWest Group promotes an inclusive culture. Although sentiment has remained consistent in all our colleague groups, our focus remains on where scores may vary for colleagues from minority groups and the actions we need to take to address the disparity. We ran a smaller pulse survey in May 2023, focused on championing belonging, in which 95% of colleagues told us they feel comfortable being themselves at work (a 2 percentage point increase from 2022). In 2023, for the first time, we asked our colleagues whether they thought our work environment is accepting of everyone. 94% of colleagues agreed (+6 vs Global Financial Services Norm). Our Board composition meets the FTSE Women Leaders Review (formerly the Hampton Alexander Review target of a minimum of 40% women’s representation on the Board by 2025, with a figure of 40% as at 31 December 2023. Our Executive Management Committee (ExCo) is 27%, with the Chief Financial Officer, Chief Marketing Officer, Chief People & Transformation Officer, Chief Governance Officer and Company Secretary roles held by women. We are committed to pay equality. The mean gender pay gap for NatWest Bank, our largest reporting entity, is 27.6% (median: 29.7%) closing the gap by 1.2 percentage points since last year. The mean gender bonus gap is 26% (median: 17.7%), closing the gap by 4.5 percentage points since last year. If we include recognition vouchers in our calculation, the bonus gap increases to 49.7% (median 91.8%), closing the gap by 2.9 percentage points since last year. This means every colleague who received a small recognition award – for example £10 – is included in the calculations, whether or not they received a bonus. Most colleagues in our more junior jobs only receive fixed pay – a change made to provide more certainty over earnings. We currently have a higher proportion of women in these roles. We believe the figures excluding recognition vouchers are more accurate reflections of our gender bonus gap. colleagues in the UK identify as being from an ethnic minoritygroup. In line with our commitment to transparency under the UK Government’s Race at Work Charter, we have voluntarily disclosed our aggregated ethnicity pay gap for NatWest Group UK. The mean ethnicity pay gap for NatWest Group is 6.2% (median: 9.2%), closing the gap by 1 percentage point since last year. The mean ethnicity bonus gap for NatWest Group, excluding recognition vouchers, is 19.9% (median: 22.4%), closing the gap by 1.9 percentage points since last year. We have broken down our ethnicity pay gaps to compare Asian, Black, mixed/multiple, and other ethnic minority colleague’s average hourly pay to that of White colleagues for NatWest Group in Great Britain. This highlighted a wider pay gap between Black and White colleagues than the average ethnicity pay gap. The target set in 2021 to increase the number of Black colleagues in CEO-5 and above UK roles is intended, alongside other initiatives, to address underrepresentation in this area. For our full gender pay gap and ethnicity pay gap report refer to natwestgroup.com. The NatWest Group Racial Equality Taskforce set out 10 commitments in the Banking on Racial Equality Report, including a UK target to have Black colleagues occupying 3% of UK CEO-5 positions and above by end of 2025. For full details, refer to our Diversity, Equity & Inclusion pages at natwestgroup.com. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION (1) NatWest Group’s management structures were revised during 2023. For the purpose of remuneration reporting, the representation targets were set based on the management structures in place at the start of 2023 with performance assessed at 31 December 2023. Introduced in 2018, our ethnicity target is to have 14% of colleagues from ethnic minority groups in CEO-4 and above positions in the UK by end of 2025. As at 31 December 2023, of 84% of colleagues who disclosed their ethnicity, we have an aggregate 13% of colleagues from ethnic minority groups in our CEO-4 and above positions. This represents a 5 percentage point increase since targets were introduced(1) and a 2 percentage point increase from 2022. Overall, of those who disclose their ethnicity, 20% of all We continuously monitor and report against our diversity targets. We have a target for full gender balance in CEO-3 positions and above globally by the end of 2030. As at 31 December 2023, we had 41% of women in our top three layers an increase of 1 percentage point, since 2022. This represents an increase of 12 percentage points since targets were introduced in 2015.(1) For Board and executive management diversity disclosures (Listing Rule 9.8.6 (10)), refer to page 92. NatWest Group 2023 Annual Report on Form 20-F 39

Stakeholder focus areas continued Regulators We operate in a highly regulated market which continues to evolve. We understand the need to have an ongoing, constructive and open dialogue with all relevant regulatory bodies. Highlights Implementing Consumer Duty to ensure good customer outcomes We continued to engage with the FCA to keep them up to date with our progress. Basel 3.1 implementation We provided a key consultation response to the Prudential Regulation Authority’s (PRA) proposals on the implementation of Basel 3.1. Responding to consultations We provided input and comment to consultations from government, regulatory and standard-setting bodies. Maintaining dialogue with regulators In an evolving regulatory landscape, we have maintained constructive, open dialogue with our regulators. Ongoing dialogue In July 2023, the Financial Conduct Authority’s (FCA) Consumer Duty went live for on-sale products and services. The Consumer Duty is designed to set higher and clearer standards of consumer protection across financial services and requires firms to deliver good outcomes for customers. As part of the Consumer Duty, firms must: ensure products and services provide fair value, enable customers to make informed financial decisions to help them pursue their goals, and provide support that meets the needs of all customers. Throughout our implementation of the Consumer Duty, we continued to engage openly and collaboratively with the FCA. We have made sure that the regulator has been fully informed of our progress and is comfortable that the changes we have made reflect both the spirit and substance of the new standards. Our regular rhythm of engagement with the FCA will continue as we implement the Consumer Duty for all of our off-sale products and services by the regulatory deadline of July 2024. Aside from the Consumer Duty, the broader regulatory landscape has also continued to evolve. As such, it has been imperative for the bank to maintain ongoing, constructive and open dialogue with all our regulators. During 2023, this included several responses to material consultations or other requests for comment and input from various government, regulatory and standard-setting bodies. Key consultation responses have included the Prudential Regulation Authority’s (PRA) proposals on the implementation of Basel 3.1, the FCA’s discussion paper on the role of Big Tech in financial services and the reform of the Consumer Credit Act 1974 led by HM Treasury. We formally engage with our regulators at senior executive and Board level, as well as via individual non-executive directors, through continuous assessment and proactive engagement meetings. Most notably during 2023, there was increased focus by regulators on how we have supported our customers to address the challenges of the increased cost of living, as well as the associated credit risk impacts. Good customer outcomes In preparation for the implementation of Consumer Duty in July 2023, we completed a comprehensive review across our business segments – and more than 330 on-sale products and services – to identify and address areas that represented the greatest risk of foreseeable harm. We’ve committed to over 300 improvements to make sure that our products and services work as intended, and expanded our data monitoring to measure good customer outcomes. We’re also supporting our colleagues with the new regulations by providing targeted training to our teams and recognising and celebrating successes. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 40

Stakeholder focus areas continued Continuing to give back In 2023, our Do Good Feel Good campaign once again gave our colleagues the chance to support good causes they care about by volunteering their time and fundraising. Across all our fundraising and volunteering programmes, our colleagues raised £3.8 million and gave 125,000 volunteering hours, offering their skills and expertise to support a range of causes. Read more about our fundraising activities in our 2023 ESG Disclosures Report. Building young people’s financial confidence NatWest Thrive is a programme to help young people grow in confidence and get into good money habits. It’s been developed by specialist youth workers at the National Youth Agency, working closely with young people. The programme is a unique collaboration between NatWest Group, the National Youth Agency and the footballer and campaigner Marcus Rashford MBE. Following the pilot and summer roll-out of the programme to youth clubs in 2022, in February 2023 we announced new commitments to support the programme and young people across England. This included doubling the number of NatWest Thrive youth clubs from 15 to 30 by the end of 2023, which we achieved. Over five years, we will also transfer £3 million of our apprenticeship levy to the National Youth Agency to support the training of 220 youth workers across the industry in England. Communities As a leading financial firm in the UK, we believe we can make a real and positive difference to people’s lives. Highlights Direct community investment of over £11m in 2023 More than 125,000 hours volunteered Our colleagues gave their time in 2023 to support a range of good causes. Helping to train new youth workers We’re transferring £3 million of our apprenticeship levy to train 220 youth workers in England over five years. Supporting more than 45,000 entrepreneurs individuals and businesses through our enterprise programmes against a target of 35,000 in 2023.(1) Helping community groups realise their climate ambitions The Royal Bank of Scotland launched a new £150,000 fund to support 50 community groups across Scotland to deliver sustainability projects. Delivered with the community investment platform, Neighbourly, The Royal Bank Regenerate Fund offers schools, charities and community groups the chance to apply for funding to make their sustainability projects a reality. It focuses on four areas: energy efficiency and buildings; environment, nature and biodiversity; food, water and waste; and transport and mobility. Three groups who helped develop the Royal Bank Regenerate Fund received a £3,000 grant to support their projects. Bike for Good, a charity based in Glasgow refurbishes bikes to give people affordable access to cycling and divert old bikes from landfill. For founder, Gregory Kinsman-Chauvet, the grant is helping them make a difference: ‘We’ll now be able to refurbish more bikes and increase our skills workshops in the community to help get more people on their bikes.’ (1) Represents approximate number of interventions delivered and individuals supported through enterprise programmes during 2023, which is based upon data provided by third parties delivering these interventions without further independent verification by NatWest Group. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Our ambition is to support and give back to the communities we operate in. Our direct community investment in 2023 amounted to more than £11 million, as measured using the Business for Societal Impact benchmarking standard. This includes the funding we make available to support colleague giving and the direct costs of delivering our community programmes. We invested more than £11 million in programmes and funding to support the communities we operate in. In 2023, we helped more than 45,000 NatWest Group 2023 Annual Report on Form 20-F 41

Stakeholder focus areas continued Our free Financial Foundations workshops are designed to empower participants to take control of their money and future. In 2023, we added bespoke cost of living content to our workshop series, exploring budgeting tips, savings strategies and what to do if someone is struggling with debt. The interactive sessions included follow-up resources to help embed the learning. In 2023, our trained bank volunteers delivered workshops totalling almost 250 hours of support. NatWest Social & Community Capital NatWest Social & Community Capital (S&CC) is an independent charity, supported by NatWest Group. Its mission is to help social enterprises and trading charities to make a positive impact in communities up and down the UK, with a focus on Scotland and the north west Midlands. It does this by providing flexible funding and wider support to groups who might otherwise struggle to get funding. Offering funding of between £30,000 and £500,000 dependent on the purpose of the borrowing, S&CC aims to support its customers to make a lasting social impact. Loans that are repaid are recycled back to the charity for further investment. It supports organisations like The Ledge, a community-focused climbing centre with a social mission. Based in Inverness, The Ledge is a home for the local climbing community, as well as a charity designed to help people overcome life challenges through the shared experience of climbing. Alongside support from sportscotland, the S&CC team provided flexible funding to help The Ledge complete the climbing centre and make their community project a reality. Power of Helping Hands Fund Our Regional Boards, which operate in seven regions and nations across the UK, supported communities in 2023 through the Power of Helping Hands Fund. The £1 million fund is designed to give quick, on-the-ground support to help people with the rising cost of living. More than 120 charities received support in 2023, helping to deliver projects supporting people experiencing loneliness, foodbanks, youth worker outreach and children’s health programmes. The Power of Helping Hands Fund formed part of a wider £5.7 million in support provided to help communities throughout the UK, delivered by partner organisations including the Federation of Small Business, the Trussell Trust and Responsible Finance. Supporting enterprise In 2023, we launched our Entrepreneur Hub, which helps users find education, tools and events across NatWest Group brands, while our Business Builder and Business Insight content continues to provide learning and thought leadership to support businesses. Helping Black entrepreneurs thrive We’re supporting a new ‘mini’ Master of Business Administration (MBA) course designed to address the challenges faced by Black people entering the world of business. MBA 30, a targeted education programme, has been developed by the Black British Initiative (BBI) and SOAS, University of London. The programme, which opened to students in September 2023, provides Black entrepreneurs with the skills, knowledge and networks to thrive in their respective industries. Our support of MBA 30 builds on our work to champion the UK’s ethnic minority businesses. Since the launch of the Time to Change report by Aston University’s Centre for Research in Ethnic Minority Entrepreneurship in collaboration with NatWest Group in 2022, we’ve formed a strategy to help tackle the multiple barriers faced by ethnic minority businesses in the UK. We’re focusing on fostering local networks of support to boost business survival and growth, building long-term, trust-based relationships with businesses, and breaking down barriers to finance. Financial learning and education In 2023, our MoneySense programme focused on helping young people to prepare for the transition from school to living independently. During 2023, we reached more than 1.1 million young people through the MoneySense schools programme. Activities included an immersive escape room that allows participants to explore the social and economic impact of financial decisions and a carbon footprint tracker, which helped young people to review the impact of their purchasing decisions and lifestyle choices on the environment. Proud to be a Homewards Activator In June 2023, NatWest Group joined Homewards, a five-year, locally led programme launched by His Royal Highness The Prince of Wales and The Royal Foundation. The programme aims to demonstrate that it is possible to end homelessness. Working with six flagship locations across the UK, Homewards will provide space, tools and partnerships to showcase what can be achieved through a collective effort focused on preventing homelessness. NatWest Group is a Homewards Activator, working alongside organisations from a range of sectors and industries to contribute skills, resources and investment to support the programme to deliver solutions to prevent and end homelessness for good. NatWest Group is already working with The Royal Foundation of The Prince and Princess of Wales as part of the Business Taskforce for Early Childhood, launched by Her Royal Highness The Princess of Wales in March 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION In 2023, we delivered more than 300,000 interventions to help people start, run and grow a business. We helped more than 45,000 individuals and businesses through our enterprise programmes, including over 1,300 entrepreneurs through the NatWest Accelerator Programme. Throughout 2023, we delivered our Accelerator Programme through in-person and virtual coaching sessions, workshops, thought leadership and events across our 13 hubs in the UK and online. NatWest Group 2023 Annual Report on Form 20-F 42

Stakeholder focus areas continued Respecting human rights At NatWest Group, we understand we have an important role to play in promoting respect for human rights. We seek to do this by continuing to align our approach to a range of voluntary international standards including the UN Guiding Principles on Business and Human Rights (UNGPs) and through the continued application of policies and practices covering our colleagues, customers and suppliers, but we know that there is more that we could be doing. In 2023, our Human Rights Action Group prioritised independent validation that we are paying above the minimum and living wage rates for our major hubs outside of the UK. We achieved accreditation as a Regional Living Wage Employer from the Fair Wage Network and are now recognised as a Global Living Wage Employer. We published our Salient Human Rights Issues, and enhanced due diligence on high-risk sectors through a new Environmental, Social & Ethical (ESE) Human Rights Risk Acceptance Criteria (RAC) which will be rolled out in 2024. We intend to test, evolve and adapt the scope of the ESE Human Rights RAC over time to maximise effectiveness. NatWest Group was the highest scoring bank in the 2023 CCLA Modern Slavery UK Benchmark. We published our seventh Modern Slavery and Human Trafficking Statement and engagement with various stakeholders, including charities, non-governmental organisations (NGOs) and campaign groups has continued to help further our knowledge and understanding of human rights issues. Further information on our approach to human rights, including our annual Modern Slavery and Human Trafficking Statement. Salient Human Rights Issues and Human Rights Position Statement can be found at natwestgroup.com. Sustainability performance We continue to work with the global sustainability rating company EcoVadis to conduct individual sustainability performance assessments of our suppliers. In 2023, EcoVadis also conducted a sustainability assessment of NatWest Group, in which it scored 67% overall, which is significantly higher than the global EcoVadis average of 51%, ranking us in the 91st percentile. Working together We continue to collaborate with our suppliers to create a diverse and responsible supply chain, be fair and transparent with our suppliers and reach net zero by 2050 across our operational value chain. We’ve set ourselves clear goals to achieve our ambition of reaching net zero by 2050 across our operational value chain. To achieve this, we need to work hand in hand with suppliers who share our purpose and commitment to building a sustainable future. In 2022, we established a (multi-year) Supplier Decarbonisation Programme to support delivery of the 2030 and 2050 carbon reduction ambitions related to our operational value chain. In 2023, the Supplier Decarbonisation Programme completed a pilot with a small sample of suppliers to understand the most effective way to meet NatWest Group’s supply chain decarbonisation goals and embed climate objectives into our supply chain strategy. The pilot enabled us to agree on our engagement approach and communications strategy. In addition, it gave us a clearer understanding of education requirements for suppliers and colleagues to ensure that they have the right skills to engage in climate conversations. We were also able to better understand our data requirements and opportunities to share good practice. Learnings from the pilot and external reviews have been used to inform our 2024 supply chain decarbonisation approach and plan. We aim to set clear expectations within the overall procurement framework and work collaboratively with our suppliers within the wider sustainability and ESG agendas. Suppliers Highlights 57.6% supplier sustainability score Of the 528 NatWest Group suppliers that took part in EcoVadis, the average score is higher than the Global EcoVadis average of 45.9%. Supplier Decarbonisation Programme We established our Supplier Decarbonisation Programme in 2022 to support the delivery of our 2030 and 2050 carbon reduction ambitions. Committed to prompt payment Our standard payment terms are 30 days and we maintain immediate payment on goods and services received. Fast Payer Award For the third year running NatWest Group was recognised for fast payment throughout our organisation. Our Supplier Charter Our Supplier Charter clearly sets out our progress to date and our ask in the areas of ethical business conduct, real living wage, prompt payment, human rights and modern slavery, environmental sustainability and diversity, equity and inclusion. We’ve also added new guidance around digital accessibility, included some developments on the horizon and valuable learning opportunities for our suppliers and the wider value chain. We’ve re-designed the charter to ensure it’s a useful and accessible guide to working as a supplier with NatWest Group. Prompt payment We pay our suppliers promptly for the services they provide to us. Our standard payment terms are 30 days, but we continue to maintain immediate payment on goods and services on receipt, resulting in average days to pay in H1 as seven days, and six days in H2. This goes beyond our commitment as a signatory to the government’s Prompt Payment Code, which requires payment to be made in 60 days. Read more about how we’re working with our Suppliers in our 2023 ESG Report. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 43

Business performance Retail Banking Commercial & Institutional Strong businesses to meet customers’ needs Operating profit £2,638m 2022: £2,824m Return on equity 23.8% 2022: 28.6% Return on equity 14.8% 2022: 24.5% Return on equity 15.4% 2022: 12.2% Operating profit £291m 2022: £436m Operating profit £3,236m 2022: £2,547m Customer deposits £188.0bn 2022: £188.4bn Risk-weighted assets £61.6bn 2022: £54.7bn Risk-weighted assets £11.2bn 2022: £11.2bn Risk-weighted assets £107.4bn 2022: £103.2bn Customer deposits £37.7bn 2022: £41.2bn Customer deposits £193.4bn 2022: £203.3bn Total income £5,931m 2022: £5,646m Total income £990m 2022: £1,056m Total income £7,421m 2022: £6,413m Net loans to customers £205.2bn 2022: £197.6n Net loans to customers £18.5bn 2022: £19.2bn Net loans to customers £131.9bn 2022: £129.9bn Private Banking We’re here for our customers every day and at every important life moment – whether they’re opening their first account, buying their first home, saving for the future or investing for the next generation. Our focus on supporting our customers to reach their financial goals has helped us to build deeper relationships by understanding their needs and engaging with them with more meaningful insights. Through our digital and mobile experience, we’re helping our customers to improve their financial wellbeing through personalised experiences, along with the support of our excellent colleagues. We serve the banking, lending and wealth management needs of UK-connected high net-worth individuals and their business interests through the Coutts brand. We also deliver the investment requirements of customers across NatWest Group through our Investment Centre of Expertise. As the first UK-headquartered private bank to become a certified B Corp, we aim to manage our clients’ wealth responsibly. As a leading commercial bank in Great Britain(1), we’re focused on supporting every stage of our customers’ journey and helping them to manage a challenging economic environment. Through our specialist sector knowledge and capabilities, we deliver comprehensive products and solutions for businesses ranging from start-ups to corporates and large institutions. We’re working to make banking simpler for our customers by developing our digital capabilities and investing in climate financing solutions to support their transition to more sustainable practices. (1) Based on the % of 10,550 businesses, with an annual turnover up to £1 billion, that name a NatWest Group brand as their main bank (19%) and 2,463 businesses with a turnover over £2 million in Great Britain who scored NatWest +10 NPS. Source: MarketVue Business Banking from Savanta at Q4 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 44

Retail Banking We’re here for our customers every day and at every important life moment – whether they’re opening their first account, managing day-to-day expenses, buying their first home, saving for the future, or investing for the next generation. We’re focused on understanding our customers and supporting them to reach their financial goals. Our tailored insights, engaging products, skilled colleagues and digital and mobile experience provide personalised experiences to help our customers to improve their financial wellbeing. 2023 focus and highlights We understand the cost of living crisis continues to put pressure on household finances. High interest rates significantly impacted the housing and mortgage market in 2023. Against this backdrop, we remain committed to helping customers buy and refinance their homes. In June 2023, we were one of the first high street banks to sign up to the UK Government’s Mortgage Charter, formalising the flexibility we already offered to our customers. We have grown our share of new lending to around 13% and stock balances to £193 billion. Business performance continued We know high energy bills are a major concern for our customers and our new Home Energy Hub aims to help customers improve the energy efficiency of their home and reduce their bills. So far, over 24,000 plans have been created through the tool which launched in November 2023. We also want to help our customers to use credit responsibly. Since 2021, we have reduced the number of customers in persistent credit card debt by 28% through tailored engagement and digital enhancements, like personalised repayment options. We offer a range of innovative solutions to our customers and our Borrowing Needs tool helps them to find the right solution for their circumstances. We’re continuing to help customers in financial difficulty to access the independent support and advice they need. In 2023, we funded 17% of the Citizens Advice Help Through Hardship helpline, allowing 50,000 calls to be answered and the implementation of 7,800 support plans. In 2023, we enabled greater access to our products and services. For example, by making our Know Your Credit Score tool available to customers, 4.2 million people accessed instant, detailed credit score insights in the year. We also made our credit cards available to those who don’t bank with us and our new fully digital integration with aggregators has helped in growing our market share to 8.5%. In the face of a higher interest rate environment, we have continued to support our customers’ savings goals. Customers no longer need to have a NatWest Current Account to open one of our fixed rate savings products. This has helped us meet more savings needs, maintaining our deposits position to the end of 2023 with strong balance growth of £3.5 billion in Q4 2023. We met our goal to help two million save more than £100 for the first time(1). We’ve continued to improve the way we meet needs across the customer lifecycle. We’re helping future generations to create good money habits through Rooster Money with 215,000 new cardholders’ building financial resilience in 2023. Our Youth accounts, including Rooster Money, grew to over 574,000 customers in 2023. We’ve also refreshed our Premier proposition, delivering features on our Premier Select account for Affluent customers. New customer flow to this segment has more than doubled across the year. 2024 priorities Our customers are the heart of our business, and we are proud of the way we have served them in 2023. In 2024 we are committed to raising our ambition to provide meaningful, personalised experiences through a consistent, connected experience for our customers at every life moment. We will continue to invest in more compelling, seamless journeys and embed our financial services into life moments to enable customers to access related and relevant services when and where they need them. We will further scale personalised engagement with customers with meaningful insights throughout their lifecycle and experiment with new artificial intelligence capabilities to enhance experiences. Helping customers build better financial habits In October 2023, we launched Insights, the new financial wellbeing function in our mobile Retail Banking app. Insights makes it easier for our customers to find relevant features and tools in the app that can help them better manage their money, like Savings Goals, Round Ups, and Know Your Credit Score. It can also help customers with challenges such as reducing their household bills and finding ways to save money. Customers can use all the Insights features in the app on their own or with a NatWest Group colleague as part of a Financial Health Check to better understand their financial health. We want our customers to feel in control of their day-to-day finances and confident about their life goals, so we’ll continue to evolve the way Insights can help them in 2024 and beyond. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION (1) 2020 goal: To help two million people save over £100 for the first time with NatWest Group since 2020. Serving our customers everyday means responding to their changing needs. During 2023, we created 17.2 million positive interactions with customers through tailored messages. We also met 94% of our customers’ requirements digitally, with high satisfaction levels for our mobile banking app. And as part of our ambition to develop more engaging, personalised experiences for our customers, we launched our Insights feature in our mobile banking app in October 2023. The feature, which was designed in collaboration with our customers, aims to support them to build better financial habits, manage everyday spending and plan for the future. At the end of 2023, over 3.6 million users had tried the Insights features. Meanwhile, our AI virtual assistant, Cora, fully supported 49% of customer queries through 10.8 million conversations handled without colleague intervention. NatWest Group 2023 Annual Report on Form 20-F 45

We serve the banking, lending and wealth management needs of UK-connected high net-worth individuals and their business interests through the Coutts brand. We also deliver the investment requirements of customers across NatWest Group through our Investment Centre of Expertise. Our Private Banking strategy continues to help our customers to meet their financial goals. Through our relationship-led, digitally enabled, proactive client engagement model, we aim to deliver good outcomes for our clients and manage their wealth responsibly, while supporting the wider NatWest Group to deliver on our strategy. 2023 focus and highlights We continue to focus on meeting our customers’ needs as they evolve towards more digital engagement. Our investment is focused on increasing clients’ ability to self-serve when they want and in ways more suited to their needs. We improved how our customers can invest with us digitally, including deepening integration with the mobile banking app, digitising and simplifying more journeys and developing new digital journeys for customers receiving investment advice through our face-to-face channel. As a result, adoption of our digital services within our customer base is high and maturing. In 2023, over 90% of payments, were made digitally and more than 100,000 customers from across NatWest Group invested more than £2 billion with us through our digital investment service. In a high interest rate environment, we saw client demand and needs change rapidly both in deposits and lending, and the market became increasingly competitive, particularly in the first quarter of 2023. We reviewed our proposition and in August 2023, we launched the Coutts NatWest Mortgage to give Coutts clients an improved choice of mortgage options. Our research has shown that 30% of Coutts clients have simpler mortgage needs and could benefit from NatWest products, which on retail policies offer lower mortgage rates, a broader product range, and a more digitised client journey. We have continued our climate commitments and in 2023, our Coutts Asset Management published its first detailed climate disclosures within NatWest Group’s overall climate disclosures, which were compliant with the TCFD recommendations and the FCA’s ESG sourcebook requirements for asset managers. We also assessed 81 of our funds using our Net Zero Investment Framework and published progress against our portfolio alignment target for the first time. As at the end of 2023, 49% of funds within our managed assets were portfolio aligned. Continuing our collaboration with the Business Growth Fund (BGF), with the close of UK Enterprise Fund (UKEF 3) in January 2024 we have now raised more than £110 million. So far 89 companies, spread throughout the UK and diversified across sectors, have been backed in the first two funds (UKEF 1 & 2). Around 70% of investment is in companies based outside of London and the South East. UKEF is proud to support female founders and their businesses with c.15% of investment from the portfolio and BGF going towards female-led companies, alongside providing additional support including investment-ready workshops run by BGF and NatWest Group. 2024 priorities In 2024, we are continuing to focus on delivering what matters most to our customers while driving profitable growth and long-term efficiencies for the business segment. We will sharpen our focus on core clients, supporting them with their banking, lending and wealth management needs. We are taking actions to ensure that we meet the evolving client needs and more competitive market, and are creating a platform to meet this in an effective and efficient way. With the rise of Generative Artificial Intelligence (Gen AI) in 2023, we have been exploring options to embed Gen AI into our internal ways of working to improve the efficiency of our colleagues. The focus of development is to use Gen AI as a tool to help our colleagues and teams strengthen our approach to client interactions and service delivery, centring around developing lasting and positive relationships Business performance continued Private Banking Stepping into the growing market of workplace pensions through Cushon In June 2023, we completed the acquisition of workplace savings and pensions fintech Cushon. Leveraging Cushon’s proposition enables NatWest Group to offer a suite of financial wellbeing services to its customers and their employees. With £2.3 billion in assets under administration as at the end of 2023, Cushon was the fifth-largest Master Trust (a pooled investment vehicle that combines the management of funds contributed from multiple sources) by number of employees in the UK for the second half of 2023. Its primary products are its workplace ISA and master trust pension. Following a successful pilot in 2022, its proposition is currently available to NatWest Group’s commercial mid-market customers in certain regions, with broader roll out planned in the first half of 2024. ‘Our mission is to offer UK savers a convenient way to save,’ explains Ben Pollard, CEO and co-founder of Cushon. ‘As a result, we hope to end the status quo of too many people being excluded from life-long savings.’ STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 46

Business performance continued Commercial & Institutional Commercial & Institutional provides specialist banking services and expert advice to a broad range of businesses, from supporting start-ups at launch to partnering with large companies and global institutions. We help our Commercial & Institutional customers achieve their financial goals and manage their risks, while navigating change, by providing financing, transaction banking, trading and risk management services. 2023 focus and highlights Commercial & Institutional proactively supported customers’ needs across the full range of our services, connecting them to the knowledge, solutions and products critical for success in the sectors, regions and markets they operate in. The benefits of bringing the franchise closer together were seen through deepened relationships with our customers. We maintained our position as the UK bank of choice for SMEs, banking 1 in 5 of every small business in the UK. We remained the biggest high-street bank for start-ups, growing our market share from 10% two years ago to 19% in 2023(1). For these smaller business owners, we introduced several initiatives to support them as they faced a challenging economic environment: providing free everyday business banking to new start-ups opening a bank account for the first time, cash-back on business credit cards and making payments easier, faster and cheaper for small businesses. Over 1,300 businesses went through our Accelerator programme in 2023 across our 13 regional and digital hubs, accessing advice, coaching, training schemes and peer support. We also supported, in conjunction with key partners, over 300,000 businesses with interventions such as learning and development events, including providing over 4,400 financial health checks for businesses. We aim to be a simpler bank to deal with and during 2023 continued to invest in digital, data and technology capabilities to better connect customers to the products and services they need. Over 80% of our business banking customers now primarily use digital channels to interact with us, up from 63% at the beginning of 2023. Meanwhile, our payments platform Tyl continued to scale, doubling to over 30,000 merchants, in 2023. We were one of the first banks to offer Apple and Android Tap to Pay, a low-cost service removing the need for any hardware to accept payments. We have also incorporated Generative Artificial Intelligence into our webchat channel to provide better service to our business customers. We continued to improve our digital and product offering for small business owners, supported by the popularity of Mettle, our free digital-only business account. Our extensive network of relationship managers remained critical to our success, and during 2023 they continued to help our commercial and corporate customers to grow stronger, manage costs, find the right funding solutions and reduce risk in volatile markets, including internationally. At the Euromoney Foreign Exchange Awards 2023, we were recognised as the ‘Best FX Bank for Corporates’ and named the ‘Best Sterling Lead Manager’ at the Global Capital Covered Bond Awards 2023. We continue to support our customers with their transition towards a net-zero economy, providing digital tools to help customers measure and reduce their carbon footprint, with a large number of customers using these tools during 2023. Through Lombard, the No.1 UK provider for asset finance, we continued to support customers with financing for electric vehicles, renewables and cleaner energy alternatives(2). In June 2023 we were proud to be the sole arranger on Ørsted’s €100 million privately placed Blue Bond issuance, with proceeds going towards financing initiatives that target offshore biodiversity and sustainable shipping and in October 2023 we provided our first Green labelled facility to a Funds customer, a GBP and EUR Green use of proceeds facility to a UK clean energy fund. We maintained our position as a leading green, social, sustainability debt (GSS) bookrunner in our chosen markets and geographies, ranking #1 lead manager for Global GBP issuance, #1 for UK Financial Institutions and #4 Western European Corporates (including Nordics)(3). 2024 priorities In 2024 we will contribute to NatWest Group plans for disciplined growth and supporting a long-term stable return on equity. To achieve this, we will invest in our platforms to improve the customer experience, implement a more agile deposit strategy and free up colleague capacity to spend more time with our customers and deepen relationships. We will support growth by providing our corporate customers with access to international markets and expertise in structured finance, payments, trade finance and risk solutions. We will continue to maintain a disciplined approach to management of our balance sheet and optimise our capital utilisation to create capacity to support more of our customer needs. The UK launch of Tap to Pay on iPhone In July 2023, Tyl by NatWest supported Apple’s UK launch of Tap to Pay on iPhone. Tap to Pay lets businesses seamlessly and securely accept contactless payments using iPhone and NatWest’s supporting app – without the need for extra hardware or card readers. By bringing together the agility of our fintech payments business and Apple’s technology, we were one of the first UK banks to launch the Tap to Pay service on iPhone. This followed our successful pilot of Tap to Pay on Android in May 2023 and marks an important milestone in our payment ambition. When businesses join Tyl by NatWest, they can benefit from our all-in-one NatWest Tap to Pay app on both iPhone and Android. Through the app, they can take contactless payments and monitor sales and transactions day to day. Businesses can also use insights and support available in Tyl’s customer portal to track sales trends, payments and invoices, and set up marketing and loyalty programmes (1) Based on the % of 647 businesses, less than two years old, that name a NatWest Group brand as their main bank (19%). Source: MarketVue Business Banking from Savanta, to drive further business. YE Q4 2023. Data weighted by region and turnover to be representative of businesses in Great Britain. (2) Based on net leasing data (£m) as at 31 December 2022. (3) At 31 December 2023, NatWest Markets ranked first by deal value among bookrunners for supporting UK issuers for green, social and sustainability (GSS) debt issuance. Source: Dealogic, 31 December 2023 â•fi excludes money market and short-term debt. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 47

NatWest Group’s climate strategy We have an ambition to at least halve the climate impact of our financing activity by 2030, against a 2019 baseline, and align with the 2015 Paris Agreement. We champion potential. Helping people, families and businesses to thrive. Our climate ambition is to be a leading bank in the UK, helping address the climate challenge. (1) Our net zero by 2050 AUM ambition encompasses total AUM, including Managed Assets, Bespoke and Advisory, refer to page 76 of the 2023 Climate-related Disclosures Report for details. We consider Managed Assets (those assets we invest on our customers’ behalf, which represented 84% of AUM as at 31 December 2023) to be in-scope for our interim 2030 portfolio alignment target and weighted average carbon intensity (WACI) ambition. For details, refer to pages 38 to 39 of the Net Zero Asset Managers Initiative’s Initial Target Disclosure Report (May 2022) https://www.netzeroassetmanagers.org/media/2022/05/NZAM-Initial-Target-Disclosure-Report-May-2022-1.pdf. (2) Our operational value chain captures greenhouse gas emissions Scopes 1, 2 and 3 (Categories 1-14, excluding Categories 8, 10, 14). Scope 3 category 15 (financed emissions) is discussed in section 5.2 and 5.3 of our 2023 Climate-related Disclosures Report. (3) Data challenges, particularly the lack of granular customer information, create challenges in identifying customers with coal-related infrastructure (e.g. transportation and storage) and other customers with coal-related operations within NatWest Group’s large and diversified customer portfolios. (4) Enterprise-wide risk management framework. (5) Direct own operations is defined as Scope 1, Scope 2 and Scope 3 (paper, water, waste, business travel, commuting and work from home) emissions. It therefore excludes upstream and downstream emissions from our value chain. 1 2 3 We have an ambition to be net zero by 2050 across our financed emissions, assets under management (AUM) and our operational value chain. Our 2030 climate ambitions We plan to reduce carbon intensity of our Managed Assets by 50% by 2030, against a 2019 baseline, and to move 70% of Managed Assets to a net-zero trajectory.(1) We plan to reduce emissions for our operational value chain by 50%, against a 2019 baseline.(2) How we are helping to address the climate challenge Supporting customer transition to net zero Helping to end the most harmful activities Powerful partnerships and collaborations Getting our own house in order We have a target to provide £100 billion climate and sustainable funding and financing between 1 July 2021 and the end of 2025. As part of this, we aim to provide at least £10 billion in lending for EPC A and B rated residential properties between 1 January 2023 and the end of 2025. We have an ambition to support our UK mortgage customers to increase their residential energy efficiency and incentivise purchasing of the most energy efficient homes, with an ambition that 50% of our mortgage portfolio has an EPC rating of C or above by 2030. We plan to phase out of coal for UK and non-UK customers who have UK coal production, coal fired generation and coal related infrastructure by 1 October 2024, with a full global phase-out by 1 January 2030.(3) We plan to collaborate cross industry and create products and services to enable customers to track their transition to net zero. Each year, we plan to include targets for executive remuneration that reflect our latest climate ambitions. We continue to integrate the financial and non-financial risks arising from climate change into our EWRMF(4) in accordance with our multi-year climate risk maturity approach. We have a target to reduce our direct own operations emissions by 50% by 2025, against a 2019 baseline.(5) We plan to use only renewable electricity in our direct own global operations by 2025 (RE100) and improve our energy productivity 40% by 2025 against a 2015 baseline (EP100). We plan to install electric vehicle charging infrastructure in 15% of spaces across our UK portfolio by 2030 and upgrade our fleet of around 100 vehicles to electric by 2025 (EV100). STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group’s ability to achieve its strategy, including its climate ambitions and targets entails significant risks and will significantly depend on many factors and uncertainties beyond NatWest Group’s control. The most important of these uncertainties and factors that could cause actual results and outcomes to differ materially from those expressed or implied in forward-looking statements are summarised in the Risk factors on pages 160 to 184 of the Annual Report on Form 20-F for further details (with special regard to the risk factors in relation to climate and sustainability-related risks that describe several particular uncertainties, climate and sustainability-related risks to which NatWest Group is exposed and which may be amended from time to time). For more information, refer to section 7 of the 2023 Climate-related Disclosures Report (Cautionary statements). NatWest Group 2023 Annual Report on Form 20-F 48

49% of Managed Assets were considered portfolio aligned to a net-zero pathway as at 31 December 2023(5) against our ambition of 70% by 2030 exposure to oil and gas major customers(4) 2022: £0.9bn exposure to in-scope coal customers(4) 2022: £0.3bn 54% reduction in Scope 1 and location-based Scope 2 emissions(6) 26% reduction in Scope 3 operational value chain emissions(6) 90% of our loans and investment(3) exposure as at 31 December 2022 analysed for Scope 3 financed emissions measurement Four out of nine sectors are aligned to decarbonisation convergence pathway(2) cumulative contribution towards £100 billion climate and sustainable funding and financing target(1) 2022: £24.5bn 1 Jul – 31 Dec 2021: £8.1bn (1) Between 1 July 2021 and the end of 2025. (2) Based on 2022 emissions, reflecting sectors included in our Climate transition plan. Refer to section 2.3 of our 2023 Climate-related Disclosures Report for further details. (3) Loans and investments relate to on-balance sheet gross lending and investment exposure, accounted at amortised cost (including finance leases) and FVOCI. (4) Our Credible Transition Plan (CTP) assessment undertaken in 2021, which is monitored annually, employed a top-down approach to identification of existing coal-related customers, utilising the expertise of our frontline teams. However, we recognise that this was a point-in-time assessment. During 2024, we are working to review our ESE policies. We have also set up a working group within the Commercial & Institutional business segment to support development of guiding principles for assessment of thermal and lignite coal embedded within activities like transportation, storage, supply chain and value add services, additionally ensuring due consideration is given to external factors such as energy security. (5) We consider Managed Assets (those assets we invest on our customers’ behalf, which represented 84% of AUM as at 31 December 2023) to be in scope for our interim 2030 portfolio alignment target and weighted average carbon intensity (WACI) ambition. (6) Against a 2019 baseline. Scope 3 emissions relate to our operational value chain, see pages 58-59 for further detail. Scope 3, category 15 financed emissions is covered in our 2023 Climate-related Disclosures Report. In 2023, we continued to implement and refine our Climate transition plan. We focused on delivery of our 2030 decarbonisation ambitions by supporting customer transition to net zero, helping to end the most harmful activities, building powerful partnerships and collaborations, and getting our own house in order. These initiatives provided us with a greater understanding of the dependencies NatWest Group and our customers have on timely and appropriate government policy and technological developments that will support customer transition. Climate progress highlights Risks related to our climate ambitions We have an ambition to be net zero across our financed emissions, assets under management and our operational value chain by 2050, aligned with the UK’s legal commitment to be net zero by 2050. We continue to engage with and support our customers’ transition to a net-zero economy and monitor further developments, including progress on supplier and fund decarbonisation. Refer to section 2 of our 2023 Climate-related Disclosures Report for our Climate transition plan, which also includes details of our external dependencies. Our climate ambitions are unlikely to be achieved without timely and appropriate government policy, and technology developments, as well as supplier, customer and societal response. We expect to achieve our Scope 1 and 2 own operations ambitions and targets. With regards to our 2030 Scope 3 financed emissions ambitions, while UK Government policies are expected to provide incentives for customer transition and technology development, delays to a range of net-zero related UK Government policies indicate the pace of implementation is slower than required for the net-zero transition as outlined in the UK Climate Change Committee’s (UK CCC) sixth carbon budget, issued in 2020. The UK CCC ‘Progress in reducing emissions’ 2023 report to Parliament, issued in June 2023 (UK CCC June 2023 Progress report) states that the rate of emissions reduction will need to significantly increase for the UK to meet its 2030 commitments, and continued delays in policy development and implementation mean achievement is increasingly challenging. Accordingly, we consider achievement of the following ambitions increasingly challenging: i. 50% of our mortgage portfolio of EPC rating of C or above by 2030; and ii. halving the climate impact of our financing activity by 2030, against a 2019 baseline. We will continue to review our climate ambitions and targets as the external environment develops. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION £0.3bn £0.4bn £61.9bn 2023: £29.3bn NatWest Group 2023 Annual Report on Form 20-F 49

NatWest Group confirms that it has: – made climate-related financial disclosures for the year ended December 31, 2023 that it believes are consistent with the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations and Recommended Disclosures (as defined in the FCA’s Listing Rules, as amended by the Disclosure of Climate-Related Financial Information (No. 2) Instrument 2021) which include: (i) Final Report – Recommendations of the Task Force on Climate-related Financial Disclosures (June 2017) (focusing in particular on the four recommendations and the eleven recommended disclosures set out in Figure 4 of Section C of the TCFD Final Report); (ii) Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures (October 2021 version); (iii) Technical Supplement – The Use of Scenario Analysis in Disclosure of Climate-related Risks and Opportunities (June 2017); (iv) Guidance on Risk Management Integration and Disclosure (October 2020); and (v) Guidance on Metrics, Targets and Transition Plans (October 2021 version); and summarised on pages 51 to 57; – we have adopted this approach given the detailed and technical content of the climate-related financial disclosures as it believes these presentations best present its climate-related financial disclosures in a decision-useful manner to the users of these reports. Governance Strategy Risk Management Metrics and Targets Task Force on Climate-related Financial Disclosures (TCFD) overview Refer to page 51. Refer to pages 52-53. Refer to pages 54-55. Refer to pages 56-57. Natwest Group’s governance around climate-related risks and opportunities. – The Board’s oversight of climate-related risks and opportunities. – Management’s role in assessing and managing climate-related risks and opportunities. How the organisation identifies, assesses, and manages climate-related risks. – Processes for identifying and assessing climate-related risks. – Processes for managing climate-related risks. – How our processes for identifying, assessing, and managing climate-related risks are integrated into overall risk management. The metrics and targets used to assess and manage relevant climate-related risks and opportunities. – The metrics used to assess climate-related risks and opportunities in line with our strategy and risk management process. – Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions, and the related risks. – The targets used to manage climate-related risks and opportunities and performance against targets. The actual and potential impacts of climate-related risks and opportunities on NatWest Group’s business, strategy and financial planning. – Climate-related risks and opportunities identified over the short, medium and long-term. – The impact of climate-related risks and opportunities on our businesses, strategy and financial planning. – The resilience of our strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. NatWest Group committed to support the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations in 2017 and has published climate-related disclosures consistent with the TCFD recommendations since February 2022. The latest assessment of consistency with the TCFD recommendations and recommended disclosures is included on this page, supported by summary disclosure on pages 51 to 57, and in our 2023 Climate-related Disclosures Report. Disclosures addressing our regulatory obligation to report greenhouse gas (GHG) emissions pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 which implement the government’s policy on Streamlined Energy and Carbon Reporting (SECR) has been included on pages 58 and 59. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 50

The Board’s oversight of climate-related risks and opportunities The Board is responsible for promoting the long-term sustainable success of the NatWest Group, sets strategic aims, and monitors and oversees progress against our climate ambitions. During 2023, the Board considered climate-related matters at five of eight scheduled meetings. The Group CEO updated the Board on climate-related risks and opportunities impacting NatWest Group, our customers, and key stakeholders. In February 2023, the Board approved the 2022 Climate-related Disclosures Report, including the initial iteration of NatWest Group’s Climate transition plan. In February 2023, the Board also approved the Executive Director bonus scorecard, including performance against climate targets. Subsequent climate-related updates were made to the Board in July, September, October and December 2023. These included a discussion of the key climate-related opportunities and challenges, as well as a spotlight on supporting customers’ transitions and broadening the sustainability opportunity. In advance of every Board meeting, a Board business insights pack was provided, which includes a snapshot of NatWest Group’s progress against our climate ambitions. The Board also received regular updates through the Group CEO report, risk management report and business updates. Committee chairs provided the Board with an overview of relevant discussions of climate-related matters at committee meetings. Looking ahead The Board and Executive Committees will maintain oversight of climate progress and ongoing climate-related risks and opportunities impacting NatWest Group. In February 2024, the Board reviewed progress and challenges against the initial Climate transition plan, and approved disclosure on NatWest Group’s Climate transition plan included in our 2023 Climate-related Disclosures Report. NatWest Group’s governance around climate-related risks and opportunities TCFD: Climate-related disclosures overview continued Board and senior management oversight of climate-related risks and opportunities is supported by embedding climate within our established governance structure and operating rhythm. Management’s role in assessing and managing climate-related risks and opportunities Climate accountabilities for identifying and managing the financial and non-financial risks of climate change at management-level continue to be held jointly by the Group CEO and Group CRO. Executive-level committees and cross-bank working groups assist the Group CEO and CRO to discharge their responsibilities and support collaboration across the organisation. Under our integrated governance structure, business areas ensure that climate considerations are built into decision-making. Accountable executives are empowered to make decisions within their areas of accountability and responsibility. There are clear escalation and reporting routes in place to executive-level committees and cross-bank working groups, which assist in discharging responsibilities and supporting collaboration across the organisation. During 2023, the Climate Change Executive Steering Group (CCESG) continued to focus on overseeing strategic progress against NatWest Group’s climate ambitions as well as supporting executive recommendations to the Board on climate. A key focus has been supporting the implementation of our systems thinking approach and identifying opportunities to support customer transition to net zero through existing and potential products and services such as our Home Energy Hub. CCESG also continued to encourage collaboration with the UK Government and non-governmental organisations as well as ongoing industry participation. In addition to reviewing actual 2023 expenditure on building climate change capability against budget, CCESG also supported the finalisation of the investment allocated to support customers’ transition in 2024. Looking ahead We will continue to focus on embedding climate in decision-making within business segments and functions. For further information on our governance of climate-related matters, refer to section 4 of the 2023 Climate-related Disclosures Report. Governance STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION For details of our Board skills and experience in relation to Environmental, Social and Governance (including climate), refer to page 75. NatWest Group 2023 Annual Report on Form 20-F 51

NatWest Group’s strategy on Strategy climate-related risks and opportunities Our strategic approach to climate change Climate change is a global challenge which has implications for our customers, investors, partners, suppliers and colleagues. Our ambition to be a leading bank in the UK, helping to address the climate challenge recognises that we may contribute both directly and indirectly to the climate challenge, as outlined below. TCFD: Climate-related disclosures overview continued Climate-related risks and opportunities identified over the short, medium and long term Our climate ambition is to be a leading bank in the UK, helping to address the climate challenge. Our climate strategy, outlined on page 48, recognises various short, medium and long-term climate-related risks and opportunities to embed climate into our business and culture, as well as support customers in their transition to net zero. In identifying climate-related risks and opportunities to NatWest Group, the period in which each is likely to occur has been assessed. Risks and opportunities deemed material to our five-year financial planning cycle are viewed as short-term. Aligned with the guidance of the Science Based Targets initiative (SBTi) for financial institutions, long-term has been defined as beyond 15 years, while medium-term has been defined as within the next 5 to 15 years.(1) We have considered physical, transition and liability risks, but have characterised climate-related risks in the context of traditional banking industry risk categories. The principal risks considered most exposed to climate-related risk are as follows. All have been identified as potentially impacted over short, medium and long-term time horizons: – Credit risk: from the adverse impact on future credit worthiness of customers due to climate change risk factors impacting asset valuation, income and costs. Mitigants include the use of operational limits in the residential mortgage portfolio and the inclusion of climate considerations in sector strategy within the commercial portfolio. – Operational risk: due to the increased likelihood and potential impact of business disruption or arising from new and changing policy standards, mitigants include resilience and disclosure controls. – Conduct risk: due to poor customer outcomes arising from the impacts of climate change including changes to financial stability or general wellbeing, which will either be supported or exacerbated by NatWest Group’s conduct. – Reputational risk: due to the risk of damage to NatWest Group’s reputation arising from perceived impact on climate change or adequacy of actions taken in response when compared against ambitions and progress made by peers, mitigants include our Environmental, Social and Ethical (ESE) policies. – Regulatory compliance risk: due to the need for NatWest Group to ‘observe the letter and spirit’ of all applicable laws and regulations relating to climate, mitigants include the introduction of an Environmental, Social and Governance policy to give comprehensive guidance on relevant regulatory expectations. (1) Our climate transition planning uses different time frames than those used in financial reporting. Accordingly, the references to ‘short’, ‘medium’ and ‘long-term’ in climate reporting are not indicative of the meaning of similar terms used in certain of our other disclosures, including our annual, periodic and interim reports. The actual and potential impacts of climate-related risks and opportunities on NatWest Group’s businesses, strategy and financial planning. Climate ambition A leading bank in the UK helping to address the climate challenge Risks to NatWest Group Climate-related risk factors Climate opportunities Climate change impacts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 52

TCFD: Climate-related disclosures overview continued Some of the key opportunities identified include: As we implement our Climate transition plan, we’ll continue to refine and prioritise our climate-related opportunities based on their relative commercial and decarbonisation potential to support our customers and the wider economy transition to net zero. Climate-related opportunities are identified and prioritised on an ongoing basis at a local level and through our systems thinking lens at our Climate Opportunities Group, which met monthly since April 2023. Our systems thinking approach aims to provide additional perspectives on net zero that might otherwise be obscured at the sector level. For further details refer to page 15 and 16 of our 2023 Climate-related Disclosures Report. Key opportunities have been identified as having the potential to enable NatWest Group to transform its balance sheet and operations in-line with its 2030 and 2050 climate ambitions. The potential timing and impact of these opportunities will differ by sector, reflecting the dependence on policies, technology and customer behaviour change. Examples include: – Supporting our customers’ sustainability transition: including the provision of financing, development of new and enhanced green and transition products and services, in addition to building capability. – Supporting our operations to decarbonise: including increased expenditure to support reduction in carbon footprint in our own operations. The impact of climate-related risks and opportunities on our businesses, strategy and financial planning. Through our integrated financial planning work and our Climate transition plan, we have identified financial opportunities and investment required to support our net-zero ambitions that will be refreshed annually as part of the annual financial planning cycle. Financial opportunities from climate-related activities have been identified on a sector-by-sector basis through the Climate transition plan, principal among these being our target to provide £100 billion of climate and sustainable funding and financing between 1 July 2021 and the end of 2025. We also continued to align our financial planning process with the climate transition planning process, adding climate policy and technology-related transition assumptions into the base case macroeconomic scenario used for financial planning and assessment of Expected Credit Loss (ECL) in the IFRS 9 reporting period. This resulted in an increase in ECL of £6 million as at December 2023. In addition to reviewing actual 2023 expenditure against budget, CCESG also supported the finalisation of investment allocated to support our customers’ transition. This includes c.£20 million to support the ongoing development of climate-related opportunities and mitigation of climate-related risks during 2024. This central amount is in addition to climate related activities that have been operationalised within existing teams. We expect that the centralised spending will reduce over time, as we further embed climate in our processes and decision-making. Looking ahead We will continue to build scenario analysis capabilities to assess climate-related risks and opportunities over the short, medium and long-term. For further details of our climate strategy and transition plan, refer to section 2 of our 2023 Climate-related Disclosures Report. (1) There is increasing concern acknowledged by the NGFS consisting of 114 central banks, that model scenarios, including those provided by central banks and supervisory bodies and, therefore, used by NatWest Group are too benign and may not adequately capture: (i) the financial implications of increasing frequency and severity of acute physical risks as global temperatures increase; (ii) second and third order impacts such as disruptions to supply chains and increased geo-political risks; nor (iii) possible ‘tipping points’ that could lead to large, irreversible changes in the climate system (for example the melting of permafrost or the Greenland and Antarctic ice sheets). The resilience of our strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario To assess the ongoing resilience of our strategy, an extensive programme of climate scenario analysis, covering our full credit book, has been in place since 2021. In 2023, we conducted a range of climate scenario analysis exercises to test the resilience of our strategy to the impacts of climate change, including risk management and capital adequacy use-cases. To ensure an holistic assessment of financial and non-financial risks, we have also considered scenarios in relation to conduct risk, operational risk, pension risk, liquidity risk and market risk. One of the key lessons from NatWest Group’s extensive assessment of climate risk using scenario analysis from 2021 to date is that, while climate-related risks could potentially amplify other risk drivers, for example resulting in effects such as the erosion of competitiveness, profitability, or reputational damage, overall NatWest Group continues to be resilient to these risks, within the context of the scenarios tested. Our 2023 climate scenario analysis programme assessed climate-related risks and opportunities across short (< 5 years) and medium term (5 to 10 years) horizons to support the embedding of climate-related analytics in decision-making and the management of climate-related risks. To support this, we enhanced our suite of climate risk models, developing additional in-house modelling capabilities and enhanced sector and counterparty level modelling, which further integrates climate insights into existing risk management processes. This included continued integration of climate into our internal capital adequacy assessment process (ICAAP) using an internally developed Network for Greening the Financial System (NGFS)(1) based Disruptive Policy scenario and into ECL measurement frameworks using an internally developed scenario based on UK Climate Change Committee scenario to ensure we are adequately capitalised by measuring potential losses and testing our resilience against expected and unexpected losses. Another priority area of focus was an end-to-end test of our in-house Corporate Transition Risk Model which has undergone development since the CBES exercise, using an internally developed NGFS based Disruptive Policy scenario and Inevitable Policy Response scenario. This internal scenario analysis exercise informed our heightened climate-related risk sector assessment methodology and supported the independent validation of our suite of climate risk models. Looking ahead We will continue to deepen our climate risk modelling, build additional internal capabilities, and further embed climate scenario analysis into portfolio and customer decisioning. To do this, we are progressing in several areas, including exploring enhanced UK-specific climate risk scenarios grounded in potential real-world changes in UK climate policy. We also intend to develop and test our in-house climate risk model for residential and commercial properties including an event-based physical risk scenario exercise. We will continue to respond to regulatory expectations and prepare for future climate scenario analysis exercises. For further information on the resilience of our strategy refer to section 3.2 of the 2023 Climate-related Disclosures Report. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 53

TCFD: Climate-related disclosures overview continued Our processes for managing climate-related risks The effective management of climate risk requires the full integration of climate-related risk factors into strategic planning, transactions and decision-making. Our approach has evolved since 2021 alongside our ongoing, iterative multi-year apporach to mature climate risk management capabilities. We manage climate-related risk in the wholesale portfolio, through: 1. Top-down portfolio check and shaping, including incorporating climate factors in our overall sector strategy, updating our ESE risk acceptance criteria in response to potential climate-related risks and applying climate-enhanced Transaction Acceptance Standards (TAS), and; 2. Bottom-up transaction assessments, including ensuring enhanced oversight for our largest lending climate transactions and use of qualitiative climate risk scorecards to provide a consistent and structured approach for understanding customer-specific exposure to climate-related risks. During 2023 Commercial & Institutional continued to enhance pricing frameworks to embed climate considerations. These enable us to support businesses to help address the climate challenge and to reshape the Commercial & Institutional business segment towards more sustainable, transition- aligned transactions. In the residential mortgage portfolio, we applied lending limits based on climate characteristics, including: (i) exposure to EPC A and B rated properties, (ii) Buy-to-let properties with potential EPC between D and G and (iii) flats, new builds and buy to let properties at high or very high risk of flood. Additionally, our credit policies do not allow buy-to-let mortgages to properties with an EPC rating between F and G. Limits are continually reviewed to reflect new flood risk data, risk profile and market conditions. Looking ahead During 2023 we started to develop customer engagement tools within Commercial & Institutional, to further embed climate within customer journeys to continually enhance decision-making. These tools have been designed to complement and build on established climate engagement touchpoints with customers through TAS and our qualitative climate scorecards. Given the scale of implementation, we intend to launch on a phased basis from early 2024. Ongoing enhancements to NatWest Group’s processes for managing climate-related risk will continue to evolve and improve as the organisation matures its climate risk management capabilities. How NatWest Group identifies, assesses and manages climate-related risks How we identify, assess and manage climate-related risk continues to evolve. In this section we provide an overview of our progress in 2023 and priorities for the future. Risk Management Our processes for identifying and assessing climate-related risks We introduced an annual assessment of the relative significance of climate-related risk factors to other principal risks in 2020 and we reviewed this during 2023. The assessment continues to use the judgement of risk subject matter experts combined with scenario analysis, increased granularity of climate data, as well as improved understanding of evolving regulatory guidance, to understand the current and potential impact of physical and transition climate-related risk as a causal factor to other principal risks. During 2023, NatWest Group has also begun exploring approaches which can be used to assess the potential materiality of nature-related risks. We continue to identify and assess climate-related risks at NatWest Group and subsidiary level in three ways: – Scenario analysis: We undertake scenario analysis to understand the potential impacts of climate-related risks. – Portfolio level assessment: Our heightened climate-related risk sector assessment seeks to identify sectors that are likely to see increased credit risks for NatWest Group because of climate-related factors, over a 10- to 15-year horizon. – Transaction level assessment: We completed a review and recalibration exercise to enhance the quality of the insights generated by NatWest Group’s climate risk scorecards. Through this process we continue to build capability among first- and second-line risk colleagues, and a culture where consideration of climate risk is part of the credit journey. In parallel with the full roll-out of our initial suite of climate risk scorecards for the Commercial & Institutional business segment, in 2023 NatWest Group began development of enhanced climate risk scorecards. This involved the expansion of the scorecard methodology to capture quantitative considerations. We plan to roll out our latest scorecards in 2024 on a test-and-learn basis. We also regularly consider the potential impact of existing and emerging regulatory requirements related to climate change at NatWest Group and subsidiary level through external horizon scanning and monitoring of emerging regulatory requirements. Looking ahead We will continue the scaled implementation of scorecards within credit assessment processes and progress our embedding of nature-related risk into risk management frameworks. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 54

TCFD: Climate-related disclosures overview continued How our processes for identifying, assessing, and managing climate-related risks are integrated into overall risk management Climate risk has been included in the NatWest Group risk directory since 2021 alongside an ongoing, iterative multi-year approach to mature capabilities. In 2021 NatWest Group achieved first-generation implementation of climate risk maturity through application of predominantly qualitative approaches, concentrated within priority sectors or customers. In 2022, these capabilities were enhanced with increased data availability and increased utilisation of quantitative analysis to inform customer segmentation and areas of focus. In 2023, key outcomes included: – conclusion of 2023 internal climate scenario analysis exercise, demonstrating enhanced scenario analysis capabilities; – regular quantitative reporting on climate risk appetite within senior risk committees; – development and implemention of pricing adjustments within wholesale lending; – development of additional measures to enhance climate risk monitoring, including introducing new operational limits within Commercial & Institutional; and – updates to retail credit limits, including review following newly sourced physical risk data. In 2023, NatWest Group’s climate risk appetite was reported and reviewed in line with its Risk Appetite Framework. Quantitative risk appetite measures are focused on excess exposures to heightened climate-related risk sectors, along with exposures which significantly deviate from transition trajectory. The qualitative appetite statement has also been enhanced to recognise nature-related risk. NatWest Group uses its EWRMF to identify the principal risks which could impact the organisation. As our climate capabilities mature, climate-related risks are planned to be effectively managed through existing policies and these policies are captured within the EWRMF. The EWRMF sets out the requirements on how risk appetite is implemented through risk policies and standards and translated into operational procedures. The impact of climate-related risk as a causal factor to other principal risks will be reassessed and managed through the annual refresh of the EWRMF and its individual components. In addition, during 2023, strategic customer engagement tools have been developed which, when fully operational, are expected to provide enhanced capabilities and will support effective management of potential risks. These include a dedicated Climate Decisioning Framework for wholesale lending, which will be rolled out on a test-and-learn basis in early 2024. Separately, and in recognition of the link between climate risk and nature degradation, NatWest Group added nature risk to its climate risk considerations within the risk directory for implementation from 1 January 2024. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION For further details on climate risk refer to section 3 of the 2023 Climate-related Disclosures Report. NatWest Group 2023 Annual Report on Form 20-F 55

TCFD: Climate-related disclosures overview continued – NatWest Group’s own operational footprint, as outlined on pages 58 and 59 of this report and section 2.7 of the 2023 Climate-related Disclosures Report. – Estimates of financed emissions, as outlined in sections 2.3, 2.4, 5.2 and 5.3 of the 2023 Climate-related Disclosures Report. We used a combination of methodologies, some of which are still under development, to estimate absolute emissions and emissions intensities. In addition, these estimates are premised on use of the assumptions, extrapolations or aggregation at subsector levels due to data limitations, including lack of published emissions data and granularity of customer information. As a result, we expect our estimates of emissions and emissions intensities to change as we improve the granularity and coverage of customer climate data and develop our methodologies further. – Estimates of facilitated emissions from corporate underwriting relate to capital markets corporate bond underwriting activities, which equates to 21% of NatWest Market’s total underwriting(4). These metrics are reported to the Board periodically within the NatWest Group Board business insights pack. Looking ahead We will continue to develop metrics and measurement capabilities to monitor and manage climate-related risks and opportunities. We will also continue to monitor evolving carbon measurement standards and enhance capabilities including ongoing engagement with the Partnership for Carbon Accounting Financials (PCAF) to develop measurement, monitoring and reporting capabilities for asset management. The metrics and targets used to assess and manage relevant climate-related risks and opportunities The metrics used to assess climate-related risks and opportunities in line with our strategy and risk management process We use a range of metrics to measure opportunities and risks and progress against our climate ambitions, including: – Exposure to heightened climate-related risk sectors is based on loans, loan commitments and contingent obligations. Total wholesale heightened climate-related risk exposure increased by £14.5 billion since 31 December 2022, due to the inclusion of three additional sectors resulting from an updated methodology. There has also been portfolio growth in terms of renewables projects within electricity generation. Metrics and Targets (1) For the year ended 31 December 2023, the NatWest Group CSFFI criteria published in December 2022 has been used to determine the assets, activities and companies that are eligible to be counted. For the year ended 31 December 2022, our CSFFI criteria published in October 2021 was applied. For the year ended 31 December 2021, the CSFFI criteria published in February 2021 was applied. Lending to personal customers for properties with EPC A and B ratings was included within climate and sustainable funding and financing reporting from 1 July 2021. (2) The £61.9 billion cumulative climate and sustainable funding and financing total consists of £34.7 billion in lending and £27.2 billion in underwriting transactions. (3) Flood risk data is obtained through our third-party vendor, RHDHV, and their flood risk analysis provides a measure of the likelihood and severity of a flood hazard affecting each individual property. This property-specific rating process analyses all layers within the United Kingdom FloodMap product via a weighted algorithm which looks at the predicted severity and the frequency of flooding from multiple sources. RHDHV flood score model as at 31 October 2023 and NatWest Group residential mortgage portfolio data as at 31 December 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION (4) Where NatWest Group is a facilitator (active or passive) as defined by the PCAF published standard. – Flood risk of the UK residential mortgage portfolio(3): On a total volume basis, present day UK mortgages at high risk of flooding are 3.5% of the assessed portfolio and those at very high risk are 1.3% of the portfolio. This is slightly lower than the overall UK volume-based analysis with high of 4.0% and very high of 2.2%. This analysis covers 98.3% of NatWest Group’s UK residential mortgage portfolio. – Provision of climate and sustainable funding and financing(1): since the £100 billion target came into effect in July 2021 NatWest Group has provided £61.9 billion of climate and sustainable funding and financing (£29.3 billion during 2023)(2). An annual breakdown of our progress since 2021 can be found on page 21. – Energy efficiency of the UK residential mortgage portfolio: as at 31 December 2023, £140.8 billion, 67.6%, of the total residential mortgages portfolio had Energy Performance Certificate (EPC) data available (31 December 2022 – £138.8 billion, 68.3%), of which, 44.1% were rated as EPC A to C (31 December 2022 – 41.6%). NatWest Group 2023 Annual Report on Form 20-F 56

TCFD: Climate-related disclosures overview continued Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions, and the related risks During 2023, we focused on activities with the potential to contribute towards our ambition to reduce emissions from our direct own operations by 50% by 2025, against a 2019 baseline, as well as making progress against our SBTi validated 2030 targets. As a result, we achieved a 54% reduction against a 2019 baseline in our Scope 1 and Scope 2 location-based emissions. We will continue to pursue further decarbonisation towards our 2050 net-zero ambition to reference the continued direction of travel and build on our Climate transition plan. We have continued to enhance our measurement capabilities and scope of Scope 3 financed emissions models. Our work was guided by the availability of methodologies for estimating financed emissions, most notably from the SBTi and PCAF – refer to the 2023 Sustainability Basis of Reporting for methodologies used. In addition to sector-level lending models, where measurement standards are more developed, we estimated emissions for the remaining lending and investment exposures at a total level. As a result, we have now analysed 90%(1) of our loans and investment exposure at 31 December 2022 (74% at 31 December 2019). For related risks and limitations refer to page 56 of this report and section 2.7, 5.3, 5.4 and section 7 of our 2023 Climate-related Disclosures Report. Looking ahead Our measurement work to date has reinforced our understanding of the challenges involved in financed emissions estimation as well as the urgency and the scale of transition required to align our financing activities to the 2015 Paris Agreement and achieve net zero by 2050. We intend to continue our work to enhance our measurement capabilities and, over time, we expect climate data granularity to improve as we move towards utilising actual customer climate data. We also intend to progress with continued enhancements to the availability of data and data quality to support future calculations of financed emissions, including absolute emissions and emissions intensities. The targets used to manage climate-related risks and opportunities and performance against targets Our ambition to be net zero by 2050 across our financed emissions, assets under management and operational value chain is supported by our 2030 ambitions, refer to page 48. In 2022 we published 2030 sector-level targets validated by the SBTi as science-based. These targets included our own operational emissions as well as 79% of our 2019 lending book and 57% of debt securities and equity shares, excluding sovereign debt securities. SBTi targets have been set based on a number of methodologies, external scenarios, pathways and assumptions that vary by sector. The metrics and targets used to assess and manage relevant climate-related risks and opportunities, where such information is material (1) The PCAF standard does not currently outline an estimation approach for short term assets (such as nostro and repurchase agreements), quasi sovereign assets (e.g. local authorities) and consumer lending other than mortgages and motor vehicle loans. As such these products are currently excluded from our financed emissions estimation. Loans and investments relate to on-balance sheet gross exposure, accounted for at amortised cost (including finance leases) and FVOCI. Since 2020, we have included a climate goal and related measures in our Executive Director performance goals. Climate progress is an integral part of the annual bonus scorecard introduced under our Executive Director Remuneration Policy. For 2023, 10% of potential annual bonus was based on performance against the following climate ambitions: – Implementation of the initial Climate transition plan, with four sectors on target and one of the two AUM and retrofit milestones achieved. Achieved in 2023. – Climate and sustainable funding and financing with a target of £25.3 billion in 2023. Achieved in 2023. NatWest Group will continue to monitor its performance against its climate-related targets and ambitions and revise as appropriate. For further details on our metrics, targets and progress, refer to our 2023 Climate-related Disclosures Report. For further details of integration of climate considerations into remuneration, refer to the Directors’ Remuneration Report. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 57

Our own operational footprint 2023 progress – Our direct(1) own operations emissions have now reduced by 47% against a 2019 baseline, supporting delivery of our 2025 and 2030 ambitions. We also continued to disclose our full operational value chain emissions. – We opened our new office in Spinningfields, Manchester, which has been awarded the RICS SKA gold accreditation, achieving the highest level of sustainable fit-out using the rating method, with an EPC rating improvement from D to B. Incorporating technology and innovation into the design including removing all gas operations has enabled Spinningfields to be our new flagship building for sustainability. – We have also begun action to decrease our reliance on the carbon credit market by funding our own projects. In 2023, we retired 120,000 nature-based carbon removal credits, refer to page 41 of our 2023 Climate-related Disclosures Report. Energy reduction initiatives relating to movements in Scopes 1 and 2 Between 2022 and 2023 we reduced our energy consumption by 38 GWh, driven by portfolio transformation and projects completed during the reporting year, as follows: – Building Management System (BMS) software: Installed in all our large and medium office buildings to optimise the control of our energy-using systems such as heating, cooling and air handling. – Data centres: Building management initiatives have been delivered across the four strategic UK data centres’ including the installation of energy efficient chillers to cool the data centres’ halls and optimisation of the temperatures. In addition, a multi-year upgrade programme to our Edinburgh data centre network has completed end-of-life hardware decommissioning. – LED lighting: As part of a multi-year LED investment programme, we upgraded 65 of our branches in 2023. The aim is to roll out across a further 200 of our branches, delivering c.8 GWh reduction in electricity use. Installation of low-energy LED lighting in our data centres has provided savings and we also made progress in overseas offices with an LED lighting exchange saving 10% energy at our Poland office compared with the same period last year. Emissions movements relating to Scope 3 from our operational value chain(2) – Supply chain: In 2023, we began our supplier data improvement journey for our emissions estimates, transitioning from a fully spend-based approach to a hybrid approach. This uses supplier specific data, where available, for our top 80% of spend, topping-up with spend-based data where more accurate, disclosed data is not available. Our 2023 supplier footprint is now 18% supplier-specific data. As a result, our category 1, 2 and 4 emissions for 2019 have been re-baselined in line with recommended best practice as the changes exceeded our 5% materiality threshold, driving a 50% reduction in 2019 emissions from those reported historically. – Technology: A cloud-hosted desktop service was enabled for 34,000 colleagues that allows supporting infrastructure to scale-up and down throughout the day based on real-time demand. Further, rightsizing our property portfolio has enabled the decommissioning of a segment of our branch and head office network infrastructure achieving savings of 680 tCO2e in 2023. (1) Our direct own operations are greenhouse gas emissions from Scopes 1, 2 and 3 (paper, water, waste, business travel, commuting and working from home). (2) Operational value chain captures greenhouse gas emissions Scopes 1, 2 and 3 (Categories 1-14, excluding Categories 8, 10, 14). Scope 3, category 15 is covered within our 2023 Climate-related Disclosures Report. Our operational value chain emissions in 2023 of 668,578 tCO2e represent a 30% reduction from our 2019 baseline of 958,091 tCO2e. As part of this Scope 1 and location-based Scope 2 emissions of 64,751 tCO2e collectively reduced by 54% (2019: 139,749 tCO2e) and Scope 3 emissions of 603,827 tCO2e reduced by 26% (2019: 818,342 tCO2e). (3) For our own operations, net zero means aiming to reduce our operational value chain by a minimum 90% reduction by 2050 against a 2019 baseline. We plan to neutralise the residual 10% using carbon credits in line with ‘SBTi Corporate Net Zero Standard’ released in October 2021. (4) The SBTi recommends that companies invest to mitigate emissions beyond their value chain while they transition towards a state of net zero emissions. In accordance with the Greenhouse Gas Protocol, our absolute emission reductions of 50% Scope 1+2, 50% Scope 3 and 90% by 2050 are not achieved through the use of carbon credits. (5) Location-based Scope 2 of 51,829 tCO2e shown gross of purchased renewable electricity of 51,683 tCO2e. Scope 2 market based emissions, which factor in purchased renewable electricity are 146 tCO2e. During 2023, we focused on activities with the potential to contribute towards our ambition to reduce our direct(1) own operations by 50% by 2025, against a 2019 baseline, as well as making progress against our SBTi validated 2030 targets and our ambition to be net zero for our operational value chain(2,3). As a result, we achieved a 54% reduction against a 2019 baseline in our Scope 1 and Scope 2 location-based emissions and a 26% reduction in Scope 3 operational value chain emissions(2). As we implement and refine our Climate transition plan we will continue to pursue further decarbonisation opportunities, invest beyond the value chain(4) and work towards our 2050 net-zero ambition. All activity continues to be supported by a focus on continuous data improvement. 2% 8% 90% Scope 1 12,922 Scope 2 (location-based)(5) 51,829 Scope 3(2) 603,827 668,578 2% 8% 90% Scope 1 12,922 Scope 2 (location-based)(5) 51,829 Scope 3(2) 603,827 668,578 Scope 3 – Direct emissions – 66,349 Category 1: Paper and water: 2,909 Category 5: Waste: 157 Category 6: Business travel: 23,380 Category 7: Commuting and working from home: 39,903 Scope 3 – Upstream emissions – 506,212 Category 1: Purchased goods and services: 417,665 Category 2: Capital goods: 53,203 Category 3: Fuel and energy related activities: 19,966 Category 4: Transportation and distribution: 12,567 Category 6: Well to tank business travel: 2,811 Scope 3 – Downstream emissions – 31,266 Category 9: Transportation and distribution: 13,236 Category 11: Use of sold products: 8,873 Category 12: End of life treatment sold products: 1,976 Category 13: Leased assets: 7,181 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2023 Breakdown of operational value chain emissions (tCO2 e)(2) NatWest Group 2023 Annual Report on Form 20-F 58

Streamlined Energy and Carbon Reporting (SECR) The table below has been prepared against the framework for sustainability reporting that covers greenhouse gas emissions and energy usage to encourage improved energy efficiency and outlines our performance for 2022 and 2023. 2023 2022 Greenhouse gas (GHG) emissions UK and offshore area(1) Global total (excluding UK and offshore)(1) Total UK and offshore area(1) Global total (excluding UK and offshore)(1) Total Emissions methodology and basis of preparation Boundary: this statement has been prepared in accordance with our regulatory obligation to report greenhouse gas (GHG) emissions pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 which implement the UK Government’s policy on SECR. Our reporting year runs from 1 October 2022 to 30 September 2023. The emissions reporting boundary is defined as all entities and facilities either owned or under our operational control. Reporting(6,7): emissions have been reported using the Greenhouse Gas Protocol Corporate Standard and associated guidance and include all greenhouse gases, reported in tonnes of carbon dioxide equivalent (CO2e) and global warming potential values. When converting data to carbon emissions, we use Emission Factors from UK Government Emissions Conversion Factors for Company Reporting (Department for Business, Energy & Industrial Strategy, 2023, CO2 emissions from fuel combustion (International Energy Agency, 2022) or relevant local authorities as required. NatWest Group uses a third-party software system, to capture and record our environmental impact and ensure that control framework and assurance requirements are met. All data is aggregated at a regional level to reflect the total regional consumption. The regional consumption results are then collated to reflect the total NatWest Group footprint. CO2e values are attributed to these sources via an automatic conversion module in the third-party system. For more information, refer to the own operational footprint page at natwestgroup.com. (1) Offshore area as defined in The Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon) Regulations 2018. This includes Jersey and Guernsey but not our overseas sites in America, EMEA and Asia-Pacific. These are included in the global total (excluding UK and offshore). (2) Scope 1 emissions from natural gas, liquid fossil fuels, fluorinated gas losses and owned/leased vehicles. (3) Scope 2 emissions from electricity, district heating and cooling used in NatWest Group premises. (4) We have procured 100% electricity from renewable sources globally using green tariffs and renewable electricity certificates. The remaining Scope 2 market-based emissions arises from district cooling, district heating and the residual amount of non-renewable electricity. (5) Scope 3 emissions sources for our own operations emissions cover categories 1 – 14, with our direct own operations covering only paper, water, and categories 5 – 7. Refer to page 58 for further details. Scope 3 category 15 (financed emission) is covered in our 2023 Climate-related Disclosures Report. (6) Low data accuracy is a key risk of our reporting, as this could lead to misreporting of own operations emissions figures. To combat this, we have robust internal controls processes, with data and claims subject to third-party assurance. (7) The historic values reported in the table above may be updated from values we reported in 2022. This is due to updated bills, data provision and extrapolations. Further, future data is subject to change following any significant change to our business size and scope, as Own operational footprint continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION baseline recalculation may result in differing emissions reductions. Emissions from the purchase of electricity, heat, steam and cooling by the company for its own use (Scope 2(3) indirect) (location-based) (tonnes of CO2e) 39,209 12,620 51,829 44,983 15,255 60,238 Emissions from the combustion of fuel and operation of any facility (Scope 1 direct(2)) (tonnes of CO2e) 11,958 964 12,922 14,827 1,329 16,156 Total gross Scope 1 & 2 (location-based) (tonnes of CO2e) 51,167 13,584 64,751 59,810 16,584 76,394 Intensity ratio: Location-based CO2e emissions per FTE (Scopes 1 & 2) (tonnes/FTE) 1.3 0.7 1.1 1.6 0.9 1.4 Scope 2(4) (market-based) (tonnes of CO2e) 11 135 146 13 2,371 2,384 Energy Consumption used to calculate above emissions (kWh) 246,230,119 29,374,856 275,604,975 280,120,202 34,058,491 314,178,693 Scope 3(5) emissions from our direct own operations, limited to paper, water, waste, business travel and employee commuting and working from home (tonnes of CO2e) 46,800 19,549 66,349 39,645 18,713 58,358 Total gross Scope 1, 2 & 3 direct own operations (location-based) (tonnes of CO2e) 97,967 33,133 131,100 99,455 35,297 134,752 Intensity ratio: Location-based direct own operations CO2e emissions per FTE (Scopes 1, 2 & 3) (tonnes/FTE) 2.5 1.7 2.2 2.6 2.0 2.4 NatWest Group 2023 Annual Report on Form 20-F 59

Risk overview Effective risk management helps to ensure that NatWest Group delivers its long-term strategy. Our approach to risk management The enterprise-wide risk management framework (EWRMF) sets out the approach to managing risk across NatWest Group and provides a common risk language to facilitate effective risk management. The framework applies to all subsidiary legal entities, business segments and functions to help deliver NatWest Group’s strategy in a safe and sustainable way. Risk culture NatWest Group’s multi-year programme to enhance risk management capability at different levels of the organisation continued in 2023, with an ongoing emphasis on risk culture. The approach to risk culture, under the banner of intelligent risk-taking, ensures a focus on robust risk management behaviours and practices. The approach to our risk culture, in line with our strategy and our values across all three lines of defence, enables us to support better customer outcomes, develop a stronger and more sustainable business and deliver an improved cost base. During 2023, we continued to evolve the five key outcomes to deliver on the intelligent risk-taking approach. These outcomes focused on behaviours, leadership, risk practices, decision-making and roles and responsibilities. Risk governance NatWest Group’s governance structure facilitates sound risk management decision-making, in line with standards of good corporate governance. The Board ensures there is a framework of prudent and effective controls which enables risks to be assessed and managed, including the completion of a robust assessment of NatWest Group’s emerging and principal risks. It reviews and approves the EWRMF (including NatWest Group’s risk appetite framework) and approves the risk appetite for principal risks. It monitors performance against risk appetite, considers material risks and reviews the effectiveness of risk management and internal control systems. In addition, the principal risk committees have the following roles and responsibilities: – The Group Board Risk Committee (BRC) is responsible for: providing oversight and advice to the Board on current and potential future risk exposures, future risk profile including risk appetite, the approval and effectiveness of the EWRMF; reviewing the effectiveness of internal controls required to manage risk; reviewing the performance of NatWest Group relative to risk appetite; reviewing all material risk exposures and management’s recommendations to monitor, control and mitigate such exposures, including all principal risks; approving the Key Risk Policies; providing input to remuneration decisions from a risk management perspective; approving the Risk Management Strategy and overseeing its effective delivery; and reviewing and recommending to the Board the assumptions, scenarios and metrics used for stress tests. – The Group Executive Risk Committee (ERC), chaired by the Chief Risk Officer is responsible for: supporting the CRO and other accountable individuals in discharging their risk management accountabilities; reviewing performance relative to risk appetite, and reviewing and debating all material risk exposures across NatWest Group and management’s recommendations to monitor and control such exposures; reviewing the EWRMF, supporting its recommendation to BRC and overseeing its implementation across NatWest Group; and reviewing the Key Risk Policies and the Risk Management Strategy and supporting their recommendation to BRC. Three lines of defence In line with industry best practice and sound risk governance principles, NatWest Group adopts a three lines of defence model of risk governance. Everyone has a responsibility for the intelligent management of risk in day-to-day activities. This includes actively demonstrating risk practices and behaviours that are consistent with NatWest Group’s desired risk culture. As the second line of defence, the Risk function has a clear mandate to undertake proactive risk oversight and monitoring of all risk management activities including maintaining a robust control environment. The Risk function designs and maintains the EWRMF. The Chief Risk Officer leads the Risk function and plays an integral role in advising the Board on NatWest Group’s risk profile. This includes continuous monitoring activities to confirm that NatWest Group engages in sustainable risk-taking activities in pursuit of strategic objectives. Risk appetite The risk appetite framework is a component of the EWRMF and establishes the extent of permissible risk-taking to support business outcomes and delivery of the strategy. The EWRMF sets out the requirements regarding how risk appetite is implemented through risk policies and standards and translated into operational procedures. This consistent approach is followed for all principal risks, frameworks, tools and techniques. Risk appetite statements and associated measures are approved at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. Risk profile – key developments NatWest Group maintained a stable risk profile in 2023 despite persistent inflation, higher interest rates, geopolitical tensions and elevated reputational risks creating a challenging risk environment. Our approach to intelligent risk-taking helped us support UK households and businesses facing these and other challenges. The overall financial risk profile remained within risk appetite despite challenging economic conditions. Key developments in 2023 included: – NatWest Group retained robust capital, liquidity and funding positions despite volatility in interest rates and increased competition for deposits and customers. – A strong capital position was maintained in 2023, with a CET1 ratio of 13.4%. This was significantly ahead of regulatory requirements and aligned with NatWest Group’s target of 13-14%. Movements in the CET1 ratio reflected the attributable profit offset by the ordinary dividend accrual and the increase in RWAs. – Overall credit risk performance remained stable with limited signs of deterioration despite economic headwinds. The overall trend for non-financial risk improved in 2023. Areas of management focus included: – Significant investment continued to be made to support the delivery of the multi-year transformation plan across financial crime risk management. Enhancements were made to technology, data quality, and data analytics to improve the effectiveness of systems used to monitor customers and transactions. – Some non-financial risks were elevated in relation to the departure of Alison Rose as NatWest Group Chief Executive Officer and issues that had arisen in connection with account closure decisions that attracted significant public and media attention. Following an independent legal review of customer account closures, as well as the outcome of ongoing FCA and internal reviews, NatWest Group are making changes to its policies and procedures to deliver better, more consistent outcomes for customers. – NatWest Group’s model risk management practices continued to evolve, supported by a dedicated model risk management enhancement programme, set up in response to the PRA’s Supervisory Statement 1/23. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 60

Risk toolkit cycle Identify and assess Effective risk identification and assessment to understand the risk profile. Mitigate Determination of the appropriate action for how risks are managed or mitigated. Report Reporting of the risk profile, emerging themes, current issues and other key information. Monitor Monitoring of the risk profile through principal risk indicators or other key metrics. Capital risk Financial crime risk Liquidity and funding risk Model risk Credit risk Operational risk Earnings stability risk Reputational risk Traded market risk Regulatory compliance risk Non-traded market risk Pension risk Climate risk Principal risks Financial risks Non-financial risks The enterprise-wide risk management framework (EWRMF) sets out our approach to managing risk across NatWest Group and provides a common risk language and framework to facilitate effective risk management. The building blocks of the EWRMF are: risk appetite, risk governance, three lines of defence and risk culture. Principal risks are used as the basis for setting risk appetite and risk identification. 1 2 5 4 The risk toolkit cycle outlines the NatWest Group-wide approach to identify, assess, mitigate, monitor and report risks. Enterprise-wide risk management framework Report Monitor Mitigate Identify and assess Enterprise-wide risk management framework Common risk language, architecture and approach Risk overview continued Risk appetite Risk appetite is defined as the type and aggregate level of risk NatWest Group is willing to accept in pursuit of its strategic objectives and business plans. Risk directory and principal risks The risk directory provides a common language to ensure that consistent terminology is used across NatWest Group to describe the principal risks. Risk governance NatWest Group’s governance structure facilitates sound risk management decision-making, in line with standards of good corporate governance. Principal risk policies Risk policies are in place for each principal risk and define, at a high level, the cascade of qualitative expectations, guidance and standards for risk. Three lines of defence NatWest Group adopts a three lines of defence model of risk governance. Everyone has a responsibility for intelligent risk-taking. Risk standards Risk standards provide a more granular expression of the risk policies and provide the detail for the first line of defence to develop operational policies/ procedures. Risk culture The EWRMF is centred on the embedding of a strong risk culture that encompasses both prudential and conduct risk outcomes and prescribed behaviours. Risk toolkits Risk toolkits define the approaches, tools and techniques for managing risk (split by all principal risks, financial and non-financial risks). The EWRMF sets out a common risk language and standard definitions to ensure consistency in the application of risk management terminology. 3 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 61

Risk overview continued Risk directory and principal risks To ensure common language and a consistent approach across NatWest Group, the risk directory defines and documents all principal risks that NatWest Group may face, categorised into financial and non-financial risks. The risk directory is an important component of the EWRMF, underpinning the linkage between strategy, risk appetite, risk reporting and governance. Principal risks are the Board approved EWRMF categories that describe the highest-level financial and non-financial risks in the risk directory. Principal risks – financial Key developments Mitigants Capital risk – The risk that there is or will be insufficient capital and other loss-absorbing debt instruments to operate effectively, including meeting minimum regulatory requirements, operating within Board-approved risk appetite and supporting its strategic goals. A strong capital position was maintained in 2023, with a CET1 ratio of 13.4%. This was significantly ahead of regulatory requirements and aligned with NatWest Group’s target of 13-14%. Movements in the CET1 ratio reflected the attributable profit offset by the ordinary dividend accrual and increase in RWAs. For the Bank of England 2022/23 annual cyclical scenario stress test, NatWest Group remained above its CET1 capital and Tier 1 leverage ratio hurdle rates. – Capital planning is integrated into NatWest Group’s wider annual budgeting process with capital plans produced over a five-year planning horizon under expected and stress conditions. – Stress testing is a principal risk management tool and is used to quantify and evaluate the potential impact of risks on the financial strength and capital position. Liquidity and funding risk – The risk that NatWest Group, or any of its subsidiaries or branches, cannot meet its actual or potential financial obligations, in a timely manner, as they fall due. Funding risk is the risk that NatWest Group cannot maintain a diversified and stable funding base. A robust liquidity and funding risk profile was maintained throughout 2023, with a liquidity coverage ratio of 144% and a loan:deposit ratio (excluding repos and reverse repos) of 84%. – A suite of tools is used to monitor, limit and stress test the liquidity and funding risks on the balance sheet. Limit frameworks are in place to control the level of liquidity risk, asset and liability mismatches and funding concentrations. Liquidity condition indicators are monitored daily. – Performance is reported to the Asset & Liability Management Committee on a regular basis. Credit risk – The risk that customers, counterparties or issuers fail to meet their contractual obligation to settle outstanding amounts. Despite a challenging outlook driven by persistent inflation and higher interest rates, the credit risk profile remained stable throughout 2023. Overall ECL increased during 2023 reflecting portfolio growth alongside broadly stable portfolio performance. There were Stage 3 default flow increases, particularly in the Personal portfolio, but these were broadly in line with expectations due to growth and normalisation of risk parameters. This was mitigated by a net ECL reduction from 2023 updates to economic scenarios and weightings. – Extensive and thorough credit processes, strategies and controls to ensure effective risk identification, management and oversight. – Wholesale credit risk – sector appetite continues to be reviewed regularly, with particular focus on sector clusters and sub-sectors that are deemed to represent a heightened risk. – Retail credit risk – adjustments were made to affordability assumptions and stress rates to ensure that lending continued to be assessed appropriately, given the high interest rate and inflationary environment. Earnings stability risk – The risk that profits are not sustainable under stress. NatWest Group remained within earnings stability risk appetite throughout 2023. – A range of scenario sensitivities were run, to explore downside risks to earnings stability, including a sharp fall in interest rates and stressed macro factors aligned to a 1-in-10 year event. Traded market risk – The risk to the value of assets and liabilities inside the trading book, or the risk to income which arises from changes in market prices. All material traded market risk resides in NatWest Markets. 2023 was marked by periods of increased market volatility. The significant volatility in gilts, sterling swaps and inflation entered the rolling window for value-at-risk (VaR) calculation during 2023. However, traded VaR and stressed value-at-risk (SVaR) remained within appetite and, on an average basis, at similar levels compared with 2022. – VaR, SVaR and the incremental risk charge are used to measure traded market risk. – Traded market risk exposures are monitored against limits and analysed daily. – Limit reporting is supplemented with regulatory capital and stress testing. Non-traded market risk – The risk to the value of assets and liabilities outside the trading book or the risk to income which arises from changes in market prices. Overall, non-traded market risk VaR rose in 2023, on both an average and period end basis. This was driven by an increasing trend in credit spread VaR, notably in the second half of the year, reflecting increased holdings of bonds in the liquidity portfolio. Interest rate VaR fell slightly in the second half of the year, driven by a reduction in the interest rate sensitive position, particularly in sterling. By the end of 2023, credit spread risk had displaced interest rate risk as the main driver of non-traded VaR. – Non-traded market risk appetite is measured via VaR, SVaR, sensitivity and stress limits, and earnings-at-risk limits. – Limits are reviewed to reflect changes in risk appetite, business plans, portfolio composition and the market and economic environments. – Non-traded market risk stress results are combined with those for other risks into capital planning. Pension risk – The inability to meet contractual obligations and other liabilities to the established employee or related company pension scheme. The main section of The NatWest Group Pension Fund is the largest source of pension risk with £33.6 billion of assets and £26.5 billion of liabilities. There were no material changes to NatWest Group’s overall exposure to pension risk during 2023. – Pension risk is monitored by the Executive Risk Committee and the Board Risk Committee, while the Asset & Liability Management Committee receives updates on the performance of NatWest Group’s material pension funds. – Annual stress tests are undertaken on the material defined benefit pension schemes. These tests are also used to satisfy the requests of regulatory bodies, such as the Bank of England. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 62

Risk overview continued Principal risks – financial Key developments Mitigants Climate risk – Financial loss or adverse non-financial impacts associated with climate change and political, economic and environmental responses to it. In 2023, a range of scenario analysis exercises were conducted to test the resilience of NatWest Group’s strategy against the impacts of climate change under different climate scenarios. NatWest Group continued to enhance its in-house climate risk modelling capabilities. An end-to-end test of NatWest Group’s in-house corporate transition risk model was completed. – There was a focus on developing the capabilities to use scenario analysis to identify the most material climate risks and opportunities for its customers. While this is a maturing discipline (with recognised limitations around data, scenario and methodologies), progress continues to be made to leverage the insights to inform risk management practices, maximise the opportunities arising from a transition to a low-carbon economy and support decision-making. Principal risks – non-financial Key developments Mitigants Financial crime risk – The risk that NatWest Group’s products, services, employees and/or third parties are intentionally or unintentionally used to facilitate criminal activities in the form of money laundering, terrorist financing, bribery and corruption, sanctions and tax evasion, as well as external or internal fraud. Significant investment continued to be made to support the delivery of the multi-year transformation plan across financial crime risk management. Enhancements were made to technology, data quality and data analytics to improve the effectiveness of systems used to monitor customers and transactions. – The financial crime framework, relevant policies, systems, processes and controls are used to mitigate and manage financial crime risk. This includes the use of dedicated screening and monitoring systems and controls to identify people, organisations, transactions and behaviours that may require further investigation or other actions. Model risk – The potential for adverse consequences from model errors or the inappropriate use of modelled outputs to inform business decisions. Following extensive model remediation work, NatWest Group returned to model risk appetite in April 2023. NatWest Group’s model risk management practices continued to evolve, supported by a dedicated model risk management enhancement programme, set up in response to the PRA’s Supervisory Statement 1/23. – Model risk appetite is set to limit the level of model risk that NatWest Group is willing to accept in the course of its business activities. Policies, toolkits and model standards related to the development, validation, approval, implementation, use and ongoing monitoring of models are in place to ensure adequate control across the lifecycle of an individual model. This includes refining, redeveloping or restricting use of models where appropriate. Operational risk – The risk of loss resulting from inadequate or failed internal processes, people and systems, or external events. It arises from day-to-day operations and is relevant to every aspect of the business. The enhanced risk and control self-assessment approach continued to be developed and embedded with a focus on material operational risks across key end-to-end processes. NatWest Group recognised the risk associated with the processing of payments, and as such, a NatWest Group-wide programme on the movement of funds was mobilised, which focused on enhancing payment related controls. – Operational risk appetite supports effective management of all operational risks. It expresses the level and types of operational risk that NatWest Group is willing to accept to achieve its strategic objectives and business plans. – Operational risks are mitigated by applying key preventative and detective controls. The half-yearly control environment certification process is an effective means to provide a consistent and comparable view of the adequacy and effectiveness of the internal control environment. Reputational risk – The risk of damage to stakeholder trust due to negative consequences arising from internal actions or external events. Reputational risks were elevated in relation to the departure of Alison Rose as NatWest Group Chief Executive Officer and issues that had arisen in connection with account closure decisions that attracted significant public and media attention. Following an independent legal review of customer account closures and internal reviews, NatWest Group are making changes to its policies and procedures to deliver better, more consistent outcomes for customers. – Relevant internal and external factors are monitored through regular reporting via reputational risk registers at business or legal entity level. They are escalated, where appropriate, to the relevant business risk committee and where material, to the NatWest Group Reputational Risk Committee. – The environmental, social and ethical (ESE) risk framework guides decision-making in areas of elevated reputational risk. ESE risk acceptance criteria are regularly reviewed and updated. For example, all climate-focused ESE risk acceptance criteria (mining and metals, power generation and oil and gas) underwent a review, to ensure they reflect the current risk landscape. Regulatory compliance risk – The risk that NatWest Group fails to observe the letter and spirit of all relevant laws, codes, rules, regulations and standards of good market practice. Further progress was made on the compliance agenda during 2023. Significant enhancements were made to the compliance and conduct framework with the introduction of numerous new tools to manage the risk profile. These include a compliance and conduct risk directory and new risk standards and toolkits which support NatWest Group to measure and manage compliance accurately and efficiently. – Risk appetite for compliance and conduct risks is set at Board level. Risk appetite statements articulate the levels of risk that legal entities, businesses and functions work within when pursuing their strategic objectives and business plans. – A range of controls are operated to ensure the business delivers good customer outcomes and are conducted in accordance with legal and regulatory requirements. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 63

Risk overview continued Top and emerging risks Top and emerging risks are scenarios that could have a significant negative impact on our ability to operate or deliver our strategy and are managed through the EWRMF toolkit. They usually combine elements of several principal risks and require a coordinated management response. Top risks could occur or require management action within 1-2 years while emerging risks are evolving and/or could occur over a longer time horizon but have the potential to become a top risk. Both are subject to review by senior governance forums including ERC and BRC. Horizon scanning is an important element of the toolkit, enabling NatWest Group to identify, assess and mitigate both top and emerging risks. A range of methods are used including scenario exercises, analysis, planning, monitoring, review of industry/institutional insights and discussion with external experts. In 2023, there was continued focus on assessing and managing interconnected risks assessing preparedness for correlated risk scenarios. This approach helps to integrate strategic risk considerations into business processes, as well as planning and strategy. Top risk scenarios in focus in 2023 Description Mitigants Increased competition Competitive pressures could intensify, impeding NatWest Group’s ability to grow or retain market share, impacting revenues and profitability, particularly in key UK retail, Commercial & Institutional banking segments. Drivers of competition mainly relate to developments in technology, evolving incumbents, challengers, new entrants to the market, shifts in customer behaviour and changes in regulation. For example, increased competition from technology conglomerates, who may have competitive advantages in scale, technology and customer engagement (including brand recognition). – NatWest Group closely monitors the competitive environment and adapts strategy as appropriate. This includes utilising scenario analysis and assessing how mega-trends will impact industry competitive dynamics. Strategic responses are focused on investing to deliver innovative and compelling propositions for customers and effectively leveraging acquisitions and partnerships. For example, NatWest Group has invested in a number of fintech ventures, including Mettle, FreeAgent, Tyl, Rooster Money, Vodeno and Cushon. Cyberattack There is a constantly evolving threat from cyberattacks that are increasing in terms of frequency, sophistication, impact and severity. This includes hostile attempts to gain access to and exploit potential vulnerabilities of IT systems including via malware. Any failure in NatWest Group’s cybersecurity policies, procedures or controls, may result in significant financial losses, major business disruption, inability to deliver customer services, loss of data, and may cause associated reputational damage. – NatWest Group continues to invest in additional capability to defend against threats including developing and evolving cybersecurity policies, procedures and controls that are designed to minimise the potential effect of such attacks. The focus is to manage the impact of the attacks and maintain services for NatWest Group’s customers. This includes testing and proving cyber resilience capabilities via stress testing of NatWest Group’s important business services. Economic and rate volatility High interest rates and the rising cost of living created uncertain economic conditions in 2023 including driving a shifts in customer behaviours and increased deposit competition. Economic conditions could deteriorate, depending on factors including weak economic activity, volatility in interest rates, liquidity pressures, sharp falls in asset prices, escalating geopolitical tensions and concerns regarding sovereign debt or sovereign credit ratings. Any of the above may have a material adverse effect on NatWest Group’s future financial prospects. – A range of complementary approaches is used to mitigate the risks, such as targeted scenario analysis, stress tests, targeted customer reviews and reviews of risk appetite. Stress tests included completion of regulatory stress tests including the Bank of England 2022/23 Annual Cyclical Scenario and the 2023/24 System Wide Exploratory Scenario as well as a range of internal scenarios. Climate change Climate-related risks represent a source of systemic risk in the global financial system. The financial impacts of climate-related risks, both physical and transition risk, are expected to be widespread and may disrupt the proper functioning of financial markets and institutions, including NatWest Group. – NatWest Group’s climate-related strategy, targets and transition plan support the identification and management of climate-related risks. However, they also entail significant execution and reputational risk and are unlikely to be achieved without significant and timely government policy, technology and customer behavioural changes. Operational risk scenarios Operational risks are inherent in NatWest Group’s businesses and a broad range of scenarios are considered. NatWest Group could be adversely impacted by a broad range of operational risk scenarios including a failure to have or be able to access current, complete, and accurate data or disruption to services should a third-party service provider experience any interruptions. These scenarios could result in business and customer interruption and related reputational damage, significant compensation costs, regulatory sanctions and/or a breach of applicable regulations. – NatWest Group devotes significant resources to third party risk management. Focus areas include identification of critical service suppliers, developing robust exit and contingency plans in the event of supply chain disruption, and ensuring appropriate monitoring and oversight of third party performance. – Effective and ethical use of data is critical to NatWest Group’s goals, with continued focus on delivering a long-term data strategy alongside enhancing control and policy frameworks governing data usage. Evolving regulation NatWest Group’s businesses are subject to substantial regulation and oversight, which are constantly evolving and may have an adverse impact on NatWest Group. Areas of focus include Basel 3.1 standards implementation, including the resulting effect on RWAs and models and the FCA’s Consumer Duty standards on consumer protection. – NatWest Group constantly monitor regulatory change and work with the regulators to help shape those developments that materially impact NatWest Group, responding when necessary either bilaterally or in partnership with one of the affiliated industry bodies. We implement new regulatory requirements where applicable and use our frequent engagement meetings with regulators to discuss key regulatory priorities. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 64

Risk overview continued Emerging risk scenarios in focus in 2023 Description Mitigants Artificial intelligence Innovations in artificial intelligence (AI), including generative AI, may rapidly transform and disrupt customers, industry and the economy. NatWest Group’s ability to continue to deploy AI solutions and integrate AI in systems and controls will become increasingly important to retain and grow business. There can be no certainty that NatWest Group’s innovation strategy will be successful, and competitors may be more successful in implementing AI technologies, in turn, affecting industry competitive dynamics. Developments in AI may also result in increased model risk and rising levels of fraud. – NatWest Group closely monitors developments in disruptive technologies including AI and adapts strategy as appropriate. The focus is on how we use AI and machine-learning technologies safely and ethically to improve the support we can offer to our customers and ensure that our use of data continues to be secure, accountable, fair and ethical. In 2023, we developed a robust set of controls for the use of generative AI models across NatWest Group. Biodiversity and nature loss NatWest Group and its customers, suppliers and counterparties face uncertainty in terms of risks relating to the degradation of the environment, such as air, water and land pollution, biodiversity loss and deforestation. There is also increasing investor, regulatory and stakeholder scrutiny regarding how businesses address these changes and related climate change, biodiversity and other sustainability issues. – NatWest Group is developing its approach to assess, manage and mitigate nature-related risks. Using emerging industry guidance such as the Task Force on Nature Related Financial Disclosure framework, NatWest Group is seeking to further its understanding of nature-related risks. This includes how its business activities impact nature, the dependencies NatWest Group and its counterparties (including its suppliers) and customers have on nature, and the risks and opportunities nature can generate. Central bank digital currency NatWest Group operates in markets which would be exposed to any developments in digital money, including a UK central bank digital currency (CBDC). The Bank of England and HMT are exploring the case and design for a retail CBDC that could be used by the public and businesses, the digital pound. The future introduction of retail CBDCs, including a digital pound, could result in deposit outflows, higher funding costs, and/or other implications for UK banks including NatWest Group. – NatWest Group engages with the UK government and regulators on digital currency developments. This includes engagement with policymakers on a bilateral and industry level. For example, NatWest Group is represented on the Bank of England’s CBDC Engagement Forum, and responds to relevant consultations, discussion papers and other publications. In addition, NatWest Group has established an Executive Steering Group on digital assets including overseeing developments and engagement on digital currencies, such as CBDCs. – NatWest Group has also reviewed the potential impact of a UK central bank digital currency including on deposits, funding costs and broader implications for the business model. Geopolitical risk NatWest Group is exposed to risks arising from geopolitical events or political developments. Geopolitical tensions remain elevated and a range of potential scenarios and impacts were considered. This includes the potential impact of armed conflict, global trade and supply-chain disruption, volatility in commodity prices, protectionist policies or trade barriers and state sponsored cyberattacks. – NatWest Group closely monitors the geopolitical risk outlook and undertakes regular scenario analysis to understand the potential impacts and takes mitigating actions as required. This includes second and third order analysis of impacts, for example, through customers’ supply-chain disruption or disruption to third-party providers. UK Government shareholding in NatWest Group In November 2023, the UK Government announced that as part of its commitment to continue the sale of its holding in NatWest Group, it is exploring options to launch a share sale to retail investors before autumn 2024. While precise timing and plans are uncertain, a retail share offering may result in or amplify reputational risks for NatWest Group. – NatWest Group engages closely with HM Treasury (or UKGI on its behalf) on its shareholding in NatWest Group plc. Such engagement would be expected to extend to HM Treasury contemplating launching a sale of any of its holding to retail investors. – NatWest Group identifies and manages reputational risks through the Reputational Risk Framework. As with other actual or potential risks of a material nature, appropriate bank wide or business actions plans or programmes are established to manage relevant risk scenarios. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 65

Non-financial and sustainability information statement This non-financial and sustainability information statement provides an overview of topics and related reporting references in our external reporting as required by sections 414CA and 414CB of the Companies Act 2006. We integrate non-financial and Environmental, Social and Governance (ESG) information across the Strategic report, thereby promoting cohesive reporting of non-financial and ESG matters. ESG reporting frameworks and guidance We are actively monitoring developments including in relation to metrics. In 2023, our focus included the Sustainability Accounting Standards Board (SASB) standards, the Global Reporting Initiative (GRI) standards, the Task Force on Climate-related Financial Disclosures (TCFD) and the World Economic Forum (WEF) International Business Council (IBC) metrics. As signatories of the UN Principles for Responsible Banking (PRB), our ambition is to further align our strategy with the 2015 Paris Agreement and the UN Sustainable Development Goals (SDGs). How we contribute to the UN Sustainable Development Goals (SDGs) As signatories of the UN Principles for Responsible Banking, our ambition is to align our strategy with the 2015 Paris Agreement and the SDGs. In 2023 we set a new financial wellbeing goal which strives to make a positive impact to SDGs 1, 8 and 10. Our ambitions across Climate, Enterprise and Learning now strive to make a positive impact towards the following SDGs: Our PRB report can be found in the ESG Frameworks Appendix available at natwestgroup.com. Reporting requirement Page references in this report Relevant policy or document available at natwest.com Business model – Investment case and shareholder value – Our strategic framework – Our business model – Delivering our strategy – Key performance indicators – Business performance – 10 to 11 – 9 – 12 to 13 – 18 to 19 – 20 to 22 – 44 to 47 Our stakeholders – Section 172(1) statement – Stakeholder engagement – Stakeholder focus areas – 24 to 25 – 26 to 29 – 30 to 43 Environmental, social and ethical policies (1) The SDGs are a collection of 17 non-legally binding interlinked global goals set forth by the UN for countries and governments. These are included only as indicative guidance for the proposed aim of our Climate, Enterprise and Learning ambitions and NatWest Group makes no representation, warranty or assurance of any kind, express or implied, or takes no responsibility or liability as to whether the areas of focus further the objective or achieves the purpose of the indicated SDG. Further information on non-financial and ESG matters can be found within our reporting suite. – Climate-related Disclosures Report – ESG Disclosures Report – ESG Frameworks Appendix – natwestgroup.com STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Environment – Market environment – Risk management – 14 to 16 – 60 to 65 NatWest Group 2023 Annual Report on Form 20-F 66

Non-financial information and sustainability statement continued Reporting requirement Page references in this report Relevant policy or document available at natwest.com Our colleagues – Colleagues – Diversity, equity and inclusion – 36 to 37 – 38 to 39 Our code of conduct Governance – Section 172(1) statement – Governance and remuneration – Governance at a glance – Boardroom Inclusion Policy – Directors’ remuneration report – Report of the directors Boardroom Inclusion Policy Social matters – Our strategic framework – Our business model – Delivering our strategy – Key performance indicators – Stakeholder engagement – Stakeholder focus areas – Business performance – 9 – 12 to 13 – 18 to 19 – 20 to 22 – 26 to 29 – 30 to 43 – 44 to 47 Supplier Charter Respect for human rights – Respecting human rights – 43 Human Rights Position Statement Anti-bribery and corruption (ABC) – Risk management – Risk and capital management – Financial crime risk Statement on Anti-Bribery and Corruption Environmental, social and ethical policies Climate-related financial disclosures as required by sections 414CA and 414CB of the Companies Act 2006 – A description of the company’s governance arrangements in relation to assessing and managing climate-related risks and opportunities. – A description of how the company identifies, assesses, and manages climate-related risks and opportunities. – A description of how processes for identifying, assessing, and managing climate-related risks are integrated into the company’s overall risk management process. – A description of (i) the principal climate-related risks and opportunities arising in connection with the company’s operations, and (ii) the time periods by reference to which those risks and opportunities are assessed. – A description of the actual and potential impacts of the principal climate-related risks and opportunities on the company’s business model and strategy. – An analysis of the resilience of the company’s business model and strategy, taking into account consideration of different climate-related scenarios. – A description of the targets used by the company to manage climate-related risks and to realise climate-related opportunities and of performance against those targets. – The key performance indicators used to assess progress against targets used to manage climate-related risks and realise climate-related opportunities and a description of the calculations on which those key performance indicators are based. – 51 – 52 to 55 – 55 – 52, 53 – 48, 49, 52, 53, 56, 57, 58 – 53 – 48, 57 – 48, 49, 56, 59 2023 Climate-related Disclosures Report STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION – 24 to 25 – 68 to 147 – 74 – 75 – 112 to 118 – 150 to 153 – 60 to 65 – 155 to 267 – 261 – 60 to 65 – 155 to 267 Risk management – Risk management – Risk and capital management NatWest Group 2023 Annual Report on Form 20-F 67

customers Serving our every day Governance STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 69 Our Board 73 Chairman’s introduction 74 Governance at a glance 90 Report of the Group Nominations and Governance Committee 95 Report of the Group Audit Committee 100 Report of the Group Board Risk Committee 107 Report of the Group Sustainable Banking Committee 112 Directors’ remuneration report 117 Summary of Policy for executive directors 126 Annual remuneration report 147 Compliance report 150 Report of the directors 154 Statement of directors’ responsibilities NatWest Group 2023 Annual Report on Form 20-F 68

Date of appointment: 14 July 2015 (Board), 1 September 2015 (Chairman) Committee memberships: N Contribution to the Board: Howard brings substantial financial services knowledge and experience to the Board, together with a deep understanding of global economic, environmental and social issues. With extensive board level experience, Howard draws on his prior regulatory and supervisory expertise to contribute both strategic and practical insights to Board discussions and debate. Howard is also a highly adept Chairman with valuable leadership and stakeholder management skills. Relevant experience: Howard has held several regulatory roles during his career including Chairman of the UK Financial Services Authority and Deputy Governor of the Bank of England. Howard was Director of the London School of Economics and Political Science and is also Professor of Practice at the Paris Institute of Political Studies (Sciences Po). Howard has also previously served as a non-executive director of Morgan Stanley and Prudential plc, as Chairman of Phoenix plc and as Chair of the UK Airports Commission. Current external appointments: – Chairman of Inigo Limited – Member of the Regulatory and Compliance Advisory Board of Millennium Management LLC – Chair of the International Advisory Council of the China Securities Regulatory Commission – Member of the International Advisory Council of the National Administration of Financial Regulation (formerly the China Banking and Insurance Regulatory Commission) Date of appointment: 25 July 2023 Committee memberships: N/A Contribution to the Board: An experienced leader of NatWest Group’s Commercial & Institutional segment and Payments business, Paul was appointed NatWest Group CEO for an initial 12-month period in July 2023 and then permanently with effect from 16 February 2024. He brings a customer focus to the Board, as well as expertise in balance sheet management, transformation and risk and controls. Paul was central to the formulation and execution of NatWest Group’s strategy reviews in both 2014 and 2019, giving him a strong, enterprise-wide view. He has led the development and delivery of industry-leading initiatives on climate and support for SMEs, including the coordination of NatWest Group’s business support during the COVID pandemic. In addition, Paul has played an active role in NatWest Group’s diversity, equality and inclusion agenda, sponsoring and progressing a number of targeted programmes including NatWest Group’s Junior Management Team and Multicultural Network. Relevant experience: Paul has a track record of success in senior global roles within Wholesale, Corporate, International, Risk and Retail Banking, based across the UK, Europe and US. Most recently he was Chief Executive Officer of NatWest Group’s Commercial & Institutional segment between July 2022 and July 2023, having previously led NatWest Group’s Commercial Banking division as CEO since November 2019. As part of his most recent role, Paul also led NatWest Group’s Payments business. Current external appointments: – Non-executive director of Pollinate Networks Limited Date of appointment: 1 January 2019 Committee memberships: N/A Contribution to the Board: Katie is a Chartered Accountant with over 30 years’ experience in finance and accounting gained through several roles across the financial services industry. Katie’s deep knowledge and experience in specialist areas including capital management, investor relations and financial planning mean she is well placed to provide valuable input and expertise during Board discussions. Relevant experience: Katie joined NatWest Group as Director of Finance in 2015 and was appointed as Deputy Chief Financial Officer in March 2017. She was appointed as Group Chief Financial Officer in January 2019. Katie was previously the Group Finance Director for Old Mutual Emerging Markets, based in Johannesburg (2011-2015), having held various roles across Old Mutual from 2002. Prior to this Katie worked at KPMG for 13 years. She is a member of the Institute of Chartered Accountants of Scotland. Current external appointments: – Non-executive director of Phoenix Group Holdings plc Board Committees Group Nominations & Governance Committee (N&G) S Group Sustainable Banking Committee (SBC) A Group Audit Committee (GAC) Ri Group Board Risk Committee (BRC) Re Group Performance & Remuneration Committee (RemCo) Underline denotes Committee Chair N Our Board Corporate governance Howard Davies Chairman Paul Thwaite Group Chief Executive Officer Katie Murray Group Chief Financial Officer STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 69

Date of appointment: 16 May 2016 Committee memberships: Re Contribution to the Board: Frank is a former investment banker and technology company CEO with substantial global board expertise. This broad background enables Frank to make a valuable contribution to Board discussions, particularly in relation to technology, digital and innovation matters. Frank’s experience also encompasses key areas including customer experience, stakeholder engagement, ESG and risk. In April 2018, Frank assumed the role of Chairman of NatWest Markets Plc, which enables him to bring a unique perspective to Board debate. Relevant experience: During his executive career, Frank held various roles at Thomson S.A., including Chairman and Chief Executive Officer, and was Deputy Chief Executive Officer of France Telecom. Prior to that he was Chairman of SG Warburg France and Managing Director of SG Warburg. Frank has also held a number of non-executive roles at Crédit Agricole CIB, EDF, Home Credit, Orange, Sonaecom SGPS and Arqiva Group Limited. He was also Deputy Chairman and acting Chairman of Telenor ASA, an international media communications group. Current external appointments: – Chairman of Gen Digital Inc. – Non-executive director of IHS Holding Limited – Chairman of the Advisory Board of STJ Advisors Date of appointment: 1 October 2022 Committee memberships: S Contribution to the Board: Roisin brings extensive customer, marketing and branding experience to the Board, gained during her long executive career at Procter & Gamble. She has a strong background in digital transformation and data and significant knowledge and experience of developing ESG strategies at board level. Roisin also brings practical board and committee experience to the role, having served on a number of listed company boards. In April 2023, Roisin was appointed as NatWest Group’s Consumer Duty Board Champion. She is also the Chair of the NatWest Group Colleague Advisory Panel, which provides a valuable link to colleague and customer issues. Relevant experience: Roisin spent over 30 years leading marketing and brand building at Procter & Gamble in different UK and international roles. Most recently Roisin served as Chief Marketing Officer for Procter & Gamble Northern Europe (2014-2016) and prior to that served as Chief Marketing Officer for Procter & Gamble UK and Ireland (2002-2014). Roisin’s previous non-executive directorships include HomeServe plc, Just Eat plc, Holland and Barrett Limited, and Bourne Leisure Limited. Roisin is an Honorary Fellow of the Marketing Society. Current external appointments: – Non-executive director of Premier Foods plc – Non-executive director of The Sage Group plc – Member of the Digital Advisory Board, Coca-Cola Europacific Partners plc – Non-executive Advisor, Internet Advertising Bureau Date of appointment: 1 April 2017 (Board), 1 January 2018 (Senior Independent Director) Committee memberships: A N Re Contribution to the Board: Mark, a former senior investment banker, brings comprehensive financial services knowledge and substantial FTSE 100 board experience to the Board. A former boardroom adviser, Mark contributes significant banking and corporate transformation expertise in particular, alongside a range of customer and wider stakeholder engagement skills. Relevant experience: Mark has held various senior roles at Credit Suisse/BZW during his executive career, including Deputy Chairman, CSFB Europe and Chairman, UK Investment Banking, CSFB. Mark has served as a non-executive director on company boards across a range of industry sectors, including BG Group plc, as Senior Independent Director of Kingfisher plc, and as Deputy Chairman of G4S plc. He has significant experience of chairing committees and as a Senior Independent Director. Current external appointments: – Non-executive director of Smiths Group plc – Non-executive director and trustee of The Brooklands Museum Mark Seligman Senior Independent Director Frank Dangeard Independent non-executive director Roisin Donnelly Independent non-executive director Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 70

Date of appointment: 8 January 2024 Committee memberships: N Contribution to the Board: Rick is a highly experienced Chair who combines a successful commercial career with a deep knowledge of financial services markets and technology, as well as a strong track record of delivery at significant customer-facing organisations. Rick’s Chair experience extends across industry sectors, including Embedded Finance, a fintech company; QiO Technologies Limited, the industrial AI company that Rick co-founded; and Xynteo, a Norway-based sustainability consultancy. Relevant experience: Rick served as Chair of Mastercard Inc. during its transformation from a credit card company to a global technology company and an increase in its market value from $5 billion to over $350 billion. He also chaired Arc International Holdings, Centrica plc and Network Rail Limited, and was a partner at Star Capital. Rick’s past non-executive directorships include Globant S.A., Cookson plc, Lafarge S.A., Land Securities plc and ICI plc. Rick also led the Haythornthwaite Review of UK Armed Forces Incentivisation. Rick has been responsible for several high-profile business transformations and rescues, including Invensys, then one of the world’s leading industrial controls companies, as CEO. Current external appointments: – Chair of Ocado Group plc – Chairman of AA Limited – Chairman of Embedded Finance Limited(1) – Senior advisory partner at Moelis & Co (1) advisory role Prior to becoming NatWest Group Chair, Rick will step down as Chairman of AA Limited (remaining as a non-executive director) and as advisory Chairman of Embedded Finance Limited. Rick Haythornthwaite Independent non-executive director and Chair Designate Corporate governance continued Date of appointment: 1 June 2018 Committee memberships: A N Ri Contribution to the Board: Patrick contributes significant retail and commercial banking experience to the Board, together with a background in complex organisational restructuring and technology transformation. This experience enables Patrick to provide insightful contributions to Board discussions on complex matters, alongside his significant financial knowledge and expertise. Relevant experience: Patrick was the Chief Financial Officer and a member of the Executive Board of ING Group for over eight years to May 2017. Prior to that, he worked for HSBC for 20 years. Patrick is a Fellow of Chartered Accountants Ireland. Current external appointments: – Non-executive director and Senior Independent Director of Aviva plc Patrick Flynn Independent non-executive director Date of appointment: 1 April 2020 Committee memberships: S Contribution to the Board: Yasmin brings a wealth of retail banking and customer experience to the Board, as well as valuable technology and innovation insights, and a strong background in general management. Yasmin adds strength and depth to the Board in these important areas, supporting challenge and debate and effective decision-making. On 1 April 2020 Yasmin re-joined the Board of NatWest Group plc, having first been appointed in June 2017. Yasmin stepped down in April 2018 in order to serve solely as a director of our key ring-fenced entities, and, like the majority of our directors, she continues to serve on these boards in addition to the Board of NatWest Group plc. Relevant experience: During her executive career, Yasmin held Chief Information Officer roles at Bupa and the Financial Times, where she later became the Chief Operating Officer. Prior to that Yasmin held a number of senior roles at Abbey National PLC, in a career spanning nearly 20 years, where latterly she served as an executive director on the board. Yasmin has also held a number of non-commercial roles including Vice Chair of the Board of Governors at the University of Bedfordshire (2008 to 2011) and Vice Chair of the National Committee of the Aga Khan Foundation (UK) Ltd, a non-denominational charity that works with communities in Africa, Asia and the Middle East. Current external appointments: – Non-executive director of Guardian Media Group plc – Non-executive director of Nation Media Group Limited Yasmin Jetha Independent non-executive director STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 71

Date of appointment: 1 April 2023 Committee memberships: A N Ri Contribution to the Board: Stuart brings extensive risk management, financial services and regulatory experience to the Board gained during his executive career, predominantly at Deutsche Bank. He also brings practical board-level experience, having served on a number of boards and committees in both executive and non-executive capacities. Stuart’s strengths in risk and financial services complement and enhance the overall knowledge and experience of the Board, particularly in support of growth opportunities and continued organisational transformation. Relevant experience: Stuart served 10 years on the Management Board of Deutsche Bank as Chief Risk Officer, retiring in May 2022. He joined Deutsche Bank in 1996, where he held a variety of senior roles, including Deputy Chief Risk Officer, Global Chief Credit Officer and Chief Credit Officer for Asia Pacific. He was previously Head of European Credit Risk Management at Credit Suisse Financial Products. Stuart served as a non-executive director of the London Stock Exchange Group plc (2013-2016) and in 2013 was elected to the Global Association of Risk Professionals Board of Trustees. He was also a Member of the Foundation Board of the International Financial Risk Institute (2010-2022) and served as Chair (2016-2018). Current external appointments: – Member of the Board of Trustees of the Global Association of Risk Professionals – Member of the Advisory Committee of the International Association of Credit Portfolio Managers – Visiting Professor in Practice in the Finance Department, London School of Economics Date of appointment: 1 January 2018 Committee memberships: N Re Ri S Contribution to the Board: Lena contributes significant knowledge and experience to the Board drawn from a broad executive and non-executive career. She has extensive transformation and development skills, with experience in enterprise, internationalisation, stakeholder management, ESG and general management. As a former Chair of the NatWest Group Colleague Advisory Panel, Lena provides valuable insights into customer and people issues in particular. Relevant experience: Lena has a portfolio of Chair roles in the listed, private equity and professional services sectors. She has been a FTSE 100 non-executive director for over 10 years and previously served on the boards of Scottish Power Renewables Limited and Intertek Group plc. Lena was Chief Executive of Scottish Enterprise (2009-2017) and prior to that was Senior Investment Advisor to The World Bank in Washington DC. Lena was a member of Scotland’s Financial Services Advisory Board and Chair of Scotland’s Energy Jobs Taskforce. In June 2015 she received a CBE for services to economic development in Scotland. Current external appointments: – Chair of Picton Property Income Limited – Visiting Professor, University of Strathclyde Business School – Member of the European Advisory Board of Workday Inc. Date of appointment: 5 August 2019 Contribution to the Board: Jan works closely with the Chairman to ensure effective and efficient functioning of the Board and appropriate alignment and information flows between the Board and its Committees. She is responsible for advising the Board and individual directors on all governance matters, and also facilitates Board induction and directors’ professional development. Relevant experience: Jan is a chartered company secretary with over 20 years’ corporate governance experience. She was appointed Chief Governance Officer and Company Secretary in 2019, and prior to that held various roles in the legal and secretariat functions, including Head of Board and Shareholder Services. Jan has a law degree and is a Fellow of the Chartered Banker Institute. She is also an Associate of The Chartered Governance Institute and has an INSEAD Certificate in Corporate Governance. Lena Wilson CBE Independent non-executive director Stuart Lewis Independent non-executive director Jan Cargill Chief Governance Officer and Company Secretary Corporate governance continued Former directors: Mike Rogers stood down as a director on 25 April 2023. Alison Rose stood down as a director on 25 July 2023. Morten Friis stood down as a director on 31 July 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 72

Chairman’s introduction I am also delighted that Geeta Gopalan will join the Board as an independent non-executive director on 1 July 2024. Given the significant changes in the leadership of NatWest Group, across 2023 and into the first part of 2024, the Board agreed that the 2023 annual evaluation of Board and committee effectiveness will be deferred until 2024 and undertaken by an external facilitator. The Board maintained its close oversight of the business of NatWest Group through the year. Regular reports included spotlights on cost of living challenges and how the bank has been supporting colleagues and customers. Data on the impact of changes in the macro-economic environment on customer behaviour was considered regularly. The Board also oversaw the preparation for and implementation of the Consumer Duty requirements, which became effective on 31 July 2023. The Board held a two-day strategy session in June 2023 which was focused on the impact of technological advances on the financial services sector. Following the announcement that the UK Government will explore a potential retail share sale in 2024 as part of its plans to reduce its shareholding in NatWest Group plc, a Board Oversight Committee was established. This Committee is responsible for considering all matters and taking any necessary decisions in connection with a retail share offering. I would like to thank my fellow Board members for their contribution, commitment and dedication during 2023 and also throughout my time as Chairman. I will hand over my chairing responsibilities to Rick Haythornthwaite on 15 April 2024. Howard Davies Chairman of the Board 15 February 2024 Letter from Howard Davies, Chairman of the Board Dear Shareholder, Welcome to the 2023 Corporate governance report. It has been a challenging year for the Board with a number of changes to directors and committee structure and composition. Other changes to Board membership during the year were Mike Rogers and Morten Friis stepping down as directors on 25 April and 31 July 2023 respectively. I would like to record our thanks to Mike and Morten for their significant contributions to the Board during their tenures. Stuart Lewis was appointed as a director on 1 April 2023, succeeding Morten Friis as the Chair of the Group Board Risk Committee on 1 August 2023. I also want to take the opportunity to thank Graham Beale who stepped down from the NWH Sub Group Boards, and his role as NWH Sub Group Senior Independent Director, on 31 August 2023. We welcomed Mark Rennison to the NWH Sub Group Boards on 1 September 2023 and Ian Cormack is now the NWH Sub Group Senior Independent Director. During the year the Technology and Innovation Committee was retired, and the remit of the Group Sustainable Banking Committee (SBC) was expanded to include technology, data and innovation matters. Yasmin Jetha became Chair of SBC, succeeding Mike Rogers. Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 74 Governance at a Glance 76 UK Corporate Governance Code 77 Our governance framework 80 Principal areas of Board focus The most significant change was the departure of Alison Rose as Group CEO in July 2023. The Board, supported by the Group Nominations and Governance Committee, had considered Group CEO succession plans in February 2023. We were therefore ready to move quickly when she left. Paul Thwaite was appointed as Group CEO in July 2023 for an initial period of 12 months. We are grateful to Paul for stepping up at short notice, and to Katie Murray for her continued support as Group CFO. Following a robust recruitment process the Board appointed Paul as Group CEO on a permanent basis with effect from 16 February 2024. Further information on this process is available on page 94. In September we announced the appointment of Rick Haythornthwaite as the next Chair of NatWest Group. You can read more about the process undertaken by the Group Nominations and Governance Committee to recruit Rick on page 93. The Board’s role in the process is also described in our section 172 statement on page 24. Details of the Board’s principal areas of focus and operations during 2023 are set out on pages 80 and 82 respectively. NatWest Group 2023 Annual Report on Form 20-F 73

Key activities in 2023 Governance at a glance Board changes during 2023 1 April Stuart Lewis joined the Board as an independent non-executive director and joined GAC and BRC. Roisin Donnelly joined SBC. 25 April Mike Rogers stepped down as a non-executive director and SBC Chair. 26 April Yasmin Jetha succeeded Mike Rogers as SBC Chair. 25 July Alison Rose agreed by mutual consent with the Board to step down as Group CEO and Paul Thwaite was appointed as Group CEO for an initial period of 12 months. 31 July Morten Friis stepped down as a non-executive director and BRC Chair. 1 August Stuart Lewis succeeded Morten Friis as BRC Chair and joined N&G. Board changes during 2024 8 January Rick Haythornthwaite joined as an independent non-executive director and Chair Designate. 16 February Paul Thwaite becomes permanent Group CEO 15 April Rick Haythornthwaite will succeed Howard Davies as Chair of NatWest Group plc, and Howard will step down from the Board. 1 July Geeta Gopalan will join the Board as an independent non-executive director. Corporate governance continued Chair appointment We announced the appointment of Rick Haythornthwaite to succeed Howard Davies as Chair, following a rigorous search process. Board Oversight Committees We set up two Board Oversight Committees (BOCs) to support Board review and oversight of key areas of focus for the bank – the Customer Exit BOC and the Retail Share Offering BOC. Change in Group CEO When Alison Rose agreed by mutual consent with the Board to step down as Group CEO, we implemented agreed contingency plans to appoint Paul Thwaite as Group CEO for an initial period of 12 months. Streamlining Board committees The remit of the Group Sustainable Banking Committee was expanded to include technology, data and innovation matters, and the Technology and Innovation Committee was retired as a standalone Board committee. Consumer Duty Roisin Donnelly became our Consumer Duty Board Champion, and the Board reviewed Consumer Duty implementation across the bank. Read more on page 24. Supporting directors’ professional development We provided dedicated induction programmes for new directors and supported existing directors’ transitions into new committee roles, alongside a bespoke training programme for all directors. Risk management The Group Board Risk Committee reviewed, and the Board approved, NatWest Group’s Enterprise-Wide Risk Management Framework (EWRMF) and the annual refresh of risk appetite. Board diversity We maintained our focus on Board diversity, with reference to our Boardroom inclusion policy, as a number of changes were made to Board and committee composition. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Read more on page 93. Read more on page 89. Read more on page 107. Read more on page 100. Read more on page 92. Read more on page 77. Read more on page 83. NatWest Group 2023 Annual Report on Form 20-F 74

Sex Ethnicity Age range Tenure Chairman and non-executive directors Independence Board composition dashboard as at 31 December 2023(1) Board skills and experience 40% 60% Male Female 1 9 White Minority ethnic 2 5 3 45-55 56-65 66-75 2 2 4 0-3 years 3-6 years 6-9 years Full Board average tenure: 4.2 years 1 2 7 Chairman Executive directors Independent non-executive directors The Board is structured to ensure that the directors provide an appropriate combination of skills, experience and knowledge as well as independence. The bar chart opposite is an extract from our Board skills matrix, which is reviewed by the Group Nominations and Governance Committee and approved by the Board annually. The matrix reflects directors’ self-assessment of the skills and experience they bring to Board discussions, in line with pre-determined criteria aligned to current and future strategic priorities. (1) As at 31 December 2023 there were 10 directors on the Board. Corporate governance continued 0 1 2 3 4 5 6 7 8 9 10 Broad Financial Services Risk Management Transformation Government / Regulatory / Public Sector ESG (incl. climate and nature-related issues) Customer Experience Financial Markets / Investment Banking Digital and Innovation Retail / Commercial / Private Banking Technology (infrastructure, cyber) Prior CEO experience CFO / Accountant Skills and experience Boardroom inclusion policy Our boardroom inclusion policy aims to promote diversity and inclusion in our Board and Board Committee composition, and in the nominations and appointments process. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Our disclosures under UK Listing Rule 9.8.6(9) and (10) (Board and executive management diversity) can be found on page 92. NatWest Group 2023 Annual Report on Form 20-F 75

UK Corporate Governance Code 2018 Corporate governance continued The Listing Rules require companies to make a statement of how they have applied the Principles, in a manner that would enable shareholders to evaluate how the Principles have been applied. The table below includes signposts to key content in this report which describes how we have applied the Principles and complied with the Provisions of the Code during 2023, organised under the Code’s five main section headings. Provision 33 – that the Group Performance and Remuneration Committee should have delegated responsibility for setting remuneration for the Chairman and executive directors. The Board considers these are matters that should be reserved for the Board. In addition, the Board has delegated two particular aspects of the Code’s provisions to Board committees, with regular updates provided to the Board as appropriate: – The Group Audit Committee has delegated responsibility for reviewing and monitoring NatWest Group’s whistleblowing process. – The Group Sustainable Banking Committee has delegated responsibility for reviewing key workforce policies and practices (not related to pay) to ensure they are consistent with NatWest Group’s values and support long-term sustainable success. Provision 17 – that the Group Nominations and Governance Committee should ensure plans are in place for orderly succession to both the Board and senior management positions, and oversee the development of a diverse pipeline for succession. The Board considers these are matters that should be reserved for the Board. Provision 21 – that an annual evaluation of the performance of the Board and its committees should be undertaken. The Board agreed to defer the 2023 evaluation until 2024 for the reasons set out on page 104. The Board confirms there will be an evaluation in 2024, which will be externally facilitated. Board leadership and company purpose Division of responsibilities Composition, succession and evaluation Remuneration Audit, risk and internal controls Information on how the company has applied the Principles and complied with the Provisions set out in this section of the Code can be found throughout the Annual Report and Accounts. The following sections are of particular relevance: The Board regularly assesses the company’s emerging and principal risks in a variety of ways including through review of the risk management report and dedicated training. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION All directors are committed to observing high standards of corporate governance, integrity and professionalism. Throughout 2023, NatWest Group plc applied the Principles and complied with the Provisions of the 2018 UK Corporate Governance Code (the Code) with the following exceptions, as described in full in our Statement of compliance on page 147: – Our strategic framework (page 9) – How We Create Value (pages 10 to 12) – Principal areas of Board focus (page 80) – Board oversight of our strategic framework (page 84) – How the Board oversees and monitors culture (page 85) – How the Board engaged with stakeholders, including our multi-channel colleague listening approach (pages 86 to 87) – Our governance framework (role and responsibilities of the Board and Board committees) (page 77) – Division of responsibilities (page 78) – Subsidiary governance and ring-fencing (page 79) – Board and committee membership and attendance (page 82) – External appointments and time commitment (page 88) – Directors’ biographies and committee memberships (pages 69 to 72) – Board and Board committee composition (page 89) and changes in 2023 and 2024 (page 74) – Board skills matrix (page 75) – Board composition dashboard as at 31 December 2023 (sex, ethnicity, age, tenure, independence) (page 75) – Our Boardroom inclusion policy (page 91) – Board and executive succession planning (page 89) – Deferral of the 2023 Board and committee evaluation (page 89) – Group Nominations and Governance Committee report (page 90) – UK Listing Rules Board and executive management diversity disclosures (page 92) – Chair search process (page 93) – Directors’ remuneration report (page 112) (Group Performance and Remuneration Committee activity and decisions during 2023; remuneration policy for executive directors; wider workforce remuneration) – Group Audit Committee report (page 95) – Compliance report (page 147) – Group Board Risk Committee report (page 100) Details of the company’s principal risks, procedures in place to identify Top and Emerging Threats, and how these are managed or mitigated, can be found on pages 60 to 65 (Risk overview) and pages 155 to 267 (Risk and Capital Management). NatWest Group 2023 Annual Report on Form 20-F 76

NatWest Group plc Board Our governance framework To assist in providing effective oversight and leadership, the Board has established the following principal committees: The Group Executive Committee (ExCo) supports the Group CEO in discharging his responsibilities in managing NatWest Group’s business day to day. Corporate governance continued – Is collectively responsible for promoting the long-term success of the company, driving shareholder value and Natwest Group’s contribution to wider society. – Establishes NatWest Group’s strategy and leads the development of its culture. – Provides leadership of the company within a framework of prudent and effective controls which enables risk to be assessed and managed. – Sets the strategic aims of the company and its subsidiaries, ensures that the necessary resources are in place for NatWest Group to meet its objectives. – Is responsible for the allocation and raising of capital, and reviews business and financial performance. – Ensures that the company’s obligations to its shareholders and other key stakeholders are understood and met. Governance framework changes during 2023 From 1 May, SBC’s remit expanded to include technology, data and innovation matters and the Technology and Innovation Committee was retired. On 27 July a Customer Exit Board Oversight Committee (BOC) was set up to oversee and advise the Board in relation to the work and findings of reviews related to customer exits. On 11 December a Retail Share Offering BOC was set up regarding the proposed share offering to retail investors by UKGI. Further information – The terms of reference of the Board and its principal committees are available at natwestgroup.com and are reviewed at least annually. – The Board terms of reference include a formal schedule of matters specifically reserved for the Board’s decision. – Internal reviews confirmed the Board and its principal committees had fulfilled their remits as set out in their terms of reference during 2023. Group Audit Committee (GAC) – Assists the Board in discharging its responsibilities in relation to the disclosure of NatWest Group’s financial affairs. – Reviews accounting and financial reporting and regulatory compliance and NatWest Group’s system of internal controls. – Monitors the processes for internal audit, risk management, external audit and whistleblowing. Group Board Risk Committee (BRC) Group Nominations and Governance Committee (N&G) Group Performance and Remuneration Committee (RemCo) Group Sustainable Banking Committee (SBC) – Supports the Board in overseeing, supporting and challenging actions taken by management to run NatWest Group as a sustainable business, capable of generating long-term value for its stakeholders. – Oversees how technology, data and innovation are used to support the customer and be a relationship bank for a digital world. – Provides oversight and advice to the Board in relation to current and potential future risk exposures of NatWest Group, future risk strategy, risk appetite and tolerance. – Promotes a risk awareness culture within NatWest Group. – Assists the Board in the formal selection and appointment of directors. – Reviews the structure, size and composition of the Board, and approves appointments to the boards of NatWest Group’s principal and material regulated subsidiaries. – Monitors NatWest Group’s governance arrangements. – Responsible for the overview of NatWest Group remuneration policy and the directors’ remuneration policy, ensuring that arrangements are designed to promote the long-term success of NatWest Group. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Committee report on page 95. Committee report on page 100. Committee report on page 90. Committee report on page 112. Committee report on page 107. For further information on individual roles and responsibilities, see page78. NatWest Group 2023 Annual Report on Form 20-F 77

Division of responsibilities Corporate governance continued Non-executive director independence The Board considers that the current Chairman, Howard Davies, and Chair Designate, Rick Haythornthwiate were both independent on appointment and that all other current non-executive directors are independent for the purposes of the Code. Chairman and Group CEO The role of Chairman is distinct and separate from that of the Group CEO and there is a clear division of responsibilities, with the Chairman leading the Board and the Group CEO managing the business day to day. Non-executive directors Along with the Chairman and executive directors, the non-executive directors are responsible for ensuring the Board fulfils its responsibilities under its terms of reference. The non-executive directors combine broad business and commercial experience with independent and objective judgment. They provide constructive challenge, strategic guidance, and specialist advice to the executive directors and the executive management team and hold management to account. The balance between non-executive and executive directors enables the Board to provide clear and effective leadership across NatWest Group’s business activities and ensures no one individual or small group of individuals dominates the Board’s decision-making. The Chairman and non-executive directors meet at least once every year without the executive directors present. Executive management The executive management team supports the Group CEO in managing NatWest Group’s businesses. Members of the executive management team, including the Group CEO, discharge their individual accountabilities to review, challenge and debate relevant items and support the Group CEO in forming recommendations to the Board. Matters include strategy, financials, capital, risk, customers, colleagues(1) and operational issues affecting NatWest Group as well as monitoring the implementation of cultural change and executive succession planning. Biographies of the executive management team can be found at natwestgroup.com. (1) References to ‘colleagues’ in this report mean all permanent employees and, in some instances, members of the wider workforce e.g. temporary employees and agency workers. Chief Governance Officer and Company Secretary The Chief Governance Officer and Company Secretary works closely with the Chairman to ensure effective and efficient functioning of the Board and appropriate alignment and information flows between the Board and its Committees. The Chief Governance Officer and Company Secretary is responsible for advising the Board and individual directors on all governance matters, and also facilitates Board induction and directors’ professional development. Senior Independent Director Throughout 2023, Mark Seligman, as Senior Independent Director, acted as a sounding board for the Chairman, and as an intermediary for other directors when necessary. He was also available to shareholders to discuss any concerns they may have had, as appropriate. Mr Seligman, on behalf of the Board, also led the process to identify and appoint a successor to Howard Davies as Chair of NatWest Group. Details of the key responsibilities of the Chairman, Group CEO, Senior Independent Director and non-executive directors are available at natwestgroup.com. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION As at the date of publication of this report, the Board has 11 directors comprising the Chairman, two executive directors and nine independent non-executive directors, one of whom is the Senior Independent Director. Director biographies and details of the Board committees of which they are members can be found on pages 69 to 72. Read more about the Chair search process on page 93. NatWest Group 2023 Annual Report on Form 20-F 78

Subsidiary governance and ring-fencing Corporate governance continued NatWest Group plc is a listed company with equity listed on the London and New York stock exchanges. NatWest Holdings Limited (NWH Ltd) is the holding company for our ring-fenced operations, which include our Retail and Private Banking businesses and certain aspects of our Commercial & Institutional business. A common board structure is operated such that the directors of NWH Ltd are also directors of The Royal Bank of Scotland plc (RBS plc) and National Westminster Bank Plc (NWB Plc). Known collectively as the NWH Sub Group, the boards of these three entities meet concurrently. An integral part of NatWest Group’s governance arrangements is the appointment of three double independent non-executive directors (DINEDs) to the Boards, and Board committees, of the NWH Sub Group. They are Francesca Barnes, Ian Cormack and Mark Rennison. On 31 August 2023, Graham Beale stood down as NWH Sub Group Senior Independent Director (SID) and a DINED. On 1 September 2023 Ian Cormack assumed the SID role and Mark Rennison joined the NWH Sub Group Boards as a DINED. Abridged biographies for the DINEDs are presented opposite with more detailed biographies available at natwestgroup.com (NWH Ltd section). The DINEDs are independent in two respects: (i) independent of management as non-executives; and (ii) independent of the rest of NatWest Group by virtue of their NWH Sub Group-only directorships. They attend NatWest Group plc Board and relevant Board committee meetings as observers. Our DINEDs play a critical role in NatWest Group’s ring-fencing governance structure, and are responsible for exercising appropriate oversight of the independence and effectiveness of the NWH Sub Group’s governance arrangements, including the ability of each Board to take decisions independently. Date of appointment 1 May 2018 Ian’s extensive financial services career provides him with significant experience in commercial and investment banking, with particular focus on customer and risk management. This knowledge combined with Ian’s understanding of financial infrastructures, strategy and transformation provides invaluable input into Board discussions. Ian spent 30 years with Citibank/ Citigroup where he held a number of senior positions, including UK Country Head (CCO), head of European training and co-head of the Global Financial Institutions Business. Ian was also chief executive of AIG’s insurance, financial services and asset management business in Europe between 2000 and 2002 and served on the board of Luxembourg-based bond clearing house CEDEL. Ian has previously held non-executive positions with Just Group plc, Phoenix Group Holdings plc, Hastings Group Holdings plc, Bloomsbury Publishing plc and Broadstone Acquisition Corporation Inc. Date of appointment 1 May 2018 Francesca brings a wealth of banking and private equity experience to the Board gained through an extensive executive career. Francesca’s experience provides considerable knowledge in important areas such as customer experience, risk and stakeholder management. Francesca started at Chase Manhattan Bank and went on to hold a number of senior roles within UBS Investment Bank including Global Head of Private Equity; Head of Strategy and Development; Global Loan Portfolio Manager and Chair of the UBSIB Development Board. Francesca is currently the Senior Independent Director of HarbourVest Global Private Equity Limited, a non-executive director of Capvis Private Equity and previously served on the Board of Coutts & Co (2012-2021), a NatWest Group subsidiary. Date of appointment 1 September 2023 Mark has extensive retail banking and financial services expertise, alongside substantial experience at board and committee level. With 12 years’ experience on the Board of Nationwide as CFO, Mark brings a blend of technical knowledge and a deep understanding of the financial services sector. Mark is a chartered accountant with over 30 years’ experience in financial services. He began his career at Price Waterhouse (now PwC), where he spent twelve years as a partner specialising in financial services. He was CFO of Nationwide Building Society from 2007 to 2019. From 2020 to 2023 Mark was an independent non-executive director of TSB and Audit Committee Chair. Mark is currently a non-executive director of Royal London and Homes England. Senior Independent Director and double independent non-executive director Double independent non-executive director Double independent non-executive director Ian Cormack NWH Sub Group Francesca Barnes NWH Sub Group Mark Rennison NWH Sub Group STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION The governance arrangements for the Boards and Board committees of NatWest Group plc and the NWH Sub Group have been designed to enable NatWest Group plc to exercise appropriate oversight and to ensure that, as far as is reasonably practicable, the NWH Sub Group is able to take decisions independently of the wider Group. The Group Nominations and Governance Committee (N&G) monitors the governance arrangements of NatWest Group plc and its subsidiaries and approves appointments to the Boards of principal and material regulated subsidiaries, as described in the N&G report on page 90. NatWest Group 2023 Annual Report on Form 20-F 79

Principal areas of Board focus in 2023 Corporate governance continued Regular reports Group CEO reports Group CFO reports Board committee and NatWest Markets plc Chair reports Business reviews Risk management reports Board business insights pack Financial crime reports Legal and regulatory updates Colleague advisory panel reports Consumer Duty updates Key approvals February: 2022 Annual Report and Accounts; ESG disclosure report; Climate-related disclosures report (including the initial iteration of the Climate Transition Plan) and associated documents; 2023 budget; Internal and external capital distributions March: Recalibration of key risk appetite limits April: Q1 financial results and ILAAP submission June: ICAAP results; 2022 Modern Slavery & Human Trafficking Statement July: H1 financial results and internal and external capital distributions; CEO appointment September: Resolvability self-assessment; Chair appointment October: Q3 financial results December: EWRMF annual review and risk appetite refresh Independent reviews Following the events of the summer of 2023 in relation to customer exit decision-making and the change in Group CEO, the Board dedicated much time in the second half of the year to considering the immediate and longer-term impacts. This included reviewing the three reports prepared by the independent party, Travers Smith LLP, as well as considering the impact the events had on the wider workforce. December – Considered the draft 2024 budget, including progress made against climate ambitions and the macro-economic impact on customer behaviour and deposits – Considered the culture measurement report – Approved the Board skills matrix October – Received a progress update on the implementation of the new Digital X strategy – Post-implementation review of recent acquisitions and consideration of future opportunities – Considered an update on the Retail Bank’s short-term borrowing strategy including the approach to embedded finance – Considered the September Our View results – Reviewed the 2024 Annual Scenario for use in the Budget, Economic and Stress Tests September – Discussed sustainable transitions, NatWest Group’s strategy and opportunities available to the bank in this area – A session was held for potential successors to ExCo to meet the Board – Assessed the Group’s capabilities and preparations to support resolution July – Reviewed the latest culture measurement report and One Bank Transformation H1 review – Considered the impact of potential future M&A activity on the capital distribution strategy – Received the PRA’s Periodic Summary Meeting letter and discussed the response – Discussed with management the nature and biodiversity strategy ambitions February – Received the FCA’s firm evaluation letter and discussed the response – Considered Board succession plans April – Directors attended a virtual shareholder event and the Annual General Meeting – Deep dive sessions held with members of management on Digital X and Commercial & Institutional businesses – Received a detailed update on personalisation of customer life cycles – Appointed our Consumer Duty Board Champion June – Considered the progress of standing up the Commercial & Institutional business one year on – Reviewed the April Our View (colleague opinion survey) results – Strategy session focused on the competitive landscape and the impact new technologies might have on banking and customer behaviour in the future, including digital currencies – Discussed top and emerging threats with management May – At an ad hoc meeting the Board approved participation in the directed buy-back of shares from HM Treasury March – Reviewed management’s strategy for NatWest Digital X (previously the Services function) – Approved the Year 2 Operational Resilience Self Assessment – Received an update on the cost of living and how the bank was supporting customers and colleagues and considered the impact on customer behaviour, particularly in relation to deposit levels – Received an update on customer complaints – Considered the external market conditions and potential impacts for NatWest Group in light of liquidity challenges experienced by peers STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 80

Board spotlights Rick Haythornthwaite’s induction After we announced Rick’s appointment in September 2023, the Group Chief Governance Officer and Company Secretary worked closely with him to devise a comprehensive induction programme. The programme was tailored to Rick’s requirements. It included specific areas of focus Rick had identified during the recruitment process, and it was flexible in order to respond to areas of focus which emerged as the programme progressed. This included supporting preparations ahead of Rick’s regulatory interview for the Chair role with the PRA and FCA. Rick’s induction programme prioritised early engagement with key internal and external stakeholders, including current Chairman, Howard Davies, the Group CEO, Group CFO, non-executive directors, members of the executive management team, our auditors and legal advisers. As well as providing opportunities for Rick to meet and get to know his NatWest colleagues and key external contacts, the induction programme was designed to ensure a comprehensive overview of NatWest Group’s structure and business operations, its strategic priorities and current challenges. During the Chair search process Rick had acknowledged that, whilst he possessed strong financial services experience (for example, through his time as Mastercard Chair), he would benefit from some additional upskilling on banking. Arrangements were made for this to be addressed at an early stage during Rick’s induction, with a focus on the broader picture relevant to a universal bank and recognising Rick’s existing background in key areas including payments, technology and innovation. After Rick joined the Board in January 2024, attention turned towards planning for an orderly handover of the Chair role. In preparation for taking on the role and responsibilities of Chair, Rick joined the Group Nominations and Governance Committee as a member, and will join other Board committee meetings as an attendee. Enhancing directors’ skills and knowledge Directors’ training and development is co-ordinated by the Chief Governance Officer and Company Secretary. Directors have access to a wide range of briefing and training sessions and other professional development opportunities. Internal training relevant to the business of NatWest Group is also provided and during 2023 the Board undertook a comprehensive programme of training sessions on a variety of topics. Some of these were determined at the start of the year and others arranged in response to events or Board discussions. Training was delivered by both members of management and external parties. Topics covered included financial crime; recovery and resolution planning; digital assets; nature and biodiversity (delivered by the World Wide Fund for Nature); legal privilege; Consumer Duty (delivered by Oxera); capital management and deposits. The training sessions enabled the directors to deepen their understanding of these topics and informed their decision-making. The Board also held a focus session to assess top and emerging threats. Discussions covered the current and potential geo-political landscape, macro-economic and regulatory trends and the impact of emerging technologies on the risk environment. A number of directors also accepted an invitation to the full Board to join meetings of the Group Sustainable Banking Committee which covered areas of broader interest, including artifical intelligence. Directors undertake the training they consider necessary to assist them in carrying out their duties and responsibilities. The non-executive directors discuss their training and professional development with the Chairman at least annually. Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Full details of the process to appoint Rick as NatWest Group Chair successor can be found in the Group Nominations and Governance report on page 93. NatWest Group 2023 Annual Report on Form 20-F 81

Corporate governance continued How the Board operated Board and committee meetings There were eight scheduled Board meetings during 2023. As well as scheduled meetings, additional ad hoc meetings of the Board and some of its committees were held throughout the year to receive updates and deal with time-critical matters. There were 11 additional Board meetings held in 2023 compared to three additional meetings held in 2022. There was also one strategy session with executive management in 2023. When directors are unable to attend meetings convened at short notice, owing to existing commitments, they receive the papers and have the opportunity to provide their feedback in advance. In accordance with the Code, the Chairman and the non-executive directors met at least once without executive directors present. At each scheduled Board meeting the directors received reports from the Chairman, Board committee Chairs, Group CEO, Group CFO, Group Chief Risk Officer (Group CRO) and other members of the executive management team, as appropriate. Business reviews from the CEOs of our Retail Banking, Wealth and Commercial & Institutional businesses included updates on progress against strategy and spotlights on current topics including the cost of living, personalisation of services, business strategies and deposit plans. In addition to our business CEOs, a number of other senior executives attended Board meetings throughout the year to present reports to the Board. This provided the Board with an opportunity to engage directly with management on key issues and supported succession planning. The Board also welcomed external presenters and advisers to Board meetings, who provided useful insights and perspectives. The Board and Group Executive Committee (ExCo) operating rhythm continues to support a proactive and transparent agenda planning and paper preparation process. This process includes the following elements: – A pre-Board meeting with the Chairman, Group CEO, Group CFO and Chief Governance Officer and Company Secretary to ensure the Board and executive management are aligned on Board agendas. – A post-Board meeting with the Chairman, Group CEO and Chief Governance Officer and Company Secretary to discuss what went well or could be improved after each meeting. – A look ahead paper at each ExCo and Board meeting setting out key items that will be discussed at the next meeting. Board and committee membership and meeting attendance in 2023 Board Group Audit Committee (GAC) Group Board Risk Committee (BRC) Group Nominations and Governance Committee (N&G) Group Performance and Remuneration Committee (RemCo) Group Sustainable Banking Committee (SBC) Technology and Innovation Committee (TIC) Director Scheduled Ad hoc Scheduled Ad hoc Scheduled Ad hoc Scheduled Ad hoc Scheduled Ad hoc Scheduled Ad hoc Scheduled Ad hoc Howard Davies (1) 8/8 8/8 – – – – 4/4 3/3 – – – – – – Alison Rose (2) (8) 4/4 – – – – – – – – – – – – – Paul Thwaite (2) (9) 4/4 6/6 – – – – – – – – – – – – Katie Murray (2) 8/8 6/6 – – – – – – – – – – – – Frank Dangeard (3) 8/8 10/11 – – – – – – 5/5 7/8 – – 1/1 – Stuart Lewis (4) (12) 6/6 10/10 4/4 – 6/6 – 2/2 4/4 – – – – – – Roisin Donnelly (3) (5) 7/8 10/11 – – – – – – – – 5/5 – – – Patrick Flynn (3) 8/8 9/11 5/5 – 8/8 – 4/4 6/7 – – – – 1/1 – Mike Rogers (6) 2/2 1/1 – – – – – – 2/2 1/1 1/1 – – – Yasmin Jetha (3) (7) 8/8 10/11 – – – – – – – – 5/5 – 1/1 – Morten Friis (10) 5/5 5/5 3/3 – 5/5 – 2/2 3/3 – – – – – – Mark Seligman 8/8 11/11 5/5 – – – 4/4 7/7 5/5 8/8 – – – – Lena Wilson (11) 8/8 11/11 – – 7/8 – 4/4 7/7 5/5 8/8 3/5 – – – (1) Howard Davies was not invited to attend meetings related to recruitment of the next NatWest Group Chair. (2) Executive directors were not eligible to attend meetings to discuss their own remuneration or the change in Group CEO. (3) On occasion directors were unable to attend ad hoc meetings which were convened at short notice owing to existing commitments. (4) Mr Lewis joined the Board with effect from 1 April, becoming a member of both GAC and BRC on that date also. (5) Ms Donnelly was unable to attend a scheduled meeting of the Board owing to a prior commitment. (6) Mr Rogers stepped down from the Board and the role of SBC Chair with effect from 25 April. (7) Ms Jetha assumed the role of SBC Chair with effect from 26 April. (8) Ms Rose stepped down from the role of Group CEO with effect from 25 July. (9) Mr Thwaite joined the Board and assumed the role of Group CEO with effect from 25 July. (10) Mr Friis stepped down from the Board and the role of BRC Chair with effect from 31 July. (11) Ms WIilson was unable to attend one scheduled meeting of the SBC owing to a prior commitment and one meeting of each of the SBC and BRC owing to illness. (12) Mr Lewis assumed the role of BRC Chair from 1 August, at which point he became a member of N&G. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION An overview of the Board’s principal areas of focus during 2023, is set out on page 80. NatWest Group 2023 Annual Report on Form 20-F 82

Corporate governance continued Information All directors receive accurate, timely and clear information on all relevant matters and have access to the advice and services of the Chief Governance Officer and Company Secretary. In addition, all directors are able, if necessary, to obtain independent professional advice at the company’s expense. Our Board and committee paper template includes a separate section for an assessment of the relevant stakeholder impacts for the directors to consider. This aligns with the directors’ duties under section 172(1) of the Companies Act 2006 and further details of how the directors have complied with their section 172(1) duties can be found on pages 24 to 25 of the Strategic report. Induction Each new director receives a formal induction on joining the Board, which is co-ordinated by the Chief Governance Officer and Company Secretary and tailored to suit the requirements of the individual concerned. This includes visits to NatWest Group’s major businesses and functions, and meetings with directors and senior management. Meetings with external auditors, counsel and stakeholders are also arranged as appropriate. All new non-executive directors receive a copy of the NatWest Group non-executive director handbook. The handbook operates as a consolidated governance support manual for directors of NatWest Group plc and the NWH Sub Group, providing both new and current directors with a single source of information relevant to their role. It covers a range of topics including NatWest Group’s corporate structure; the Board and Board committee operating model; Board policies and processes; and a range of technical guidance on relevant matters including directors’ duties, conflicts of interest, and the UK Senior Managers and Certification Regime. The handbook contains links to a wider library of reference materials via our online resources portal. Conflicts of interest The directors’ conflicts of interest policy sets out procedures to ensure that the Board’s management of conflicts of interest and its powers for authorising certain conflicts are operating effectively. Each director is required to notify the Board of any actual or potential situational or transactional conflict of interest and to update the Board with any changes to the facts and circumstances surrounding such conflicts. Situational conflicts can be authorised by the Board in accordance with the Companies Act 2006 and the company’s Articles of Association. The Board considers each request for authorisation on a case-by-case basis and has the power to impose conditions or limitations on any authorisation granted as part of the process. Appointments authorised in 2023 are detailed on page 103. Details of all directors’ conflicts of interest are recorded in a register which is maintained by the Chief Governance Officer and Company Secretary and reviewed annually by the Board. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Further information about Rick Haythornthwaite’s induction can be found on page 81 . Further information about Stuart Lewis’s induction as BRC Chair can be found on page 101 . NatWest Group 2023 Annual Report on Form 20-F 83

Corporate governance continued Board oversight of our strategic framework Throughout 2023 NatWest Group continued to focus on serving customers every day. The effective use of data and technology is recognised as being an important means to achieve this and to ensure the bank is simple to deal with. Data and metrics on customer behaviour played a key role in informing the Board’s discussions throughout the year including in relation to the bank’s deposit strategy. In June the Board held a two day strategy session focused on the evolving competitive landscape, with a particular focus on digitisation, machine learning and artificial intelligence and the impact the emergence of these technologies could have on the financial services sector. The directors discussed future challenges and opportunities with members of management and external stakeholders. Consideration was given to potential new entrants to the financial services sector and the possible regulatory response to significant changes driven by technological enhancements. Our focus on serving customers has been complemented by the FCA’s Consumer Duty requirements, which became effective in 2023. The Board received regular updates throughout the year on this important strategic programme. The ways in which we best serve customers, and so deliver sustainable value for shareholders, continued to be a focus for management throughout the year and updates were provided to the Group Sustainable Banking Committee and the Board as the approach evolved. Further information on our strategic framework can be found in the Strategic report on page 9. NatWest Group’s ambition to serve customers well every day continued to be underpinned by our values. Our values are central to how we work together to deliver our strategy. The Board received regular updates on how these values are embedding within the organisation through Our View colleague opinion survey results and culture measurement reports. Colleague sentiment towards the values was also observed via Colleague Advisory Panel meetings, which are chaired by Roisin Donnelly who reports on each meeting to the Board. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Further information on the Board’s oversight of culture and our values can be found on page 85. NatWest Group 2023 Annual Report on Form 20-F 84

Corporate governance continued The Board assesses and monitors NatWest Group’s culture in several ways, as described below. NatWest Group plc – Board responsibilities in relation to culture – Leads the development of NatWest Group’s culture, values and standards – Assesses and monitors culture – Reviews and approves NatWest Group’s values Board reporting on culture What did the Board receive? Key areas of focus and outcomes Colleague Advisory Panel reports Feedback on discussions from Colleague Advisory Panel (CAP) meetings held in May and November. Topics included executive remuneration and the wider workforce, environmental, social and governance topics, Consumer Duty and human rights. Our View colleague survey results Insights from the colleague opinion surveys conducted in April and September. Colleagues responded to questions across the whole colleague experience including wellbeing, building capability and leadership. The key areas identified for focus related to leadership and ensuring consistency across NatWest Group. Culture measurement reports Board culture measurement reports were considered in July and December. See opposite for further information on the framework, including the measures used and considered by the Board and how it monitored and assessed culture, including embedding, during 2023. One Bank Culture updates In October, SBC considered an update on progress of the One Bank Culture Plan, noting our One Bank Culture Journey to date and plans to grow leadership capability, scale and build confidence in experimentation and sharpen our focus through the transformation of performance management. Evaluating ethics in NatWest Group SBC considered how business ethics is monitored and reported through the NatWest Group Culture Measurement Framework. Board business insights packs Metrics to demonstrate how NatWest Group is delivering for colleagues (including building capability, diversity and inclusion, and learning). Succession planning During discussions of management’s succession planning and talent strategy, directors considered how colleagues’ development is supported and a culture of learning promoted across the organisation. Later in the year, the Board had an opportunity to discuss these development opportunities with potential executive successors who shared their thoughts on how the learnings gained were being embedded within their teams. NatWest Group Culture Measurement Framework The NatWest Group framework for measuring culture: – Provides insight into the bank’s culture, helping senior leaders and the Board assess NatWest Group’s progress in reshaping its culture and delivering on its purpose. – Brings together guidance and best practice from regulators, public bodies and thought leaders. – Uses internal and external sources – sentiment, KPIs, quantitative and qualitative insight from Risk, Audit, Conduct, People, Customer, suppliers, climate and external public scrutiny. An assessment of over 100 quantitative and qualitative measures from across NatWest Group and external sources: – Public scrutiny measures. – Customer data. – Colleague listening. – Colleague engagement. – Risk culture. – Audit & Behavioural Risk. – Ethics, behaviour and Speak Up. – Supplier Charter and environmental footprint. – The Culture Measurement Framework helps the Board execute their duty as outlined in Principle B, Principle E and Provision 2 of the UK Corporate Governance Code: “The Board should assess and monitor culture. Where it is not satisfied that policy, practices or behaviour throughout the business are aligned with the company’s purpose, values and strategy, it should seek assurance that management has taken corrective action”. – Progress on NatWest Group’s culture journey is reported six-monthly to ExCo, SBC and the Board as well as separate reports for each legal entity (which are reviewed with each legal entity board). Outcomes and insights from the assessment, monitoring and embedding of culture In July: – Directors noted positive trends since January, with material improvements in the lead indicators of up to c.3% recorded. – Consideration was given to how the change in Group CEO would impact future results. – Improvements in diversity, equity and inclusion metrics were welcomed, along with the improved NPS in Retail Banking. In December: – Positive trends continued in the second half of the year, with resilient Our View scores in respect of culture. – The impact of the events surrounding the change in Group CEO on colleague and customer sentiment were noted. – Progress was noted in respect of the implementation of Consumer Duty, and the ongoing work to embed the principles across the bank. Culture STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Further information on the SBC’s focus on people, culture and learning during 2023 can be found on page 109. NatWest Group 2023 Annual Report on Form 20-F 85

Corporate governance continued The Board reviews and confirms its key stakeholder groups for the purposes of section 172 annually. Customers The Board received regular updates from the Group CEO and business CEOs on customer engagement activity and sentiment, including Competition and Markets Authority (CMA) survey results and Net Promoter Scores (NPS). There was a particular focus on the impacts of the cost of living challenges and how the bank could best support retail and commercial customers in this respect. The Board considered metrics and trend data on customer behaviour, particularly in relation to deposits, throughout the year via management reports. In April 2023, Board members had the opportunity to meet with a selection of Scotland-based Commercial & Institutional customers. Discussions focused on how the bank can support customers in achieving their sustainability targets, the current macro-economic environment and the opportunities and challenges this was presenting. How the Board engaged with stakeholders In February 2023, the Board agreed its annual objectives and confirmed its key stakeholder groups would remain investors, customers, colleagues, regulators, communities and suppliers. The Board’s agenda and engagement plans were structured to enhance the Board’s understanding of stakeholders’ views and interests. This in turn has informed Board discussions and decision-making. The Chairman also provided regular updates to the Board on meetings with regulators, investors, financial institutions, advisers, and government representatives. Our section 172 statement on pages 24 to 25 describes how stakeholder interests were considered in Board discussions and decision-making, including principal decisions. In addition to those examples, the Board engaged with stakeholder views and interests in a variety of other ways, both directly and indirectly as described below. Investors There was a high level of engagement with institutional investors throughout the year. This included in relation to key decisions such as the appointment of Rick Haythornthwaite as our next Chair, and following the change in Group CEO. Directors had the opportunity to engage with private shareholders at two virtual shareholder events and the Annual General Meeting. Regular updates were provided to the Board on investor activity and share price performance. Regulators Representatives of both the FCA and PRA attended Board meetings to present their firm evaluation letter and outcome of the Periodic Summary Meeting respectively. The Board reviewed and approved key regulatory submissions, such as the Internal Liquidity Assessment Process (ILAAP) and Internal Capital Adequacy Assessment Process (ICAAP). Non-executive directors engaged regularly with regulators through continuous assessment and proactive engagement meetings. Regulatory interviews were attended by directors undertaking new Senior Management Functions, including Stuart Lewis and Rick Haythornthwaite. There was also significant bilateral engagement with the PRA and FCA in relation to the change in Group CEO and new Chair appointment. Communities As part of its annual training programme, the Board engaged World Wide Fund for Nature to provide a dedicated session on nature and biodiversity. Consideration was given to the regulatory landscape and the financial risks associated with the loss of nature and biodiversity. Directors also discussed the initiatives and frameworks which financial institutions use to incorporate nature and biodiversity, the use of science based targets and the competitive landscape. Suppliers As well as receiving regular updates from management on key supplier and partnership relationships, the Board also met with representatives of suppliers during the year. During these discussions directors were able to build their knowledge of suppliers’ experiences with NatWest Group and how both sides could work together to support each other’s sustainability efforts. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION The Chair of the Group Performance and Remuneration Committee and senior members of management met with institutional shareholders, UK Government Investments, proxy advisers and the UK regulators in late 2023 and early 2024 to discuss our approach to remuneration for the year and updated the Board on those discussions. Further details of remuneration engagement can be found in the Directors’ remuneration report on page 112. NatWest Group 2023 Annual Report on Form 20-F 86

Corporate governance continued Our Colleague Advisory Panel With regards to Provision 5 of the Code, we have adopted a formal workforce advisory panel as our chosen method of engagement with the workforce. NatWest Group’s Colleague Advisory Panel (CAP) was set up in 2018 to help promote the colleague voice in the boardroom. Through the CAP, colleagues can engage directly with the Board on topics which are important to them, thereby strengthening the voice of colleagues in the Boardroom. In the context of the CAP, ‘colleagues’ means all permanent employees and members of the wider workforce e.g. temporary employees and agency workers. The CAP is made up of 28 colleagues who are self-nominated and are representative of the bank’s population e.g., business area, level, location, working pattern and employee-led networks. In April 2023 Roisin Donnelly succeeded Mike Rogers as CAP Chair when Mike Rogers stepped down as a director. The CAP met with representatives from the Board twice in 2023, in May and November. Panel members and directors shared views on executive remuneration and the wider workforce, environmental, social and governance topics, Consumer Duty and human rights. The CAP Chair reported to the Board on those discussions in June and December and followed up with Panel members post-Board, ensuring a continuous feedback loop. The CAP continues to be highly regarded by those who attend and has proven to be an effective way of establishing two-way dialogue between colleagues and Board members. The effectiveness of Board stakeholder engagement mechanisms is considered periodically as part of the Board evaluation process. Further information on NatWest Group’s approach to investing in and rewarding its workforce can be found on pages 36 to 37 of the Strategic report. How the Board engaged with colleagues Our multi-channel colleague listening approach Colleague surveys and behavioural audits The Board and Group Sustainable Banking Committee receive the results of the Our View colleague surveys which provide insight at all levels and aspects of colleague experience. Another valuable Board-level source is Behavioural Audit reports from Internal Audit covering sub-culture findings. Colleague Advisory Panel Provides a means by which the ‘colleague voice’ can be strengthened and promoted within the Boardroom. Board members engage directly with colleagues on strategic topics. A key outputs report supports discussion at the next scheduled Board meeting. Board and committee paper templates Colleagues is one of a number of stakeholder groups included within our governance paper templates. Our reporting guidance encourages paper authors and sponsors to consider colleague views or impact when presenting reports to our Board and its committees. Board talent sessions and other direct engagement At Board talent sessions, directors meet with potential executive-level successors and explore strategic issues with them. Other examples of direct engagement include Board committee visits to Risk and Audit teams and internal guest presenters at Board and committee meetings. Management reporting and activities Board-level reporting from the Group CEO and the executive management team includes insights on colleague engagement, wellbeing and development. A number of listening and reporting tools help in promoting the colleague voice in the boardroom. This multi-channel approach aims to provide representation from across the bank and guards against the risks of relying on a single source to gather views. The Board continued to engage with colleagues through our multi-channel colleague listening approach, as described below. Board & Colleague Engagement activities STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Further information on how CAP members and directors engaged on remuneration matters can be found in the Directors’ remuneration report on page 112. NatWest Group 2023 Annual Report on Form 20-F 87

External appointments and time commitment Corporate governance continued Non-executive directors are expected to allocate sufficient time to the company to discharge their responsibilities effectively, and will devote such time as is necessary to fulfil their role. The Code emphasises the importance of ensuring directors have sufficient time to meet their board responsibilities. During 2023 the Board approved the appointment of Alison Rose as Co-Chair of the UK Government’s Energy Efficiency Taskforce (February), as a director of Sustainable Markets Limited (March) and as a member of the Prime Minister’s Business Council for 2023 (July). Ms Rose stepped down from all external appointments linked to her NatWest role after she stepped down as Group CEO. There were no other approvals regarding external appointments for existing directors during 2023. Prior to appointment, significant commitments require to be disclosed with an indication of the time involved. After appointment, external appointments require prior Board approval, with the reasons for permitting significant appointments explained in the Annual Report and Accounts. Board papers relating to proposed additional external appointments of directors include details of the individual’s full portfolio for review and consideration. They also include a reminder of applicable Code and Capital Requirements Directive provisions, and relevant proxy adviser and investor guidance. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Rick Haythornthwaite’s external roles and overall time commitment were carefully considered by the Board before his appointment was approved. Further information on the Chair search process can be found on page 93. NatWest Group 2023 Annual Report on Form 20-F 88

Corporate governance continued Composition, succession and evaluation Election and re-election of directors In accordance with the provisions of the Code, all directors will stand for election or re-election by shareholders at the company’s AGM, with the exception of Howard Davies who will step down on 15 April 2024. In accordance with the UK Listing Rules, the election or re-election of independent directors also requires approval by a majority of independent shareholders. Evaluation In accordance with the Code, an evaluation of the performance of the Board, its committees, the Chairman and individual directors usually takes place annually. The evaluation is externally facilitated every three years, with internal evaluations in the intervening years. 2022 evaluation update An internal evaluation was conducted in 2022 by the Chief Governance Officer and Company Secretary, following the externally facilitated evaluation led by Independent Board Evaluation in 2021. In December 2023 the Board reviewed the progress achieved against the actions agreed following the 2022 evaluation of the effectiveness of the Board and its committees. It was agreed that all actions had been successfully completed, with improvements including a refreshed format for the strategy session, enhanced focus of Board meetings and increased opportunities for engagement with the executive talent pipeline. Deferral of 2023 evaluation In September 2023, N&G agreed that it would be appropriate to defer the internal evaluation of Board and committee effectiveness due in Q4 2023 until 2024, given the July 2023 change in Group CEO and upcoming Chair succession. The Board confirmed its support for this approach. The next Board and committee evaluation will be conducted in 2024 by an external facilitator, in accordance with the Code requirement for an externally facilitated process every three years. Year-end reviews of the Chairman and non-executive directors’ performance were undertaken in Q4 2023, in line with our normal evaluation timetable. Composition The Board is structured to ensure that the directors provide NatWest Group plc with the appropriate combination of skills, experience, knowledge and diversity, as well as independence. Succession As set out in its terms of reference the Board is responsible for ensuring adequate succession planning for the Board and senior management, so as to maintain an appropriate balance of skills and experience within NatWest Group and on the Board. Board succession planning Board succession planning has been an important area of focus in 2023. N&G supports the Board on Board succession planning, including making recommendations to the Board on Board appointments and Board committee membership. In March 2023 (following review and recommendation by N&G), the Board approved succession plans for the roles of Senior Independent Director and Board committee Chairs, covering orderly transition plans for the short and medium term, and contingency arrangements which could be implemented in case of an emergency. These succession plans are reviewed by N&G and approved by the Board at least once a year. Executive succession planning In February 2023 the Board, supported by N&G, had conducted a scheduled review of contingency CEO succession arrangements. These were subsequently invoked in July 2023 following the departure of Alison Rose. In June 2023 the Board received an update on executive talent and succession planning which enabled directors to monitor the internal talent pipeline and provide feedback. This update included analysis of the diversity of the talent pool, with a view towards continuing to improve diversity over the longer term. Directors noted the focus on building bench strength and succession planning in the top levels of management, and that good progress had been achieved in building specialist skills within the CEO-1 and CEO-2 population via external hires and developing internal talent. In September 2023 the Board held a talent engagement session with potential ExCo successors. This session helped our non-executive directors gain insights into the breadth of the talent pool, getting to know the individuals through a focused discussion of key strategic topics. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION In December 2023 the Group Nominations and Governance Committee (N&G) reviewed, and the Board approved, an updated version of our Board skills matrix, a summary view of which is set out on page 75. The Board skills matrix reflects directors’ self-assessment of the skills and experience they bring to Board discussions, in line with pre-determined criteria aligned to current and future strategic priorities. The Board skills matrix is used to support Board succession planning, as described in more detail in the N&G report on page 90. Board committees also comprise directors with a variety of skills and experience so that no undue reliance is placed on any one individual and several changes were made to Board Committee composition in 2023. Full details of changes effected during 2023 and scheduled for 2024 are set out on page 74. The Board operates a Boardroom inclusion policy which reflects NatWest Group’s values, its inclusion guidelines and relevant legal or voluntary code requirements. Our Boardroom inclusion policy aims to promote diversity and inclusion in the composition of the Boards and Board committees of NatWest Group plc, NWH Ltd, NWB Plc and RBS plc and in the nominations and appointments process. A copy of the policy is available at natwestgroup.com and details of our progress against its objectives are set out in our UK Listing Rules disclosures on page 92 and in more detail in the N&G report on page 90. Further information on the search process leading to the appointment of Geeta Gopalan as a non-executive director and Mark Rennison as a NWH Ltd director and DINED can be found on page 90. Further information on the appointment of Rick Haythornthwaite as Chair of NatWest Group plc is set out on page 93. Further information on the role of N&G and its activities during 2023 in relation to succession planning can be found in the N&G report on page 90. NatWest Group 2023 Annual Report on Form 20-F 89

Report of the Group Nominations and Governance Committee Letter from Howard Davies, Chairman of the Group Nominations and Governance Committee Dear Shareholder, As Chairman of the Board and Chairman of the Group Nominations and Governance Committee, I am pleased to present the report on the committee’s activity during 2023. Roles and responsibilities The committee is responsible for reviewing the structure, size and composition of the Board, and membership and chairmanship of Board committees and recommends appointments to the Board. In addition, the committee monitors NatWest Group’s governance arrangements to ensure that best corporate governance standards and practices are upheld and considers developments relating to banking reform and analogous issues affecting NatWest Group. The committee makes recommendations to the Board in respect of any consequential amendments to NatWest Group’s operating model. More detail on the remit of the committee can be found in its terms of reference which are reviewed annually and approved by the Board and are available at natwestgroup.com. Membership and meetings – Stuart Lewis joined the committee on 1 August 2023 after Morten Friis stood down from the Board on 31 July 2023. – Graham Beale observed meetings of the committee in his capacity as Senior Independent Director of NWH Ltd and member of the NWH Ltd Nominations Committee until he stood down from the board of NWH Ltd on 31 August 2023. Ian Cormack has observed meetings as Senior Independent Director of NWH Ltd since then. Corporate governance continued Composition The committee supports the Chairman in keeping the composition of the Board and its committees under regular review. The committee reviews and recommends to the Board a skills matrix which is used to map the skills and experience of individual directors and ensure that the Board’s collective skill-set remains appropriately balanced and aligned to current and future strategic priorities. The matrix is also used to identify any gaps and opportunities to enhance the collective balance of skills through additional recruitment to the Board. Recruitment Following the committee’s review of the skills matrix and noting the tenure of a number of non-executive directors, the committee supported implementation of the Board’s succession plans by overseeing the search for a new independent non-executive director to the Board and a new DINED to the board of NWH Ltd during 2023, as further described below. Non-executive director search processes A subset of the committee’s membership selected Korn Ferry to support comprehensive searches with diversity and inclusion considerations at the forefront of the search criteria. The committee held several discussions on potential Succession planning Recruitment of Chair & NEDs Review of Board & committee compositions Governance framework Subsidiary governance Diversity & inclusion Principal areas of focus STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION – Throughout the majority of 2023, the committee comprised the Chairman of the Board and four independent non-executive directors. Members’ details and their skills and experience are set out on pages 69 to 72. – The committee holds a minimum of four meetings per year and meets on an ad hoc basis as required. In 2023, there were four scheduled meetings and seven ad hoc meetings. Individual attendance by directors at these meetings is shown in the table on page 82. The committee was responsible for overseeing a significant amount of board recruitment activity throughout 2023 including a Chair succession process, full details of which are set out on page 93. In accordance with Code Provision 17, the Chairman recused himself from this process and the Senior Independent Director chaired meetings of the committee dealing with this appointment. Throughout 2023 and into 2024 the committee also led a CEO search process on behalf of the Board, full details of which are set out on page 94. From 8 January 2024, the Chair Designate chaired meetings of the committee dealing with this appointment. NatWest Group 2023 Annual Report on Form 20-F 90

Corporate governance continued candidates, assessing the credentials of each candidate against the qualities and capabilities set out in the role specifications agreed by the committee. Following a rigorous process, the committee recommended Geeta Gopalan to the Board for appointment as a non-executive director and Mark Rennison to the board of NWH Ltd for appointment as a DINED. Succession planning At the start of 2023, the committee led a routine review of contingency as well as longer term succession plans for board positions including SID, CEO & committee chairs and updated succession plans were approved by the committee in February 2023. Subsidiary governance The committee has also continued to oversee work aimed at further enhancing NatWest Group’s subsidiary governance framework. A number of NatWest Group’s material regulated subsidiaries made appointments to their boards during 2023, which the committee has approved in accordance with its Terms of Reference. Korn Ferry, MWM Consulting and Green Park have all been engaged during the year to support NatWest Group’s subsidiary board search activity. The firms are members of the retained executive search panel of suppliers (managed by NatWest Executive Search). Korn Ferry also provides leadership advisory and senior executive search and assessment services to the People & Transformation function within NatWest Group. In June 2023, the committee approved the appointment of Grant Thornton UK LLP to undertake an independent review of the effectiveness of the boards of NWM, RBSI and Coutts & Co with a view to deepening insights into the operation of the legal entity boards and to identify any actions which could be taken to strengthen subsidiary governance and the legal entity framework. The committee has considered the key themes and findings in the report prepared by Grant Thornton UK LLP and during 2024 will track actions arising from the independent reviews. Governance Framework The committee also continued to monitor NatWest Group’s governance arrangements with reference to best practices in corporate governance (having regard to relevant legislation, guidelines, industry practice and developments affecting NatWest Group in the markets where it operates). During 2023 the committee considered a number of external policy developments and the impacts on NatWest Group’s corporate governance framework, including Consumer Duty and the appointment of a Consumer Duty champion from the Board and the new Listing Rules disclosure requirements on Board and executive management diversity. Boardroom inclusion policy Objectives and targets The Boardroom inclusion policy’s objectives ensure that the Board, and any committee to which it delegates nomination responsibilities, follows an inclusive process when making nomination decisions. That includes ensuring that the nomination process is based on the principles of fairness, respect and inclusion, that all nominations and appointments are made on the basis of individual competence, skills and expertise measured against identified objective criteria and that searches for Board candidates are conducted with due regard to the benefits of diversity and inclusion. The policy reflects NatWest Group’s aspiration to meet the targets set out in the UK Listing Rules along with the recommendations of the FTSE Women Leaders Review and the Parker Review. Further information on our ethnicity targets is available on page 39. Compliance and reporting The policy also acknowledges NatWest Group’s ambition to have gender balance in its global top three levels (CEO-3 and above) by 2030, and progress against this ambition is set out on pages 38 to 39 of the Strategic report (Diversity, Equity and Inclusion). Pages 38 to 39 contain more information on how NatWest Group is creating a diverse, equitable and inclusive workplace, including (in relation to Provision 23 of the Code) the gender balance of senior management and their direct reports. As at 31 December 2023, the company met the FTSE Women Leaders Review voluntary target of 40% women’s representation on boards by the end of 2025, with 40% of the Board being women. With a woman as CFO, the company met the FTSE Women Leaders Review recommendation that companies should have at least one woman in the Chair or Senior Independent Director roles on the board and/or one woman in the Chief Executive Officer or Finance Director role by the end of 2025. The company met the recommendation of the Parker Review with at least one member of the Board being from an ethnic minority background and it intends to continue to meet that recommendation. I would like to thank the committee members for their continued commitment during 2023. Howard Davies Chairman of the Group Nominations and Governance Committee 15 February 2024 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION The committee also conducted a number of term reviews in 2023. In accordance with the board appointment policy, non-executive directors are appointed for an initial three-year term, subject to annual re-election at the AGM. Following assessment by the committee, they may then be appointed for a further three-year term. Non-executive directors may continue to serve beyond six years, subject to a maximum tenure of nine years. The tenures of current Board directors is set out on page 75. The committee reviewed the contribution of three serving Board members under the board appointment policy during 2023 and approved their continued tenure, subject to annual re-election at the AGM. As noted on page 89, the Board operates a Boardroom inclusion policy which reflects NatWest Group’s values, its inclusion principles and relevant legal or voluntary code requirements. The policy currently applies to the most senior NatWest Group Boards: NatWest Group plc, NWH Ltd, NWB Plc and RBS plc. A copy of the Boardroom inclusion policy is available at natwestgroup.com. As at 31 December 2023, NatWest Group’s chosen reference date, the targets set out in UK Listing Rule 9.8.6(9)(a) (Board and executive management diversity) were met. Disclosures under UK Listing Rule 9.8.6(9) and (10) can be found on page 92. Page 147 confirms NatWest Group’s approach to Provision 17 of the Code which sees oversight of succession plans for senior management positions and the development of a diverse pipeline for succession reserved as a matter for the full Board. NatWest Group 2023 Annual Report on Form 20-F 91

Corporate governance continued Board and executive management diversity disclosures Numeric data – UK Listing Rule 9.8.6(10) Sex Number of Board directors Percentage of the Board Number of senior positions on the Board (CEO, CFO, SID and Chair) Number in executive management Percentage of executive management Men 6 60 3 11 73 Women 4 40 1 4 27 Other categories 0 0 0 0 0 Not specified/prefer not to say 0 0 0 0 0 Ethnicity Number of Board directors Percentage of the Board Number of senior positions on the Board (CEO, CFO, SID and Chair) Number in executive management Percentage of executive management White British or other White (including minority-white groups) 9 90 4 9 60 Mixed/Multiple ethnic groups 0 0 0 0 0 Asian/Asian British 1 10 0 1 7 Black/African/Caribbean/Black British 0 0 0 0 0 Other ethnic group including Arab 0 0 0 0 0 Not specified/prefer not to say 0 0 0 5 33 (1) All data as at 31 December 2023 (the reference date). (2) Data was collected via self-reporting methods. For Board directors this was via an email data collection exercise (with options aligned to the categories specified in the Listing Rules) and for members of the executive management team it was collected via the HR system WorkDay, which colleagues can choose to update at any point with details such as their sex and ethnicity. (3) The Group CEO and Group CFO are members of both the Board and executive management and so are counted in both groups in the above table. (4) Changes since the reference date: Rick Haythornthwaite joined the Board as an independent non-executive director on 8 January 2024. This appointment means women’s representation on the Board became 36% and representation of ethnic minorities became 9%. On 15 April 2024, when Howard Davies will step down as a director and will be succeeded as Chair by Rick Haythornthwaite, women’s representation will be 40% and representation of ethnic minorities will be 10%. Compliance – UK Listing Rule 9.8.6(9) Listing Rules requirement Outcome NatWest Group plc position as at 31 December 2023 At least 40% of Board directors are women Target met 40% of Board directors are women At least one senior Board position held by a woman(1) Target met The position of CFO is held by a woman At least one Board director from a minority ethnic background Target met One Board director is from a minority ethnic background (1) Senior Board position is CEO, CFO, Chairman or Senior Independent Director. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 92

Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Appointing a new Chair of NatWest Group A rigorous search process led to the appointment of Rick Haythornthwaite as Chair Designate to succeed Howard Davies on 15 April 2024. Rick joined the Board as an independent non-executive director on 8 January 2024. Rick is a strong match to the role specification: – He is an experienced Chair with a long track record of leading boards, developing strategy and forging good relationships with CEOs. – He demonstrates high levels of experience in governance and running boards as well as building businesses. – He is well-known in the market and is well-equipped to handle the political environment with experience of dealing with government stakeholders. – He has strong financial services experience, and relevant background in key areas including payments, technology and innovation. Ensuring a rigorous process – Between formal meetings, the SIDs kept directors informed of progress with regular updates and discussion at each stage of the search process. – The NWG SID engaged with regulators and key investors during the latter stages of the process, offering an opportunity to discuss any questions they had. – Rick’s other external roles and overall time commitment were carefully considered by the Board before his appointment was approved. In December the Board reaffirmed its assessment that Rick be considered independent on appointment as a non-executive director. – Rick has confirmed he will have sufficient time to devote to the NatWest Group Chair role, ensuring applicable limits on the number of directorships held are observed. (1) Spencer Stuart also provide leadership advisory and senior executive search and assessment services to the People & Transformation function within NatWest Group. August 2023 – The role was advertised externally in accordance with PRA ring-fencing rules. – Candidates were interviewed by a subset of the Board alongside the NWH Ltd Senior Independent Director. – Candidates were measured on alignment with the role specification. – After reviewing feedback, the committee recommended to the Board that Rick be progressed as the preferred candidate. – All Board directors met with Rick before the full Board considered his appointment, with universally positive feedback provided. September 2023 – Following Board approval, it was announced on 6 September 2023 that Rick had been selected as successor to Howard Davies as Chair of NatWest Group plc, subject to regulatory approval (received in December 2023). July 2023 – The committee considered a diverse initial longlist of candidates and, after detailed discussion, agreed a longlist of prioritised candidates. – This was refined to a shortlist agreed by the committee following initial contact with the prioritised candidates to assess interest in the role. April 2023 – At the 25 April AGM, it was announced a search would commence for the successor to Howard Davies as Chair. – A draft role specification was agreed by the committee and shared during the search firm tender process. May 2023 – Following a competitive tender process, Spencer Stuart(1) were appointed to support the search process, which was led by the NWG and NWH Ltd Senior Independent Directors (the SIDs). June 2023 – The committee agreed a final role specification to support NatWest Group’s strategic priorities, incorporating feedback from the Board, which set out the skills, experience and personal qualities sought by the Board. – Read about Rick’s induction programme on page 93. NatWest Group 2023 Annual Report on Form 20-F 93

Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Appointing a new Chief Executive Officer of NatWest Group A rigorous search process led to the appointment of Paul Thwaite as permanent CEO with effect from 16 February 2024. Paul was identified as the outstanding candidate who possessed a compelling balance of experience, leadership and vision to take NatWest Group forward. (1) Heidrick & Struggles did not provide any other services to the NatWest Group during 2023. Paul’s skills and experience represent an outstanding match to the agreed CEO success profile – He has an unrivalled understanding of the business, its customers, and the opportunities for growth. This knowledge is combined with a genuine ambition for the future and the skills to navigate the changing landscape of the banking industry. – The Board has had the opportunity to work closely with Paul over the last seven months during which time he has demonstrated impressive leadership and a strong commitment to operational excellence. – Paul’s strong customer focus and ability to drive performance and transformation made him the outstanding candidate and the right person to lead NatWest. Ensuring a rigorous process – Since the announcement of his appointment in September 2023, the Chair Designate spent considerable time getting to know Board, ExCo and the wider business as well as meeting with key shareholders. These interactions helped the Chair Designate form a view as to the key priority areas for a successful CEO candidate. – The committee’s subsequent discussion and agreement on a CEO success profile ensured a stretching set of success factors against which internal and external candidates’ credentials could be assessed. – As part of the search process the committee considered over 40 external candidate profiles with the search narrowing to a diverse shortlist of 10 candidates who represented a credible match to the success profile. – Heidrick & Struggles used a comprehensive methodology in their assessment of the prioritised candidates which included an in-depth leadership capability interview alongside a series of psychometric assessments. This approach ensured a deep and consistent data set to support the committee and Board’s decision-making. – Between formal meetings, the Chair Designate kept committee members and other Board directors informed on the search progress through regular updates. September 2023 – The committee discussed the timing and process of the CEO search. – Discussions with the Chair Designate were held ahead of his appointment to the Board. – The process for selection and appointment of an external executive search firm was considered. January 2024 – Following a competitive tender process, Heidrick & Struggles(1) was selected to support the search. – A detailed CEO success profile and competency framework was agreed by the committee and used by Heidrick & Struggles to complete extensive mapping of potential external candidates. – The committee reviewed a longlist of candidates and identified a number of external candidates who would be approached. – Internal and external candidates were then rigorously assessed by Heidrick & Struggles to analyse suitability and alignment to the agreed success profile. February 2024 – CEO development plans were produced for prioritised internal and external candidates to support the committee and Board’s decision-making. – The committee and the Board reviewed and discussed the candidate assessment and benchmarking data produced by Heidrick & Struggles. – After careful consideration of the data and measurement against the agreed success criteria, the committee recommended that Paul be appointed as permanent NatWest Group CEO. December 2023 – A detailed CEO role specification was prepared. – The Committee agreed on four executive search firms who were then invited to tender. 25 July 2023 – Paul Thwaite was appointed CEO of NatWest Group for an initial period of 12 months. February 2023 – Following a routine review of succession plans, the Board approved the committee’s recommendation for Paul Thwaite to be contingency CEO successor in the event of the absence of the then CEO. NatWest Group 2023 Annual Report on Form 20-F 94

Report of the Group Audit Committee Letter from Patrick Flynn, Chair of the Group Audit Committee Dear Shareholder, I am pleased to share with you details of how the Group Audit Committee (the committee or GAC) discharged its responsibilities and its key areas of activity in 2023. I would like to thank my fellow committee members for their contributions, in particular Morten Friis, who stood down from the committee following the July 2023 meeting. The committee also appreciated the views of Graham Beale (until July 2023), Ian Cormack and Mark Rennison, who are non-executive directors, members of NatWest Holdings (NWH) Audit Committee, and attend GAC meetings in an observational capacity. The committee’s primary purpose is to oversee and challenge management’s approach to the preparation of financial results and relevant financial and non-financial disclosures. This includes considering existing and new accounting policies, scrutinising standards of internal control and their efficacy and reviewing the disclosures each quarter prior to release. More detail of the remit of the committee can be found in its terms of reference which are reviewed annually and are available at natwestgroup.com. Meeting and visits Five scheduled meetings of the committee were held in 2023, four of which took place immediately prior to the release of the financial results each quarter. During the year, all members attended the meetings, the majority of which were held in person. The committee reported to the Board after each scheduled meeting, escalating matters for the Board’s attention as required. In conjunction with the Group and NWH Board Risk Committee (BRC) and the NWH Audit Committee, the GAC undertook its annual programme of visits to control functions. Constructive and insightful discussions were held with members of management from the Risk, Internal Audit and Finance teams. Whistleblowing In my role as whistleblowers’ champion for NatWest Group, I receive regular updates on the efficacy of the whistleblowing framework, themes in reports made by colleagues via the systems, and monitoring the outcomes of the most pertinent cases. The committee is responsible for oversight of the independence, autonomy and effectiveness of NatWest Group’s whistleblowing policies and procedures as detailed in the tables which follow. The operation of the framework was assessed as strong by the Protect charity. Corporate governance continued Membership – Members are selected with a view to the expertise and experience of the committee as a whole and with regard to the key issues and challenges facing NatWest Group. – The Board is satisfied that all GAC members have recent and relevant financial experience and are independent as defined in the SEC rules under the US Securities Exchange Act of 1934 (the ‘Exchange Act’) and related guidance. – The Board has further determined that Patrick Flynn and Mark Seligman are ‘financial experts’ for the purposes of compliance with the Exchange Act Rules and the requirements of the New York Stock Exchange, and that they have competence in accounting and/or auditing as required under the Disclosure Guidance and Transparency Rules. – Stuart Lewis is chair of the Group Board Risk Committee of which I am also a member. – This common membership helps to ensure effective governance across the committees. Further information on each key area of focus can be found on pages 111 to 114. Internal and external audit oversight Patrick Flynn Chair of the Group Audit Committee 15 February 2024. Systems of internal control External audit Internal audit Financial and non-financial reporting Accounting judgements and estimates Principal areas of focus STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION – GAC comprises three independent non-executive directors. Members’ details and their skills and experience are set out on pages 69 to 72. The committee continued to monitor the performance of the external auditor and the Internal Audit function in 2023. Formal assessments were undertaken at the end of the year via an internal process and the committee reviewed summaries of the feedback provided by relevant stakeholders. An External Quality Assurance review of the Internal Audit function was also completed in early 2023. Further information can be found in the Internal Audit table on page 98. NatWest Group 2023 Annual Report on Form 20-F 95

Corporate governance continued Principal areas of Group Audit Committee focus in 2023 Systems of internal control Systems of internal control relating to financial management, reporting and accounting issues are a key area of focus for the committee. In 2023 it received reports throughout the year on the topic and evaluated the effectiveness of NatWest Group’s internal control systems, including any significant failings or weaknesses. Theme Principal areas of focus Outcomes Sarbanes-Oxley Act of 2002 To consider NatWest Group’s compliance with the requirements of section 404 of the Sarbanes-Oxley Act of 2002. The committee received interim updates on the status of the bank’s internal controls over financial reporting throughout 2023 enabling it to monitor progress and support management’s conclusion at the year end. The committee continued to receive updates from management on control deficiencies that arose during the year, including those around IT General Control and IFRS 9 that remain open at the year end. The committee continued to monitor the plans and transition to more automated preventative key controls. The committee additionally received regular updates from EY on their assessment of SOX compliance, and the status and rating of control matters. The committee also reviewed the process undertaken to support the Group CEO and Group CFO in providing the certifications required under sections 302, 404 and 906 of the Sarbanes-Oxley Act of 2002. Regulatory and financial returns To review the controls and procedures established by management of NatWest Group for compliance with regulatory and financial reporting requirements. As part of management’s ongoing work to strengthen the financial reporting control environment in 2023, the committee received updates on the progress achieved to implement the findings of the industry-wide skilled person’s review of regulatory returns. This work completed during 2023. Control Environment Certification To consider the control environment ratings of the businesses, functions and material subsidiaries and management’s actions to ensure that the control environment is maintained or strengthened. The committee received bi-annual reports on the Control Environment Certification, which were supplemented by the views of the second and third lines of defence. The committee was pleased to note that the overall Control Environment strengthened during 2023 with agreement across all lines of defence that NatWest Group had achieved an improved rating by the end of 2023. The committee emphasised the importance of timely issue remediation and monitored this during 2023. Early event escalation To monitor control incidents captured by the internal event escalation process. The committee received bi-annual updates on the volumes and nature of the most significant control incidents escalated via the internal early event escalation process and any common themes. All Board directors were alerted to the most significant events throughout the year. A reduced volume of Major events was noted in 2023. Whistleblowing To monitor the effectiveness of the bank’s whistleblowing policies and procedures. The committee Chair is also the whistleblowers’ champion for NatWest Group. The GAC monitored the effectiveness of the bank’s whistleblowing process and received updates on the volume of whistleblowing reports and any common themes. The GAC Chair acts as NatWest Group’s whistleblowers’ champion, in line with PRA and FCA regulations, and meets regularly with the whistleblowing team. There is appropriate escalation of matters to the Board and dissemination of information to the principal subsidiaries to ensure a coordinated approach across the NatWest Group. Legal and regulatory reports To note material legal investigations (current and emerging) and any impacts on financial reporting; and to monitor the bank’s relationship with relevant regulatory bodies including the FCA and PRA. The committee received quarterly reports detailing new and existing major investigations and litigation cases. The committee considered the adequacy of provision levels and of the disclosures on potential legal issues. It satisfied in both respects. The committee also received updates on ongoing regulatory investigations, current and future areas of regulatory focus and the nature of the relationships with the primary regulators. Other standards of control In addition, the committee receives regular updates on matters pertinent to NatWest Group’s standards of internal control. The committee received an update on the bank’s tax position and discussed matters including tax provisioning levels, significant provided and unprovided tax risks and deferred tax assets. For deferred tax, this considered sustainable profitability, the period of assessment, and changes against previous estimates. The GAC reviewed the disclosure on internal control matters in conjunction with the related guidance from the Financial Reporting Council. The committee received updates in respect of key changes proposed, but subsequently largely withdrawn, as part of proposed amendments to the UK Corporate Governance Code. During 2024 the GAC will continue to oversee and challenge management on plans to implement changes announced by the Financial Reporting Council which will impact future disclosures on internal controls from 2026. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 96

Corporate governance continued Financial and non-financial reporting The GAC considered a number of accounting judgements and reporting issues in the preparation of NatWest Group’s financial results throughout 2023. The committee reviewed the quarterly, interim and full year results announcements, the annual reporting suite of documents and other principal financial and non-financial releases for recommendation to the Board for approval. This included the Climate-related Disclosures Report and the ESG Disclosures Report. Theme Principal areas of focus Outcomes Expected credit losses To review and challenge management’s judgements in relation to credit impairments and the underlying assumptions, methodologies and models applied, and any post-model adjustments (PMAs) required. To also consider the impact of macro-economic risks on the credit environment. The GAC focused on the key assumptions, methodologies and post-model adjustments applied to provisions under IFRS 9. Economic uncertainty persisted in 2023 as a result of high inflation and cost of living, and the impact of higher interest rates. In the absence of a significant increase in the level of defaults, the committee discussed role of models and PMAs in the determination of quantum of loan loss provisions. Inclusion of adjustments to reflect economic uncertainty, including elevated interest rates and inflation levels, were discussed with management. Industry benchmarking data remained helpful to the committee and informed its considerations. The committee challenged whether it would be possible to include the impairment impact of inflation as part of the IFRS 9 models. The committee noted that further data and a causal link were required and that post model adjustments would be retained. The committee will continue to scrutinise the application of post-model adjustments in 2024. The committee concluded that models are a core element of IFRS 9 but cannot capture all eventualities, in particular issues which have not occurred in the recent past. GAC believed judgement continues to play an important role in setting these provisions and PMAs are the key tool to enable this. Valuation methodologies To consider valuation methodologies, assumptions and judgements made by management. The GAC considered valuation methodologies and assumptions for financial instruments carried at fair value and scrutinised judgements made by management on a quarterly basis throughout 2023. Provisions and disclosures To consider the level of provisions for regulatory, litigation and conduct issues throughout the year. The committee reviewed the levels of provisions during the year for regulatory, litigation and conduct matters, and was satisfied these were appropriate. The committee challenged management on the robustness of two specific redress programmes, which required increased provisions, and received assurance from management that no further increases were anticipated. Viability statement and the going concern basis of accounting To review NatWest Group’s going concern and viability statements. The GAC considered evidence of NatWest Group’s capital, liquidity and funding position and considered the process to support the assessment of principal risks. The GAC reviewed the company’s prospects in light of its current position, the identified principal, and emerging risks (including climate risk) and the ongoing macro-economic developments such as supply chain challenges and rising inflation. FRC guidance was considered as part of the preparation of the viability statement for NatWest Group. The committee recommended both the going concern assessment and viability statement to the Board. (Refer to the Strategic report and Report of the directors for further information.) Fair, balanced & understandable To oversee the review process which supports the committee and Board in concluding that the disclosures in the Annual Report and Accounts and other elements of the year-end reporting suite of documents, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the company’s position and performance, business model and strategy. The committee oversaw the review process for the year-end disclosures which included: central coordination and oversight of the Annual Report and Accounts and other disclosures led by the Finance function; review of the documents by the Executive Disclosure Committee prior to consideration by the GAC; and a management certification process of the year-end reporting suite. The committee considered whether the annual, interim and quarterly disclosures met the UK Corporate Governance Code requirements to be ‘fair, balanced and understandable’. It concluded each time that the releases satisfied the necessary criteria. The external auditor also considered the fair, balanced and understandable statement as part of the year-end processes and supported NatWest Group’s position. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 97

Corporate governance continued Theme Principal areas of focus Outcomes Climate-related Disclosures Report and ESG Disclosures Report To review the principal non-financial disclosures made by NatWest Group and to ensure appropriate controls are in place to support the preparation of the information. These disclosures include the annual Climate-related Disclosures Report and the ESG Disclosures Report. The committee focused on the continued development of the climate and ESG reporting control environment which supports non-financial disclosures. The GAC discussed and provided feedback on both the Climate-related disclosures report, which incorporated climate transition plan information, and the ESG Disclosures Report for 2023. A significant area of discussion on the Climate transition plan related to NatWest Group’s dependency on external factors and whether they continued to support achievement of NatWest Group’s climate ambitions. GAC noted the developing nature of Climate measurement standards, particularly in relation to the estimation of Scope 3 financed emissions, which has an inherent potential for double counting across entities in the same value chain. GAC noted that emissions estimates and other climate metrics should be read acknowledging these are in initial stages of development and subject to change as standards emerge and underlying data sources become more complete and developed. GAC recognised that climate measurement standards are not at the same level of maturity as accounting standards. Also, enhancements to availability of data and control frameworks will be required to align with IFRS financial statements. Currently, industry wide, the attestation provided by an auditor is to a weaker level than applies to IFRS financial statements. Internal Audit The GAC is responsible for overseeing the Internal Audit function, monitoring its effectiveness and independence. Theme Principal areas of focus Outcomes Quarterly opinions To consider periodic opinion reports prepared by Internal Audit on the overall effectiveness of the governance, risk management and internal control framework, current issues and the adequacy of remediation activity. The committee received quarterly opinion reports from Internal Audit, setting out the Function’s view of the overall effectiveness of NatWest Group’s governance, risk management and internal control framework, current issues and the adequacy of remediation activity. Internal Audit also outlined material and emerging concerns identified through their audit work. Internal Audit reported a continued steady strengthening of the bank’s control environment over the course of the year. The committee considered the Function’s opinion of the strength of the control environment. Annual plan and budget To approve Internal Audit’s annual plan and budget prior to the start of each year as well as any significant changes required during the year. The committee considered and approved Internal Audit’s 2023 plan and budget at the end of 2022. The committee supported the planned focus of work on the most high-risk areas for the bank. The 2023 budget was consistent with the prior year, reflecting the delivery of efficiencies in the function. In December 2023, the committee approved Internal Audit’s 2024 plan and budget. Internal Audit Charter and independence To approve the Internal Audit Charter each year and review the independence of the Chief Audit Executive (CAE) and function as a whole. The GAC reviewed and approved the Internal Audit Charter which was consistent with prior years. The committee noted the Independence Statement and confirmed the independence of Internal Audit in December 2023. Performance evaluation To monitor and review, at least annually, the effectiveness of Internal Audit. In 2023 the CAE continued to report to the GAC Chair with a secondary reporting line for administrative purposes to the Group CEO. This is consistent with prior practice and industry guidance. The GAC assessed the annual performance (including risk performance) of the function and CAE. The 2023 evaluation of the Internal Audit function was carried out internally. Stakeholders across the bank, including the GAC members, attendees and the external auditors, were invited to provide feedback, identifying areas of particular strength and those for enhancement. The overall findings were positive, and the Internal Audit function was found to be operating effectively with some opportunities to improve reporting, bench strength at more junior levels, and in respect of digital capabilities. An external audit quality assessment was performed in early 2023 by Deloitte which looked at 2022 performance. This found that the Function was a high-performing, progressive function that compared favourably to leading peers with improvements identified including the replacement of the existing audit management system and enhancement of digital capabilities. Progress on recommendations made from each evaluation will be overseen by the GAC in 2024. Visit To undertake an annual deep dive session with members of the Internal Audit leadership team. Together with the BRC, the GAC participated in a successful deep dive session with Internal Audit’s management team. A variety of issues impacting the function were discussed, including succession planning and bench-strength; talent and mobility; functional priorities; and the impacts of increased automation and use of technology in audits. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 98

External Audit The GAC has responsibility for monitoring the independence and objectivity of the external auditor and the effectiveness of the audit process, and for reviewing NatWest Group’s financial relationship with the external auditor and fixing its remuneration. Ernst & Young LLP (EY) has been NatWest Group’s external auditor since 2016. In October 2022, the committee recommended that PwC be appointed as NatWest Group’s auditor from 2026. The GAC complied with the requirements of the FRC’s Audit Committees and the External Audit: Minimum Standard and the Statutory Audit Services for Large Companies Market Investigation Order 2014 for the year ended 31 December 2023. Theme Principal areas of focus Outcomes External audit reports To review reports prepared by the external auditor in relation to NatWest Group’s financial results and control environment. The committee received quarterly reports on the review-related work and conclusions of the external auditor. The reports included EY’s view of the judgements made by management, compliance with international financial reporting standards, and the external auditor’s observations and assessment of effectiveness of internal controls over financial reporting. Audit plan and fees To consider the scope and planning of the external auditor in relation to the audit of NatWest Group. It is also authorised by the shareholders to fix the remuneration of the external auditor. The GAC reviewed EY’s 2023 plan. It welcomed the external auditor’s focus on the innovation in the techniques applied as part of the audit and the commitment to provide an earlier interim view of control deficiencies by December 2023. In line with the authority granted to the committee by shareholders at the 2023 Annual General Meeting (AGM) to fix the remuneration of the external auditor, the GAC approved the audit fees for the year including the fee for the 2023 interim results. The committee received confirmation from the external auditor that the fees were appropriate to enable delivery of the required procedures to a high quality. Annual evaluation To review and monitor the external auditor’s independence and objectivity and the effectiveness of the audit process, taking into consideration all relevant professional and regulatory requirements. The evaluation of the external auditor’s performance in 2023 was undertaken to assess the independence and objectivity of the external auditor and the effectiveness of the audit process. The GAC members, attendees, finance directors of businesses and functions, and key members of the Finance team were consulted as part of the evaluation. Stakeholders were invited to assess the external auditor’s independence, engagement, provision of robust challenge, bench strength and reporting. The evaluation concluded that the external auditor was operating effectively and with objectivity. Key strengths included bench strength and knowledge of the senior team, and the provision of robust challenge to management. Improvement areas included junior staff capabilities, the timeliness of reporting of issues, and greater consideration of the commercial implications of recommendations made. Audit partner To oversee the lead audit partner and resolution of any points of disagreement with management. Micha Missakian has been EY’s lead audit partner since February 2021. He attended all meetings of the committee in 2023 and met in private session with the committee members during the year. This provided the external auditor an opportunity to raise any points of disagreement with management. No such points were raised by the external auditor in 2023. It is expected that the lead partner rotation will occur during 2024. GAC has overseen the appointment of his successor, Javier Faiz, who was selected based on industry experience (including audit transition), audit quality and enhancement, partner stability and availability. Additional reports prepared by the external auditor To review reports prepared by the external auditor in relation to NatWest Group. During 2023 the committee considered the results of the external auditor’s assurance procedures on compliance with the FCA’s Client Asset Rules for NatWest Group’s regulated legal entities for the year ended 31 December 2022. EY also presented the findings of their audit of the Climate-related Disclosures Report and ESG Disclosures Report to the GAC. Non-audit services To review and approve, at least annually, NatWest Group’s policy in relation to the engagement of the external auditors to perform audit and non-audit services (the policy). All audit and non-audit services are approved by, or on behalf of, the committee to safeguard the external auditor’s independence and objectivity. The GAC reviewed and approved NatWest Group’s non-audit services policy in 2023. Under the policy, all audit-related services and permitted non-audit service engagements are approved by the GAC with updates presented to each scheduled meeting. Where the fee for a non-audit service engagement is expected to exceed £100,000, a competitive tender process must be held; where the fee is anticipated to be £250,000 or more, approval of all GAC members is required. For fees under £250,000, work can be approved on an interim basis by the GAC Chair, subject to subsequent ratification by the next scheduled GAC meeting. The policy permits the external auditor to undertake engagements which are required by law or regulation, or which relate to the provision of comfort letters in respect of debt issuance by the NatWest Group, provided prior approvals are in place in accordance with the policy. The policy also allows NatWest Group to receive services from EY which result from a customer’s banking relationship, provided prior approvals are in place in accordance with the policy. All such approvals are subsequently reported to the GAC. Further details of the non-audit services policy can be found at natwestgroup.com. During 2023, the committee did not approve any significant non-audit engagements (where the fees exceeded £100,000) to be undertaken by the external auditor. The audit to non-audit fee ratio for 2023 was 16%. Information on fees paid in respect of audit and non-audit services carried out by the external auditor can be found in Note 6 to the consolidated financial statements. In January 2024, the GAC approved a significant non-audit engagement where the fees exceeded £250,000 in connection with a potential retail share offering. Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 99

Corporate governance continued Report of the Group Board Risk Committee Letter from Stuart Lewis, Chair of the Group Board Risk Committee Dear Shareholder, I am pleased to present my first report as Chair of the Board Risk Committee (the committee or BRC), having succeeded Morten Friis who stepped down as BRC Chair after the July 2023 meeting. I would particularly like to thank Morten for his skill and dedication in steering the committee through the recent periods of volatility in the geopolitical and external environment and for his counsel during the handover process. I became a member of the committee in April 2023, ensuring a smooth handover in our responsibilities. This report describes how the BRC has fulfilled its role in overseeing and advising the Board in relation to current and potential future risk exposures and risk profile; and in overseeing the effectiveness of risk management frameworks and internal controls required to manage risk. In carrying out this important role, the committee helps to ensure that NatWest Group supports its customers through the prudent management of risk. More detail on the remit of the committee can also be found in its terms of reference which are reviewed annually and are available at natwestgroup.com. Principal areas of focus in 2023 During 2023, BRC ensured its time was prioritised to focus on NatWest Group’s principal and emerging risks. Financial crime has remained a key area of focus and the committee was pleased to see it return to appetite. The external environment has influenced the focus of the committee this year, particularly its impact on NatWest Group’s risk profile in relation to capital, stress testing, liquidity and funding, and credit risk. Other areas of focus have included oversight of the execution of the Risk Management Strategy; model risk remediation; oversight of implementation of the enterprise-wide risk management framework (EWRMF) improvements, particularly the Risk and Control Self-Assessment (RCSA); conduct and regulatory compliance (including the implementation of Consumer Duty requirements); and oversight of a wide range of operational risk matters. In addition, the committee received regular updates on data management and BCBS239. Reputational risk was an emerging area of attention given the internal and external focus on customer exits, branch closures, and deposit rate pass-through. It is expected that these will continue to be areas of focus in 2024 as NatWest Group drives towards return to appetite in relevant areas; implements changes to meet regulatory expectations; and continues to respond to the external environment and cost of living pressures. Further information on key topics considered during the year and areas of focus and challenge by the committee is provided on the following pages. Meetings and visits Outside formal meetings, BRC met with the Risk Leadership Team and considered improvements to the risk management report. Dinners were arranged to discuss the future direction of the Risk function, the committee’s priorities, and the operation of the committee. Membership Patrick Flynn is Chair of the Group Audit Committee of which I am also a member. Lena Wilson is Chair of the Group Performance and Remuneration Committee (RemCo). This common membership helps to ensure effective governance across the committees. Regular attendees at BRC meetings include: the Group Chairman, Group CEO, Group CFO, Group CRO, Group Chief Legal Officer and General Counsel, Group Chief Audit Executive, and the External Auditor. External advice is sought by the committee where appropriate. Francesca Barnes and Ian Cormack attended committee meetings as observers in their capacity as members of NWH Ltd’s BRC. Meetings of the Group and NWH Ltd’s BRCs share much of a common agenda and are generally held in parallel. Risk management strategy Credit risk Capital, liquidity and funding Data management Conduct and regulatory compliance (including Consumer Duty) Operational risk Model risk Financial crime Embedding of EWRMF and RCSAs Reputational risk Principal areas of focus STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION BRC comprises three independent non-executive directors. The details of the members and their skills and experience are set out on pages 69 to 72. There were eight scheduled meetings of the committee held in 2023. Six of the eight meetings were held in person, with the remaining two meetings held virtually during the year. Details of meeting attendance can be found on page 82. The committee reported to the Board on the committee’s activities after each meeting, escalating matters for the Board’s attention as appropriate. NatWest Group 2023 Annual Report on Form 20-F 100

Principal areas of Board Risk Committee focus in 2023 The table below describes the Board Risk Committee’s principal areas of focus in 2023, alongside key outcomes and stakeholders considered. Theme Principal areas of Board Risk Committee focus Outcomes Financial crime Oversight of the management and return to appetite of financial crime risk, which continued to be a key focus area for NatWest Group throughout the year. Quarterly updates were presented from all three lines of defence and supplemented by updates from the Group CRO at each meeting. These included progress updates on return to appetite plans, transformation and emerging risks/issues. Additionally, BRC considered the Money Laundering Reporting Officer’s (MLRO’s) report(1) and the annual Group financial crime risk assessment. Throughout the year, the committee challenged management on return to appetite timetable, adequacy of resource and external support, and the pace of transformation and remediation to protect customers by driving improvements in financial crime. This included interrogating any differing views among the three lines of defence on confidence in the return to appetite time frame. The committee also requested progress updates from specific subsidiary entities as required. Additionally, ahead of the return to appetite in 2023, the committee ascertained from management the level of funding required to maintain the risk appetite position and the evolution of financial crime risk to ensure that threats were monitored and mitigated effectively. The committee acknowledged the significant achievement of financial crime’s return to appetite, reflecting an improved control environment, and that this had been accomplished by close, collaborative work by all three lines of defence. The committee also reviewed proposed new risk appetite measures concerning the timeliness and quality of a number of financial crime processes and recommended them to the Board. Model risk BRC maintained close oversight of management activity to return to appetite for model risk through regular detailed updates. There was particular focus on the Internal Ratings Based models and updates were provided on the programme of work to support changes to the Model Risk Management framework and the evolving regulatory landscape, particularly compliance with the PRA’s Supervisory Statement (SS1/23). BRC held management to account on return to appetite plans and was pleased that model risk returned to appetite in April 2023. A key focus area during 2023 was the amendment of Internal Ratings Based models to comply with regulatory changes and their submission to the PRA. The committee challenged management on progress, timings and regulatory expectations while noting the evolving regulatory landscape. The committee received reports from management on its proposed approach and assurances that it was working closely with the PRA. Management also confirmed that performance issues with incumbent models were well understood and mitigated. Additionally, the committee was keen to understand the robustness of the validation process for artificial intelligence-related models which will be a continuing area of interest during 2024. Members of the Group and the NWH Ltd BRCs also undertook a programme of visits to the Risk, Internal Audit and Finance functions, in conjunction with members of the Group and NWH Ltd Audit Committees. I would like to thank my fellow committee members for their contributions and commitment during the last year. Stuart Lewis Chair of the Group Board Risk Committee 15 February 2024 Corporate governance continued BRC Chair’s induction A full, formal and tailored induction was devised, which took into consideration my background and existing knowledge. As part of my induction, I had a series of meetings with the outgoing BRC Chair, fellow non-executive directors, the Group Chairman, the subsidiary Board Risk Committee Chairs, and external auditors. I had detailed sessions with executives and subject matter experts and attended NatWest Group Board training, the subsidiary non-executive director conference, and the Colleague Advisory Panel. The meetings were designed to give me a comprehensive overview of the principal risks facing NatWest Group and to address areas of particular regulatory interest. (1) Reviewed by BRC in line with the committee’s role to review reports and regulatory submissions on behalf of the Board and recommend them for approval. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 101

Theme Principal areas of Board Risk Committee focus Outcomes Risk function oversight and risk management strategy BRC monitored the effectiveness of the Risk function and received quarterly progress updates (including reviews by the Internal Audit function) on the action plan established in 2022 to oversee work to enhance Risk’s effectiveness. The committee approved the Risk Management Strategy which defines the strategy for risk management for NatWest Group and received regular progress updates. BRC held management to account as necessary on progress and timelines of the Risk Effectiveness Action Plan and was pleased that both Risk and the Internal Audit function agreed in November 2023 that the programme could be closed with remaining multi-year milestones transitioned to a strategic BAU programme. BRC received regular updates on the Risk Management Strategy and challenged management to prioritise focus on the programmes with the most significant impact. Enterprise-wide risk management framework (EWRMF) embedding (including risk appetite and Risk and control self assessment (RCSA) activity) The EWRMF is NatWest Group’s primary risk management and risk governance document. BRC received regular updates on the effectiveness of the EWRMF, particularly implementation of the updated RCSA process. This included detailed oversight of achievement of milestones, ensuring that anticipated benefits were delivered in the control environment and that lessons learned from the initial pilots were incorporated into subsequent assessments. The annual review of the EWRMF was presented to the committee in December 2023. It was recommended to the Board for approval and was supported by Internal Audit’s review of EWRMF. The committee was pleased with the significant progress made on RCSAs with all 2023 milestones completed. The committee oversaw the refresh of both qualitative risk appetite statements and the quantitative risk appetite measures in line with the EWRMF. The committee supported the changes to risk appetite measures to provide broader coverage of focus areas at a Board level. Key changes were to capital risk, liquidity and funding risk, credit risk, traded market risk, operational risk, climate risk, financial crime, and reputational risk. The committee queried whether there needed to be increased focus on people risk, broader ESG risk, and ‘near miss’ events and challenged management to ensure risk appetite limits and triggers were set appropriately, with changes made to the proposed limits and triggers as a result. The committee provided feedback to ensure that the measures met regulatory expectations and were robust. The committee considered spotlights on all principal risks during the year. Further information on these can be found in the respective sections of this report. The committee also reviewed proposed updates to the Key Risk Policies(1) and approved them under its Board-delegated authority. Risk profile and reporting Time was spent at every BRC meeting reviewing NatWest Group’s current and future risk profile relative to risk appetite via risk management reports, with a particular focus on the external environment including the UK and global economic outlook, liquidity and funding, credit risk, operational risk, and emerging risks and threats. The committee continued to challenge management to improve the format and content of the risk management report, resulting in the introduction of a new risk management report during 2023 with a focus on highlighting key messages clearly and succinctly, strengthening data, providing more trend analysis, and reducing the overall length of the report. The committee encouraged management to include headlines and outlook, focus on reporting on risk and returns, include commentary on return to appetite plans where applicable, and continue to progress plans to automate the reporting. Additionally, the committee emphasised the importance of robust data and metrics. The risk report will continue to be refined during 2024. Corporate governance continued (1) Risk policies are in place for each principal risk and define, at a high level, the cascade of qualitative expectation, guidance and standards that stipulate the nature and extent of permissible risk taking. They are consistently applied across NatWest Group and subsidiary legal entities and form part of the qualitative expression of risk appetite for each principal risk. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Further details can be found in the Risk and capital management section of the report on page 155. NatWest Group 2023 Annual Report on Form 20-F 102

Corporate governance continued Theme Principal areas of Board Risk Committee focus Outcomes Risk profile and reporting (continued) The committee received an annual spotlight on top and emerging threats which focused on proposed changes to the framework and the increasingly intertwined nature of top and emerging threats. BRC continued to focus on principal and emerging risks and their strategic impact. Liquidity & funding, including the impact of the collapse of Silicon Valley Bank and Credit Suisse, the resulting global financial turbulence and the mitigating actions taken by management, were considered during the year, as were the continuing impact of Russia’s invasion of Ukraine, the cost-of-living pressures affecting our customers and our colleagues, and management of first and second order risks as a result of the Israel/Gaza conflict. The committee requested that management provide an overview of how the top and emerging threats work informed NatWest Group’s strategy and business model and how NatWest Group responded to crystallising threats. The committee supported the Board in its oversight of customer exits and reputational risk and received updates on the outputs and recommendations from the reviews carried out. The committee considered the annual reputational risk spotlight which included changes to the reputational risk policy and risk appetite metrics to align with the recommendations. Detailed reports on legal and regulatory developments and litigation risks were considered on a quarterly basis and verbal updates were provided at intervening meetings. Quarterly reports were received from the Chairs of the franchise risk committees and board risk committees of material regulated subsidiaries, providing oversight of key risk and control issues and a channel for escalation of issues. The BRC Chair joined the meetings of the board risk committees of material regulated subsidiaries and the Chairs of these committees were also invited to join BRC meetings throughout the year. Transformation/ Major Change programmes BRC maintained oversight of the delivery of NatWest Group’s transformation and material change programmes and their position relative to risk appetite. The committee also received an update on the management of UBIDAC withdrawal risks as part of the phased withdrawal from the Republic of Ireland. Regulatory programmes were a particular area of interest during 2023 and BRC sought assurance from management that there was sufficient budget and resource for all regulatory programmes, including Consumer Duty, and that there was appropriate connectivity between the businesses’ risk profile and investment. Conduct and regulatory compliance risk (including Consumer Duty and ring-fencing compliance) Conduct and regulatory compliance remained a key area of interest for the committee given the breadth of issues it impacts. A spotlight on conduct and regulatory compliance highlighted the developments and improvements that had taken place during 2023, progress made in ring-fencing compliance, Consumer Duty and surveillance remediation as well as the work carried out to enhance reporting in order to support oversight. The committee sought to understand how management evidenced conduct and control improvements that had been put in place. The committee supported the Board in overseeing management’s progress in addressing Consumer Duty requirements through regular updates on a detailed milestone plan to implementation. The volume of work to be carried out and the challenging timelines were acknowledged by the committee, and it questioned all three lines of defence to gain assurance that the milestone plan continued to meet regulatory expectations, that there was sufficient budget and resource, and that focus remained on the correct areas. The committee received regular updates from management on ring-fencing conflicts and its approach to support the Board ring-fencing compliance attestation and was pleased that it was successfully submitted in March 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 103

Theme Principal areas of Board Risk Committee focus Outcomes Operational risk, operational resilience, and cyber security Operational risk has been a key area of focus for BRC throughout the year. It received regular updates on NatWest Group’s operational risk profile and risk appetite. This included updates on operational resilience, manual controls, fraud, near misses, end of life systems, and information and cyber security. The committee considered the operational resilience self-assessment(1) in detail prior to approval by the Board, with important business services and associated impact tolerances operating as the foundation for the assessment. The committee also received biannual spotlights on payments technology, controls and architecture which included the outputs from an end-to-end review. In addition, updates on information security contained in the risk management report were reviewed at every meeting and BRC dedicated time to the consideration of cyber risk, the external threat landscape and the actions being taken by management in response during the presentation of the annual information and cyber security spotlight. This included detail on the work being undertaken to ensure that new technological advances such as machine learning are introduced in a safe and secure way and the measures in place to support an increasingly consistent approach to security. The committee was pleased to see a lower number of operational control events during 2023. It remained an area of focus for the committee and regulators and the committee requested that additional detailed updates on operational risk performance and trends be provided. The committee challenged management on the number and mitigation timescales of Very High unaccepted risks and received updates on the methodology and framework that had been put in place. The committee received regular updates in respect of end of life systems, investment levels and how NatWest Group compared to its peers. Following challenges and queries from the committee, the addition of two end of life Board-level risk appetite measures were approved by the Board in December 2023. Manual controls are a key area of concern for BRC and the committee requested quarterly updates on the management of and the progress made in reducing their number. Particular focus was given to a review of manual controls within payments processing and how the review was expected to drive improvements. The committee will continue to challenge management on the reduction of manual controls and drive to automation during 2024. Throughout the year the committee challenged the scope and coverage of operational risk appetite and, in response, new Board-level risk appetite measures designed to cover the material operational risk focus areas and overall management of operational risk were approved by the Board in December 2023. Data management and BCBS239 Data is a continuing area of focus for the BRC and it received reports on the data management risk profile, including the activity underway to transform data consumed by Risk and Finance functions for risk and regulatory reporting purposes and progress in responding to issues identified as part of a 2022 industry-wide data thematic review. The committee continued to emphasise the importance of a cohesive approach to data management in order to resolve concerns around the timeliness and accuracy of some data and encouraged management to work collaboratively across these programmes. The committee sought clarity on completion dates for all activities within the data strategy in order to track progress. The committee received regular updates on compliance with BCBS239. This included findings from an Internal Audit assessment and management’s response to it. The committee challenged management on the methodology used to assess NatWest Group’s compliance status and discussed the role that the BCBS239 Framework played in improving overall data quality. Changes to the BCBS239 Framework were reviewed and approved by the committee under Board delegated authority. (1) Reviewed by BRC in line with the committee’s role to review reports and regulatory submissions on behalf of the Board and recommend them for approval. Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 104

Theme Principal areas of Board Risk Committee focus Outcomes Outsourcing and third party risk management BRC maintained oversight of NatWest Group’s outsourcing and third party risk management to facilitate oversight of the identification and management of third-party related risks. In particular, the committee focused on the management of Cloud providers and related risks. BRC received progress updates from management on Outsourcing Risk Standards, policy and framework as well as the design and deliverables of the Third Party Risk Management Programme. The committee continued its oversight over NatWest Group’s critical service providers. In response to questions and challenges from the committee, management provided detailed information to confirm appropriate exit plans were in place for critical service providers, including cloud suppliers. BRC also discussed management’s response to a regulatory review in relation to exit plans and stressed exit plans and challenged management as necessary on timings and progress. The committee challenged management to adjust processes as required to ensure an enriched view of supplier risk by sector, optimising internal credit risk resources. In response to a request from the committee, management provided an overview of the outputs and findings from cloud scenario testing which had been carried out. The committee discussed the improvement opportunities that management had identified, the regulatory landscape and NatWest Group’s position relative to its peers. The committee sought enhancement to risk appetite metrics in relation to cloud hosting and a Board-level cloud risk appetite measure was approved by the Board in December 2023. The committee recommended the outsourcing policies for Board approval. Financial and Strategic risks Regular monitoring of principal financial and strategic risks is a pivotal part of BRC’s role both via routine risk reporting and via regular focused reports. Particular attention was paid to deposit and liquidity risk, and discussions took place concerning NatWest Group’s deposits strategy, the interest rate environment and position relative to its peers. BRC reviewed capital, liquidity and funding requirements during 2023 and also reviewed capital distribution proposals prior to Board consideration. BRC received separate updates on the retail and wholesale credit risk portfolios in addition to reporting on credit and market risk within the risk management report. The committee also received updates on the decisions made by the Executive Credit Group. Further spotlights were considered in respect of traded and non-traded market risk. Credit risk and market risk – Management updated BRC on the sources of credit risk, including asset quality, risk management approach, risk appetite and controls. Following a challenge from the committee and extensive reviews, management assured BRC that no leading indicators of a deterioration in quality were being seen in either the retail or wholesale credit loan portfolios. In order to support the management of key and material segments of the wholesale and retail credit portfolios further, additional Board-level risk appetite measures were approved by the Board in December 2023, covering mortgages, unsecured lending, securitisations, leveraged funds and the commercial real estate portfolio. The committee also questioned management on the measures put in place to support customers in difficulties due to the cost of living crisis, including problem debt preparedness and monitoring for signs of stress. The committee requested updates from management on specific focus areas as they arose during the year, including in relation to mortgage payment shock and the management of personal accounts used to run businesses, and received assurances from management that a pro-active approach was being taken across NatWest Group with sufficient resource levels in the customer services teams. In relation to market risk, management provided the committee with an overview of the measures that had been put in place to manage the volatile external environment; how risks were being mitigated; and the Group’s position in relation to its peers. ICAAPs, ILAAPs and Budget and Risk Appetite Stress Tests(1) – The committee reviewed and recommended to the Board the scenarios to be used during 2024 for the budget process, IFRS 9 management, and the monitoring of the risk profile relative to the approved risk appetite. BRC considered the budget and budget stress test as well as the ICAAP and ILAAP for NatWest Group and recommended them to the Board for approval. The committee approved the ILAAP scenarios under delegated authority. The committee challenged management on the basis for the downturn scenarios and received confirmation that the scenarios had been adjusted to reflect the faster movement of deposits. Liquidity and funding – In light of the volatile external environment, the committee requested additional information from management regarding NatWest Group’s deposit strategy. Additionally, in response to a challenge from the committee, management provided a training session to the Board that focused on liquidity and funding. Capital distributions – The committee provided a detailed review of proposals for capital distributions to shareholders prior to approval by the Board, including a directed buyback and on-market buybacks. Climate risk – The committee received regular reporting on NatWest Group’s performance against the climate risk appetite measures and was provided with an overview of progress during 2023, the performance of franchises and functions in embedding the climate risk framework, and nature risk considerations. From January 2024, climate risk appetite measures were updated to reflect the existing Climate transition plan and expanded to include nature risk. The committee challenged management on whether updates were required to the 2030 ambitions and targets in light of the external policy environment and received assurance from management that these will be reviewed and revised, aligned with target setting frameworks and external developments. (1) Reviewed by BRC in line with the committee’s role to review reports and regulatory submissions on behalf of the Board and recommend them for approval. Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 105

Theme Principal areas of Board Risk Committee focus Outcomes Financial and Strategic risks (continued) Pension risk – The committee received updates on pension risk’s performance against risk appetite in each risk management report. Additionally, the committee received a dedicated spotlight on pension risk which included confirmation that no significant Pillar 2A or 2B capital impacts arose as part of the 2023 ICAAP. Stress testing, recovery plans and the resolvability self-assessment BRC reviewed in detail the stress testing activity undertaken by management to identify and monitor risks and threats. BRC also monitors and challenges the development of plans which would allow NatWest Group to be dealt with effectively in the event of financial failure. Stress testing scenarios – Stress testing scenarios used to monitor and measure risk profile have been kept under close review by the committee given the turbulent external environment and the importance of capturing the range of outcomes NatWest Group needs to be prepared for. In relation to risk appetite and risk monitoring, the committee supported management’s use of stress testing, sensitivity testing, and scenario analysis tools and challenged management regarding the reporting of additional stress testing data points in the risk management report. BRC considered the stress scenarios to be used for monitoring a moderate, severe and extreme stress. Recovery Plan – Whilst no regulatory submission was required in 2023, BRC received detailed status updates and feedback from the PRA was reported. Resolvability self-assessment – The committee reviewed the 2023 Resolvability Self-Assessment(1) and recommended the final submission to the Board for approval. Additionally, the BRC Chair attended a series of meetings with management focusing on the resolution barriers. Management confirmed that feedback from the Bank of England’s 2021 assessment had been addressed. The committee discussed how resolvability was evidenced and the controls in place across the Group to ensure that processes were being followed. Control environment BRC continued to monitor the effectiveness of internal controls required to manage risk and was provided with updates regarding the control environment ratings of NatWest Group, franchises, functions, Digital X, and legal entities. The committee continuously challenged management on progress towards an improved control environment, with particular focus on Financial Crime, Wealth, and RBSI. The committee reviewed and supported management’s report on the effectiveness of internal controls required to manage risk. Accountability and remuneration BRC continued to provide oversight over the risk dimension of performance and remuneration arrangements, as well as providing accountability review recommendations from a risk management perspective, working closely with RemCo. Remuneration – The risk and control goals of the NatWest Group Executive Committee members and relevant attendees (ExCo) were considered by the committee and continued to focus on ensuring alignment with regulatory expectations as well as key risk management deliverables. These were recommended to RemCo, together with the individual performance goals for the Group Chief Risk Officer. BRC also considered the risk and conduct performance of ExCo, to ensure a fair reflection of risk and conduct performance in variable pay award and vesting outcomes. In response to questions and challenges from the committee, management explained the rationale for any proposed risk-related adjustments to variable pay, including annual bonus awards, the grant of relevant Restricted Share Plan awards and vesting of the 2021 Long-Term Incentive awards, and BRC recommended them to RemCo. The committee discussed and recommended to RemCo proposed risk adjustments to NatWest Group’s bonus pool calculation to reflect NatWest Group’s risk and conduct management performance. The committee particularly focused on the weighting given to specific events and challenged management on its rationale. Remuneration policy – The committee carried out its annual review of the Material Risk Taker identification process and had no concerns to escalate to RemCo. Accountability – The committee continued its oversight of regulatory reportable events, other material investigations and resultant accountability review recommendations, advising RemCo on the appropriateness of these recommendations from a risk perspective. (1) Reviewed by BRC in line with the committee’s role to review reports and regulatory submissions on behalf of the Board and recommend them for approval. Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Further detail on how risk is considered in remuneration decisions can be found in the Report of RemCo on pages 123 to 124. NatWest Group 2023 Annual Report on Form 20-F 106

Report of the Group Sustainable Banking Committee Combining the SBC and TIC agendas has ensured that our Board committee structure continues to support the Board in overseeing the execution of our strategy and promoting NatWest Group’s long-term sustainable success. Technology, innovation and data are integral to our strategic priorities as we strive to be a relationship bank in a digital world. In July 2023, the committee’s Terms of Reference (ToR) were updated to formalise the committee’s role in overseeing Consumer Duty on behalf of the Board, including oversight of the implementation plan and ensuring Consumer Duty is properly embedded within NatWest Group. The updated ToR also referred to the Group Consumer Board Champion being a member of the committee. Letter from Yasmin Jetha, Chair of the Group Sustainable Banking Committee Dear Shareholder, I am delighted to present my first report as Chair of the Group Sustainable Banking Committee (the committee or SBC). I would like to take this opportunity to thank the previous committee Chair, Mike Rogers, who served as SBC Chair since 2018 and provided outstanding leadership to the committee. During 2023, the committee continued to support the Board in overseeing, supporting and challenging actions being taken by management to run the bank as a sustainable business, capable of generating long-term value for stakeholders. This year our agendas and rich discussions have maintained a strong focus on our support for customers, colleagues and communities. We held several spotlight sessions throughout the year, covering the principle areas of focus for the committee, namely climate, learning, enterprise, customer, people and culture, conduct and ethics, and technology, innovation and data. The views of internal and external stakeholders were sought wherever possible and meeting time was prioritised towards meaningful debate and discussion. The 2022 committee performance evaluation sought more frequent updates on key topics, which was reflected in the agendas. During the year we strengthened our operating rhythm by establishing a new framework for the SBC, ensuring focus on outcomes and long-term value creation, benefits to the customer and learning from best in class, including other industries. Expanded remit of the committee The Board agreed to retire the Technology and Innovation Committee (TIC) on 30 April 2023 and, with effect from 1 May 2023, the committee’s remit was expanded to include technology, innovation and data. At its final meeting in March 2023, TIC considered: an update on technology capabilities and ambitions, which form part of the NatWest Digital X strategy; a spotlight on payments, which considered the current and future landscape and required areas of action; and progress on data architecture. The committee encouraged further strategic focus on payments and consideration of forthcoming regulatory changes. Updates on data strategy have continued to be provided to the Board and Group Board Risk Committee during the year. Corporate governance continued Membership In April 2023 the committee was delighted to welcome Roisin Donnelly as a member who brings a wealth of experience in customer, data and digital transformation matters. Roisin was also confirmed as Consumer Duty Board Champion in April 2023. Following the departure of Mike Rogers and Graham Beale from the Boards, membership of the committee comprised three non-executive directors, with one non-executive director from the NatWest Holdings Limited Board observing, along with management attendees. More details of membership and attendance of the committee can be found in the Corporate Governance report. Customer People, culture and learning Climate and environmental progress Supporting long term value creation Enterprise Technology, data and innovation Principal areas of focus STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 107

Corporate governance continued Meetings The committee continues to hold five meetings per annum and reports to the Board on the committee’s activities after each meeting, escalating matters for the Board’s attention as appropriate. All meetings were held in person. The committee operates under delegated authority from the Board and its terms of reference are available on natwestgroup.com. These are reviewed annually and approved by the Board. Conclusion The committee has continued to effectively support the Board and has played an important role in providing detailed consideration of matters which will drive NatWest Group as a sustainable business generating long-term value for stakeholders. We have continued to benefit from a broad range of internal and external stakeholder perspectives, to better understand how NatWest Group’s actions are supporting our customers, colleagues and society. Theme Principal areas of committee focus Outcomes Climate and environmental progress Presentations considered progress on climate matters and principal focus areas for 2023 to support our climate ambitions. This included consideration of climate-related risks, growth opportunities and trade-offs. Pilots on the Property (home retrofit) and Food systems were presented which demonstrated the use of the systems thinking approach and potential associated growth opportunities. The committee received updates on strategic partnerships established to develop our thinking and help identify and solve climate-related problems. Updates on sustainable bonds and green finance products demonstrated the initiatives underway to support customers in various sectors. The committee reflected on the positive external market reaction to NatWest Group’s 2022 Climate-related Disclosures Report and announcements published in February 2023 and considered the steps being taken for this to continue to develop, acknowledging the challenges faced by macro factors and external headwinds. The committee has continued to support the Board in its oversight of the implementation and delivery of the Climate transition plan. Updates were provided on the tools and processes that we have started to develop to support customer engagement within our newly developed Climate Decisioning Framework, as well as work to incorporate the Climate transition plan in forecasting and budget processes. The committee also received progress updates in relation to our climate and sustainable funding and financing target and learned about efforts to co-develop solutions with corporates to deploy climate and sustainable funding and financing funding in supply chains. The committee welcomed Stuart Graham (Senior Partner) from Bernstein Autonomous Research LLP, who provided expert observations and feedback on NatWest Group’s progress and future improvement areas. It was noted that NatWest Group ranked second globally in The Autonomous Paris Readiness Index (APRI), published in 2022, which ranks banks on climate risk, with a heavy weighting on managing transition risk. The committee considered steps being taken to embed Environmental, Social and Governance (ESG) across our supply chain and how this compared to peers. The update detailed key activities to align our supply chain to the bank’s climate ambitions, including the refreshed Supplier Charter, which helps set expectations of suppliers and the deepening of understanding of human rights risks in the supply chain. Supply chain decarbonisation pilots have provided insights that inform 2024 approach and plans. The committee noted NatWest Group’s ESG rating performance and other key themes arising in relation to this. The committee had detailed discussion on the external headwinds impacting NatWest Group’s ability to achieve its 2030 climate ambitions and targets. Whilst it was acknowledged that there are a number of factors outside NatWest Group’s control, including reliance on UK Government policy, the committee challenged the sufficiency of actions taken by NatWest Group to close gaps against its climate ambitions and targets. The committee encouraged focus on supporting customers through their transition and wanted to understand customer feedback on the tools being provided to ensure they were useful. The committee was keen to understand the ability to scale initiatives to provide support to more customers and the limitations faced as a result of the UK’s infrastructure. The committee encouraged consideration of opportunities across the whole of the UK and the use of Regional Boards. I want to take the opportunity to thank everyone who has contributed to the committee’s activities during 2023, especially committee members and attendees for their support and continued commitment. Yasmin Jetha Chair of the Group Sustainable Banking Committee 15 February 2024 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 108

Theme Principal areas of committee focus Outcomes People, culture and learning Given significant focus on culture and alignment to the strategy, an update on progress on the One Bank Culture journey and the key drivers of culture was provided. A healthy culture, strong purpose, high levels of engagement and clear values were confirmed. Spotlights on leadership capability, scaling experimentation, and changes to performance management processes demonstrated the work being undertaken to drive a One Bank culture. Acknowledging the integral role of ethics in the assessment of NatWest Group’s culture, the committee wanted to understand how business ethics was monitored and reported at NatWest Group. The committee considered action being taken by management to implement our Future Workforce Design, to ensure the bank has the right skills, capabilities and roles for the future and can respond to the internal and external environment at pace. The committee learned how our Future Workforce Design approach will deliver the workforce needed in the face of changing customer expectations, technology advances, and future workforce trends. The committee reviewed impacts on two specific areas, Human support in Retail and Software engineering in Digital X, and noted the changes in the nature of work and skills required in the future. The committee considered how the HR Transformation programme will improve colleague experience by providing more efficient, effective and economical HR services resulting in the acquisition of new capabilities, adopting new ways of working and empowering colleagues to deliver great outcomes for customers and communities. The evolution of the operating model will also support the delivery of Colleague Journeys, aligned to the One Bank vision and pivot to growth. On behalf of the Board, the committee noted the approach taken to the development of workforce policies and practices. The committee acknowledged the strong bank-wide culture scores but wanted to understand variance in businesses and functions. It was noted that the creation of a people index allowed areas of challenge across NatWest Group to be identified. The committee encouraged management to monitor the impact of experimentation, including how it would enhance culture and psychological safety. The committee was pleased with the scale of management’s ambition on the Future Workforce Design but it was acknowledged that there were many aspects which needed to be aligned to deliver success. The committee encouraged management to ensure that any potential disproportionate impact on gender and other forms of diversity was managed carefully to ensure equitable treatment of all employee groups. The positive potential to offer employees more rewarding work was also noted. The committee supported the ambitious work being undertaken on the HR Transformation update and noted the importance of technology enablement to deliver efficiency savings. The committee noted the importance of closely tracking benefits to deliver the projected value creation. Customer The committee considered actions being taken by management to improve customer service and experience across key customer segments. Committee discussion focused on Consumer Duty, customer vulnerability and our response to the economic environment. Consumer Duty has been a priority focus of the committee during 2023. There have been a number of spotlights to ensure timely updates on the work underway to embed the Duty and review progress towards key milestones and compliance as at July 2023 and phase two in July 2024. The Consumer Duty Board Champion is a member of the committee and provided input on their industry discussions and engagement with management on steps to embed the Duty. The committee also received the annual Internal Audit Behavioural Risk review which focused on the work being undertaken on Consumer Duty. The committee had a spotlight session on Competition and Markets Authority (CMA) Service Quality Survey performance and plans to improve customer advocacy. The committee wanted to understand how the CMA survey and Net Promoter Scores were used and the usefulness of the survey to our customers and colleagues. The discussion on customer vulnerability considered how the bank’s approach has been materially improved in the past 18 months and is already improving outcomes for customers. Through data and monitoring we now identify more vulnerability via inferred vulnerability and customers who have disclosed to us. Discussions on branch closure and fraud helped to demonstrate how vulnerability is considered in the bank’s decision-making. The committee received a Cost of Living brief at every meeting providing insight into how our customers are responding to the external environment and how we are supporting the people, businesses and communities we serve. The committee discussions focused on meeting the required outcomes under the Consumer Duty legislation. Discussions focused on how communications would be reviewed to ensure customer understanding of financial products and how data would be used to evidence good customer outcomes. The directors supported the risk-based approach to remediation. In relation to customer vulnerability, the committee sought to understand the number of customers that could be considered vulnerable and how customers were identified by the bank as potentially vulnerable. The committee agreed it was important it continued to focus on cost of living actions being taken to support customers since it was anticipated the external environment would continue to be challenging. Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 109

Corporate governance continued Theme Principal areas of committee focus Outcomes Technology, data and innovation Sessions focused on innovation and partnerships, payments, and artificial intelligence (AI) and automation. The committee received an overview of our new, bank-wide innovation framework which was being used to catalyse bank-wide growth through structured Innovation which would scale and deliver initiatives through the core bank. The committee considered new payment initiatives intended to stem the disintermediation of payments income, including Take Payments and Tap to Pay. AI and automation is a key area of focus developing at pace, and the committee considered AI use cases being deployed across NatWest Group for customer benefit, noting how they could enhance the existing automation strategy. The committee noted progress made in evaluating the areas of potential value for leveraging AI and associated risks. The committee acknowledged the importance of risk management and controls and discussed the use of model risk governance. Andrew Rogoyski, a member of the Technology Advisory Board and AI expert, joined the session and provided an external perspective. A number of other Board members also joined the session. The committee was keen to understand how partnerships were used in the innovation ecosystem and encouraged management to consider the use of accelerator hubs and universities to support innovation initiatives. The committee considered the programme to encourage colleagues to bring forward potential future initiatives and discussed how capabilities could be enhanced to drive more innovation at all levels across the bank. The committee requested that the SBC MI Report be enhanced with new metrics relating to technology, innovation and data to allow it to monitor progress. The committee wanted to understand how payments initiatives progress and requested a future update on the underpinning payments technology architecture to understand risks and opportunities in this area. The committee was keen to understand how improvements and benefits as a result of AI were being measured. The committee considered the approach to AI in various jurisdictions and amongst regulators. The committee emphasised the importance of management’s approach to AI being sufficiently customer focused to ensure stakeholder trust was maintained. Enterprise The committee received an update on NatWest Group’s Enterprise activity, including the strategy and partnership approach. The committee heard feedback from customers on the importance of the support provided to them by the accelerator hubs. The committee discussed the SME (small and medium-sized enterprises) banking market context and NatWest Group’s position. The session reflected on our broad proposition that enables us to serve all customers in this segment with distinctive elements, including FreeAgent, Mentor, and Enterprise support. The update included a spotlight on the work undertaken internally and in partnership with Aston University to measure the impact and outcome of NatWest Group’s interventions on its Enterprise activity. The analysis demonstrated improved survivability and growth rates of those customers involved in accelerator hubs versus a control group. Professor Mark Hart (Enterprise Research Centre, Aston University) presented the findings of work to date and noted that the impact measurement results were interim and would continue to develop. He commended the results achieved given the external context of the business environment. The committee discussed both the growth opportunity and challenges in relation to NatWest Group’s Enterprise ambitions. The committee discussed the changing competitive landscapes and the entrance of alternative finance providers to the sector and activities. The committee was keen to understand how the accelerator hubs compared to other programmes across the industry and how they could be scaled without reducing impact to ensure greater support for customers. The committee noted the innovative approach presented in relation to measuring impact, which should provide robust analysis and metrics upon which stakeholders could measure NatWest Group. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 110

Theme Principal areas of committee focus Outcomes Supporting long term value creation The committee supported the Board in overseeing the initial work to reflect on the purpose and understand how this might evolve. This included consideration of the desktop research, and internal and external stakeholder perspectives. The majority of Board members joined the committee for these discussions. Sarah Gillard, the CEO of the Blueprint for Better Business, provided her perspectives following interviews with stakeholders and colleagues, and highlighted the opportunity to bring purpose further into the core of the business. The committee discussed the meaning of Sustainable Banking to ensure a common understanding of the importance of running a business that is capable of generating long term value for its stakeholders. The committee considered how medium to longer term priorities could be measured through financial and non-financial metrics. Following the presentation of the impact measurement work being undertaken by Aston University, the committee received an update on the broader impact measurement work underway across the bank, the proposed new bank wide impact measurement framework, and planned next steps for 2024. SBC considered NatWest Group’s 7th Annual Modern Slavery & Human Trafficking Statement. The committee was provided with a comprehensive update on Human Rights including progress made in 2023 and the plan for 2024, and the approach to the first disclosure of NatWest Group’s Salient Issues. As a founding signatory of the UN Principles for Responsible Banking (PRB), the committee was provided an update against the major milestones in the 4 year PRB journey, which were achieved by September 2023. The committee considered and provided advice to the Group Performance and Remuneration Committee on the setting and assessment of performance against people and culture, customer, purpose targets. The committee noted that using ‘purpose in practice’ is essential and it was important to link purpose with long-term sustainable performance. The committee was keen to understand all stakeholders’ views, including investors. The committee agreed it should focus on medium to longer term priorities driving the bank as a sustainable business through a multi-stakeholder lens and requested the inclusion of relevant financial and non-financial metrics in the data provided to it in future. The committee welcomed the experimentation underway in relation to impact measurement, and encouraged management to ensure the measurements were objective given customers’ multi-variable behaviour. The committee recommended NatWest Group’s 7th Annual Modern Slavery & Human Trafficking Statement to Board for approval. It noted the value of the Colleague Advisory Panel engagement which had resulted in the clarification of roles described. The committee supported and recommended the publication of disclosure on Salient Human Right Issues to Board. Corporate governance continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 111

Colleague highlights January 2023 – A cash payment of £1,000 (adjusted for local salary levels) was made to approximately 60,000 colleagues. – We launched our new Partner Leave policies, which introduced significantly enhanced pay and leave for eligible colleagues. February 2023 – We announced our new Sharing in Success scheme for all colleagues, designed to reward One Bank behaviours and outcomes and align all colleagues across NatWest Group to our purpose and strategy. April 2023 – Nearly 90% of our junior UK colleagues (A and B grades) covered by our negotiated pay approach received a salary increase of at least 7%, with almost two-thirds receiving 8% or more, on top of the £1,000 payment in January. Salary ranges were also increased. November 2023 – We were certified as a Regional Living Wage Employer for our global operations by the Fair Wage Network. December 2023 – We announced Beyond, our changes to performance management for all colleagues, including the removal of performance ratings from 2024 onwards. From April 2024 onwards – Nearly 95% of our junior UK colleagues (A and B grades) covered by our negotiated pay approach will receive a salary increase of at least 3.5%, with almost two-thirds receiving 5% or more. In addition, our UK starting salary will move to £23,500 per annum, an increase of 15% since September 2022. – Our first award under our Sharing in Success scheme will be awarded in May 2024, with a share award of £1,000 for all eligible employees (adjusted for local salary levels), subject to shareholder approval of the recommended dividend. Directors’ remuneration report Letter from Lena Wilson, CBE, Chair of the Group Performance and Remuneration Committee Dear Shareholder, On behalf of the Board, I am pleased to present the remuneration report for 2023. This has been a year of significant change for the organisation, with a new Group Chief Executive Officer (Group CEO), Paul Thwaite, now confirmed in role on a permanent basis after an initial appointment in July for a period of 12 months, and an announcement of a new Chair, Rick Haythornthwaite, who will succeed Howard Davies from 15 April 2024. Performance highlights for 2023 In an uncertain economic environment, NatWest Group has performed well in 2023 delivering an operating profit of £6.2 billion and a RoTE of 17.8%. Our capital generation has remained strong and we continue to deliver returns and distributions to shareholders. In 2023 £3.6 billion of capital was returned to shareholders including a proposed final dividend of £1.0 billion. Board changes and impact on remuneration The committee has been heavily involved in guiding the Board and overseeing management activity with regard to performance and remuneration matters through this period of change. The decisions made during this transitional period, in the context of remuneration, are summarised on the following page. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 112 Chair’s introduction 116 Remuneration at a glance 119 Wider workforce remuneration and the directors’ remuneration policy 126 The Annual remuneration report NatWest Group 2023 Annual Report on Form 20-F 112

Performance highlights Income growth 12.13% 2022: 26.15% Attributable profit £4,394 million 2022: £3,340 million RoTE 17.8% 2022: 12.3% Climate and sustainable funding and financing(1) £29.3 billion 2022: £24.5 billion Shareholder returns through dividends and buybacks £3.6 billion 2022: £5.1 billion Directors’ remuneration report continued Executive director changes Joining arrangements for Rick Haythornthwaite Mr Haythornthwaite joined the Board of NatWest Group as an independent non-executive director on 8 January 2024 and following a handover period will take over as Chair on 15 April 2024, when Howard Davies will stand down from the Board. On assuming the role of Chair, Mr Haythornthwaite’s fee will be £775,000 p.a., which is the fee currently paid to Mr Davies. Wider workforce After good committee discussion on what would further drive individual and organisational performance, in late 2023 we announced Beyond – our changes to performance management for all colleagues, including the removal of performance ratings for 2024 and onwards and a changing approach to managing goals, feedback and pay. NatWest Group has been an accredited Living Wage Employer in the UK since 2014 and sets pay levels above the real living wage (RLW) rates. In 2023, we were also pleased to be certified as a Regional Living Wage Employer for our global operations, recognising that our rates of pay for our colleagues outside the UK are at or above the living wage threshold as defined by the Fair Wage Network. In last year’s report I announced our new Sharing in Success scheme for all colleagues. The scheme is intended to recognise One Bank behaviours, drive a performance culture with purpose-led outcomes and further align colleagues with our strategic direction. The scheme is a welcome addition to our employee value proposition, alongside broader policy enhancements, which will help in light of market (1) Cumulative contribution of £61.8 billion towards £100 billion between 1 July 2021 and the end of 2025 target. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION On 25 July 2023, Paul Thwaite was appointed as the Group CEO for an initial period of 12 months. The committee set Mr Thwaite’s annual base salary on original appointment at £1,050,000. Mr Thwaite has now been permanently appointed as Group CEO from 16 February 2024; details on pay for 2024 are on page 135. Mr Thwaite has been an active member of NatWest Group’s defined benefit pension scheme that was available to all employees recruited at the same time as him. Other elements of his fixed and variable pay are in line with the standard terms of our approved directors’ remuneration policy (the Policy). Mr Thwaite has confirmed that, following his permanent appointment to the role of Group CEO, he will become a deferred member of the defined benefit scheme as soon as reasonably practicable and can choose to join NatWest Group’s defined contribution pension arrangements. The committee agreed that his 2023 variable pay awards would be pro-rated to reflect the time spent in his Group CEO role and in his previous role as CEO of the Commercial and Institutional business (Ring Fenced Bank). More details of Mr Thwaite’s remuneration arrangements are on page 126. Alison Rose stepped down as Group CEO by mutual agreement with effect from 25 July 2023. In line with Ms Rose’s service agreement, she will continue to receive her fixed pay for her contractual notice period, which will end on 26 July 2024. In accordance with the terms of the Policy and our share plan rules, any awards due to vest after cessation of her employment on 26 July 2024 will lapse on that date. No bonus or variable remuneration will be paid to Ms Rose in respect of her service during 2023. Ms Rose’s shareholding requirement will continue to apply for a period of two years from the date of cessation of her employment. More details of payments made to and received by Ms Rose are on page 135 under ‘Payments for loss of office and payments to past directors’. Following on from the extensive support provided in 2022 to help our colleagues with the cost of living, continued targeted action has been taken to help those colleagues most likely to be affected by the sudden spike in inflation. Payments of £1,000 (adjusted for local salary levels) were made in January 2023 to approximately 60,000 colleagues, with broad parts of the UK workforce receiving a further salary increase of at least 7% in April 2023. We will build on this in April 2024, continuing to target fixed pay spend to our A and B grade colleagues and further increasing our minimum rate of pay in the UK to £23,500 pro-rata. In December 2023, the committee agreed that no salary increases would apply from 1 April 2024 for the Group CEO, who had been appointed for an initial period of 12 months, and Group CFO. This compares to an average salary increase for the global workforce at 4%. Mr Thwaite has since been appointed permanently as Group CEO with effect from 16 February 2024. Pay arrangements for the executive directors for the 2024 performance year are on page 135, including in respect of Mr Thwaite being appointed permanently as Group CEO. Wider workforce considerations have remained a key focus of the committee throughout 2023. We believe it is imperative that we continue to monitor and discuss colleague sentiment with regard to both performance and pay matters, and I therefore attended the Colleague Advisory Panel (CAP) in May 2023 to discuss colleague remuneration and benefits, as well as our approach to executive pay and its link to our strategy and purpose. These ongoing two-way discussions with colleagues are a valuable tool to deepen our understanding of colleague views and also to explain the alignment between our executive director and wider workforce pay policies. More details of our work with the CAP are on page 121. NatWest Group 2023 Annual Report on Form 20-F 113

Directors’ remuneration report continued Remuneration outcomes for 2023 The assessment of performance against their annual bonus scorecards resulted in a scorecard outcome of 53.6% for Mr Thwaite and 52.3% for Ms Murray, including the impact of downwards risk modifiers to reflect risk performance against core goals, balanced by strong leadership behaviours. Mr Thwaite received a separate discretionary award in respect of the portion of 2023 when he was CEO of the Commercial & Institutional franchise. Further details of this award are not included within this report as it does not relate to his time as an executive director. The committee considered the outcomes for Mr Thwaite and Ms Murray to be a fair reflection of performance and felt no further discretionary adjustments were required. Performance measures Weighted outcome Financial (60%) 25.2% out of 60% Return on Tangible Equity (30%) 14.2% Income growth (10%) 3.2% Cost reduction (10%) 2.8% Medium-term capital target (10%) 5.0% Strategic (35%) 25.1% out of 35% Climate (10%) 7.8% Customer (10%) 4.8% Purpose, culture and people (10%) 8.3% Enterprise and capability (5%) 4.2% Personal (5%) Group CEO personal performance 4.0% Group CFO personal performance 2.5% Post application of risk modifier (0-100%) CEO Outcome 53.6% CFO Outcome 52.3% Grant of 2024 Restricted Share Plan (RSP) I am also proud of our new Partner Leave policies launched in 2023 which support all eligible employees with significantly more time away from work to help their partner look after their new child. The policies introduce significantly enhanced pay and leave for eligible fathers and partners to share the caring responsibilities. The policy is open to both same-sex parents and heterosexual parents, ultimately championing the potential of both parents and promoting gender equality in the workplace. Colleague feedback has been overwhelmingly positive, with over 1,200 colleagues benefiting from the policy. Financial wellbeing is vitally important, and colleagues are supported with access to pension and protection products, shopping discounts, as well as a comprehensive range of financial health initiatives. Over 20,000 colleagues contribute to our Sharesave scheme each month, which is available to approximately 97% of colleagues, with participants across the UK, Ireland, India and Poland. It provides an opportunity for colleagues to benefit from increases in the NatWest Group share price with limited risk, encouraging financial capability and aligning their interests with shareholders, and is particularly popular with colleagues at A-C grades. I am pleased that our 2023 Sharesave offer proved to be the most successful in recent memory, and this demonstrates colleagues are responding to our support for colleague share ownership and financial wellbeing. Bonus pool for the wider workforce The bonus pool is based on a balanced range of strategically important measures including; financial performance, customer outcomes, colleague experience and diversity, risk management, risk events and progress against our climate and purpose ambitions. The committee agreed a 2023 bonus pool of £356.0 million for those colleagues eligible to receive an award. This is around 3% lower than the 2022 bonus pool of £367.5 million, despite a larger bonus eligible headcount. The bonus pool outturn reflects the impact on shareholders this year due to missed guidance, despite increased group operating profit of 20.4% year-on-year. Pay gap reporting We are making good progress in building a diverse, equitable and inclusive workplace and the committee reviews gender and ethnicity pay gap metrics as part of the process. This is the sixth year we have published ethnicity pay gap information on a voluntary basis. Following our approach last year, we disaggregated our ethnicity pay gaps to compare Black, Asian, mixed and multiple and ethnic minority average hourly pay to that of White colleagues. We are confident that our colleagues are paid fairly, and our policies and processes are kept under review to make sure this continues to be the case. You can find full details of our pay gap reporting in the Strategic report and on natwestgroup.com. Individual pay adjustments In 2023, we concluded the accountability review into the events that led to the breaches of the Money Laundering Regulations 2007. None of the individuals in scope were found to be accountable on an individual level, but we recognise that the issues represent a collective failure. Colleagues who were bonus eligible in 2021 were impacted by a reduction in the STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION competition for talent. For 2023, we measured success based on financial performance, our approach to risk, helping our customers thrive, living up to our climate targets and ambitions, and delivering value for shareholders. Our first award under our Sharing in Success scheme will be awarded in May 2024, with a share award of £1,000 to all eligible employees (adjusted for local salary levels), subject to shareholder approval of the recommended dividend at the April 2024 Annual General Meeting (AGM). More details of our Sharing in Success scheme are on page 119. bonus pool when the fine was handed down, likewise the relevant senior executive committee members had their awards reduced to reflect the bonus pool adjustment. No further adjustment was deemed necessary for these individuals. However, the committee determined that similar adjustments should be made to ten ex-colleagues who were not impacted by the adjustments made in 2021 as they had left the bank. Further details are provided on page 122. The committee also approved that RSP awards for Mr Thwaite and Ms Murray would be granted at maximum as satisfactory performance had been achieved over the year prior to award. The vesting of the RSP awards will be subject to assessment against pre-determined criteria that consider whether sustainable performance has been delivered over the three years after grant. Full details of the annual bonus and RSP performance assessments can be found on pages 128 and 133. NatWest Group 2023 Annual Report on Form 20-F 114

Looking ahead How we reward and support colleagues remains of critical importance. Our approach is to reward colleagues in a fair, sustainable and transparent way. In 2024 we will roll out Beyond, our redesigned approach for performance management including goals, feedback and pay. This will aim to drive a culture of high performance and create a better experience for colleagues. In 2024, the committee will also continue focus and discussion on wider workforce considerations. Our executive directors’ strategic scorecard for the last ten years has evolved to include people, climate, enterprise and financial capability measures alongside established focus on delivering against key financial metrics and customer and risk considerations. ESG metrics are also a core part of our performance assessment for our bonus pool. We will continue to use ESG performance metrics for variable pay that are demanding, quantifiable and clearly linked to our strategy. During 2023 we engaged with the current Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) ‘Diversity and Inclusion’ consultation and will continue to contribute to the important discussion on how the pace of meaningful change in diversity and inclusion can be accelerated in financial services. In October 2023 the FCA/PRA published a revised policy statement announcing the removal of the variable pay cap for UK banks. NatWest Group has operated a variable pay cap of one times fixed pay since the regulations came into force in 2014. Whilst we do not anticipate making any immediate changes to our existing construct, we have increased our normal maximum variable to fixed pay ratio to 2:1, although this is expected to be used on a gradual and targeted basis. This should align NatWest more closely to peers, ensuring we have the flexibility to remain competitive. No changes are being made to the executive directors whose remuneration will be determined based on the terms of our Policy, approved at the 2022 AGM. The three-year term of our current Policy comes to an end at the 2025 AGM. The committee will review our current approach and consider how it should evolve considering the need to have a market competitive pay to retain and attract talent, and maintain strong alignment with shareholders’ interests. The committee will also consider whether any changes are required to our approach noting the removal of the variable pay cap. We will engage with our large shareholders and proxy advisory bodies to understand their perspectives prior to bringing our new Policy for shareholder approval at the 2025 AGM. I hope this letter and the information that follows will explain our approach in 2023 to remuneration. I am grateful for the support of our stakeholders during this process and would like to thank my fellow committee members for their valuable contribution. Lena Wilson, CBE Chair of the Group Performance and Remuneration Committee 15 February 2024 Vesting of long-term incentive (LTI) awards granted in 2021 Implementation of the Policy for 2024 Under our Policy, annual bonus awards, with formulaic weighted measures and purpose-led targets, are complemented by RSP awards that support longer-term performance and shareholder alignment. This construct provides restrained pay outcomes, alignment between the interest of our executive directors and shareholders and incentivises sound risk management. In December 2023, the committee agreed that no salary increases would apply from 1 April 2024 for the Group CEO, who had been appointed for an initial period of 12 months, and Group CFO. This compares to an average salary increase for the global workforce at 4%. The maximum bonus opportunity and RSP awards for executive directors in 2024 remains unchanged at 100% of salary and 150% of salary respectively. The committee reviewed the 2024 performance measures for annual bonus awards and the underpin criteria for RSP awards, as detailed later in this report, which remain unchanged and continue to align with our purpose-led strategy. Mr Thwaite has subsequently been permanently appointed as Group CEO and the committee has reviewed his remuneration arrangements in accordance with the Policy. With effect from 16 February 2024 his base salary will be £1,155,660 per annum, an increase of 10% from his current salary of £1,050,000 per annum which was set at the time of his appointment on 26 July 2023 for an initial period of 12 months. His fixed share allowance will continue to be set at 100% of salary and he will also receive standard benefit funding of £26,250 per annum and standard pension funding of 10% of his salary. This sets Mr Thwaite’s fixed pay at the same level as the fixed pay previously paid for the Group CEO role prior to his appointment in July 2023. The committee noted that pay of our executive directors continues to remain below the target total compensation opportunity of other major UK banks. The committee remains very aware of the importance of recognising good performance and the need to attract and retain highly talented colleagues. New Employee Share Plan At the 2024 AGM we will seek approval for the NatWest Group plc 2024 Employee Share Plan. This will replace, and largely replicates, the 2014 Employee Share Plan, which expires in June 2024. It is intended that all non-tax advantaged share awards granted after March 2024 to both senior executives and colleagues, including annual bonus and RSP awards, will be granted under the new 2024 Employee Share Plan. Further details, including a plan summary, will be set out in the Letter to Shareholders. Directors’ remuneration report continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION LTI awards were granted to Mr Thwaite and Ms Murray in March 2021. Prior to the awards being granted to Mr Thwaite and Ms Murray, reductions of 55.2% and 54.5% respectively were applied to the maximum award as a result of the pre-grant performance assessment over 2020. In December 2023, we considered whether anything had come to light since the grant which would change our original view of performance. Based on the pre-vest assessment, the committee concluded that there had been no material deterioration in financial, customer, risk, culture or purpose-linked performance since grant. Therefore, a sustainable level of performance had been achieved over the period and no further adjustments were necessary under the pre-vest test. The committee also considered carefully whether any windfall gain had taken place in relation to the grant in 2021 and determined that no adjustment should be made, noting in particular that there had been no material fall in share price compared to the prior year grant and pre COVID-19 level. The share price used to determine the number of shares subject to the award was in fact 9.7% higher on a like-for-like basis relative to the prior year grant and 18.8% lower relative to the level pre COVID-19. It was noted that both these figures are less than 20%, the level above which further consideration would typically be given to an adjustment. Further details of the performance assessment and consideration of windfall gains can be found on page 132. NatWest Group 2023 Annual Report on Form 20-F 115

Fixed Pay (£000’s) 2023 Annual Bonus 2023 RSP pre-grant 2021 LTI vesting Paul Thwaite 951 Maximum Post risk modifier Scorecard assessment 60% 35% 5% 25.2% 25.1% 4.0% 53.6% of max 54.3% of max Financial Strategic Personal 42% of max 72% of max 80% of max 150% of salary (no adjustment at pre-grant) Maximum Following pre-grant test Following pre-vest test Vesting value (including share price movement) £900k 44.8% of max, £403k 44.8% of max, £403k £508k Katie Murray 1,673 Maximum Post risk modifier Scorecard assessment 60% 35% 5% 25.2% 25.1% 2.5% 52.3% of max 52.8% of max Financial Strategic Personal 42% of max 72% of max 50% of max 150% of salary (no adjustment at pre-grant) Maximum Following pre-grant test Following pre-vest test Vesting value (including share price movement) £1,500k 45.5% of max, £682k 45.5% of max, £682k £859k Amounts for Mr Thwaite based on fixed pay since appointment as Group CEO on 25 July 2023. The maximum bonus award was based on 100% of salary earned over 2023. This equated to £458k for Mr Thwaite and £782k for Ms Murray. The assessment of performance against their annual bonus scorecards resulted in a scorecard outcome of 53.6% of maximum for Mr Thwaite and 52.3% of maximum for Ms Murray. A downwards risk modifier of 0.71% applied for the Group CEO and 0.46% for the Group CFO to reflect risk performance against core goals, balanced by strong leadership behaviours. The committee considered the outcomes for Mr Thwaite and Ms Murray to be a fair reflection of performance and felt no further discretionary adjustments were required. Prior to the awards being granted to the Group CEO and Group CFO, reductions of 55.2% and 54.5% respectively were applied as a result of the pre-grant performance assessment over 2020. In December 2023, after considering whether anything had come to light since the grant which would change the original view of performance, no adjustment was proposed. Vesting value reflects an increase in share price over the period. Executive director remuneration outcomes (£000’s) Paul Thwaite Alison Rose Katie Murray Pay outcomes Fixed Pay Bonus RSP/LTI Sharesave Total Fixed Pay Total Fixed Pay Bonus RSP/LTI Sharesave Total Awarded for 2023 951 245 1,216 2 2,414 1,452 1,452 1,673 409 1,173 3 3,258 Single figure 2023 951 245 508 2 1,706 1,452 1,452 1,673 409 859 3 2,944 Remuneration at a glance Shareholding requirements for executive directors as at 31 December 2023 0 100 200 300 400 500 600 700 800 900 128% 119% 307% 209% Paul Thwaite Katie Murray Shares held outright and performance-assessed unvested share awards that count towards requirement (net of tax) Unvested share awards still subject to performance assessment (do not count towards requirement) Shareholding requirement Fixed pay Annual Bonus RSP award 2021 LTI Sharesave STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Award levels reflect Group and individual performance in 2023 and will be subject to a further assessment pre vesting. Awards are delivered in shares to align with long-term performance and shareholders. See page 133 for further details of the pre-grant and pre-vest performance. NatWest Group 2023 Annual Report on Form 20-F 116

Summary of Policy and implementation in 2024 Key elements Performance year Variable pay grant year Years Summary of Policy and Implementation in 2024 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 Salary Any increase will not normally be greater than the average salary increase for NatWest Group employees over the period of the policy. Other than in exceptional circumstances, the salary of an executive director will not increase by more than 15% over the course of this policy. Implementation in 2024: No salary increase is proposed for the Group CFO for 2024. The Group CEO’s salary will increase with effect from 16 February 2024 as result of his permanent appointment. Group CEO: £1,155,660 Group CFO: £787,950 Paid over performance year Pension Pension contribution, aligned to the wider workforce, at 10% of base salary. Mr Thwaite has been a member of NatWest Group’s defined benefit pension scheme. He is entitled to a pension allowance of 10% of salary. He exchanged this and a portion of his other fixed pay for participating in the defined benefit scheme. Mr Thwaite will become a deferred member of the defined benefit scheme as soon as reasonably practicable and can choose to join NatWest Group’s defined contribution pension arrangements. Paid over performance year Benefits £26,250 standard benefit funding. Other benefits can be paid within the terms of the Policy. Paid over performance year Fixed Share Allowance 20% 100% of base salary. Shares released over five years. Payable broadly in arrears over the performance year, currently in four instalments per year. 20% 20% 20% 20% Paid over performance year Released in equal tranches over a five-year period Bonus 50% cash Maximum award: 100% of salary. Performance year 50% shares 50% Operation: Awarded upfront with a 50/50 split of cash and shares. Annual bonus assessed based on a weighted scorecard of strategic measures, as set out below. A downwards risk modifier also applies. Paid upfront Financial metrics Weighting Non-financial metrics Weighting Group RoTE 30% Climate 10% Group underlying income excl. notable items 10% Customer 10% Group operating expenses excl. litigation and conduct costs 10% Purpose, culture and people 10% CET1 10% Enterprise and capability 5% Personal 5% Total 60% Total 40% Restricted Share Plan 20% 20% Maximum award: 150% of salary Granted provided satisfactory performance over year After three years, performance assessed against underpin criteria 20% 20% Operation: Delivered in shares, vesting in equal tranches over years three to seven with a 12-month holding period following each vesting. Vests pro-rata over years 3-7, subject to 12 months’ retention period 20% 20% 20% 20% 20% 20% Metrics: RSP awards subject to satisfactory performance before grant and an underpin after three years to check performance has been sustainable. Share ownership CEO: 500% of salary CFO: 300% of salary Ongoing On leaving, requirement to hold shares of a value equal to the lower of the shareholding requirement immediately prior to departure or the actual shareholding on departure, for a period of two years. Malus and clawback Subject to clawbacks for seven years from grant Clawback extended to 10 years in certain circumstances Remuneration at a glance continued Share element subject to 12 months retention period STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Any variable pay awarded is subject to malus prior to vesting and clawback for seven years from grant, Subject to malus prior to vesting extended to ten years in certain circumstances. See page 122 for further details. NatWest Group 2023 Annual Report on Form 20-F 117

Remuneration at a glance continued Annual bonus RSP awards Sharing in Success Performance measures for 2023 – Financial performance – Customer scores – Climate – Purpose, culture and people – Enterprise and capability – Risk – Sustainable performance required – Underpin criteria based on capital, shareholder distributions, risk and control environment – Long-term payment in shares to align with performance and shareholders – Financial performance – Helping our customers thrive – An intelligent approach to risk – Living up to our climate ambitions and targets – Delivering value for our shareholders Alignment with our strategy and stakeholders – Delivering on our strategy helps to support growth, makes a positive contribution to society and drives sustainable returns for our shareholders. – Linking performance with pay encourages everyone to work and think as One Bank. – Goals and measures for executive directors cascade to senior management and the wider workforce, based on our latest strategic priorities. – While ambitions can stretch over several years, we set measures and targets for each year. For example, one of our focus areas is supporting our customers in their transition to net zero and you will see climate targets in our annual bonus and Sharing in Success outcome for 2023. – Having a balanced scorecard of measures and targets helps to incentivise strong financial and risk performance as well as purpose-led outcomes. – Pay is delivered in a way that aligns with the long-term interests of our stakeholders. – For those that receive higher amounts of remuneration, it is increasingly delivered in shares and subject to long holding periods. – Through malus and clawback, we can recover pay where new information comes to light. Alignment with our ESG priorities – People measures have featured in the performance and pay decisions of our executive directors for over ten years. – Our approach has evolved beyond employee engagement to include purpose and culture targets as well as creating a diverse and inclusive workplace. – For 2023, our climate focus included an increased target for climate and sustainable funding and financing as well as progressing our Climate transition plan. – There are also targets to build the financial capability of our customers, encourage youth participation in enterprise and provide support for harder to reach groups with higher barriers to entering and growing a business. – Turning to the wider workforce, the annual bonus pool is based on a balanced scorecard which includes climate, enterprise, financial capability, purpose, culture and people measures, broadly aligning with the position for the executive directors. – Allocation from the pool depends on the performance of the business area and the individual. – Sharing in Success provides a further way for sustainable performance to be reflected in the pay outcomes throughout the organisation. Details of performance against the 2023 targets for executive directors can be found later in this report. You can also find information on how our executive director performance measures align with the five principles of a purpose-led business in our ESG Disclosures Report, available on natwestgroup.com. Linking executive and wider workforce pay to our strategy and ESG priorities Our purpose NatWest Group champions potential, helping people, families and businesses to thrive. Because when they thrive, so do we. Stakeholders Investors Regulators Customers Communities Colleagues Suppliers Strategic priorities Supporting customers at every stage of their lives Simple to deal with Sharpened capital allocation Powered by people, technology, innovation and partnerships Climate We have made helping to address the climate challenge and supporting our customers in their transition to net zero a key strategic priority. Enterprise Our ambition is to remove barriers to enterprise and to provide businesses in the UK the support they need to grow. Learning We are helping people to take control of their finances, to make the most of their money, safely and securely – now and in the future. Read more on page 9. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 118

Wider workforce support in 2023 Approves the remuneration policy principles, which are applied consistently across NatWest Group, and reviews the policy’s implementation. The committee is supported by Subsidiary Performance and Remuneration Committees which review whether the policies and practices are appropriate at the respective legal entity level. Considers a report on how pay has been distributed across the workforce during the year. The report includes analysis by grade and diversity categories, and there are checks in place to ensure that decisions are made fairly. Approves the bonus pool for bonus-eligible colleagues and the Sharing in Success payments across the wider workforce. The bonus pool is determined after considering performance against a balanced scorecard of strategically important measures. Sharing in Success payments are based on the achievement of pre-defined measures. Reviews the annual spend on fixed pay. Fixed pay increases in recent years have been focused mainly on colleagues in A-B grades and those lowest in their salary range. Reviews and approves share plan offerings for colleagues. Sharesave is offered in the UK, Ireland, Poland and India, encouraging colleagues to think about their financial wellbeing with an option to buy NatWest Group shares. How the committee oversees wider workforce remuneration Sharing in Success Our new Sharing in Success scheme for all colleagues is intended to recognise One Bank behaviours, drive a performance culture with purpose-led outcomes and further align colleagues with our strategic direction. For the 2023 performance year we measured success based on: financial performance, our approach to risk, helping our customers thrive, living up to our climate targets and ambitions, and delivering value for shareholders. The first awards will be delivered in May 2024, subject to shareholder approval of the recommended dividend at the April 2024 AGM. This will be delivered to colleagues in NatWest Group shares at a value of £1,000 per colleague (adjusted to local levels of £575 for Poland and £375 for India). For 2024, we will measure success based on financial performance, our approach to risk, being brilliant for our customers, and delivering value for shareholders. Each year the committee: 1 2 3 4 5 Global Living Wage We are proud to be accredited as a Living Wage Employer by the Living Wage Foundation, demonstrating our commitment to paying wages that meet the true cost of living in the UK. Our rates of pay continue to exceed the Living Wage Foundation benchmarks. This commitment also includes our contractors and suppliers across the UK. For our hubs outside the UK, we continue to pay above the minimum and living wage rates. In 2023, we furthered our commitment to fair pay by achieving accreditation as a Regional Living Wage Employer from the Fair Wage Network and are now recognised as a Global Living Wage Employer. Ongoing enhancements to employee benefits We offer a comprehensive range of benefits to employees to support our aim of being a truly inclusive organisation. As part of our private medical cover benefits, we introduced a new ‘Neuro-developmental Pathway’ from October 2023. This is an expert-led service, which provides initial assessment and diagnosis of Attention Deficit Hyperactivity Disorder (ADHD), Autism Spectrum Disorder (ASD) and Tourette’s syndrome. The cover has been specially designed to provide short-term support following diagnosis, either through adapted Cognitive Behavioural Therapy (CBT) and/or prescription and stabilisation of medication for ADHD. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 119

How we align wider workforce and executive directors’ remuneration We have invested significantly in colleague(1) pay over the last few years to help large parts of the workforce with the cost-of-living crisis, as well as to deliver on our commitment to deliver fair levels of pay throughout the organisation. The remuneration policy supports a culture where individuals are rewarded for sustained performance and demonstrating the right behaviours. The same principles apply to everyone, adjusted to comply with local requirements. The principles are designed to: Pay for executive directors is aligned with the wider workforce, with two main differences: (i) the use of RSP awards; and (ii) a requirement to maintain a holding of shares in NatWest Group, both during and after employment. These differences are deliberate and recognise that it is in the best interests of our stakeholders for executive directors to have a significant proportion of their remuneration paid in shares and subject to long-term shareholding requirements. (1) Colleagues mean all permanent employees and, in some instances, members of the wider workforce e.g. temporary employees and agency workers. 1 support a performance culture – we recognise colleagues’ skills and experience, the responsibilities of their job and their geographic location. Ultimately, we pay for performance, underpinned by a robust performance management process; 2 be market facing – we benchmark ourselves against peers and ensure our pay is fair, competitive and affordable; and 3 ensure compliance and governance – our reward design must be within policy, meet the expectations and requirements of our regulators and be appropriately aligned with the expectations of our shareholders and customers. Fixed pay Provided to all colleagues Applies to certain jobs Provided to some Material Risk Takers (MRTs) only All colleagues are eligible under the scheme Mainly manager grade and above including executive directors Executive directors and members of senior executive committees Variable pay Wider workforce remuneration Salary and Benefit funding pension funding Role-based allowances Sharing in Success Annual bonus RSP All colleagues Certain colleagues depending on location, grade or job Senior executives only Base salary & pension funding Sharing in Success Benefits and share plans Role–based allowances Annual bonus share plans RSP awards A competitive level of salary paid in cash and reviewed annually. Set to reflect the talents, skills and competencies that the individual brings to the business. Additional funding is provided which colleagues can use to save in a company pension scheme. UK colleagues receive pension funding at 10% of base salary. Rates in other locations reflect local market practice. We launched our new Sharing in Success scheme in 2023, to recognise the contribution of all colleagues to our success and the achievement of our purpose-led strategic goals. Subject to performance criteria being met, awards will be delivered to colleagues in NatWest Group shares. Awards will have a maximum value of £1,500 per colleague (adjusted for local salary levels). Some colleagues receive funding which they can use towards the cost of benefits or take as cash. Benefits offered include life assurance, critical illness protection, private medical cover and childcare vouchers. Individuals in some jurisdictions can also join share plans, providing an efficient way to buy NatWest Group shares and align their interests with our shareholders. Role–based allowances reflect the skills and experience required for certain jobs. These are part of fixed remuneration for regulatory purposes. They are delivered in cash and/or shares depending on the level of the allowance and the seniority of the recipient. Shares are released in instalments over a minimum three-year period with a five-year period applying to executive directors. We reward individuals for delivering superior performance in line with risk appetite. The bonus pool is based on a scorecard of measures across our core strategic areas and our purpose. Allocation from the pool depends on the performance of the business area and the individual. Awards are made in cash and/or shares with larger amounts paid out over several years. Encourages sustainable long-term performance. Awards are delivered entirely in shares to align with shareholders’ interests. Checks take place before grant and again after three years to ensure sustained performance has been achieved. Awards are paid out over eight years in total to encourage long-term thinking when making decisions. RSP participants are also subject to shareholding requirements. Wider workforce support in 2023 continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 120

Wider workforce support in 2023 continued We listen to our colleagues and shareholders regularly, and use their feedback to inform our approach to remuneration. Colleague Advisory Panel (CAP) Our CAP continues to be an effective way to strengthen the colleague voice in the Boardroom, by enabling our colleagues to directly engage in two-way discussions on topics important to them. By connecting colleagues directly with the Board, this deepens our understanding of colleague sentiment. The CAP is chaired by Roisin Donnelly, one of our non-executive directors, and she is joined by at least two additional board members in every CAP meeting. CAP membership is refreshed regularly and it currently comprises 28 colleagues who are self-nominated and are representative of the bank’s population e.g., business area, level, location, working pattern and employee-led networks. Following each CAP session, a report summarising the key points discussed is presented at the next Board meeting. Roisin will then hold a follow-up call with CAP members to share highlights and feedback from the Board discussion. In 2023, CAP meetings were held in May and November. Topics are either chosen by CAP or are requested by Board, and in 2023 have included ESG, Consumer Duty, human rights and our standing annual item: executive and wider workforce remuneration. Short presentations are held on each topic, followed by smaller group discussions between CAP members and Board members to allow for questions and debate. The May 2023 meeting included our annual standing agenda item focusing on executive and wider workforce remuneration. Lena Wilson, non-executive director and Chair of the Group Performance and Remuneration Committee, gave a presentation to the CAP covering the directors’ remuneration policy as well as the latest colleague sentiment on reward, a summary of the support provided by the bank during the cost-of-living crisis, the alignment of wider workforce and executive pay and how it supports our strategy. Lena also highlighted our Fair Pay Charter which sets out our commitment to pay all our colleagues competitively and transparently, and noted our reward policy is updated according to the current and future needs of the business. Engaging with our colleagues and wider stakeholders Discussion was also held on how remuneration covers more than just pay and includes employee benefits and schemes such as Sharing in Success. CAP members asked questions about the new Sharing in Success scheme, such as how colleagues contribute to the bank’s goals. Members also suggested some additions for future Sharing in Success communications to make the scheme clear for all colleagues and were also interested in the progress being made on our gender pay gap. The CAP confirmed the presentation from Lena was well received, and the panel felt better informed and had an increased understanding of executive pay and its link to wider workforce pay. Stakeholder engagement outcomes Every year we undertake an engagement programme with our major shareholders and other stakeholders before the committee makes its final decisions on pay. In late 2023 and early 2024, we engaged with a number of our institutional shareholders, UK Government Investments, proxy advisers and the UK regulators and discussed our approach to remuneration for the year. The meetings were generally positive with the committee Chair and senior members of management explaining our pay philosophy and no material concerns were raised. Stakeholders were interested to hear NatWest Group’s reflections on the UK government’s removal of the bonus cap for UK banks and noted we do not propose any immediate changes to our executive director pay in response to it. Wider workforce initiatives were also discussed, including the first year of operation of the Sharing in Success scheme and the changes to NatWest Group’s approach to performance management. Other recurring topics in meetings included our treatment of potential windfall gains, the measurement of bonus pool performance, the use of ESG metrics in remuneration and the retention and recruitment of talent. Investors also continued to stress the importance of clear disclosures to assist their view of our approach to pay. Regular engagement with colleagues – Our colleague opinion survey (Our View) allows people to have a say on what it feels like to work at NatWest Group. 84% of our colleagues took part in the latest survey, our highest ever participation rate. – Colleague sentiment on reward remained strong in 2023, with improvements in all reward questions from 2022 scores. The overall category ‘Total Reward’ in Our View increased by four percentage points to 77 percentage points – 9% above the Global Financial Services Norm (GFSN) and 3% above the Global High Performance Norm (GHPN). Specifically, there was an increase of seven percentage points from 2022 of colleagues who felt they are paid fairly for the work they do, taking NatWest Group 7% above the GFSN and 1% above the GHPN for that question. – Regular question and answer sessions take place between colleagues and senior executives throughout the year. – Feedback from colleagues forms part of the purpose, culture and people measures that impact pay. – We also consult with our employee representative bodies on remuneration at relevant points during the year. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 121

Aligning remuneration with our culture In determining performance outcomes, we consider both the achievements made and how they have been delivered. Our Code of Conduct sets out clear expectations of appropriate behavioural standards, supported by our values. Each job has defined behaviours set out in our Critical People Capabilities which directly link to our purpose and values. If a colleague’s behaviour falls below these expectations, this will be reflected in their performance conversations, fixed pay progression and variable pay decisions (where their role is eligible). The governance of culture is clearly laid out with specific senior manager roles having defined accountabilities which are reflected in their performance and pay decisions. Creating a diverse, equitable and inclusive workplace is integral to fulfilling our purpose. Performance measures to support progress in this area affect the pay of executive directors, senior management and other bonus-eligible colleagues. We have a target for full gender balance in CEO-3 positions and above globally by the end of 2030. As at 31 December 2023, we had 41% of women in our top three layers, an increase of 1 percentage point since 2022. This represents an increase of 12 percentage points since targets were introduced in 2015.(1) Adjusting remuneration in light of new information An accountability review process allows NatWest Group to respond where new information would change our variable pay decisions made in previous years and/or the decisions to be made in the current year. The process is used to apply commensurate ex-post risk adjustments to variable pay, where material failure of risk management, material error or employee misbehaviour are identified. Malus provisions allow us to reduce the amount of any unvested variable pay awards, potentially to zero, prior to payment. Clawback can be used to recover variable pay awards that have already vested and we can also apply in-year bonus reductions to adjust variable pay that would otherwise have been awarded for the current year. The circumstances in which we may make adjustments include: – conduct which results in significant financial losses for NatWest Group; – an individual failing to meet appropriate standards of fitness and propriety; – an individual’s misbehaviour or material error; – NatWest Group or the individual’s business unit suffering a material failure of risk management; and – for malus and in-year bonus reduction only, circumstances where there has been a material downturn in financial performance. This list is not exhaustive and further circumstances may be considered where appropriate. Our existing Malus and Clawback Policy has been amended to comply with the new executive incentive compensation clawback rule introduced by the U.S. Securities and Exchange Commission. NatWest Group is in scope of the requirement as it has a listing on Wider workforce support in 2023 continued Introduced in 2018, our ethnicity target is to have 14% of colleagues from ethnic minority groups in CEO-4 and above positions in the UK by end of 2025. As at 31 December 2023, of 84% of colleagues who disclosed their ethnicity, we have an aggregate 13% of colleagues from ethnic minority groups in our CEO-4 and above positions. This represents a 5 percentage point increase since targets were introduced(1) and a 2 percentage point increase from 2022. Pay equality, including neutrality in respect of protected characteristics such as sex and race, is a core feature of our approach to support fair pay across NatWest Group. Further information on our workforce approach You can find the latest gender and ethnicity pay gap reporting for NatWest Group together with the steps being taken to address the position in the ’Diversity, equity and inclusion’ section of the Strategic report and at natwestgroup.com. The ‘Colleagues’ section of the Strategic report and our ESG Disclosures Report set out further information on how we are helping colleagues to thrive and realise their potential, including supporting their learning and wellbeing, and creating an inclusive workplace. the New York Stock Exchange. The rule requires companies to establish and enforce policies to recover excess incentive compensation from individuals defined as “executive officers”, which at NatWest Group includes the executive directors, if amounts were based on material misstatements in financial reports. As disclosed in our 2021 Directors’ remuneration report, we have been undertaking an accountability review into the events that led to the breaches of the Money Laundering Regulations 2007. This work has now concluded and whilst we have concluded that the individuals in scope were not accountable on an individual level, we recognise that the issues represent a collective failure. As a consequence, we have decided to apply a collective adjustment under our Employee Share Plan rules to the relevant senior executive committee members who were in role in 2016 when the issues were first identified and who were not impacted by the actions we have already taken – most notably in 2021 when the fine was handed down. Colleagues who were bonus eligible in 2021 were impacted by a material downward adjustment to the 2021 bonus pool to reflect the fine imposed on NatWest Bank Plc; and those individuals on senior executive committees had the awards granted to them in respect of 2021 reduced to mirror the bonus pool adjustment. The bonus pool adjustment was apportioned across all business areas to reflect the impact on the bank’s financial performance and to reinforce to colleagues the need to ensure the effective management of financial crime. We recognise that the senior executive committees drive the firm’s culture and sets its strategy, so it is appropriate that the colleagues in role when the failures occurred are impacted in the same way that the 2021 population were. As such, we have replicated the adjustment applied to the senior executive committee members in 2021 to ten ex-colleagues through the application of malus or clawback and the issuance of reduction notices where awards have been bought out by other UK banks. No further adjustments were deemed necessary for current colleagues. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION (1) See footnote (8) on page 130 for further information. NatWest Group 2023 Annual Report on Form 20-F 122

The Policy was approved by shareholders at the AGM on 28 April 2022 and will apply until the 2025 AGM unless changes are required. There are no changes requiring shareholder approval at this time. A summary of the Policy is set out below together with how the Policy supports alignment with Provision 40 of the UK Corporate Governance Code (the Code). The full Policy can be found under the Governance section of natwestgroup.com. Purpose and link to strategy Operation Maximum opportunity Alignment with Provision 40 of the Code Base salary Providing fair levels of base salary supports the recruitment and retention of high-calibre executives to develop and deliver strategic priorities. Base salary is paid monthly in cash and reviewed annually. Rates are determined based on the individual’s role, skills and experience and are benchmarked against market and peer practice. Any salary increases will not normally be greater than the average salary increase for NatWest Group employees over the period of the Policy. Other than in exceptional circumstances, an executive director’s salary will not increase by more than 15% over the course of the Policy. Risk Base salary is set at a competitive level which means there is less reliance on variable pay. This helps to discourage excessive risk-taking. Alignment with culture Base salary increases generally aligned to, or lower than, the average increase for the wider UK workforce. Fixed share allowance Additional fixed pay that reflects the skills and experience required as well as the complexities and responsibilities of the role. A fixed allowance paid entirely in shares. Individuals receive shares that vest immediately subject to any deductions for tax purposes. Shares are released on a pro-rata basis over five years from the date of each award. The directors are entitled to any dividends paid on the shares. An award of shares with an annual value of up to 100% of base salary at the time of award. Risk The fixed share allowance further supports the delivery of a balanced remuneration policy, with a suitable mix of fixed and variable pay. The allowance also creates alignment with the experience of shareholders given it is paid entirely in shares. Benefits Providing a range of flexible and market competitive benefits that colleagues value and that help them carry out their duties effectively. Executive directors can select from a range of standard benefits including a company car, private medical cover, life assurance and critical illness insurance. Travel assistance is provided in connection with company business, including the use of a car and driver. Security arrangements may be put in place where that is deemed appropriate. NatWest Group will meet the cost of any tax due on these benefits. A set level of funding for standard benefits (currently £26,250 per annum). We disclose the total value of benefits provided each year in the Annual remuneration report. The maximum value of benefits will depend on the type of benefit and the cost of providing it, which will vary according to market rates. Proportionality A competitive benefits offering, which can be tailored to individual circumstances, together with broader support for executive directors to assist them in carrying out their duties. Pension Encouraging planning for retirement and long-term savings. A monthly pension allowance of 10% of salary paid in cash. This allowance can be used, along with other elements of pay, to participate in a pension scheme. Alignment with culture Standard pension rates for executive directors are aligned with the rate offered to the wider workforce. Mr Thwaite has confirmed that, following his permanent appointment to the role of Group CEO, he will become a deferred member of the defined benefit scheme as soon as reasonably practicable and can choose to join NatWest Group’s defined contribution pension arrangements. Summary of the Policy for executive directors STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION No increase to base salaries is proposed for 2024. See the implementation of the Policy for 2024 on page 135 for details. The standard pension allowance rate is the same as that applicable to the vast majority of the UK workforce (currently 10% of base salary). Mr Thwaite was a member of NatWest Group’s defined benefit pension scheme prior to becoming an executive director, and when appointed as Group CEO in July 2023 he continued to participate on the same terms as applicable to him in his previous role based on the legacy provisions of the Policy, see page 126 and 127 for more information. NatWest Group 2023 Annual Report on Form 20-F 123

Purpose and link to strategy Operation Maximum opportunity Alignment with Provision 40 of the Code Annual bonus Supporting a culture where individuals are rewarded for the delivery of superior performance, with measures and targets reflecting NatWest Group’s strategic priorities and purpose. Performance is assessed based on a range of financial and non-financial measures that encourage long-term value creation. Awards are subject to malus and clawback adjustments to support long-term decision making. – financial measures account for between 50% and 60% of the annual bonus opportunity. – non-financial measures account for at least 30% and personal measures may be used up to a maximum of 10% of the scorecard. – awards will be delivered 50% in shares and 50% in cash. – awards will be deferred in combination with RSP awards to meet regulatory requirements. – a post-vesting retention period will apply to the amount delivered in shares (currently 12 months). – malus provisions apply prior to vesting and clawback applies for seven (and potentially up to ten) years from the date of award. Bonus awards will be granted up to a maximum value of 100% of base salary. The value of awards can also reflect a discount for long-term deferral, in line with regulatory guidelines. The level of the award can vary between 10% for threshold performance and 100% for maximum performance. Target performance will pay out at 50% of maximum. Clarity There is clarity on how performance will be assessed and the expected behaviours. We provide transparency through detailed disclosure and engage with shareholders as well as the workforce on our approach to executive pay. Simplicity Most of the remuneration for executive directors is share-based and subject to deferral and retention requirements, which creates simple and significant alignment with our shareholders. Risk We take risk into account at various stages of the performance assessment process, with underpins and malus and clawback provisions to adjust awards if necessary. Predictability RSP award levels are intended to be more predictable and linked to long-term performance, helping to support prudent risk management. Proportionality Variable pay cannot be awarded above the level of fixed pay. We believe this is a restrained and proportionate approach to executive remuneration. Alignment to culture Variable pay is subject to sustainable performance and progress against our purpose-led strategic goals. Payments are made over many years to encourage long-term thinking. Shareholding requirements further align the interests of executive directors with the returns to shareholders. RSP awards Supporting sustainable performance over a multi-year period. Awards are delivered entirely in shares over many years to create simple and effective alignment with shareholders over the long term. Malus and clawback provisions discourage excessive risk-taking and other inappropriate behaviours. – an award will be granted provided performance has been satisfactory over the prior year. – after three years, performance will be assessed against pre-determined underpin criteria. – awards will vest in combination with annual bonus awards to meet regulatory requirements for deferral (currently between three to seven years after grant). – a post-vesting retention period will apply (currently 12 months). – malus provisions apply prior to vesting and clawback applies for seven (and potentially up to ten) years from the date of award. – the number of shares for RSP and bonus awards may be calculated using a price that is discounted to reflect the absence of the right to receive dividends or dividend equivalents during the vesting period. RSP awards will be granted up to a maximum value of 150% of base salary. The value of awards can also reflect a discount for long-term deferral, in line with regulatory guidelines. Subject to the underpin criteria, the vesting level of RSP awards can vary between 0% and 100% of the original number of shares granted. Shareholding requirements Executive directors must build and continue to hold a significant shareholding both during and after employment. – shares and unvested awards count on a net-of-tax basis towards the requirement once any performance assessment has taken place. – on leaving, shares must be held for a period of two years and procedures are in place to enforce the requirement. CEO – 500% of salary. CFO – 300% of salary. Summary of the Policy for executive directors continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION You can find the proposed performance measures and weightings for the 2024 financial year on page 136. The expected vesting level is 100% of maximum with safeguards in place to ensure there are no payments for failure. See page 137 for further information on RSP awards to be granted for the 2024 financial year. NatWest Group 2023 Annual Report on Form 20-F 124

Remuneration for the Chairman and non-executive directors Purpose and link to strategy Operation Maximum opportunity Fees Competitive fees that reflect the skills, experience and time commitment required for the role. Fees are set at an appropriate level to attract individuals with the attributes needed to oversee the Board’s strategy. The level of fees is reviewed regularly. Additional fees may be paid for new Board Committees provided these are not greater than fees payable for the existing Board Committees. No variable pay is provided so that the Chairman and non-executive directors can maintain appropriate independence. The rates for the year ahead are set out in the Annual remuneration report. Any increases to fees will not normally be greater than the average inflation rate or salary increases for the wider workforce. Other than in exceptional circumstances, fees will not increase by more than 15% over the course of the Policy. Benefits Providing a level of benefits in line with market practice. The Chairman and non-executive directors are entitled to travel assistance in connection with company business including the use of a car and driver. NatWest Group will meet the cost of any tax due on the benefit. Other benefits may be offered in line with market practice. The Chairman is entitled to private medical cover and life insurance cover provided the Board considers the costs to be reasonable. The value of the private medical and life insurance cover for the Chairman, as well as other benefits, will be in line with market rates and disclosed in the Annual remuneration report. Other policy elements for Directors Element Operation Recruitment policy When recruiting new directors, the Policy aims to be competitive and to structure pay in line with the framework applicable to current directors, recognising that some adjustment to quantum may be necessary to secure the preferred candidate. A buy-out policy exists to replace awards forfeited or payments forgone, which is in line with regulatory requirements. Notice and termination provisions Under service contracts, NatWest Group or the executive director is required to give 12 months’ notice to the other party to terminate the employment. There is discretion for NatWest Group to make a payment in lieu of notice (based on salary only). The Chairman and the non-executive directors do not have notice periods and no compensation will be paid in the event of termination, other than standard payments for the period served up to the termination date. Non-executive directors have letters of appointment instead of service contracts and are appointed for three years initially. At the end of this term, a further three-year term may be agreed, and non-executive directors may be invited to serve beyond six years, up to a maximum tenure of nine years. The Chairman is subject to the Code’s requirements relating to the maximum tenure period for chairs. All directors stand for annual election or re-election by shareholders at the AGM. Effective dates of appointment for directors Howard Davies – 14 July 2015 Frank Dangeard – 16 May 2016 Yasmin Jetha – 21 June 2017 Paul Thwaite – 25 July 2023 Roisin Donnelly – 1 October 2022 Stuart Lewis – 1 April 2023 Katie Murray – 1 January 2019 Patrick Flynn – 1 June 2018 Mark Seligman – 1 April 2017 Rick Haythornthwaite – 8 January 2024 Lena Wilson – 1 January 2018 Treatment of outstanding share plan awards on termination On termination, we will treat awards in accordance with the relevant plan rules or other terms on which they were granted. Any deferred annual bonus awards that are unvested will normally lapse on leaving unless good-leaver circumstances apply, in which case the awards will normally continue to vest on the original vesting dates. In good-leaver circumstances, individuals will be eligible to be considered for an annual bonus award for their final year of employment. RSP awards that are unvested will normally lapse on leaving unless specified good-leaver circumstances apply. For good leavers, awards are pro-rated for time served during the three-year performance period and will normally continue to vest on the original vesting dates. Individuals will not be eligible to be considered for an RSP award for their final year of employment. Summary of the Policy for executive directors continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Fees can be paid in cash, shares or a combination of the two. From 2023, a portion of fees are used to purchase shares under a new shareholding policy for the Chairman and the non-executive directors. Further details are set out on page 137. NatWest Group 2023 Annual Report on Form 20-F 125

Annual remuneration report Single total figure of remuneration for executive directors for 2023 (audited) Paul Thwaite (1) Alison Rose (2) Katie Murray 2023 2022 2023 2022 2023 2022 £’000 £’000 £’000 £’000 £’000 £’000 Base salary 458 – 647 1,117 782 761 Fixed share allowance 458 – 647 1,117 782 761 Benefits 34 – 92 82 30 30 Pension 0 – 65 112 78 76 Total fixed remuneration 951 – 1,452 2,428 1,673 1,628 Annual bonus 245 – – 643 409 416 Long-term incentive 508 – – 2,178 859 1,597 Sharesave 2 – – n/a 3 n/a Total variable remuneration 755 – – 2,821 1,271 2,013 Total remuneration 1,706 – 1,452 5,249 2,944 3,641 (1) Mr Thwaite was appointed as Group CEO on 25 July 2023. Remuneration above includes fixed pay since appointment as Group CEO and annual bonus in respect of period as Group CEO, together with the estimated vesting value of the full 2021 LTI award, including the value relating to the performance period prior to appointment. Notes to the single figure table Mr Thwaite has confirmed that, following his permanent appointment to the role of Group CEO, he will now become a deferred member of the defined benefit scheme as soon as reasonably practicable and can choose to join NatWest Group’s defined contribution pension arrangements. Fixed share allowance: The fixed share allowance is based on 100% of salary and, as part of fixed remuneration, is not subject to any performance conditions. Benefits: Includes standard benefit funding at £26,250 per annum. The 2023 values reflect updated methodology for benefit calculations for travel assistance. For Mr Thwaite this includes travel assistance in connection with company business (£21,113) and assistance with home security (£1,700). For Ms Murray it includes travel assistance in connection with company business (£405) and assistance with home security (£3,349). For Ms Rose it includes travel assistance in connection with company business (£67,956) and assistance with home security (£9,618). Pension: The executive directors receive a monthly pension allowance of 10% of base salary. Mr Thwaite has been an active member of NatWest Group’s defined benefit pension scheme. For participating in this scheme, he was required to exchange part of his fixed pay. This was equivalent to 23.6% of his salary in respect of his services as Group CEO for FY23. This equated to £108,383 (made up of his 10% pension allowance £45,833 plus an additional amount of £62,549 of fixed pay). He also made member contributions to the scheme of 1.7% of salary, equivalent to £7,643 in respect of his services as Group CEO for FY23. The value of the defined benefit pension for the period Mr Thwaite was an executive director is based on the capitalised pension accrual (net of CPI inflation) during the period less the direct employee contribution referenced above (£7,643). Due to the limit applied to increases in pensionable salaries and the CPI inflation figure required to be used in the calculation, the outcome of this calculation was negative £111,562. Sharesave: Figures represent our employee share plan Sharesave. For Mr Thwaite this includes a gain when shares under options were exercised and sold. For Ms Murray, options were exercised but not sold and the value therefore represents the notional gain based on the difference between the closing share price on the date of exercise and the exercise price. Sharesave options are not subject to performance conditions. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION (2) Reflects fixed remuneration paid to Ms Rose for the period to 25 July 2023, the date she stepped down from her role. In line with Ms Rose’s service agreement, payment of her fixed pay elements are being made for her contractual notice period, which will end on 26 July 2024. See page 135 for further details. As the aggregate value of these elements is negative, in line with the DRR regulations, the amount included within the single figure is zero. Annual bonus: In determining bonus awards for 2023, the committee assessed performance against financial, strategic and personal measures as set out on page 128. Long-term incentive: The 2023 value relates to LTI awards granted in 2021. Ms Rose voluntarily confirmed she did not wish to receive a LTI award for the 2020 performance year to signify that NatWest Group was aware of the need to demonstrate responsibility on pay, due to the magnitude of events relating to COVID-19. For Mr Thwaite and Ms Murray, the committee assessed performance prior to vesting and also considered whether the outcome could represent a windfall gain, as set out on page 131 and 132. NatWest Group 2023 Annual Report on Form 20-F 126

Annual remuneration report continued Pension – additional disclosure to the single total figure table Mr Thwaite has been an active member of the Main Section of the NatWest Group Pension Fund and his membership predated his Board appointment. He joined the Fund from The Royal Bank of Scotland Staff Pension Scheme (RBSSPS) as part of a 2002 merger with the National Westminster Bank Pension Fund. The RBSSPS was a defined benefit pension arrangement and was available to all employees recruited by the Royal Bank of Scotland at the same time as him. The Main Section is a funded defined benefit pension scheme that was closed to new joiners in 2006 and the future service contribution rate is currently 47.2% of salary. Since 2009, increases to pensionable salaries have been subject to a maximum annual increase of the lower of the increase in CPI, 2% and the member’s basic salary increase. The terms applicable to Mr Thwaite, in line with the terms applicable to all other employees who joined the Royal Bank of Scotland at the same time, were as follows: – Normal Pension Age is age 60 unless members have chosen a Normal Pension Age of 65. For Mr Thwaite, the Normal Pension Age is 60 which normal retirement date is 20 September 2031. – On retirement at Normal Pension Age, members are entitled to a pension, based on their service, up to a maximum of two thirds of final pensionable salary (subject to an Earnings Cap which is £205,200 for the tax year starting 6 April 2023 and increases annually broadly in line with increases in RPI) less a state pension offset from their State Pension Age. – Mr Thwaite’s pensionable salary as at 31 December 2023 was £140,042 and his accrued pension as at this date was £62,047. – Members retiring on the grounds of ill-health are normally entitled to an unreduced pension based on service to Normal Pension Age. – From age 55, members are entitled to leave the bank and with the consent of the bank receive a pension reduced to reflect its early payment (unless this was at the request of the bank, in which case there will be no reduction). – On death in service, the following benefits are payable to dependants: – a lump sum of four times the lower of basic salary and the Earnings Cap (£205,200 for the tax year starting 6 April 2023 and increases annually broadly in line with increases in RPI) plus a refund of any voluntary pension contributions paid to the Fund; – a dependant’s pension of 50% of the member’s pension entitlements based on service to Normal Pension Age less a state pension offset from the recipient’s State Pension Age; and – children’s pensions totalling up to 50% (or 100% if no other dependant) of the member’s pension entitlement. – On death after retirement, the following benefits are payable to dependants: – if within the first five years of retirement, a lump sum equal to the balance of five years’ instalments of the pension in payment; – a dependant’s pension of 50% of the member’s pension entitlement at death had they not given up any for a lump sum at retirement less a state pension offset from the recipient’s State Pension Age; and – children’s pensions totalling up to 50% (or 100% if no other dependant) of the member’s pension entitlement. – Pensions in payment will increase each year by the lower of 3% and the increase in the Retail Price Index other than where legislation requires a higher amount. – Members must contribute 2% of their Contribution Salary to the Fund. For Mr Thwaite this equated to 1.7% of salary. Mr Thwaite has confirmed that, following his permanent appointment to the role of Group CEO, he will become a deferred member of the defined benefit scheme as soon as reasonably practicable and can choose to join NatWest Group’s defined contribution pension arrangements. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 127

Annual remuneration report continued Annual bonus performance assessment for 2023 The committee considered performance against financial and strategic non-financial measures set to reflect our purpose-led strategy as well as personal performance by the executive directors. Bonus awards of 50% of maximum would be expected to be made for the achievement of target performance. The outcome of the assessment against the measures and targets under the bonus scorecard is set out in full on the next page. Mr Thwaite received a separate discretionary award in respect of the portion of 2023 when he was CEO of the Commercial & Institutional franchise. Further details of this award are not included within this report as it does not relate to his time as an executive director. In respect of his bonus for the CEO role, the committee noted that Mr Thwaite quickly and effectively took leadership of NatWest Group and provided stability in challenging circumstances. He successfully handled business as usual matters as well as complex risk events over the second half of the year. Mr Thwaite has also successfully established relations with regulators and investors since his appointment. The committee also noted his support for and from his direct reports. Ms Murray was also considered to have delivered good overall performance with strong engagement with investors throughout the year, and building a viable yet ambitious financial plan for 2024. The committee noted that good progress had been made on key programmes this year, which resulted in a clear plan for 2024 earlier than normal, and constructive engagement in challenging existing commitments. There had also been progress on building bench-strength in Finance. The bonus scorecard takes into account the context in which performance was delivered. The committee considered a downward risk modifier which enables risk performance to be assessed and awards reduced, potentially to zero. Downward adjustments of 0.71% were applied to Mr Thwaite and 0.46% to Ms Murray to reflect risk performance against core goals, balanced by strong leadership behaviours. The committee believed the final outcome reflected the considerable achievements by the executive directors through a challenging year and therefore no further discretion was applied to the resulting award levels. As the transition period for the Policy has ended, the maximum bonus award was set at 100% of base salary. The final bonus amounts are set out below and awards will be made in early 2024, spilt equally in cash and shares. Malus and clawback provisions apply to the awards and the shares will be subject to a 12-month retention period. Maximum award Final bonus award Award level % Paul Thwaite £458,333 £245,438 53.55% Alison Rose – – – Katie Murray £782,213 £409,097 52.30% STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION In line with leaving arrangements as disclosed on page 135, no bonus will be paid to Ms Rose in respect of service during 2023. NatWest Group 2023 Annual Report on Form 20-F 128

Annual bonus performance assessment for 2023 Annual bonus measures Minimum (10% payable) On target (50% payable) Maximum (100% payable) Weighting Weighted outcome Financial (60%) Group RoTE (1) (3) 14.0% 15.7% 17.4% 30% 14.17% Group underlying income excluding notable items (2) (3) £13.8 billion £14.8 billion £15.8 billion 10% 3.16% Group operating expenses, excluding litigation and conduct costs £7.7 billion £7.6 billion £7.5 billion 10% 2.84% Progress to medium-term capital target (4) n/a n/a 10% 5.00% Strategic (35%) Climate Climate and sustainable funding and financing (£100 billion between 1 July 2021 and end of 2025) £24.5 billion £25.3 billion £26.2 billion 5% 5.00% Implementation of the initial Climate transition plan (6) Four sectors on target plus one of two AUM and Retrofit milestones 5% 2.75% Customer Aggregated view of Net Promoter Score (NPS) and Customer Touchpoint Rating for our brands (7) Meet target on average 10% 4.80% Purpose, culture and people Purpose score (Our View) 74 87 89 3.33% 3.33% Culture score (Our View) 71 80 82 3.33% 3.33% Percentage of females in top three layers of the organisation (globally) (8) 39% 42% 44% 1.67% 0.62% Percentage of colleagues from ethnic minority backgrounds in top four layers (UK) (8) 9% 12.5% 14.5% 1.67% 1.05% Enterprise and capability Supporting diverse enterprise, prioritising support for harder to reach groups (9) Support 35,000 businesses through enterprise programmes with 275,000 customer interactions to start, run and grow a business. 1.66% 1.35% Number of young adults engaged in enterprise and entrepreneurship activity 47,800 50,000 57,500 1.66% 1.62% Number of financial capability interactions which require active engagement, give knowledge or skills or change behaviour (10) 3.72 million 4 million 4.6 million 1.66% 1.24% Personal measures (5%) Discretionary assessment at year end for both Mr Thwaite, Group CEO and Ms Murray, Group CFO Strong performance by both directors was recognised across core areas. 5% 4.0% (CEO) 2.5% (CFO) Downward risk modifier (0-100%) Downward risk modifier of 0.71% applied for Mr Thwaite, Group CEO, and 0.46% for Ms Murray, Group CFO, to reflect risk performance against core goals, balanced by strong leadership behaviour Final outcome post risk modifier 53.55% (CEO) 52.30% (CFO) Performance achieved in 2023 The reconciliation to the reported figures and footnotes for the table above is set out on the next page. Achieved 15.6% Achieved £29.3bn in 2023 Implementation on target Achieved 90 Achieved 83 Achieved 41% Achieved 13.0% 45,263 businesses supported 300,771 customer interactions Achieved 57,155 Achieved 4.3m interactions from key initiatives Target met on average Achieved £14.3bn Achieved £7.64bn Achieved 13.4% Annual remuneration report continued CET1 target range of 13-14% STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 129

Reconciliation to reported figures and footnotes Amount Group RoTE Group underlying income excluding notable items Reported figure 17.8% £14.3 million Gains from interest and FX risk management derivatives not in accounting hedge relationships and own credit adjustments £77 million (5) (0.2%) Timing of FX and/or conduct losses £256 million (5) (1.0%) Deferred tax asset and tax rate £225 million (0.9%) Figures used in bonus scorecard 15.6% £14.3 million (1) For the purpose of assessment under the bonus scorecard, adjustments are made to the published RoTE to exclude material factors outside management’s control. Items will only be adjusted if this results in an impact of at least 0.25% to the RoTE figure. For performance year 2023, these include: a. Gains from interest and FX risk management derivatives not in accounting hedge relationships, own credit adjustments, and the timing of FX and litigation and conduct charges; and b. Deferred tax asset and effective tax rate changes. (2) For income, no adjustments are required to the reported figure for gains from interest and FX risk management derivatives not in accounting hedge relationships, own credit adjustments, and FX losses as notable items are already excluded from the definition of the reported figure. (3) For RoTE and income, the impact of changes in base rate from that assumed at the beginning of the year net of associated changes in customer behaviour resulting in a deposit balance mix shift is below the materiality threshold for adjustment. (4) Capital has been assessed on a qualitative basis against the range. (5) Amounts quoted are pre tax whereas RoTE impacts are post tax. (6) Minimum (10% payable) – three sectors on target. On target (50% payable) – four sectors on target with one of the two Assets Under Management (AUM) and Retrofit milestones achieved. Maximum (100% payable) – five sectors on target with both of the two AUM and Retrofit milestones. Achieved – Four sectors on target and both milestones (AUM and Retrofit). As a result we have exceeded our target. Recognising the relative importance of the sectors element of the target, 55% (of the 5%) has been awarded. For more information on climate metrics please refer to our Climate-related Disclosures Report, sections 5.3 and 7.1. (7) As NPS is not available for NatWest Markets, an internal Customer Touchpoint Rating (CTR) is applied to assess NatWest Markets’ customer performance. The aggregated view reflects the contribution of each franchise to NatWest Group’s income. Targets: Consumers: Improve NatWest Retail Main Bank NPS to +23 or 3rd (from +22 and 3rd). Businesses: Improve NatWest Business Banking £0-750k NPS to -6 or 3rd (from -8 and 3rd) and maintain NatWest Commercial Mid-Market £750k+ NPS at +17 or 1st. Wealth: Improve Premier NPS to +31 or 3rd (from +29 and 3rd). Achieve Coutts NPS (12MR) of +36 (from +38) or Coutts NPS (3MR) of +49 (from +28). RBSI: Maintain NPS of +35. NatWest Markets: maintain average CTR of 72%. We met or exceeded 5 out of the 7 customer goals set for 2023. The weighted average rating across these 7 targets mean that the Customer outcome is 4.80%. (8) NatWest Group’s management structures were revised during 2023. For the purpose of remuneration reporting, the representation targets were set based on the management structures in place at the start of the FY2023 with performance assessed at 31 December 2023. (9) Enterprise target aimed at supporting the recovery and prioritising support for harder to reach groups with higher barriers to entering and growing a business. The support was to be distributed as follows: 75% support to UK regions outside London & South East, 50% support to females, 20% support to individuals from ethnic minority backgrounds, Minimum target: 32,550 businesses and 269,000 interactions, Maximum target: 40,250 businesses and 316,250 interactions (same percentage distribution as target). (10) Key initiatives are: MoneySense, Financial Health Checks, Spending Feature and Know My Credit Score. Please see page 8 of the ESG Disclosures Report for Spending Feature measurement approach. Annual remuneration report continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 130

2021 LTI award – Pre-vest performance assessment framework LTI awards were made in early 2021 following an assessment of performance over the 2020 financial year. Before vesting, the committee carries out a further review to consider whether anything has come to light which might call the original award into question. Internal control functions and PwC, as independent advisers, the Group Board Risk Committee (BRC) and the Group Sustainable Banking Committee (SBC) support the committee in this assessment, with the outcome set out below. Looking back to performance for 2020 and ‘knowing what we know now’, has NatWest Group Where the answer is ‘Yes’, three further questions are considered: 1. Is the underperformance due to factors within management’s reasonable control in the circumstances? 2. Can the underperformance be linked back to the performance year to which the award relates, rather than to performance developments since? 3. Is it appropriate to reflect the underperformance in the current pre-vest test (i.e. if the underperformance has not been adequately reflected in other ways such as subsequent pre-grant tests and awards in the interim)? If the answer to each of these questions is “Yes”, the committee may decide that a reduction on pre-vest is appropriate, and it has the discretion to decide the amount. Further analysis Whilst some customer metrics have declined since 2020, these are due to market factors and are not related to 2020 performance. Given this, there was no deterioration in financial, customer, risk and culture performance that would merit a reduction prior to vesting. The committee noted the investigation of Financial Crime and CDD remediation had resulted in adjustments to prior LTI vestings through the risk underpin. Since the timeline for financial crime return to appetite had not worsened over the course of 2023, no further adjustments were considered necessary as part of the 2021 LTI pre-vest assessment. (1) As disclosed in 2022, the LTI pre-vest culture assessment is now assessed using ‘Our View’, NatWest Group’s internal colleague opinion survey, following the closure of the FSCB and its survey. Achievement of ‘threshold level of sustainable performance’ has been evidenced. No adjustment proposed, subject to underpins to consider any significant risk, stakeholder or reputational matters not already captured in the performance assessment, with advice from the BRC and the SBC. The underpins also allowed the committee to consider events arising during the period between grant and the end of year 3. 1. Remained safe and secure, taking into account financial results and the capital position? Has NatWest Group breached a minimum capital ratio over the period? NO NatWest Group has remained well capitalised since 2020. Has there been a material fall in the NatWest Group share price over the period? NO The share price has risen since the end of 2020. Has Net Promoter Score (NPS) fallen across the business? Some declines Declines in certain limited areas which are driven by external factors. Have there been indicators of a material deterioration in the risk culture or profile, taking into account annual assessments by the Risk function and the BRC? NO No material deterioration in risk culture or profile since 2020. YES NO Has the culture index from Our View fallen materially?(1) NO No material deterioration in culture scores, with scores maintained since 2020. NO No material deterioration in purpose-linked indicators. 2. Been a good bank for customers taking into account customer and advocacy performance? 3. Operated in an environment in which risk is seen as part of the way we work and think? 4. Operated in a way that reflects its stated values and Purpose? Annual remuneration report continued Has there been a material deterioration in Purpose-linked indicators since the performance year in question? Potential under-performance? Analysis Evidenced by… Core questions STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 131

Annual remuneration report continued Vesting of 2021 LTI awards (audited) Ms Rose had informed the Board she did not wish to receive an LTI award for the 2020 performance year, recognising the magnitude of events relating to COVID-19. LTI awards were granted to Mr Thwaite and Ms Murray in March 2021 in respect of performance year 2020. Prior to the award being granted to Mr Thwaite and Ms Murray, reductions of 55.2% and 54.5% respectively were applied to the maximum award as a result of the pre-grant performance assessment with a further reduction to reflect the impact of COVID-19 on our pay decisions that year. This resulted in LTI awards of £403,000 for Mr Thwaite and £682,000 for Ms Murray. The pre-grant performance reductions were made as risk, customer and enterprise performance in 2020 were not fully at the desired level. At the end of 2023, a further assessment took place to review whether anything had come to light which might call into question the original award. The pre-vest assessment found that there had been no material deterioration in financial, customer, risk and culture performance since grant. Overall, the data indicated that the required level of sustainable performance had been achieved and no further reductions were made to the 2021 LTI awards under the pre-vest test. The committee also considered the potential application of risk and stakeholder perception underpins, which included a detailed discussion of whether the vesting outcome could result in potential windfall gains. The committee used our pre-disclosed framework and a range of other factors to assess windfall gains and believed there was a strong rationale for not making any adjustment. A summary of the position from grant to vest is set out below along with the estimated vesting values for the 2021 LTI award, which is used in the single total figure of remuneration table. The shares will vest in equal amounts between 2024 and 2028, followed by a 12-month retention period. Malus and clawback provisions also apply. Alison Rose Paul Thwaite Katie Murray 2021 LTI Award Shares Value Shares Value Shares Value Maximum opportunity – – 537,442 £900,000 895,737 £1,500,000 Reduction for pre-grant test – – 296,787 £497,000 488,475 £818,000 Award granted – – 240,655 £403,000 407,262 £682,000 Reduction for pre-vest test – – – – – – Amount post performance tests – – 240,655 £403,000 407,262 £682,000 Increase in value due to share price – – – £104,518 – £176,876 Estimated vesting value – – – £507,518 – £858,876 (1) Share price used to determine the number of awards was £1.6746. This was determined using the share price at grant of £1.866 which was discounted to reflect the absence of the right to receive dividends or dividend equivalents during the vesting period, in line with the shareholder approved Policy. The estimated vesting value was based on share price of £2.1089, the average over the three-month period from October to December 2023. Windfall gains As previously disclosed in the 2020 Directors’ remuneration report, the committee has implemented a framework for the assessment of windfall gains when assessing the vesting of the 2021 LTI gains prior to the vesting of our LTI awards. The committee considered the following factors: – the level of the grant price in comparison to pre COVID-19 levels – A pre-COVID reference price of £2.30 was used based on the price on the average share price across November and December 2019. Relative to this date the like-for-like(1) grant share price of £1.866 was 19% lower. It was noted this is less than 20%, the level above which further consideration would typically be given to an adjustment. It is also worth noting that the like-for-like grant share price was 10% higher than the price used for the 2020 grant. – the level of share price appreciation (if any) over the period up to vesting – During the pre-vest period following the grant of the 2021 LTI award, NatWest Group’s share price rose by 16%, which in our review did not give rise to a windfall gain to the executive directors. – consideration of whether share price appreciation was unique to NatWest Group and indicative of strong management performance – Share price growth of 16% over this period in our view largely reflects the improvement in the financial performance of NatWest Group as reflected in the profit and RoTE performance during the pre-vest performance during the pre-vest period. – whether any reduction had been applied to award levels at pre-grant. The NatWest Group LTI construct was different to a more traditional LTIP construct as the main performance assessment took place prior to grant. Under this assessment, the March 2021 LTI grants to Mr Thwaite and Ms Murray(2) for performance year 2020 were reduced to 44.8% and 45.5% of maximum respectively. The reduction reflected both performance during the year and significant further pay restraint to reflect the impact of COVID-19. The committee considered this was another important consideration in making any windfall gain assessment. Considering the above, the committee concluded that no windfall gain had arisen and that no further adjustment was required to be made to the 2021 LTI awards prior to vesting. (1) The 2021 LTI grant price was discounted for the first time to reflect the absence of dividends or dividend equivalents over the vesting period, in line with the Policy. For the purpose of the above analysis the ‘like-for-like’ grant share price of £1.866 used in the analysis represents the share price undiscounted for the lack of dividends. (2) Ms Rose confirmed she did not wish to receive an LTI award for the 2020 performance year which the committee determined to be £899,000 as noted in the 2020 Directors’ remuneration report. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 132

Annual remuneration report continued Scheme interest – RSP awards granted during 2023 (audited) Grant date Face value Award price (1) Shares awarded (2) Vesting levels Performance requirement Paul Thwaite 07-Mar-23 £937,501 £2.2055 425,074 Between 0% – 100% with no set minimum vesting The award was subject to a pre-grant assessment of performance over 2022. The committee will make a further assessment at the end of the three-year performance period for Mr Thwaite and Ms Murray (covering financial years 2023 to 2025) to determine whether sustainable performance has been achieved. Before vesting, the outcome will be reviewed by the committee using the underpin criteria below, as well as their broader discretion. Alison Rose (3) 07-Mar-23 £1,395,627 £2.2055 632,794 Katie Murray 07-Mar-23 £951,565 £2.2055 431,451 (1) The award price shown is calculated as the average share price over the five days prior to the grant date, discounted to reflect the absence of the right to receive dividends or dividend equivalents during the vesting period, in line with the Policy. For reference, the full market price of NatWest Group shares at the time of grant for the 2023 RSP awards was £2.9216. (2) The conditional share awards granted to Mr Thwaite relate to his remuneration arrangements as CEO C&I, prior to becoming an executive director. For Ms Murray, the award of conditional shares equated to 125% of base salary. The number of shares was calculated taking into account performance and the maximum potential award. The award price was based on the average share price over five business days prior to grant. Subject to the pre-vest assessment, these awards will vest in equal amounts between years 2026 and 2030. Service conditions and malus provisions apply up until vest, and clawback provisions apply for a period of at least seven years from the date of grant. RSP awards to be granted for 2023 (audited) RSP awards are granted provided the committee considers performance over the prior year has been satisfactory, based on an assessment against our internal performance management framework. The determination of whether satisfactory performance has been achieved is based on our internal ratings scale (1 to 5) with a rating of 3 or above normally resulting in the RSP award being granted at maximum. A 3 rating means performance goals have been fully achieved throughout the year and behaviours have been demonstrated at the required level. Performance against regulatory accountabilities is also considered. The maximum RSP award under the Policy is limited to 150% of base salary. Mr Thwaite and Ms Murray both received ratings of 3 for 2023, meaning performance goals were fully achieved or exceeded and behaviours were demonstrated at the required level. All regulatory responsibilities were also met. Noting the achievements by both executive directors over the year and the subsequent performance ratings, the committee agreed that RSP awards would be granted at maximum, in line with the Policy. As a result, Mr Thwaite and Ms Murray will receive RSP awards of £1,215,774 and £1,173,319 respectively. The awards will be delivered entirely in shares and subject to conditions before vesting as well as significant holding periods to create long-term alignment with the experience of shareholders. Malus and clawback provisions will also apply. Pre-vest underpin The committee will make an assessment at the end of the three-year performance period (covering financial years 2024 to 2026) to determine whether sustainable performance has been achieved. Before vesting, the outcome will be reviewed using the underpin criteria below. Following the assessment, RSP awards may vest in full, in part or lapse in their entirety, with discretion to consider other factors and apply discretion before deciding the final vesting outcome. This will mitigate any potential unintended outcomes that might arise and ensure that there is a fair outcome. 2023 Pre-grant performance Year of grant Criteria before vesting The level of capital held relative to the maximum distributable amount. Total distributions paid relative to our distribution policy. Any material deterioration in the risk or regulatory compliance profile or control environment of NatWest Group, or a serious conduct or reputational event. Start of vesting Vests in equal amounts between 2027 and 2031, with a 12-month retention period after each vesting. 2024 2027 A sustainable level of performance over the period will be considered with reference to: 1 2 3 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION (3) In line with leaving arrangements as disclosed on page 135, all RSP awards granted during 2023 will lapse on the cessation of Ms Rose’s employment. In line with leaving arrangements disclosed on page 135, no RSP award will be granted to Ms Rose in respect of service during 2023. NatWest Group 2023 Annual Report on Form 20-F 133

Remuneration for the Chairman and non-executive directors in 2023 The Chairman’s composite fee was increased from £750,000 to £775,000 per annum and the basic Board fee was increased from £82,000 to £85,000 per annum from 1 May 2023. The increases were made after considering the fees paid by other major UK banks as well as salary Annual remuneration report continued Total remuneration for the Chairman and non-executive directors in 2023 (audited) Fees Benefits (1) Total 2023 2022 2023 2022 2023 2022 Chairman (composite fee) £’000 £’000 £’000 £’000 £’000 £’000 Howard Davies 767 750 6 14 772 764 Non-executive directors Frank Dangeard 277 268 2 3 279 271 Roisin Donnelly 118 21 6 6 124 27 Patrick Flynn 219 232 3 5 222 237 Morten Friis (2) 121 202 9 44 130 246 Yasmin Jetha 158 171 5 4 163 175 Stuart Lewis (3) 139 – 5 – 144 – Mike Rogers (4) 61 179 3 15 64 194 Mark Seligman 204 198 5 5 209 203 Lena Wilson (5) 278 205 11 17 289 222 increases for the wider workforce. The increases of 3.33% and 3.66% respectively were lower than the 6.4% average salary increase applied across our global workforce from April 2023, and broadly aligned with the executive directors’ 3% salary increases in April 2023. All other fee increases are detailed in the table below. A greater percentage increase was introduced for the Group Sustainable Banking Committee (SBC), reflecting the SBC’s expanded remit from 1 May 2023 following the disbandment of the Technology and Innovation Committee. The Colleague Advisory Panel (CAP) fee was unchanged at £15,000. All changes were within the scope of the Policy approved by shareholders and no directors were involved in decisions regarding their own remuneration. 2022 fees £ 2023 fees £ Increase £ Increase % Chairman – composite fee £750,000 £775,000 £25,000 3.33% Basic Board fee £82,000 £85,000 £3,000 3.66% Senior Independent Director (SID) (1) £34,000 £36,000 £2,000 5.88% Chair – GAC, BRC and RemCo £73,000 £75,000 £2,000 2.74% Chair – SBC £60,000 £65,000 £5,000 8.33% Member – GAC, BRC and RemCo £34,000 £35,000 £1,000 2.94% Member – N&G (2) £15,000 £16,000 £1,000 6.67% Member – SBC £30,000 £32,000 £2,000 6.67% NatWest Markets plc Chair – composite fee (3) £270,000 £280,000 £10,000 3.70% GAC (Group Audit Committee), BRC (Group Board Risk Committee), RemCo (Group Performance and Remuneration Committee), N&G (Group Nominations and Governance Committee), SBC (Group Sustainable Banking Committee). (1) The SID fee was increased to reflect additional responsibilities relating to Chair succession and to align more closely with market comparators. (2) The fees for N&G members were increased in light of increased Board recruitment activity. (3) For the Chair of NatWest Markets plc, the fees were increased at a broadly equivalent rate to the basic Board fee increase in percentage terms. (1) The benefits column for Howard Davies, Chairman, includes private medical cover, life cover and expenses in connection with attendance at Board meetings. There was a COVID-19-related private medical cover refund of premiums in 2023 due to a reduction of services in prior years, which resulted in a drop in the cost of the benefit, although this is expected to return to more typical rates in 2024. Non-executive directors are reimbursed expenses incurred in connection with travel and attendance at Board meetings. (2) Morten Friis stepped down from the Board on 31 July 2023. (3) Stuart Lewis was appointed to the Board with effect from 1 April 2023. (4) Mike Rogers stepped down from the Board on 25 April 2023. (5) Fees for Lena Wilson include a one-off additional fee of £37,500 for undertaking, at the request of the Board, an additional oversight and coordination role in relation to matters arising from the account closure arrangements at Coutts and associated events. This included holding extensive additional meetings between July 2023 and November 2023 with management and other stakeholders to review and discuss relevant matters and overseeing the preparation of proposals for consideration by the board committees. This is a one-off payment for 2023 reflecting the exceptional events of 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION For NatWest Group plc Board directors who also serve on the boards and committees of NatWest Holdings Limited, National Westminster Bank Plc and The Royal Bank of Scotland plc, the fees below reflect membership of all four boards and their respective Board Committees. Directors may also receive fees for membership of other subsidiary company boards and committees, the value of which would be included below. No variable pay is provided to the Chairman and non-executive directors. You can find further details of board and committee members and their attendance at meetings in the Corporate governance report on page 82. NatWest Group 2023 Annual Report on Form 20-F 134

Annual remuneration report continued Implementation of remuneration policy in 2024 Pay arrangements Salary (1 Jan 2024) Salary (1 Apr 2024) Standard benefits (1) Pension(2) Fixed share allowance(3) Maximum bonus award for 2024(4) Maximum RSP award for 2024(5) Paul Thwaite £1,050,000 £1,155,660 £26,250 10% of salary 100% of salary £1,142,243 £1,713,364 Katie Murray £787,950 £787,950 £26,250 10% of salary 100% of salary £787,950 £1,181,925 (1) Amounts shown relate to standard benefit funding. Executive directors are also entitled to benefits such as travel assistance and security arrangements in line with the Policy. We will disclose the value of benefits received each year. Executive directors are eligible to participate in all-employee share plan arrangements on the same basis as colleagues. (3) Fixed share allowance is payable broadly in arrears, currently in four instalments per year. The shares will be released in equal amounts over a five-year period. (4) The maximum bonus award under the Policy is set at 100% of base salary and is calculated on salary earned over the year. The award is expected to vest at 50% where on-target performance is achieved across the scorecard. (5) The maximum RSP award under the Policy is set at 150% of base salary and is calculated on salary earned over the year. The award is normally expected to vest in full, subject to underpin criteria that will ensure there is no payment for failure. The maximum value of the RSP award receivable by the Group CEO and Group CFO for 2024 would increase to £2,570,046 and £1,772,888 respectively in the event there was a 50% increase in the NatWest Group plc share price over the RSP three-year period from grant to vest. Annual bonus performance assessment for 2024 The annual bonus scorecard will be based on weighted performance measures and appropriately stretching targets across financial and non-financial areas that align with our purpose-led strategy. For 2024, financial performance will represent 60% of the scorecard with target ranges set in line with the budget. Non-financial measures will be focused across climate, customer, purpose, culture and people, and enterprise and capability. These measures represent an aggregate of 35% of the scorecard and reflect our ESG priority areas as well as the importance of good customer outcomes. The remaining 5% will be assessed on Personal measures based on a discretionary assessment of the performance of each executive director over the year. A downward Risk modifier will also apply, enabling risk performance to be assessed and awards reduced, potentially to zero. Threshold and maximum targets will be disclosed retrospectively at the end of the performance period in the 2024 Directors’ remuneration report, alongside the actual level of performance achieved and associated narrative. No award will be made if threshold performance, as determined by the committee, is not achieved. The level of the award to be paid will vary between 10% for threshold performance and 100% for maximum performance. Target performance will pay out at 50% of maximum opportunity. All assessments of performance are subject to the committee’s judgement to determine the appropriate outcome. Discretion will only be used by the committee when the application of the formulaic performance outcome drives an unrepresentative outcome or when it is necessary to take into account strategic, economic or societal impacts that were not or could not have been accounted for at the point of agreeing the bonus scorecard. Payments for loss of office and payments to past directors (audited) Alison Rose stepped down as Group CEO by mutual agreement with effect from 25 July 2023. In line with Ms Rose’s service agreement, she will continue to receive her fixed pay elements for her contractual notice period, which will end on 26 July 2024 in line with the terms of our approved Policy. For this purpose, her fixed pay elements consist of salary of £1,155,660 per annum, fixed share allowance of £1,155,660 per annum, pension allowance of £115,566 per annum, and contractually agreed benefits of £26,250 per annum. In addition, no bonus or variable remuneration will be paid to Ms Rose in respect of service during 2023. Ms Rose’s shareholding requirement will continue to apply for a period of two years from her date of cessation of employment. In accordance with the terms of the Policy, under the settlement agreement contributions towards Ms Rose’s legal fees and outplacement support were agreed. This was £395,000 plus VAT for legal fees and £60,000 plus VAT for outplacement support. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION In accordance with the terms of the Policy and our share plan rules, any awards due to vest after cessation of her employment on 26 July 2024 will lapse on that date. There is no change to the vesting schedule of her awards. Details of outstanding share awards are included in the scheme interests table of page 133. The value of unvested share awards, as at 31 December 2023, was £5,147,914. This value differs from that previously disclosed in the Section 430(2b) Companies Act 2006 Statement on 10 November 2023 as it is based on an updated share price. The final value of any lapsed share awards will depend on the share price on 26 July 2024. Both executive directors will receive annual bonus and RSP awards in March 2024 in respect of the 2023 performance year. You can find details of these awards on pages 128 and 133. In December 2023, the committee agreed that no salary increases would apply from 1 April 2024 for the Group CEO, who had been appointed for an initial period of 12 months, and Group CFO. This compares to an average salary increase for the global workforce at 4%. Mr Thwaite has since been appointed permanently into the Group CEO role with effect from 16 February 2024. His salary element was reviewed in accordance with the Policy and set at £1,155,660. This sets Mr Thwaite’s fixed pay at the same level as the fixed pay previously paid for the Group CEO role prior to his appointment in July 2023. Pay arrangements for the 2024 performance year are set out below. (2) Mr Thwaite was a member of NatWest Group’s defined benefit pension scheme prior to becoming an executive director and continued to participate on the same terms as applicable to him in his previous role based on the legacy provisions of the Policy, see page 126 and 127 for more information. Mr Thwaite has confirmed that, following his permanent appointment to the role of Group CEO, he will become a deferred member of the defined benefit scheme as soon as reasonably practicable and can choose to join NatWest Group’s defined contribution pension arrangements. NatWest Group 2023 Annual Report on Form 20-F 135

Annual bonus performance measures and targets for 2024 Category Performance measures Target Weighting Financial Financial 60% Group RoTE. Target will be set with appropriate reference to our external guidance for RoTe. The targets set and the extent of their achievement will be disclosed in the 2024 Annual Report as the committee considers them to be commercially sensitive at this point in time. 30% Group underlying income excluding notable items. Target will be set with appropriate reference to our external guidance for income excluding notable items. The targets set and the extent of their achievement will be disclosed in the 2024 Annual Report as the committee considers them to be commercially sensitive at this point in time. 10% Group operating expenses, excluding litigation and conduct costs. Target to be in line with our external Group operating expenses guidance. 10% CET1. CET1 target range of 13-14%. 10% Non-Financial Strategic 35% Climate Climate and sustainable funding and financing. Implementation of the Climate transition plan. Target of £25.8 billion towards the £100 billion target. 1. Volume of customer engagement through carbon tracking, energy and retrofit journey tools; 2. Number of large customers for which the Customer Transition Plan Assessment (CTPA) is undertaken; and 3. % of in-scope AuM which align to a net zero trajectory. 10% Customer Net Promoter Score (NPS) and Customer Touchpoint Rating (CTR) for our brands. Consumers: Maintain NatWest Retail Main Bank NPS at +22. Businesses: Maintain NatWest Business Banking £0-750k NPS at -6 and maintain NatWest Commercial Mid-Market (£750k-£250m) NPS at +11 and maintain NatWest Large Corporate >£250m NPS at +19. Wealth: Maintain Premier NPS at +17. Improve Coutts NPS (12MR) to +34. RBSI: Improve NPS by 2 points on the new baseline to +43. NatWest Markets: Maintain average CTR of 75%. Also: Maintain RBSI NPS for Institutions to +44 and shared targets of Commercial Mid-Market NPS +11 and Large Corporate NPS +19. 10% Purpose, culture and people Progress against purposeful leadership targets. Progress against culture targets. Number of females in senior roles. Number of colleagues from ethnic minority backgrounds in senior roles. Purposeful leadership target from Our View = 84. Culture target from Our View = 83. Increase percentage in the top three layers to 43% on aggregate. Increase percentage in the top four layers in the UK to 13.5% on aggregate. 10% Enterprise and capability Support the sustainable growth ambitions of our customers through our wrap around support, knowledge and expertise. Prioritise support for harder to reach groups with higher barriers to entering and growing a business. To help 10 million people, per year, manage their financial wellbeing by 2027. To improve the financial wellbeing of young people and help them feel more confident about their future. Support UK businesses through enterprise programmes with 350,000 interventions to start, run and grow a business. In-person support (where measurement is possible; excluding digital) being distributed as follows: 75% to UK regions outside London & South East; 50% to females; 20% to Black, Asian and Minority Ethnic individuals. To help 7 million people to manage their financial wellbeing by the end of 2024. To reach 1 million young people in 2024. 5% Personal (5%) Discretionary assessment at year end for both executive directors. Group CEO performance is based on recommendation from Chair taking into account additional individual performance factors. Group CFO performance is based on recommendation from CEO taking into account individual performance goals. 5% Risk (0 – 100%) Risk performance assessment based on Group, NatWest Holdings, Functional (CFO only) and individual risk performance. Discretionary downwards modifier. 0-100% Annual remuneration report continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 136

Annual remuneration report continued RSP performance assessment for 2024 RSP awards are granted entirely in shares creating simple and effective alignment with the returns that shareholders receive over the long term. This is supported by annual bonus arrangements, which ensure that executive directors are also incentivised to deliver on the key strategic priorities of NatWest Group, with robust weighted performance measures as set out on the previous page. After the application of the pre-grant test and the pre-vest underpin, the RSP would be expected to pay out at 100% in the vast majority of cases to deliver the expected value under the Policy. Pre-grant test Executive directors will be granted an RSP award in 2025 provided the committee considers performance over 2024 has been satisfactory, based on an assessment against our performance management framework. Pre-vest underpin Chairman and non-executive directors’ shareholding policy and annual fees for 2024 From 1 January 2023, the Board introduced a formal shareholding policy for the Chairman and non-executive directors. The policy did not apply to directors who were due to step down from the Board within 12 months of 1 January 2023. Under the shareholding policy, NatWest Group retains a portion of the net monthly basic fees (10% for the Chairman and 25% for non-executive directors) which is used to purchase shares every quarter. The Chairman is required to build towards a shareholding equivalent to four times the basic annual Board fee (currently £340,000) and for non-executive directors the target is one times the basic annual Board fee (currently £85,000). Once the target is achieved, monthly deductions and quarterly purchases will continue at a reduced percentage of net monthly fees (5% for the Chairman and 10% for non-executive directors). The shares purchased under the shareholding policy are held in a nominee account with dividends reinvested and shares retained until the director steps down from the Board. We believe this is a progressive and proportionate approach to shareholder alignment that will provide consistency and ultimately higher levels of shareholdings for this cohort. It will also ensure there is a continuous element of shareholder alignment as the Chairman and non-executive directors will continue to acquire shares over their entire tenure. The annual fees applicable from 1 January 2024 are set out in the tables, with the fees delivered in a combination of cash and shares in line with the shareholding policy above. Fees for NatWest Group plc Board (1) Rates from 1 January 2024 Chair (composite fee) £775,000 Non-executive director basic fee £85,000 Senior Independent Director £36,000 Fees for NatWest Group plc Board Committees (1) Member Chair Group Board Risk Committee £35,000 £75,000 Group Audit Committee £35,000 £75,000 Group Performance and Remuneration Committee £35,000 £75,000 Group Sustainable Banking Committee £32,000 £65,000 Group Nominations and Governance Committee £16,000 – Other fees for NatWest Group plc Board directors Rates from 1 January 2024 Chair of NatWest Markets plc (composite fee to cover all boards and committees) £280,000 Chair of the Colleague Advisory Panel £15,000 (1) No additional fees are payable where the director is also a member of the boards and respective board committees of NatWest Holdings Limited, National Westminster Bank Plc and The Royal Bank of Scotland plc. Where appropriate, directors receive additional fees for membership of other subsidiary company boards and committees including NatWest Markets Plc. If applicable, we will disclose the value of fees received in this report each year. Other external directorships The Board must approve any additional appointments undertaken by directors outside NatWest Group. Steps are in place to make sure that directors comply with regulatory limits on the number of directorships held. The Board also considers whether it is appropriate for executive directors to retain any remuneration from any new external roles, depending on the appointment. You can find details of current external appointments in the biographies section of the Corporate governance report. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION RSP awards will not be subject to further performance conditions. However, before vesting, the committee will review the outcomes of the business against the underpin criteria. Details of the underpin criteria for the RSP award to be granted in respect of 2023 performance as well as the broader discretion available to the committee can be found on page 133. NatWest Group 2023 Annual Report on Form 20-F 137

Annual percentage change 2022 to 2023 2021 to 2022 2020 to 2021 2019 to 2020 Salary Benefits Annual Bonus Salary Benefits (1) Annual Bonus Salary Benefits (1) Annual Bonus Salary Benefits (1) Annual Bonus UK employees (2) 8.11% 9.65% 7.13% 5.20% 6.34% 42.48% 2.02% 4.68% 35.24% 2.86% 1.70% -32.40% Executive directors Paul Thwaite (3) – – – – – n/a – – n/a – – n/a Alison Rose (3) -42% -43% -100% 1.50% 0% n/a 0% 0% n/a – – n/a Katie Murray 3% 0% -2% 1.50% 0% n/a 0% 0% n/a 0% 0% n/a Chairman and non-executive directors Fees Benefits Annual Bonus Fees Benefits Annual Bonus Fees Benefits Annual Bonus Fees Benefits Annual Bonus Howard Davies (4) 2% -57% n/a 0% 8% n/a 0% 8% n/a 0% 9% n/a Frank Dangeard 3% -33% n/a 2% 200% n/a 1% 0% n/a 0% -75% n/a Roisin Donnelly (5) 462% 0% n/a – – n/a – – n/a – – n/a Patrick Flynn -6% -40% n/a 2% 400% n/a 0% -67% n/a 2% -70% n/a Morten Friis (5) -40% -80% n/a 3% 100% n/a 17% 214% n/a 14% -80% n/a Yasmin Jetha (5) -8% 25% n/a 1% 300% n/a 33% 100% n/a – – n/a Stuart Lewis (5) – – n/a – – n/a – – n/a – – n/a Mike Rogers (5) -66% -80% n/a 4% – n/a 1% -100% n/a 0% -83% n/a Mark Seligman 3% 0% n/a 4% 400% n/a 1% 0% n/a -4% -88% n/a Lena Wilson 36% -35% n/a 5% 240% n/a 8% 25% n/a 16% -64% n/a (1) Standard benefit funding for executive directors has remained unchanged. The figures above exclude any other benefits to executive directors such as travel assistance in connection with company business, the value of which is disclosed each year in the single total figure table. (2) NatWest Group plc is a holding company and is not an employing entity. The disclosure above compares the change in directors’ pay with all employees based in the UK. The data is based on the average full time equivalent salary and benefit costs of UK-based employees of NatWest Group, excluding the CEO and the CFO. This is considered to be the most representative comparator group, as it covers the majority of employees and the CEO and CFO are based in the UK. The average percentage change relates to salaries and benefits awarded in the respective financial years for UK employees and therefore may differ from figures quoted elsewhere in the report, for example, the proposed salary increases announced in December 2023 to be awarded from April 2024. (3) Paul Thwaite was appointed as Group CEO on 25 July 2023 and therefore the annual change comparison to 2022 is not applicable. Alison Rose stood down with effect from 25 July 2023. (4) The benefits column for Howard Davies, Chairman, includes private medical cover, the cost of which fell in 2023 due to a reduction of services in prior years but is expected to return to more typical rates in 2024. (5) Stuart Lewis joined the Board on 1 April 2023, Roisin Donnelly joined the Board on 1 October 2022 and Yasmin Jetha re-joined the Board on 1 April 2020, so there are no prior year comparisons. Mike Rogers and Morten Friis stepped down from the Board with effect from 25 April 2023 and 31 July 2023 respectively. Annual change in directors’ pay compared to average change in employee pay Remuneration for employees is based on salary, benefits and annual bonus. Executive directors receive fixed share allowances and, from the 2022 performance year onwards, annual bonus awards. The Chairman and non-executive directors receive fees rather than salary and do not receive annual bonus awards. We regularly review membership of Board Committees and changes in membership will impact the level of fees paid to non-executive directors from one year to the next. The benefits figures for non-executive directors can also change significantly year on year depending on the amount of travel undertaken in connection with Board meetings. The data for non-executive directors below reflects the value of benefits mainly falling in 2020 and 2021, due to less travel during the COVID-19 restrictions, before returning to more typical levels in 2022. Annual remuneration report continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 138

CEO to employee pay ratios The ratios below compare the total pay of the CEO, as set out in the single figure of remuneration table in this report, against the pay of three employees whose earnings represent the lower, median and upper quartiles of the UK employee population. A significant proportion of the CEO’s total remuneration is delivered through long-term incentive arrangements, linked to performance and share price movements, which means this part of the ratio can fluctuate significantly from one year to the next. None of the three employees identified this year received equivalent long-term incentive arrangements. Information based on salary only is included as a further comparison. The pay ratios reflect the diverse range of roles and pay levels across NatWest Group as a large financial services company. For the total remuneration comparison, the Annual remuneration report continued CEO to employee pay ratios Pay ratios Remuneration values (£000) Year Methodology P25 (LQ) P50 (Median) P75 (UQ) Calculation CEO Y25 (LQ) Y50 (Median) Y75 (UQ) 2018 A Total remuneration 143:1 97:1 56:1 Total remuneration 3,578 25 37 64 Salary only 44:1 30:1 19:1 Salary only 1,000 23 33 51 2019 A Total remuneration 175:1 118:1 69:1 Total remuneration 4,517 26 38 66 Salary only 44:1 30:1 19:1 Salary only 1,017 23 34 52 2020 A Total remuneration 99:1 66:1 39:1 Total remuneration 2,615 26 40 66 Salary only 46:1 31:1 20:1 Salary only 1,100 24 36 54 2021 A Total remuneration 130:1 87:1 51:1 Total remuneration 3,588 28 41 70 Salary only 44:1 29:1 20:1 Salary only 1,100 25 37 55 2022 A Total remuneration 177:1 119:1 71:1 Total remuneration 5,249 30 44 74 Salary only 42:1 28:1 19:1 Salary only 1,117 27 40 58 2023 A Total remuneration 95:1 64:1 39:1 Total remuneration 3,158 33 50 81 Salary only 38:1 25:1 17:1 Salary only 1,106 29 44 63 Supplementary information on the pay ratio table: (1) The data for 2023 is based on remuneration earned by Mr Thwaite and Ms Rose, as set out in the single figure of remuneration table in this report which details the pro-rated amount of Mr Thwaite’s annual bonus, together with the estimated vesting value of the full 2021 LTI award, including the performance period prior to appointment. (2) The employees at the 25th, 50th and 75th percentiles (lower, median and upper quartiles) were determined as at 31 December of the relevant year, based on full-time equivalent remuneration for all UK employees. This includes fixed pay (salary, pension funding and where relevant benefit funding and other allowances) and also any variable pay (based on the amount to be paid). For employees who work part time, fixed pay is grossed up to the full-time equivalent. (3) ‘Option A’ methodology was selected as this is considered the most statistically accurate method. UK employees receive a pension funding allowance set as a percentage of salary. Some employees continue to participate in the defined benefit pension scheme. For simplicity and consistency with prior years, we have included the pension funding allowance value in the calculation for all employees. (4) The data for the three employees identified has been considered and fairly reflects pay at the relevant quartiles among the UK employee population. Each of the three individuals was a full-time employee during the year and none received an exceptional award that would otherwise inflate their pay figure. median employee for 2023 works in Digital and the median pay ratio is consistent with the pay and reward policies for UK employees as a whole. We are determined to pay each individual a fair rate for the role performed, using consistent reward policies and offering opportunities for progression. We set out further information on our fair pay approach on natwestgroup.com. The change in the median pay ratio since 2018 is largely driven by the more volatile nature of performance-related pay for the CEO. In April 2020, Ms Rose decided to forgo 25% of her fixed pay for the rest of the year which contributed to the ratio falling in 2020 before rising in 2021. The median pay ratio then increased further in 2022 primarily due to Ms Rose receiving an annual bonus award for the first time under the new Policy and a higher vesting value for the LTI award, as a result of strong share price performance. As there was a change in Group CEO during the year, the data for 2023 is based on remuneration earned by Ms Rose and Mr Thwaite, as set out in the single figure of remuneration table. As the single figure table only includes the pro-rated amount of Mr Thwaite’s annual bonus award, the ratio may vary next year, depending on outcomes. Also, as Ms Rose voluntarily declined a LTI award in 2021, in relation to the magnitude of events relating to COVID-19, there was no vesting amount to include in her single figure of remuneration and this contributed to the pay ratio falling in 2023. The total remuneration and salary only for employees at the lower, median and upper quartiles has either remained stable or increased year-on-year. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 139

68.42% 20.92% 9.31% 1.34%. xx,xxx employees earned total remuneration up to £50,000 xx,xxx employees earned total remuneration between £50,000 and £100,000 x,xxx employees earned total remuneration between £100,000 and £250,000 xxx employees earned total remuneration over £250,000 Annual remuneration report continued Summary of remuneration levels for employees in 2023 Remuneration of Material Risk Takers (MRTs) in 2023 Each year, we disclose the remuneration paid to individuals whose activities have a material influence over NatWest Group’s performance or risk profile, known as MRTs. The disclosures are made in line with regulatory requirements and full details can be found in our Pillar 3 reports on natwestgroup.com. The tables below summarise the total pay for colleagues identified as MRTs for one or more entities across NatWest Group along with the number of individuals earning more than €1 million for the year. Note that the number of MRTs excludes colleagues who left NatWest Group prior to 31 December 2023 in line with regulatory requirements. Number of >€1m earners (1) Number of MRTs 686 €1.0 million to below €1.5 million 49 Remuneration (£millions) €1.5 million to below €2.0 million 15 Total fixed pay £201.06 €2.0 million to below €2.5 million 5 Total variable pay £103.98 €2.5 million to below €3.0 million 5 Total remuneration £305.05 €3.0 million to below €3.5 million – €3.5 million to below €4.0 million 1 €4.0 million to below €4.5 million – Total 75 (1) This information is disclosed in Euros in line with the requirements of the regulations. The disclosure of remuneration levels for employees includes anyone employed by NatWest Group during the year. 48,178 employees earned total remuneration up to £50,000 14,731 employees earned total remuneration between £50,000 and £100,000 6,555 employees earned total remuneration between £100,000 and £250,000 946 employees earned total remuneration over £250,000 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 140

Annual remuneration report continued Directors’ interests in NatWest Group plc shares (audited) Share interests held by Chairman and non-executive directors The shares purchased under the shareholding policy are held in a nominee account with dividends reinvested and shares retained until the director steps down from the Board. The shareholding requirement is expressed as a number of shares, which is calculated at the beginning of each year. This is the first year of the policy and the progress being made towards the shareholding requirement is in line with expectations. A number of the directors held shares prior to the policy’s introduction which has accelerated their progress. Paul Thwaite (5) Alison Rose (6) Katie Murray Shares held – beneficially owned (1) 571,862 2,516,174 763,090 Shares held – performance assessed unvested shares (2) 42,232 228,807 340,582 Total shares held counting towards requirements (3) 614,094 2,744,981 1,103,672 Shareholding requirement 500% of salary 500% of salary 300% of salary Position against requirement (4) 128% of salary 596% of salary 307% of salary (1) Shares owned beneficially as at 31 December 2023 or at the date of stepping down from the Board if earlier. Includes shares held by persons closely associated with the directors. (2) Share awards are also included for the purposes of the shareholding requirement once any performance assessment has been completed. All share awards are included net of taxes due to be paid on vesting. (3) As at 16 February 2024, there were no changes to the shares held as shown above for Mr Thwaite and Ms Murray. Ms Rose has received additional shares in respect of her fixed share allowance awards since stepping down as Group CEO. (4) For Mr Thwaite and Ms Murray, the position against the requirement was calculated as at 31 December 2023 based on the closing price of £2.1940 on 29 December 2023. For Ms Rose the position is calculated based on the closing price on the date of stepping down, 25 July 2023, of £2.5120. (5) On 25 July 2023, Mr Thwaite was appointed as Group CEO for an initial period of 12 months and was appointed permanently as of 16 February 2024. (6) For Ms Rose shares held are as at 25 July 2023 from when she stepped down from her role. The position against requirement for Ms Rose includes unvested share awards with a vest date up to 7 March 2024 only. Under the post-employment shareholding requirement, Ms Rose will be required to hold shares for a period of two years from her date of leaving, 26 July 2024, which will be calculated on this date. (1) Shares owned beneficially as at 31 December 2023 or at the date of stepping down from the Board if earlier. Includes shares held by persons closely associated with the directors. As at 16 February 2024, there were no changes to the shares held as shown above. (2) Shareholding requirement for 2023 equates to 122,617 shares for Howard Davies and 30,654 for other non-executive directors. These amounts were calculated based on the Board fee at the start of the year (£82,000) and a share price of £2.1675 on 28 December 2022. (3) Stuart Lewis was appointed to the Board with effect from 1 April 2023. (4) Mike Rogers stepped down from the Board on 25 April 2023, and Morten Friis stepped down from the Board on 31 July 2023. The shareholding policy does not apply to directors who stepped down from the Board within 12 months of 1 January 2023. The share interest for Mr Friis held is over 9,285 American Depositary Receipts representing 18,570 ordinary shares. (5) 36,585 shares are held in the name of M Seligman & Co Limited, of which Mr Seligman and Louise Seligman are shareholders. (6) For the Chairman and non-executive directors, a final share purchase under the shareholding policy for 2023 was made on 2 January 2024 and this has been included in the table above as it related to deductions from 2023 fees. Howard Davies Frank Dangeard Roisin Donnelly Patrick Flynn Morten Friis (4) Yasmin Jetha Stuart Lewis (3) Mike Rogers (4) Mark Seligman (4) Lena Wilson Shares held (1) 119,382 9,182 11,858 23,111 18,570 32,063 3,879 18,571 59,363 31,910 Shareholding requirement (2) 4x basic annual Board fee 1x basic annual Board fee 1x basic annual Board fee 1x basic annual Board fee N/A 1x basic annual Board fee 1x basic annual Board fee N/A 1x basic annual Board fee 1x basic annual Board fee Position against requirement 97% of target 29% of target 38% of target 75% of target N/A 104% of target 12% of target N/A 193% of target 104% of target STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Under the shareholding requirements, the Group CEO and Group CFO need to build up and maintain shares to the value of 500% of salary and 300% of salary respectively. The requirements apply both during employment and for two years after leaving, in line with best practice. Procedures are in place to enforce the shareholding requirements, and you can find further details on page 124. As set out on page 137, the Chairman and non-executive directors are also subject to a separate shareholding policy from 2023.(5) Under the shareholding policy, NatWest Group retains a portion of the net monthly basic fees (10% for the Chairman and 25% for non-executive directors) which is used to purchase shares every quarter. The shareholding requirement for the Chairman is four times the basic annual Board fee and for non-executive directors the target is one times the basic annual Board fee. Once the target is achieved, monthly deductions and quarterly purchases will continue at a reduced percentage of net monthly fees (5% for the Chairman and 10% for non-executive directors). NatWest Group 2023 Annual Report on Form 20-F 141

Share awards under share plans Year Awards held 1 Jan 2023 Awards granted Award price £ (5) Full market value at grant £ (5) Awards vested Awards lapsed Awards held 31-Dec-23 Expected vesting dates Paul Thwaite Sharesave (3) 2017 2,643 2.27 2,643 – Sharesave (3) 2018 3,169 1.89 3,169 – Deferred award (4) 2018 17,487 2.66 17,487 – Deferred award (4) 2019 38,871 2.64 19,437 19,434 (1) 07.03.24 Deferred award (4) 2020 90,377 1.70 30,127 60,250 (1) 07.03.24 – 07.03.25 LTI award 2021 240,655 1.67 1.87 240,655 (2) 07.03.24 – 07.03.28 LTI award 2022 410,492 1.82 2.23 410,492 (2) 07.03.25 – 07.03.29 RSP award 2023 425,074 2.21 2.92 425,074 (2) 07.03.26 – 07.03.30 Annual bonus/Deferred award (4) 2023 63,764 2.82 2.92 63,764 – 803,694 488,838 136,627 1,155,905 Total LTI and RSP awards subject to service 79,684 (1) Total LTI and RSP awards subject to performance and service 1,076,221 (2) Year Awards held 1 Jan 2023 Awards granted Award price £ (5) Full market value at grant £ (5) Awards vested Awards lapsed Awards held 25-Jul-23 Expected vesting dates Alison Rose (6) LTI award 2017 111,838 2.41 55,920 55,918 (1) 07.03.24 LTI award 2018 276,420 2.66 92,140 184,280 (1) 07.03.24 – 07.03.25 LTI award 2019 429,276 2.64 107,319 321,957 (1) 07.03.24 – 07.03.26 LTI award 2020 881,679 1.70 176,336 705,343 (1) 07.03.24 – 07.03.27 LTI award 2022 877,781 1.82 2.23 877,781 (2) 07.03.25 – 07.03.29 RSP award 2023 632,794 2.21 2.92 632,794 (2) 07.03.26 – 07.03.30 Annual bonus/Deferred award (4) 2023 113,820 2.82 2.92 113,820 – 2,576,994 746,614 545,535 2,778,073 Total LTI and RSP awards subject to service 1,267,498 (1) Total LTI and RSP awards subject to performance and service 1,510,575 (2) The footnotes for the tables above are set out on the next page. Annual remuneration report continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 142

Year Awards held 1 Jan 2023 Awards granted Award price £ (5) Full market value at grant £ (5) Awards vested Awards lapsed Awards held 31-Dec-23 Expected vesting dates Katie Murray Deferred award (4) 2018 26,795 2.66 26,795 – Deferred award (4) 2019 167,155 2.64 41,790 125,365 (1) 07.03.24 – 07.03.26 LTI award 2020 646,565 1.70 129,313 517,252 (1) 07.03.24 – 07.03.27 Sharesave (3) 2020 3,200 1.12 3,200 – LTI award 2021 407,262 1.67 1.87 407,262 (2) 07.03.24 – 07.03.28 LTI award 2022 580,885 1.82 2.23 580,885 (2) 07.03.25 – 07.03.29 RSP award 2023 431,451 2.21 2.92 431,451 (2) 07.03.26 – 07.03.30 Annual bonus/Deferred award (4) 2023 73,596 2.82 2.92 73,596 – 1,831,862 505,047 274,694 2,062,215 Total LTI, RSP and deferred awards subject to service 642,617 (1) Total LTI and RSP awards subject to performance and service 1,419,598 (2) (1) Performance assessment has taken place and awards remain subject to deferral and employment conditions before vesting. These awards count on a net-of-tax basis towards meeting the shareholding requirement. (2) Awards are subject to the pre-vest performance assessment along with deferral and employment conditions before vesting. See earlier in this report for the pre-vest assessment of the 2021 LTI award. The first vesting of this award is due to take place in March 2024, which will be reflected in next year’s table together with any shares lapsed for performance. (3) Sharesave options enable colleagues to save from their salary with an option to buy shares at the end of the savings period. The award price is the price at which shares can be bought. Sharesave options are normally exercisable for a period of six months from the maturity date at an option price that is discounted by up to 20% of the market value around the time of the award. (4) For annual bonus, shares were granted as an element of the up-front bonus awarded in March 2023 and vested in June 2023, in line with the Policy. For Mr Thwaite deferred awards from 2018 to 2023 relate to annual bonus awards granted for performance prior to becoming an executive director, with payments deferred in line with regulatory requirements. Similarly, for Ms Murray deferred awards from 2018 and 2019 relate to annual bonus awards granted for performance prior to becoming an executive director. (5) The award price shown from 2021 onwards is discounted to reflect the absence of the right to receive dividends or dividend equivalents during the vesting period, in line with the Policy. For reference, the full market price of NatWest Group shares at the time of grant is also shown. Annual remuneration report continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION (6) For Ms Rose figures are based on 25 July 2023. In line with leaving arrangements for Ms Rose as disclosed on page 135, any awards due to vest after the cessation of her employment on 26 July 2024 will lapse on that date. NatWest Group 2023 Annual Report on Form 20-F 143

Relative importance of spend on pay £m (% change on 2022) (1) Remuneration paid to all employees represents total staff expenses as per Note 3 to the consolidated financial statements, exclusive of social security and other staff costs. (2) Reflects distributions to shareholders through dividend payments during the financial year. The Board has confirmed its intention to pay a dividend of 11.5p per ordinary share in respect of financial year 2023, which will be paid in 2024 subject to approval by shareholders at the forthcoming Annual General Meeting. Statement of shareholder voting The resolutions to approve the Policy at the 2022 AGM and the Annual remuneration report from the 2023 AGM received strong levels of support, as set out below. Shareholder dilution and share sourcing NatWest Group can use new issue, market-purchase or treasury shares to deliver shares that are required for employee share plans. Best practice dilution limits are monitored and govern the number of shares that may be issued to satisfy share plan awards. Total Shareholder Return (TSR) performance The graph compares the TSR performance of NatWest Group with companies comprising the FTSE 100 Index over the last 10 years. We have selected this index because it represents a cross-section of leading UK companies. We have added the TSR for FTSE UK banks for the same period as a further comparison. CEO pay over the same period 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total remuneration (£000s) (1) PT 1,706 AR 1,401 2,615 3,588 5,249 1,452 RM 1,878 3,492 3,702 3,487 3,578 4,066 Annual bonus against maximum opportunity PT 54% AR 68% – (2) LTI vesting rates against maximum opportunity PT 45% AR 60% 82% 83% 78% – (3) RM 73% 62% 56% 89% 41% 78% Annual remuneration report continued Distributions to holders of ordinary shares(2) Distributions to holders of preference shares and paid-in equity Remuneration paid to all employees(1) 1,456 (+20.83%) 242 (-2.81%) 3,348 (+5.32%) 1,205 2023 2022 249 3,179 Distributions to holders of ordinary shares(2) Distributions to holders of preference shares and paid-in equity Remuneration paid to all employees(1) 1,456 (+20.83%) 242 (-2.81%) 3,348 (+5.32%) 1,205 2023 2022 249 3,179 Distributions to holders of ordinary shares(2) Distributions to holders of preference shares and paid-in equity Remuneration paid to all employees(1) 1,456 (+20.83%) 242 (-2.81%) 3,348 (+5.32%) 1,205 2023 2022 249 3,179 250 200 150 100 50 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FTSE 100 FTSE UK Banks NatWest Group Directors’ Remuneration Policy Vote Number of shares Percentage For 33,883,943,928 92.75% Against 2,649,384,392 7.25% Withheld 126,953,196 – Annual Remuneration Report Vote Number of shares Percentage For 32,683,776,892 97.35% Against 891,030,920 2.65% Withheld 142,525,464 – STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION (1) CEOs are Paul Thwaite (PT), Alison Rose (AR) and Ross McEwan (RM) with figures based on the single figure of remuneration for the relevant year. (2) In line with leaving arrangements as disclosed on page 135, Ms Rose did not receive a bonus in respect of service during 2023. (3) Ms Rose informed the Board she did not wish to receive an LTI award for the 2020 performance year, recognising events relating to COVID-19. NatWest Group 2023 Annual Report on Form 20-F 144

The Group Performance and Remuneration Committee Principal areas of focus of 2023 Jan Feb April Sept Dec Wider workforce Approving and overseeing the NatWest Group-wide Remuneration Policy. Considering how pay has been allocated across the workforce, including analysis by colleague level, geography and diversity. Reviewing fixed pay proposals. Approving Sharesave offers to colleagues. Reviewing performance over the year and approving bonus pools for the business areas. Reviewing gender and ethnicity pay gap reporting. Executive remuneration Reviewing performance assessments and remuneration arrangements for the committee’s ‘in-scope’ population. Setting performance objectives for senior executives for the year ahead. Approving the outcomes of variable pay awards. Approving remuneration for senior hires and arrangements for any leavers. Engaging with stakeholders on our remuneration proposals. Reviewing and approving the Directors’ remuneration report. Receiving benchmarking data on executive pay and peer practice. Governance and regulatory Approving agenda planners and ensuring the committee is meeting all its obligations under its terms of reference (ToR). Considering matters escalated by other Board Committees and subsidiary Performance and Remuneration Committees. Overseeing the MRT identification process. Receiving accountability review updates and approving accountability decisions for the population within its governance. Carrying out the annual evaluation of their performance as a committee. The Committee also approves submissions made throughout the year to the UK regulators outside the formal meetings, as required. Annual remuneration report continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 145

Annual remuneration report continued The Group performance and remuneration committee continued Membership Role of the Committee The terms of reference (ToR) of the committee is reviewed annually and available on natwestgroup.com. The committee is responsible for: – approving the remuneration policy for all colleagues and reviewing the effectiveness of its implementation; – reviewing performance and making recommendations to the Board on arrangements for executive directors; – approving remuneration for a defined ‘in-scope’ population comprising members and attendees of the senior Executive Committees and direct reports of the CEO, control function heads and the Company Secretary. The committee also approves arrangements where individuals earn total compensation above £1 million; and – setting the remuneration framework and principles for colleagues identified as Material Risk Takers. Operation of the policy The remuneration policy operated as intended during the year, with decisions taken in line with NatWest Group’s approval matrix. A paper summarising the operation of the policy is presented to the committee each April. In addition, pay awarded to executive directors for 2023 fully reflected NatWest Group performance for the year. Managing conflicts To mitigate potential conflicts of interest, directors are not involved in decisions regarding their own remuneration. It is the committee, rather than management, that appoints remuneration advisers. Attendees also play an important role in advising the committee but are not present when their own remuneration is discussed. The Group Chief People & Transformation Officer may be present when discussions take place on senior executive pay, as there is considerable benefit from her participation. However, she is never present for discussions of her own remuneration. Committee advisers PricewaterhouseCoopers LLP (PwC) was first appointed as remuneration adviser by the committee in 2010 and reappointed in 2022, following an annual review of the quality of advice and the level of fees. Following a full tender process earlier in 2023, Korn Ferry (KF) was appointed by the committee as the new remuneration adviser to the committee, effective September 2023. To enable a smooth handover, KF and PwC worked together to provide remuneration advice to the committee throughout the remainder of 2023. KF will become the committee’s lead adviser from March 2024. The professional services PwC provides in the ordinary course of business include assurance, advisory, tax and legal advice to NatWest Group subsidiaries. KF provide executive/professional search services alongside HR advisory services including assessment services and organisational strategy services to NatWest Group subsidiaries. PwC and KF are signatories to the voluntary code of conduct in relation to remuneration consulting in the UK. The committee is satisfied that the advice received is independent and objective, and receives annual statements from PwC and KF setting out the steps taken to maintain independence. There are no connections between PwC, KF and individual directors to be disclosed. Fees paid to PwC and KF for advising the committee are based primarily on a fixed fee structure with any additional items charged on a time/cost basis. Fees for 2023 in relation to directors’ remuneration for PwC and KF amounted to £211,506 (2022 – £186,945) and £19,000 respectively excluding VAT. The committee also took account of the views of the Chairman, the Group CEO, the Group CFO, the Group Chief People & Transformation Officer, the Director of Reward & Employment, the Group Chief Risk Officer, the Group Chief Audit Executive and other support and control functions. The committee also received input from the BRC, the GAC, the SBC and the Performance and Remuneration Committees for the principal legal entities across NatWest Group. In addition, the committee received external legal advice from Clifford Chance on a small number of matters throughout the year. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION All members of the committee are independent non-executive directors. In order to be considered for the role of committee Chair, an individual must first have served on a remuneration committee for at least 12 months. During 2023, the committee continued to be chaired by Lena Wilson, who has been a member since April 2020. Mike Rogers stepped down from the Board and the committee on 25 April 2023. Frank Dangeard and Mark Seligman were members throughout 2023. The committee held five scheduled meetings in 2023 and a further eight ad hoc meetings. You can find further details of members and attendance in the Corporate governance report on page 82. NatWest Group 2023 Annual Report on Form 20-F 146

Compliance report Internal control The Board of directors is accountable for the system of internal controls that is designed to maintain effective and efficient operations, compliant with applicable laws and regulations. The system of internal controls is designed to manage risk to an acceptable residual level rather than to eliminate it entirely. Systems of internal control can only provide reasonable and not absolute assurance against material misstatement, fraud, or any other loss. Ongoing processes are in place for the identification, evaluation and management of the principal risks faced by NatWest Group operated throughout the period from 1 January 2023 to 16 February 2024, the date the directors approved the Annual Report and Accounts. These included the bi-annual Control Environment Certification process, which requires senior members of the executive and management to assess the adequacy and effectiveness of their internal control frameworks which supports certification that their business or function is compliant with the Internal Control over Financial Reporting (Sarbanes-Oxley Section 404) regulatory requirements and with the requirements of the UK Corporate Governance Code section on Risk Management and Internal Controls (section C.2). The policies that govern these processes – and reports on internal controls arising from them – are reviewed by the Board and meet the requirements of the Financial Reporting Council’s Guidance on Risk Management, Internal Control and Related Financial and Business Reporting. NatWest Group operates a three lines of defence model for the ownership, oversight and assurance of its risks and internal control environment. Management across the organisation are the first line of defence and, therefore, are the primary owners of the risk and are responsible for the design, implementation and maintenance of effective processes, procedures, and controls to manage the risks within risk appetite. The Risk function is the second line of defence which exercises oversight and challenge of the risk management activities undertaken by the first line of defence. The Internal Audit function, which is the third line of defence, undertakes independent and objective assurance activities on the governance, risk management and internal controls to monitor and manage risks to enable In respect of Provision 33, the Board also considers that this is a matter which should rightly be reserved for the Board, and this is an approach the Board has adopted for a number of years. Remuneration for the executive directors is first considered by the Group RemCo which then makes recommendations to the Board for consideration. This approach allows all non-executive directors, and not just those who are members of the Group RemCo, to participate in decisions on the executive directors’ and the Chairman’s remuneration and also allows the executive directors to input to the decision on the Chairman’s remuneration. The Board believes this approach is very much in line with the spirit of the Code and no directors are involved in decisions regarding their own remuneration. A copy of the Code can be found at frc.org.uk. The Board does not anticipate any changes to its approach in relation to Provisions 17 and 33 of the Code. Further information on how NatWest Group plc applied the Principles, and complied with the Provisions of the Code can be found in the Corporate governance section of this report, which includes cross-references to relevant sections of the Strategic report and other related disclosures. NatWest Group plc has complied in all material respects with the Financial Reporting Council Guidance on Audit Committees issued in September 2012 and April 2016. Under the US Sarbanes-Oxley Act of 2002, specific standards of corporate governance and business and financial disclosures and controls apply to companies with securities registered in the US. NatWest Group plc complies with all applicable sections of the US Sarbanes-Oxley Act of 2002, subject to a number of exceptions available to foreign private issuers. The Group Audit Committee also complied with the requirements of the FRC’s Audit Committees and the External Audit: Minimum Standard and the Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Committee Responsibilities) Order 2014 for the year ended 31 December 2023. Statement of compliance NatWest Group plc is committed to high standards of corporate governance, business integrity and professionalism in all its activities. Throughout the year ended 31 December 2023, NatWest Group plc applied the Principles and complied with all of the Provisions of the UK Corporate Governance Code issued by the Financial Reporting Council in July 2018 (the Code) except in relation to: – Provision 17, in respect of the requirement that the Group Nominations and Governance Committee should ensure plans are in place for orderly succession to both the Board and senior management positions and oversee the development of a diverse pipeline for succession. – Provision 21, that an annual evaluation of the performance of the Board and its committees should be undertaken. – Provision 33, that the Group Performance and Remuneration Committee (Group RemCo) should have delegated responsibility for setting remuneration for the Chairman and executive directors. In respect of Provision 17, while the Board is supported on board succession by the Group Nominations and Governance Committee, the Board considers this is a matter of significant importance which should rightly be reserved for the full Board. Adopting this approach ensures that all directors have an opportunity to contribute to succession planning discussions for Board and senior management, in support of achieving an appropriate balance of skills, experience, knowledge and diversity at senior levels within NatWest Group and on the Board. It also means that all directors have an opportunity to review, consider and become familiar with the next generation of executive leaders. In respect of Provision 21, in September 2023 the Group Nominations and Governance Committee agreed that it would be appropriate to defer the internal evaluation of Board and committee effectiveness due in Q4 2023 until 2024, given the July 2023 change in Group CEO and upcoming Chair succession. The Board confirmed its support for this approach. The next Board and committee evaluation will be conducted in 2024 by an external facilitator, in accordance with the Code requirement for an externally facilitated process every three years. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 147

material operational risks are monitored and actions are in place to manage the risks within risk appetite. During 2023, there was a continuing management focus on the delivery of regulatory programmes. A NatWest Group-wide Consumer Duty transformation programme was established and delivered the first FCA regulatory milestone, in July 2023, of the application of the Consumer Duty principles to open book products and services. The focus is now on the review of closed book products and services and the continued uplifting of customer outcomes by the next regulatory deadline of 31 July 2024. across end-to-end processes as part of its enterprise-wide risk management framework. This has been supported by an industry aligned risk directory and the development of a focused suite of risk standards, operational guidance and risk toolkits, which provide a consistent approach to risk management and control requirements for each non-financial risk. The outcomes of the risk and control self-assessments provide insight into the adequacy and effectiveness of the control environment and the impact thereof on the residual risk exposures. They further support the initiation of actions to address control gaps and identify control rationalisation and automation opportunities. The outcomes of the risk and control self-assessments are used as input into risk profile reporting to the Board and senior management and assists in prioritisation of risk mitigation activities. The remediation of known control issues through defined action plans continued to be an important focus for both the Group Audit Committee and the Board Risk Committee during 2023. For further information on their oversight of remediation of the most material issues, refer to the Report of the Group Audit Committee and the Report of the Group Board Risk Committee. The Group Audit Committee received confirmation that management has taken or is taking action, to remedy material failings or weaknesses identified through NatWest Group’s risk and control frameworks. The Group Audit Committee and the Group Board Risk Committee will continue to focus on such remediation activity, particularly in view of the transformation agenda and risk appetite. The independent auditors present reports to the Group Audit Committee that include details of any significant internal control deficiencies they have identified as part of their review of the financial reporting. In addition, quarterly review meetings are held between the senior executive and the independent auditors to help support oversight. Further, the system of internal controls is also subject to regulatory oversight in the UK and overseas. Additional details of regulatory oversight are given in the Risk and capital management section. To support management of the operational risk profile, the Operational Risk Executive Steering Committee was established and meets regularly. This forum ensures all achievement of NatWest Group’s objectives and reports on the adequacy and effectiveness thereof to the Board and executive management. The effectiveness of NatWest Group’s internal controls is reviewed regularly by the Board, the Group Audit Committee, and the Group Board Risk Committee. In addition, the Board receives a risk management report at each Board meeting. Executive management committees at NatWest Group level and each of its businesses also receive regular reports on risks facing their business and the management thereof through internal controls. Details of NatWest Group’s approach to risk management are provided in the Risk and capital management section of the Annual Report and Accounts. NatWest Group’s control environment remains robust, with notable enhancements delivered across financial crime, payments, risk management framework and processes and remediation of known control issues. These enhancements have resulted in an improved control environment in 2023. Throughout 2023, work was undertaken to deliver enhancements to the control environment for the mitigation of financial crime risk. NatWest Group continues to make significant investment to support delivery of the multi-year transformation plans across financial crime risk management. NatWest Group recognises the value in continuing its investment in payments systems in line with agreed prioritisation criteria. As such, following the payments review, a pan bank programme on the movement of funds has been mobilised, focusing on enhancing payment related controls. A suite of control requirements was launched in 2023 which has been designed to strengthen the payments control environment, reducing the risk for human error in payments processing. In addition, NatWest Group’s key operational risk focus areas have been cyber risk, data quality, third party risk management, operational resilience and end-of-life systems given increasing inherent risk impact of these themes on the overall operational risk profile. NatWest Group, as part of its robust risk culture, continued to make enhancements to its risk management processes as they relate to the wider control environment in 2023. This has included the implementation of risk and control self-assessments with focus on material non-financial risks Compliance report continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Management is responsible for establishing and maintaining adequate internal control over financial reporting for NatWest Group. Policies and procedures that relate to the maintenance of records that, in reasonable detail, fairly and accurately reflect the transactions and disposition of assets. Management's report on internal control over financial reporting Controls providing reasonable assurance that transactions NatWest Group’s internal control over financial reporting is a component of an overall system of internal control and is designed to provide reasonable assurance regarding the preparation, reliability and fair presentation of financial statements for external purposes in accordance with International Financial Reporting Standards (IFRS) and includes: are recorded as necessary to permit the preparation of financial statements in accordance with IFRS, and that receipts and expenditures are being made only as authorised by management. Controls providing reasonable ass urance regarding the prevention or timely detection of unauthorised acquisition, use or disposition of assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or because the degree of compliance with policies or procedures may deteriorate. NatWest Group 2023 Annual Report on Form 20-F 148

Changes in internal control There was no change in NatWest Group’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, NatWest Group’s internal control over financial reporting. The New York Stock Exchange As a foreign private issuer with American Depository Shares representing ordinary shares, preference shares and debt securities listed on the New York Stock Exchange (the NYSE), NatWest Group plc is not required to comply with all of the NYSE corporate governance standards applicable to US domestic companies (the NYSE Standards) provided that it follows home country practice in lieu of the NYSE Standards and discloses any significant ways in which its corporate governance practices differ from the NYSE Standards. The Board has reviewed its corporate governance arrangements and is satisfied that these are consistent with the NYSE Standards, subject to the following departures: i. NYSE Standards require the majority of the Board to be independent. The NYSE Standards contain different tests from the Code for determining whether a director is independent. NatWest Group plc follows the Code’s requirements in determining the independence of its directors and currently has eight independent non-executive directors, one of whom is the Senior Independent Director. ii. The NYSE Standards require non-management directors to hold regular sessions without management present, and that independent directors meet at least once a year. The Code requires the Chairman to hold meetings with non- executive directors without the executives present and non-executive directors are to meet without the Chairman present at least once a year to appraise the Chairman’s performance and NatWest Group plc complies with the requirements of the Code. iii. The NYSE Standards require that the nominating/ corporate governance committee of a listed company be composed entirely of independent directors. The Chairman of the Board is also the Chairman of the Group Nominations and Governance Committee, which is permitted under the Code (which requires that a majority of members of the committee should be independent non-executive directors). The terms of reference of the Group Nominations and Governance Committee differ in certain limited respects from the requirements set out in the NYSE Standards, including because the Group Nominations and Governance Committee does not have responsibility for overseeing the evaluation of management. iv.The NYSE standards require that the compensation committee of a listed company be composed entirely of independent directors. Although the members of the Group Performance and Remuneration Committee (Group RemCo) are deemed independent in compliance with the provisions of the Code, the Board has not assessed the independence of the members of the Group RemCo and Group RemCo has not assessed the independence of any compensation consultant, legal counsel or other adviser, in each case, in accordance with the independence tests prescribed by the NYSE Standards. The NYSE Standards require that the compensation committee must have direct responsibility to review and approve the CEO’s remuneration. As stated at the start of this Compliance report, in the case of NatWest Group plc, the Board rather than the Group RemCo reserves the authority to make the final determination of the remuneration of the CEO. v. The NYSE Standards require listed companies to adopt and disclose corporate governance guidelines. Throughout the year ended 31 December 2023, NatWest Group plc has complied with all of the provisions of the Code (subject to the exceptions described above) and the Code does not require NatWest Group plc to disclose the full range of corporate governance guidelines with which it complies. vi. The NYSE Standards require listed companies to adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for directors or executive officers. NatWest Group has adopted a code of conduct which is supplemented by a number of key policies and guidance dealing with matters including, among others, anti-bribery and corruption, anti-money laundering, sanctions, confidentiality, inside information, health, safety and environment, conflicts of interest, market conduct and management records. This code of conduct applies to all officers and employees and is fully aligned to the PRA and FCA Conduct Rules which apply to all directors. The Code of Conduct is available to view on NatWest Group’s website at natwestgroup.com. This Compliance report forms part of the Corporate governance report and the Report of the directors. Compliance report continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Disclosure controls and procedures As required by Exchange Act rules, management (including the Group CEO and Group CFO) have conducted an evaluation of the effectiveness and design of NatWest Group’s disclosure controls and procedures (as defined in the Exchange Act rules) as of 31 December 2023. Based on this evaluation, management (including the Group CEO and Group CFO) concluded that NatWest Group plc’s disclosure controls and procedures were effective as of the end of the period covered by this Annual Report and Accounts. NatWest Group plc is also required to provide an Annual Written Affirmation to the NYSE of its compliance with the mandatory applicable NYSE Standards. In March 2023 NatWest Group plc submitted its most recent Annual Written Affirmation to the NYSE which confirmed NatWest Group plc’s full compliance with the applicable provisions. The effectiveness of NatWest Group’s internal control over financial reporting as of 31 December 2023 has been audited by Ernst & Young LLP, NatWest Group’s independent registeredpublic accounting firm. The report of the independent registered public accounting firm to the directors of NatWest Group plc expresses an unqualified opinion on NatWest Group’s internal control over financial reporting as of the 31 December 2023. Management has assessed the effectiveness of its internal control over financial reporting as of 31 December 2023 based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in the 2013 publication of ‘Internal Control - Integrated Framework’. Based on its assessment, management has concluded that, as of 31 December 2023, NatWest Group’s internal control over financial reporting is effective. The Group Audit Committee fully complies with the mandatory provisions of the NYSE Standards (including by reference to the rules of the Exchange Act) that relate to the composition, responsibilities and operation of audit committees. More detailed information about the Group Audit Committee and its work during 2023 is set out in the Group Audit Committee report on pages 95 to 99. NatWest Group 2023 Annual Report on Form 20-F 149

Report of the directors HM Treasury (HMT) shareholding Following placing and open offers in December 2008 and in April 2009, HMT owned approximately 70.3% of the enlarged ordinary share capital of the company. In December 2009, the company issued a further £25.5 billion of new capital to HMT in the form of B shares. The table below summarises the changes in HMT’s shareholding in the company since 2009: Date Transaction August 2015 HMT sold 630 million ordinary shares in the company October 2015 HMT converted its holding of 51 billion B shares into 5.1 billion new ordinary shares in the company June 2018 HMT sold 925 million ordinary shares in the company March 2021 NatWest Group carried out an off-market purchase of 591 million of its ordinary shares from HMT May 2021 HMT sold 580 million ordinary shares in the company through an accelerated book building process to institutional investors July 2021 HMT announced its intention to sell part of its shareholding in NatWest Group over a 12 month period via a trading plan March 2022 NatWest Group carried out an off-market purchase of 550 million of its ordinary shares from HMT June 2022 HMT announced an extension to its trading plan for a further 12-month term to August 2023 April 2023 HMT announced an extension to its trading plan to terminate no later than 11 August 2025 May 2023 NatWest Group carried out an off-market purchase of 469 million of its ordinary shares from HMT At 31 December 2023, HMT’s holding in the total voting rights of the company was 37.97%. The percentage was correct as at the date of notification on 8 December 2023. Disclosures required pursuant to Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended) (‘2008 Regs’) are located on the following pages: Employee engagement (Paras 11 and 11A, Schedule 7, 2008 Regs): – Pages 24 to 29 (section 172(1) statement and stakeholder engagement) – Page 28 (Colleagues) Engagement with suppliers, customers and others (Para 11B, Schedule 7, 2008 Regs): – Pages 24 to 29 (section 172(1) statement and stakeholder engagement) Group structure NatWest Group plc is the parent of NatWest Group and its subsidiary undertakings are structured in compliance with ring-fencing requirements. There are three main subsidiaries – NatWest Holdings Limited (the parent of the ring-fenced group which includes National Westminster Bank Plc, The Royal Bank of Scotland plc and Ulster Bank Ireland DAC) – NatWest Markets Plc (the investment bank and the parent of NatWest Markets N.V.) and – The Royal Bank of Scotland International (Holdings) Limited (the parent of The Royal Bank of Scotland International Limited). The directors present their report together with the audited accounts for the year ended 31 December 2023. Other information incorporated into this report by reference can be found at: Page/Note Strategic report Our colleagues 36 Climate-related financial disclosures 48 Stakeholder engagement Section 172(1) statement 24 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Financial review 6 of the Annual Report on Form 20-F Board of directors and secretary 69 Corporate governance 73 Segmental analysis Note 4 in the Annual Report on Form 20-F Share capital and other equity Note 22 in the Annual Report on Form 20-F Post balance sheet events Note 34 in the Annual Report on Form 20-F Risk factors 160 of the Annual Report on Form 20-F – Page 87 (Corporate governance report, workforce engagement) – Pages 86 to 87 (Corporate governance report, stakeholder engagement) NatWest Group 2023 Annual Report on Form 20-F 150

and enhance their financial instrument disclosures for key areas of interest to market participants; assess the applicability and relevance of good practice recommendations to their disclosures, acknowledging the importance of such guidance; seek to enhance the comparability of financial statement disclosures across the UK banking sector; and clearly differentiate in their annual reports between information that is audited and information that is unaudited. Enhanced Disclosure Task Force (EDTF) and Disclosures on Expected Credit Losses (DECL) Taskforce recommendations The EDTF, established by the Financial Stability Board, published its report ‘Enhancing the Risk Disclosures of Banks’ in October 2012, with an update in November 2015 covering IFRS 9 expected credit losses (ECL). The DECL Taskforce, jointly established by the Financial Conduct Authority, Financial Reporting Council and the Prudential Regulation Authority, published its phase 2 report recommendations in December 2019. NatWest Group plc’s 2023 Annual Report and Accounts and Pillar 3 Report reflect EDTF and have regard to DECL Taskforce recommendations. Authority to repurchase shares On-market purchases At the AGM in 2022, shareholders authorised the company to make market purchases of up to 1,122,905,024 ordinary shares. The authority was amended at the General Meeting held on 25 August 2022 to preserve the position as if the August 2022 share consolidation had not taken place. The directors used the authority obtained at the 2022 AGM (2022 Authority) to carry out a share buyback programme (Programme) of up to £800 million, as announced to the market on 17 February 2023. The Programme’s purpose is to reduce the ordinary share capital of NatWest Group. The maximum number of ordinary shares that could be purchased under the Programme was 966,284,391. This number reflects the impact on the 2022 Authority of the reduction in issued share capital following the off-market buyback announced on 28 March 2022. Employment for disabled persons NatWest Group makes workplace adjustments to support colleagues with a disability, health or mental health condition and/or a neurodivergence to succeed. If a colleague develops a disability, health or mental health condition and/or a neurodivergence NatWest Group will, wherever possible, make adjustments to support them in their existing job or re-deploy them to a more suitable alternative job. The NatWest Group Careers site gives comprehensive insights into NatWest Group jobs, culture, locations and application processes. It also hosts a variety of blog content to portray stories of what it is like to work at NatWest Group. The company also makes sure that candidates can easily request reasonable adjustments to support at any stage of the recruitment process. Going concern The directors have prepared the financial statements on a going concern basis after assessing the principal risks, forecasts, projections and other relevant evidence over the twelve months from the date the financial statements are approved. UK Code for Financial Reporting Disclosure NatWest Group plc’s 2023 financial statements have been prepared in compliance with the principles set out in the Code for Financial Reporting Disclosure published by UK Finance. The Code sets out five disclosure principles together with supporting guidance. The principles are that NatWest Group and other major UK banks will provide high quality, meaningful and decision-useful disclosures; review Activities NatWest Group is principally engaged in providing a wide range of banking and other financial services. Further details of the organisational structure and business overview of NatWest Group, including the products and services provided by each of its operating segments and the markets in which they operate, are contained in the Business review. Details of the strategy for delivering the company’s objectives can be found in the Strategic report. Results and dividends UK company law states that dividends can only be paid if a company has sufficient distributable profits available to cover the dividend. A company’s distributable profits are classed as its accumulated, realised profits (not previously distributed or capitalised), less its accumulated, realised losses (not previously written off in a reduction or re-organisation of capital). At 31 December 2023, NatWest Group plc’s distributable profits were £32,217 million. In 2023 NatWest Group paid an interim dividend of £491 million, or 5.5 pence per ordinary share (2022 – £364 million, or 3.5 pence per ordinary share). The company has announced that the directors have recommended a final dividend of £1.0 billion, or 11.5 pence per ordinary share (2022 – £1.0 billion, or 10.0 pence per ordinary share). The final dividend recommended by directors is subject to shareholders’ approval at the Annual General Meeting (AGM) on 23 April 2024. If approved, payment will be made on 29 April 2024 to shareholders on the register at the close of business on 15 March 2024. The ex-dividend date will be 14 March 2024. Subject to the condition mentioned above, the payment of interim dividends on ordinary shares is at the discretion of the Board. Colleagues As at 31 December 2023, NatWest Group employed 61,600 people (excluding temporary staff). Details of all related costs are included in Note 3 to the consolidated accounts. Report of the directors continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION The profit attributable to the ordinary shareholders of NatWest Group plc for the year ended 31 December 2023 was £4,394 million compared with a profit of £3,340 million for the year ended 31 December 2022, as set out in the consolidated income statement on page 36 of the Annual Report on Form 20-F. . NatWest Group’s business activities and financial position, the factors likely to affect its future development and performance and its objectives and policies in managing the financial risks to which it is exposed and its capital are discussed in the Business review. The risk factors which could materially affect NatWest Group’s future results are set out on pages 160 to 184 of the Annual Report on Form 20-F. NatWest Group’s regulatory capital resources and significant developments in 2023 and anticipated future developments are detailed in the Capital, liquidity and funding section on pages 228 to 246. This section also describes NatWest Group’s funding and liquidity profile, including changes in key metrics and the build up of liquidity reserves. NatWest Group 2023 Annual Report on Form 20-F 151

Report of the directors continued There are no restrictions on the transfer of ordinary shares in the company other than certain restrictions which may from time to time be imposed by laws and regulations (for example, insider trading laws). At the 2021 AGM, shareholders gave authority to directors to offer a scrip dividend alternative on any dividend paid up to the conclusion of the AGM in 2024. Shareholders will be asked to approve this authority at the AGM in 2024. Pursuant to the UK Listing Rules, certain employees of the company require the approval of the company to deal in the company’s shares. The rules governing the powers of directors and their appointment, including in relation to issuing or buying back shares, are set out in our Articles of Association. It will be proposed at the 2024 AGM that the directors’ authorities to allot shares under the Companies Act 2006 (the Companies Act) be renewed. The Articles of Association may only be amended by a special resolution at a General Meeting of shareholders. The company is not aware of any agreements between shareholders that may result in restrictions on the transfer of securities and/or voting rights. There are no persons holding securities carrying special rights with regard to control of the company. A number of the company’s employee share plans include restrictions on transfers of shares while shares are subject to the plans. Note 3 to the consolidated financial statements sets out a summary of the plans. Under the rules of certain employee share plans, voting rights are exercised by the Trustees of the plan on receipt of participants’ instructions. If a participant does not submit an instruction to the Trustee no vote is registered. For shares held in the company’s other employee share trusts, in accordance with investor protection guidelines, the Trustees abstain from voting. The Trustees would take independent advice before accepting any offer in respect of their shareholdings for the company in a takeover bid situation. The Trustees have chosen to waive their entitlement to the dividend on shares held by the Trusts. A change of control of the company following a takeover bid may cause a number of agreements to which the company is party to take effect, alter or terminate. All of the company’s employee share plans contain provisions relating to a change of control. In the context of the company as a whole, these agreements are not considered to be significant. The company used the authority obtained at the 2023 AGM to make an off-market purchase of 469,200,081 ordinary shares (nominal value £505,292,395) in the company from HMT on 22 May 2023, at a price of 268.4 pence per ordinary share for the total consideration of £1,259,333,017, representing 4.95% of the company’s issued ordinary share capital. The company cancelled 336,200,081 of the purchased ordinary shares and transferred the remaining 133,000,000 ordinary shares to treasury. Shareholders will be asked to renew the authority for the company to make off-market purchases of its ordinary shares from HMT (or its nominee) at the AGM in 2024. At the AGM in 2023, shareholders renewed the authority for the company to make an off-market purchase of its preference shares. Shareholders will be asked to renew the authority at the AGM in 2024. Additional information Where not provided elsewhere in the Report of the directors, the following additional information is required to be disclosed by Part 6 of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The rights and obligations attached to the company’s ordinary shares and preference shares are set out in the Articles of Association. Copies can be obtained from Companies House in the UK or can be found at natwestgroup.com. The cumulative preference shares represent less than 0.005% of the total voting rights of the company, the remainder being represented by the ordinary shares. In a show of hands at a General Meeting of the company, every holder of ordinary shares and cumulative preference shares who is present in person or by proxy and entitled to vote, shall have one vote. On a poll, every holder of ordinary shares who is present in person or by proxy and entitled to vote, shall have four votes for every share held. Every holder of cumulative preference shares shall have one vote for each 25p nominal amount held. The notices of Annual General Meetings and General Meetings specify the deadlines for exercising voting rights and appointing a proxy or proxies to vote in relation to resolutions to be passed at the meeting. The Programme commenced on 20 February 2023 and completed on 16 June 2023. The company purchased 301,380,053 ordinary shares (nominal value £324,563,134) at an average price of 265.4456 pence per ordinary share, for the total consideration of £799,999,997.76. All of the purchased ordinary shares were cancelled, representing 3.16% of the company’s issued ordinary share capital. At the AGM in 2023, shareholders renewed the authority for the company to make market purchases of up to 966,778,930 ordinary shares. The directors used the authority obtained at the 2023 AGM (2023 Authority) to carry out a Programme of up to £500 million, as announced to the market on 28 July 2023. The maximum number of ordinary shares that can be purchased under the Programme is 919,858,922. This number reflects the impact on the 2023 Authority of the reduction in issued share capital following the off-market buyback announced on 22 May 2023. The Programme commenced on 31 July 2023 and will end no later than 14 March 2024. As at 31 December 2023 158,956,435 ordinary shares (nominal value £171,183,853) had been purchased by the company at an average price of 217.6375 pence per ordinary share for the total consideration of £345,948,738. All of the purchased ordinary shares were cancelled, representing 1.75% of the company’s issued ordinary share capital. Shareholders will be asked to renew the authority for the company to make market purchases or ordinary shares at the AGM in 2024. Off-market purchases At a General Meeting held on 6 February 2019, shareholders approved a special resolution authorising the company to make off-market purchases of up to 4.99% of its issued ordinary share capital in any 12-month period from HMT (or its nominee). Full details are set out in the Circular and Notice of General Meeting available at natwestgroup.com. Amendments to the Directed Buyback Contract were approved by the shareholders at a General Meeting on 25 August 2022. The authority for the company to make off-market purchases of its ordinary shares from HMT (or its nominee) under the terms of the Directed Buyback Contract was renewed at the AGM in 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 152

During 2023, NatWest Group made no political donations, nor incurred any political expenditure in the UK or EU and it is not proposed that its longstanding policy of not making contributions to any political party be changed. Shareholders will be asked to renew this authorisation at the AGM in 2024. Directors’ disclosure to auditors Each of the directors at the date of approval of this report confirms that: a. so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and b. the director has taken all the steps that he/she ought to have taken as a director to make himself/herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act. Auditors Ernst & Young LLP (EY LLP) are the auditors and have indicated their willingness to continue in office. A resolution to re-appoint EY LLP as the company’s auditors will be proposed at the forthcoming AGM. By order of the Board Jan Cargill Chief Governance Officer and Company Secretary 15 February 2024 NatWest Group plc is registered in Scotland No. SC45551 Controlling shareholder In accordance with the UK Listing Rules, the company has entered into an agreement with HM Treasury (the ‘Controlling Shareholder’) which is intended to ensure that the Controlling Shareholder complies with the independence provisions set out in the UK Listing Rules. The company has complied with the independence provisions in the relationship agreement and as far as the company is aware the independence and procurement provisions in the relationship agreement have been complied with in the period by the controlling shareholder. Shareholdings The table below shows the shareholders that have notified NatWest Group that they hold more than 3% of the total voting rights of the company at 31 December 2023. Ordinary shares (millions) % of issued share capital with voting rights held(1) Solicitor for the Affairs of His Majesty’s Treasury as Nominee for His Majesty’s Treasury 3,343 37.97 Norges Bank 323 3.07 (1) Percentages provided were correct at the date of notification on 8 December 2023 and 5 November 2021, respectively. On 2 February 2024 a notification under Rule 5 of the Disclosure and Transparency Rules (‘DTR’) was received from HMT notifying that it held 3,067 million ordinary shares, representing 34.96% of the issued share capital with voting rights. Listing rule 9.8.4 Political donations At the AGM in 2023, shareholders gave authority, under Part 14 of the Companies Act 2006, for a period of one year, for the company (and its subsidiaries) to make political donations and incur political expenditure up to a maximum aggregate sum of £100,000. This authorisation was taken as a precaution only as the company has a longstanding policy of not making political donations or incurring political expenditure within the ordinary meaning of those words. Directors Howard Davies, Frank Dangeard, Roisin Donnelly, Patrick Flynn, Yasmin Jetha, Katie Murray, Mark Seligman and Lena Wilson all served throughout 2023 and to the date of signing of the financial statements. Stuart Lewis was appointed to the Board on 1 April 2023 and Paul Thwaite was appointed on 25 July 2023. On 25 July 2023 Alison Rose agreed by mutual consent with the Board to step down as Group Chief Executive with immediate effect. Mike Rogers resigned from the Board on 25 April 2023 and Morten Friis resigned on 31 July 2023. Howard Davies has confirmed his intention to resign from the Board on 15 April 2024. Richard Haythornthwaite joined the Board as an independent non-executive director on 8 January 2024 and, following a handover period, will succeed Howard Davies as Chair on 15 April 2024. All directors of the company are required to stand for election or re-election annually by shareholders at the AGM. In accordance with the UK Listing Rules, the election or re-election of independent directors requires approval by all shareholders and also by independent shareholders. Howard Davies will not be standing for re-election at the company’s 2024 AGM, having confirmed his intention to resign on 15 April 2024. Directors’ interests Directors’ indemnities In terms of section 236 of the Companies Act, Qualifying Third Party Indemnity Provisions have been issued by the company to its directors, members of the NatWest Group and NWH Executive Committees, individuals authorised by the PRA/FCA, certain directors and/or officers of NatWest Group subsidiaries and all trustees of NatWest Group pension schemes. Report of the directors continued STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION The names and brief biographical details of the current directors are shown on pages 69 to 72. The interests of the directors in the shares of the company at 31 December 2023 are shown on page 141. None of the directors held an interest in the loan capital of the company or in the shares or loan capital of any of the subsidiary undertakings of the company, during the period from 1 January 2023 to 15 February 2024. The information to be disclosed in the Annual Report and Accounts under LR 9.8.4, is set out in this Directors’ report with the exception of details of contracts of significance under LR 9.8.4 (10) and (11) given in Material contracts on page 189 to 191 of the Annual Report on Form 20-F. NatWest Group 2023 Annual Report on Form 20-F 153

Statement of directors’ responsibilities In addition, the directors are of the opinion that the Annual Report and Accounts, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the company’s position and performance, business model and strategy. By order of the Board The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of NatWest Group and to enable them to ensure that the Annual Report and Accounts complies with the Companies Act 2006. They are also responsible for safeguarding the assets of NatWest Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Under applicable law and regulations, the directors are also responsible for preparing a Strategic report, Directors’ report, Directors’ remuneration report and Corporate governance statement that comply with that law and those regulations. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. The directors confirm that to the best of their knowledge: – the financial statements, prepared in accordance with UK adopted International Accounting Standards and International Financial Reporting Standards as issued by the International Accounting Standards Board, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole; and – the Strategic report and Directors’ report (incorporating the Financial review) include a fair review of the development and performance of the business and the position of the company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. The directors are responsible for the preparation of the Annual Report and Accounts. The directors are required to prepare Group financial statements, and as permitted by the Companies Act 2006 have elected to prepare company financial statements, for each financial year in accordance with UK adopted International Accounting Standards and International Financial Reporting Standards as issued by the International Accounting Standards Board. They are responsible for preparing financial statements that present fairly the financial position, financial performance and cash flows of NatWest Group. In preparing those financial statements, the directors are required to: – select suitable accounting policies and then apply them consistently. – make judgments and estimates that are reasonable, relevant and reliable. – state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. – prepare the financial statements on a going concern basis unless it is inappropriate to presume that the company and Group will continue in business. Howard Davies Chairman 15 February 2024 John-Paul Thwaite Group Chief Executive Officer Katie Murray Group Chief Financial Officer Board of directors Chairman Howard Davies Executive directors Non-executive directors John-Paul Thwaite Katie Murray Mark Seligman Frank Dangeard Roisin Donnelly Patrick Flynn Rick Haythornthwaite Yasmin Jetha Stuart Lewis Lena Wilson STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION This statement should be read in conjunction with the responsibilities of the auditor set out in their report on pages 29 to 35 of the Annual Report on Form 20-F. NatWest Group 2023 Annual Report on Form 20-F 154

customers Serving our every day STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 155

Risk and capital management STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 157 Risk management framework 157 Introduction 157 Culture 158 Governance 160 Risk appetite 161 Identification and measurement 161 Mitigation 161 Testing and monitoring 162 Stress testing 166 Credit risk 166 Definition, sources of risk and key developments 167 Governance and risk appetite 167 Identification and measurement 167 Mitigation 168 Assessment and monitoring 169 Problem debt management 170 Forbearance 171 Impairment, provisioning and write-offs 174 Significant increase in credit risk and asset lifetimes 175 Economic loss drivers and UK economic uncertainty 181 Measurement uncertainty and ECL sensitivity analysis 184 Measurement uncertainty and ECL adequacy 185 Banking activities 224 Trading activities 228 Capital, liquidity and funding risk 228 Definitions and sources of risk 229 Capital, liquidity and funding management 232 Key points 233 Minimum requirements 234 Measurement 247 Market risk 247 Non-traded market risk 254 Traded market risk 258 Market risk – linkage to balance sheet 259 Pension risk 260 Compliance and conduct risk 261 Financial crime risk 262 Climate risk 264 Operational risk 266 Model risk 267 Reputational risk NatWest Group 2023 Annual Report on Form 20-F 156

Risk management framework NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 172 Introduction NatWest Group operates an enterprise-wide risk management framework, which is centred on the embedding of a strong risk culture. The framework ensures the governance, capabilities and methods are in place to facilitate risk management and decision-making across the organisation. The framework ensures that NatWest Group’s principal risks – which are detailed in this section – are appropriately controlled and managed. It sets out the standards and objectives for risk management as well as defining the division of roles and responsibilities. This seeks to ensure a consistent approach to risk management across NatWest Group and its subsidiaries. It aligns risk management with NatWest Group’s overall strategic objectives. The framework, which is designed and maintained by NatWest Group’s independent Risk function, is owned by the Chief Risk Officer. It is reviewed and approved annually by the Board. The framework incorporates risk governance, NatWest Group’s three lines of defence operating model and the Risk function’s mandate. Risk appetite, supported by a robust set of principles, policies and practices, defines the levels of tolerance for a variety of risks and provides a structured approach to risk-taking within agreed boundaries. While all NatWest Group colleagues are responsible for managing risk, the Risk function provides oversight and monitoring of risk management activities, including the implementation of the framework and adherence to its supporting policies, standards and operational procedures. The Chief Risk Officer plays an integral role in providing the Board with advice on NatWest Group’s risk profile, the performance of its controls and in providing challenge where a proposed business strategy may exceed risk tolerance. In addition, there is a process to identify and manage top and emerging threats, which are those that could have a significant negative impact on NatWest Group’s ability to meet its strategic objectives. Both top and emerging threats may incorporate aspects of – or correlate to – a number of principal risks and are reported alongside them to the Board on a regular basis. Culture NatWest Group’s multi-year programme to enhance risk management capability at different levels of the organisation has an ongoing emphasis on risk culture. The approach to risk culture, under the banner of intelligent risk-taking, ensures a focus on robust risk management behaviours and practices. This underpins the strategy and values across all three lines of defence, enables NatWest Group to support better customer outcomes, develop a stronger and more sustainable business and deliver an improved cost base. NatWest Group expects leaders to act as role models for strong risk behaviours and practices building clarity, developing capability and motivating employees to reach the required standards set out in the intelligent risk-taking approach. Colleagues are expected to:  Consistently role-model the values and behaviours in Our Code, based on strong ethical standards.  Empower others to take risks aligned to NatWest Group’s strategy, explore issues from a fresh perspective, and tackle challenges in new and better ways across organisational boundaries.  Manage risk in line with appropriate risk appetite.  Ensure each decision made keeps NatWest Group, colleagues, customers, communities and shareholders safe and secure.  Understand their role in managing risk, remaining clear and capable, grounded in knowledge of regulatory obligations.  Consider risk in all actions and decisions.  Escalate risks and issues early; taking action to mitigate risks and learning from mistakes and near-misses, reporting and communicating these transparently.  Challenge others’ attitudes, ideas and actions. The target intelligent risk-taking behaviours are embedded in NatWest Group’s Critical People Capabilities and are clearly aligned to the core values of inclusive, curious, robust, sustainable and ambitious. These aim to act as an effective basis for a strong risk culture because the Critical People Capabilities form the basis of all recruitment and selection processes. Training Enabling employees to have the capabilities and confidence to manage risk is core to NatWest Group’s learning strategy. NatWest Group offers a wide range of learning, both technical and behavioural, across the risk disciplines. This training may be mandatory, role-specific or for personal development. Mandatory learning for all staff is focused on keeping employees, customers and NatWest Group safe. This is easily accessed online and is assigned to each person according to their role and business area. The system allows monitoring at all levels to ensure completion. Our Code NatWest Group’s conduct guidance, Our Code, provides direction on expected behaviour and sets out the standards of conduct that support the values. The code explains the effect of decisions that are taken and describes the principles that must be followed.  These principles cover conduct-related issues as well as wider business activities. They focus on desired outcomes, with practical guidelines to align the values with commercial strategy and actions. The embedding of these principles facilitates sound decision-making and a clear focus on good customer outcomes. Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 173 Governance Committee structure The diagram shows NatWest Group’s governance structure in 2023 and the main purposes of each committee. (1) Risk Policies are in place for each principal risk and define, at a high level, the cascade of qualitative expectation, guidance and standards that stipulate the nature and extent of permissible risk taking. They are consistently applied across the Group and subsidiary legal entities and form part of the qualitative expression of risk appetite for each principal risk. (2) In addition, the Group Technical Asset & Liability Management Committee, chaired by the Group Treasurer, provides oversight of capital and balance sheet management in line with approved risk appetite under normal and stress conditions. Reviews and challenges the financial strategy, risk management, balance sheet and remuneration and policy implications of the Group’s pension schemes. (3) The EDC Disclosures Steering Group has been established by the Group CFO to (i) review and approve the Group’s responses to Environmental, Social and Governance (ESG) surveys where ESG content is considered material to Investors or decision-useful to users of the reports; (ii) to assess whether the Group should respond to and review new ad hoc survey requests; (iii) to review and approve ESG disclosures published on the Group’s website and externally that are material to investors or decision useful to users of the reports; and (iv) to review and recommend to the Group EDC, ESG related disclosures in the quarterly, and annual suite of results releases. Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 173 Governance Committee structure The diagram shows NatWest Group’s governance structure in 2023 and the main purposes of each committee. (1) Risk Policies are in place for each principal risk and define, at a high level, the cascade of qualitative expectation, guidance and standards that stipulate the nature and extent of permissible risk taking. They are consistently applied across the Group and subsidiary legal entities and form part of the qualitative expression of risk appetite for each principal risk. (2) In addition, the Group Technical Asset & Liability Management Committee, chaired by the Group Treasurer, provides oversight of capital and balance sheet management in line with approved risk appetite under normal and stress conditions. Reviews and challenges the financial strategy, risk management, balance sheet and remuneration and policy implications of the Group’s pension schemes. (3) The EDC Disclosures Steering Group has been established by the Group CFO to (i) review and approve the Group’s responses to Environmental, Social and Governance (ESG) surveys where ESG content is considered material to Investors or decision-useful to users of the reports; (ii) to assess whether the Group should respond to and review new ad hoc survey requests; (iii) to review and approve ESG disclosures published on the Group’s website and externally that are material to investors or decision useful to users of the reports; and (iv) to review and recommend to the Group EDC, ESG related disclosures in the quarterly, and annual suite of results releases. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Where marked as audited in the section header, certain information in the Risk and capital management section (pages 157 to 267) is within the scope of the Independent auditor’s report.  Where appropriate, if conduct falls short of NatWest Group’s required standards, the accountability review process is used to assess how this should be reflected in pay outcomes for the individuals concerned (for more information on this process refer to page 116). The NatWest Group remuneration policy ensures that the remuneration arrangements for all employees reflect the principles and standards prescribed by the PRA rulebook and the FCA handbook. Any employee falling short of the expected standards would also be subject to internal disciplinary policies and procedures. If appropriate, the relevant authority would be notified. NatWest Group 2023 Annual Report on Form 20-F 157

Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 173 Governance Committee structure The diagram shows NatWest Group’s governance structure in 2023 and the main purposes of each committee. (1) Risk Policies are in place for each principal risk and define, at a high level, the cascade of qualitative expectation, guidance and standards that stipulate the nature and extent of permissible risk taking. They are consistently applied across the Group and subsidiary legal entities and form part of the qualitative expression of risk appetite for each principal risk. (2) In addition, the Group Technical Asset & Liability Management Committee, chaired by the Group Treasurer, provides oversight of capital and balance sheet management in line with approved risk appetite under normal and stress conditions. Reviews and challenges the financial strategy, risk management, balance sheet and remuneration and policy implications of the Group’s pension schemes. (3) The EDC Disclosures Steering Group has been established by the Group CFO to (i) review and approve the Group’s responses to Environmental, Social and Governance (ESG) surveys where ESG content is considered material to Investors or decision-useful to users of the reports; (ii) to assess whether the Group should respond to and review new ad hoc survey requests; (iii) to review and approve ESG disclosures published on the Group’s website and externally that are material to investors or decision useful to users of the reports; and (iv) to review and recommend to the Group EDC, ESG related disclosures in the quarterly, and annual suite of results releases. Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 173 Governance Committee structure The diagram shows NatWest Group’s governance structure in 2023 and the main purposes of each committee. (1) Risk Policies are in place for each principal risk and define, at a high level, the cascade of qualitative expectation, guidance and standards that stipulate the nature and extent of permissible risk taking. They are consistently applied across the Group and subsidiary legal entities and form part of the qualitative expression of risk appetite for each principal risk. (2) In addition, the Group Technical Asset & Liability Management Committee, chaired by the Group Treasurer, provides oversight of capital and balance sheet management in line with approved risk appetite under normal and stress conditions. Reviews and challenges the financial strategy, risk management, balance sheet and remuneration and policy implications of the Group’s pension schemes. (3) The EDC Disclosures Steering Group has been established by the Group CFO to (i) review and approve the Group’s responses to Environmental, Social and Governance (ESG) surveys where ESG content is considered material to Investors or decision-useful to users of the reports; (ii) to assess whether the Group should respond to and review new ad hoc survey requests; (iii) to review and approve ESG disclosures published on the Group’s website and externally that are material to investors or decision useful to users of the reports; and (iv) to review and recommend to the Group EDC, ESG related disclosures in the quarterly, and annual suite of results releases. NatWest Group plc Board Ensures there is a framework of prudent and effective controls which enables risks to be assessed and managed. It reviews and approves the Enterprise-Wide Risk Management Framework (EWRMF) (including NatWest Group’s risk appetite framework) and approves the risk appetite for principal risks. Monitors performance against risk appetite, considers material risks and reviews the effectiveness of risk management and internal control systems. Group Board Risk Committee Provides oversight and advice to the Board on current and potential future risk exposures; future risk profile including risk appetite; and the approval and effectiveness of the EWRMF. Reviews NatWest Group’s performance relative to risk appetite; the effectiveness of internal controls required to manage risk; all material risk exposures and management’s recommendations to monitor, control and mitigate them, including all principal risks. Approves the Key Risk Policies(1) and provides input on remuneration decisions from a risk management perspective. Approves the Risk Management Strategy and oversees its effective delivery. Reviews and recommends to the Board the assumptions, scenarios and metrics used for stress tests. Group Executive Risk Committee Supports the NatWest Group CRO and other accountable executives in discharging risk management accountabilities. Reviews, challenges and debates all material risk exposures across NatWest Group and the performance of NatWest Group relative to risk appetite. Reviews the EWRMF, Key Risk Policies(1) and Risk Management Strategy and supports their recommendation to Group BRC. Oversees implementation of the EWRMF. Group Executive Committee Supports the Group CEO in discharging their individual accountabilities including matters relating to strategy, financials, capital, and operational issues. Considers material or enterprise wide risk and control matters across the Group as appropriate. Supports the Group CEO in identifying matters for escalation to the Board or an appropriate Board Committee. Group Asset & Liability Management Committee(2) Supports the Group CFO in overseeing the effective management of NatWest Group’s current and future balance sheet in line with chosen business strategy and Board-approved risk appetite, under normal and stress conditions and in the escalation of matters to the appropriate Executive or Board Committee. Supports the Group CFO’s and Group CRO’s recommendation to Group BRC of the assumptions, scenarios and metrics used for stress tests. Group Executive Disclosure Committee(3) Supports the Group CFO in discharging their individual accountabilities, including the review of all material financial and non-financial disclosures made by NatWest Group to ensure that they are accurate, complete and fairly represent the business and financial condition of NatWest Group with no material misstatements or omissions. Group Audit Committee Assists the Board in carrying out its responsibilities relating to accounting policies, internal control and financial reporting functions, including consideration of any relevant non-financial disclosures or related controls which may impact the financial statements. Reviews NatWest Group’s internal controls systems relating to financial management and compliance with laws and/or regulations relating to financial reporting, accounting issues, and safeguarding of assets. Reviews the procedures for monitoring the effectiveness of these controls. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 158

Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 174 Risk management structure The diagram shows NatWest Group’s risk management structure in 2023. (1) The Group Chief Executive Officer also performs the NWH Chief Executive Officer role. (2) The Group Chief Risk Officer also performs the NWH Chief Risk Officer role, is a member of NatWest Group Exco, NatWest Group ERC and an attendee at NatWest Group BRC. (3) The NWH Risk function provides risk management services across NWH, including to the NatWest Group Chief Risk Officer and – where agreed – to NWM and RBSI Chief Risk Officers. These services are managed, as appropriate, through service level agreements. (4) The NWH Risk function is independent of the NWH customer-facing business segments and support functions. Its structure is divided into three parts (Directors of Risk, Specialist Risk Directors and Chief Operating Officer) to facilitate effective management of the risks facing NWH. Risk committees in the customer businesses oversee risk exposures arising from management and business activities and focus on ensuring that these are adequately monitored and controlled. The Directors of Risk, (Retail Banking; Commercial & Institutional Banking (Ring-Fenced Bank); Wealth Businesses; Digital X and Functions; Finance and Treasury and Non-financial Risk; the Head of Restructuring and the Chief Operating Officer report to the NWH Chief Risk Officer. The Director of Risk, Ulster Bank Ireland DAC reports to the Ulster Bank Ireland DAC Chief Executive. They also have a reporting line to the NWH Chief Risk Officer and to the Chair of the Ulster Bank Ireland DAC Board Risk Committee. (5) The Chief Risk Officers for NWM and RBSI have dual reporting lines into the Group Chief Risk Officer and the respective Chief Executive Officers of their entities. There are additional reporting lines to the NWM and RBSI Board Risk Committee chairs and a right of access to the respective Risk Committees. Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 174 Risk management structure The diagram shows NatWest Group’s risk management structure in 2023. (1) The Group Chief Executive Officer also performs the NWH Chief Executive Officer role. (2) The Group Chief Risk Officer also performs the NWH Chief Risk Officer role, is a member of NatWest Group Exco, NatWest Group ERC and an attendee at NatWest Group BRC. (3) The NWH Risk function provides risk management services across NWH, including to the NatWest Group Chief Risk Officer and – where agreed – to NWM and RBSI Chief Risk Officers. These services are managed, as appropriate, through service level agreements. (4) The NWH Risk function is independent of the NWH customer-facing business segments and support functions. Its structure is divided into three parts (Directors of Risk, Specialist Risk Directors and Chief Operating Officer) to facilitate effective management of the risks facing NWH. Risk committees in the customer businesses oversee risk exposures arising from management and business activities and focus on ensuring that these are adequately monitored and controlled. The Directors of Risk, (Retail Banking; Commercial & Institutional Banking (Ring-Fenced Bank); Wealth Businesses; Digital X and Functions; Finance and Treasury and Non-financial Risk; the Head of Restructuring and the Chief Operating Officer report to the NWH Chief Risk Officer. The Director of Risk, Ulster Bank Ireland DAC reports to the Ulster Bank Ireland DAC Chief Executive. They also have a reporting line to the NWH Chief Risk Officer and to the Chair of the Ulster Bank Ireland DAC Board Risk Committee. (5) The Chief Risk Officers for NWM and RBSI have dual reporting lines into the Group Chief Risk Officer and the respective Chief Executive Officers of their entities. There are additional reporting lines to the NWM and RBSI Board Risk Committee chairs and a right of access to the respective Risk Committees. Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 175 Three lines of defence NatWest Group uses the industry-standard three lines of defence model to articulate accountabilities and responsibilities for managing risk. This supports the embedding of effective risk management throughout the organisation. All roles below the CEO sit within one of the three lines. The CEO ensures the efficient use of resources and the effective management of risks as stipulated in the risk management framework and is therefore considered to be outside the three lines of defence principles. First line of defence The first line of defence incorporates most roles in NatWest Group, including those in the customer-facing businesses, Technology and Services as well as support functions such as People and Transformation, Legal and Finance. The first line of defence is empowered to take risks within the constraints of the risk management framework, policies, risk appetite statements and measures set by the Board. The first line of defence is responsible for managing its direct risks, and with the support of specialist functions, it is also responsible for managing its consequential risks, by identifying, assessing, mitigating, monitoring and reporting risks. Second line of defence The second line of defence comprises the Risk function and is independent of the first line. The second line of defence is empowered to design and maintain the risk management framework and its components. It undertakes proactive risk oversight and continuous monitoring activities to confirm that NatWest Group engages in permissible and sustainable risk-taking activities. The second line of defence advises on, monitors, challenges, approves and escalates where required and reports on the risk-taking activities of the first line, ensuring that these are within the constraints of the risk management framework, policies, risk appetite statements and measures set by the Board. Third line of defence The third line of defence is the Internal Audit function and is independent of the first and second lines. The third line of defence is responsible for providing independent assurance to the Board, its subsidiary legal entity boards and executive management on the overall design and operating effectiveness of the risk management framework and its components. This includes the adequacy and effectiveness of key internal controls, governance and the risk management in place to monitor, manage and mitigate the principal risks to NatWest Group and its subsidiary companies achieving their objectives. The third line of defence executes its duties freely and objectively in accordance with the Chartered Institute of Internal Auditors’ Code of Ethics and International Standards on independence and objectivity. Risk appetite Risk appetite defines the type and aggregate level of risk NatWest Group is willing to accept in pursuit of its strategic objectives and business plans. Risk appetite supports sound risk-taking, the promotion of robust risk practices and risk behaviours, and is calibrated at least annually. For certain principal risks, risk capacity defines the maximum level of risk NatWest Group can assume before breaching constraints determined by regulatory capital and liquidity requirements, the operational environment, and from a conduct perspective. Establishing risk capacity helps determine where risk appetite should be set, ensuring there is a buffer between internal risk appetite and NatWest Group’s ultimate capacity to absorb losses. Risk appetite framework The risk appetite framework supports effective risk management by promoting sound risk-taking through a structured approach, within agreed boundaries. It also ensures emerging threats and risk-taking activities that might be out of appetite are identified, assessed, escalated and addressed in a timely manner. To facilitate this, a detailed review of the framework is carried out annually. The review includes:  Assessing the adequacy of the framework compared to internal and external expectations.  Ensuring the framework remains effective and acts as a strong control environment for risk appetite.  Assessing the level of embedding of risk appetite across the organisation. Establishing risk appetite In line with the risk appetite framework, risk appetite is maintained across NatWest Group through risk appetite statements. These are in place for all principal risks and describe the extent and type of activities that can be undertaken. Risk appetite statements consist of qualitative statements of appetite supported by risk limits and triggers that operate as a defence against excessive risk-taking. Risk measures and their associated limits are an integral part of the risk appetite approach and a key part of embedding risk appetite in day-to-day risk management decisions. A clear tolerance for each principal risk is set in alignment with business activities. Group Chief Executive Officer (CEO) RBSI CEO NWM CEO NWH CEO RBSI CRO Leads the RBSI Risk function. Responsibilities include policy, governance, frameworks, oversight and challenge, risk culture and reporting. Contributes to RBSI strategy as a member of the RBSI Executive Committee. NWM CRO Leads the NWM Risk function. Responsibilities include policy, governance, frameworks, oversight and challenge, risk culture and reporting. Contributes to NWM strategy as a member of the NWM Executive Committee. NWH CRO Leads the NWH Risk function. Responsibilities include policy, governance, frameworks, oversight and challenge, risk culture and reporting. Delivers risk services across NatWest Group governed by appropriate service level agreements. Contributes to NWH strategy as a member of the NWH Executive Committee. Member of NatWest Group Exco. Leads the NatWest Group Risk function. Defines and delivers the risk, conduct, compliance and financial crime strategies. Defines overall risk service provision requirements to enable delivery of NatWest Group strategies, including policies, governance, frameworks, oversight and challenge, risk culture and risk reporting. Contributes to the development of strategy, transformation and culture as a member of the Executive Committee. Group Chief Risk Officer (CRO) STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 159

Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 175 Three lines of defence NatWest Group uses the industry-standard three lines of defence model to articulate accountabilities and responsibilities for managing risk. This supports the embedding of effective risk management throughout the organisation. All roles below the CEO sit within one of the three lines. The CEO ensures the efficient use of resources and the effective management of risks as stipulated in the risk management framework and is therefore considered to be outside the three lines of defence principles. First line of defence The first line of defence incorporates most roles in NatWest Group, including those in the customer-facing businesses, Technology and Services as well as support functions such as People and Transformation, Legal and Finance. The first line of defence is empowered to take risks within the constraints of the risk management framework, policies, risk appetite statements and measures set by the Board. The first line of defence is responsible for managing its direct risks, and with the support of specialist functions, it is also responsible for managing its consequential risks, by identifying, assessing, mitigating, monitoring and reporting risks. Second line of defence The second line of defence comprises the Risk function and is independent of the first line. The second line of defence is empowered to design and maintain the risk management framework and its components. It undertakes proactive risk oversight and continuous monitoring activities to confirm that NatWest Group engages in permissible and sustainable risk-taking activities. The second line of defence advises on, monitors, challenges, approves and escalates where required and reports on the risk-taking activities of the first line, ensuring that these are within the constraints of the risk management framework, policies, risk appetite statements and measures set by the Board. Third line of defence The third line of defence is the Internal Audit function and is independent of the first and second lines. The third line of defence is responsible for providing independent assurance to the Board, its subsidiary legal entity boards and executive management on the overall design and operating effectiveness of the risk management framework and its components. This includes the adequacy and effectiveness of key internal controls, governance and the risk management in place to monitor, manage and mitigate the principal risks to NatWest Group and its subsidiary companies achieving their objectives. The third line of defence executes its duties freely and objectively in accordance with the Chartered Institute of Internal Auditors’ Code of Ethics and International Standards on independence and objectivity. Risk appetite Risk appetite defines the type and aggregate level of risk NatWest Group is willing to accept in pursuit of its strategic objectives and business plans. Risk appetite supports sound risk-taking, the promotion of robust risk practices and risk behaviours, and is calibrated at least annually. For certain principal risks, risk capacity defines the maximum level of risk NatWest Group can assume before breaching constraints determined by regulatory capital and liquidity requirements, the operational environment, and from a conduct perspective. Establishing risk capacity helps determine where risk appetite should be set, ensuring there is a buffer between internal risk appetite and NatWest Group’s ultimate capacity to absorb losses. Risk appetite framework The risk appetite framework supports effective risk management by promoting sound risk-taking through a structured approach, within agreed boundaries. It also ensures emerging threats and risk-taking activities that might be out of appetite are identified, assessed, escalated and addressed in a timely manner. To facilitate this, a detailed review of the framework is carried out annually. The review includes:  Assessing the adequacy of the framework compared to internal and external expectations.  Ensuring the framework remains effective and acts as a strong control environment for risk appetite.  Assessing the level of embedding of risk appetite across the organisation. Establishing risk appetite In line with the risk appetite framework, risk appetite is maintained across NatWest Group through risk appetite statements. These are in place for all principal risks and describe the extent and type of activities that can be undertaken. Risk appetite statements consist of qualitative statements of appetite supported by risk limits and triggers that operate as a defence against excessive risk-taking. Risk measures and their associated limits are an integral part of the risk appetite approach and a key part of embedding risk appetite in day-to-day risk management decisions. A clear tolerance for each principal risk is set in alignment with business activities. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 160

Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 177 Stress testing Stress testing – capital management Stress testing is a key risk management tool and a fundamental component of NatWest Group’s approach to capital management. It is used to quantify and evaluate the potential impact of specified changes to risk factors on the financial strength of NatWest Group, including its capital position. Stress testing includes:  Scenario testing, which examines the impact of a hypothetical future state to define changes in risk factors.  Sensitivity testing, which examines the impact of an incremental change to one or more risk factors. The process for stress testing consists of four broad stages: Define scenarios  Identify macro and NatWest Group specific vulnerabilities and risks.  Define and calibrate scenarios to examine risks and vulnerabilities.  Formal governance process to agree scenarios. Assess impact  Translate scenarios into risk drivers.  Assess impact to current and projected P&L and balance sheet across NatWest Group. Calculate results and assess implications  Aggregate impacts into overall results.  Results form part of the risk management process.  Scenario results are used to inform business and capital plans. Develop and agree management actions  Scenario results are analysed by subject matter experts. Appropriate management actions are then developed.  Scenario results and management actions are reviewed by the relevant Executive Risk Committees and Board Risk Committees. Approval of scenarios is delegated to the NatWest Group Board Risk Committee by the NatWest Group Board. Stress testing is used widely across NatWest Group. The diagram below summarises key areas of focus. Specific areas that involve capital management include:  Strategic financial and capital planning – by assessing the impact of sensitivities and scenarios on the capital plan and capital ratios.  Risk appetite – by gaining a better understanding of the drivers of, and the underlying risks associated with, risk appetite.  Risk monitoring – by monitoring the risks and horizon-scanning events that could potentially affect NatWest Group’s financial strength and capital position.  Risk mitigation – by identifying actions to mitigate risks, or those that could be taken, in the event of adverse changes to the business or economic environment. Principal risk mitigating actions are documented in NatWest Group’s recovery plan. Reverse stress testing is also carried out in order to identify and assess scenarios that would cause NatWest Group’s business model to become unviable. Reverse stress testing allows potential vulnerabilities in the business model to be examined more fully. Stress testing usage within NatWest Group Contingency planning & management actions Assess financial performance Capital adequacy Earnings stability Sector review & credit limit setting Business vulnerabilities analysis Tail risk assessment Early warning indicators (4) Risk mitigation (1) Strategic financial & capital planning (2) Risk appetite (3) Risk monitoring Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 176 The process of reviewing and updating risk appetite statements is completed alongside the business and financial planning process. This ensures that plans and risk appetite are appropriately aligned. The Board sets risk appetite for all principal risks to help ensure NatWest Group is well placed to meet its priorities and long-term targets, even in challenging economic environments. This supports NatWest Group in remaining resilient and secure as it pursues its strategic business objectives. Risk appetite statements and associated measures are reviewed at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. NatWest Group’s risk profile is continually monitored and frequently reviewed. Management focus is concentrated on all principal risks as well as the top and emerging threats that may correlate to them. Risk profile relative to risk appetite is reported regularly to senior management and the Board. NatWest Group policies directly support the qualitative aspects of risk appetite. They define the qualitative expectations, guidance and standards that stipulate the nature and extent of permissible risk-taking and are consistently applied across NatWest Group and its subsidiaries. Identification and measurement Identification and measurement within the risk management process comprises:  Regular assessment of the overall risk profile, incorporating market developments and trends, as well as external and internal factors.  Monitoring of the risks associated with lending and credit exposures.  Assessment of trading and non-trading portfolios.  Review of potential risks in new business activities and processes.  Analysis of potential risks in any complex and unusual business transactions. The financial and non-financial risks that NatWest Group faces are detailed in its risk directory. This provides a common risk language to ensure consistent terminology is used across NatWest Group. The risk directory is subject to annual review to ensure it continues to fully reflect the risks that NatWest Group faces. Mitigation Mitigation is a critical aspect of ensuring that risk profile remains within risk appetite. Risk mitigation strategies are discussed and agreed within NatWest Group. When evaluating possible strategies, costs and benefits, residual risks (risks that are retained) and secondary risks (those that arise from risk mitigation actions themselves) are also considered. Monitoring and review processes are in place to evaluate results. Early identification, and effective management of changes in legislation and regulation are critical to the successful mitigation of compliance and conduct risk. The effects of all changes are managed to ensure the timely achievement of compliance. Those changes assessed as having a high or medium-high impact are managed more closely. Emerging threats that could affect future results and performance are also closely monitored. Action is taken to mitigate potential risks as and when required. Further in-depth analysis, including the stress testing of exposures, is also carried out. Testing and monitoring Specific activities relating to compliance and conduct, credit and financial crime risks are subject to testing and monitoring by the Risk function. This confirms to both internal and external stakeholders – including the Board, senior management, the customer-facing businesses, Internal Audit and NatWest Group’s regulators – that risk policies and procedures are being correctly implemented and that they are operating adequately and effectively. Thematic reviews and targeted reviews are also carried out where relevant to ensure appropriate customer outcomes. Independent control testing of the NWH Group Risk function is completed on principal processes and controls impacting the financial statements, in line with section 404 of the Sarbanes-Oxley Act 2002, which focusses on the formalised evaluation, testing and reporting of significant internal controls over financial reporting and the associated control environment. The Risk Testing & Monitoring Forum assesses and validates the annual plan as well as the ongoing programme of reviews. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 161

Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 177 Stress testing Stress testing – capital management Stress testing is a key risk management tool and a fundamental component of NatWest Group’s approach to capital management. It is used to quantify and evaluate the potential impact of specified changes to risk factors on the financial strength of NatWest Group, including its capital position. Stress testing includes:  Scenario testing, which examines the impact of a hypothetical future state to define changes in risk factors.  Sensitivity testing, which examines the impact of an incremental change to one or more risk factors. The process for stress testing consists of four broad stages: Define scenarios  Identify macro and NatWest Group specific vulnerabilities and risks.  Define and calibrate scenarios to examine risks and vulnerabilities.  Formal governance process to agree scenarios. Assess impact  Translate scenarios into risk drivers.  Assess impact to current and projected P&L and balance sheet across NatWest Group. Calculate results and assess implications  Aggregate impacts into overall results.  Results form part of the risk management process.  Scenario results are used to inform business and capital plans. Develop and agree management actions  Scenario results are analysed by subject matter experts. Appropriate management actions are then developed.  Scenario results and management actions are reviewed by the relevant Executive Risk Committees and Board Risk Committees. Approval of scenarios is delegated to the NatWest Group Board Risk Committee by the NatWest Group Board. Stress testing is used widely across NatWest Group. The diagram below summarises key areas of focus. Specific areas that involve capital management include:  Strategic financial and capital planning – by assessing the impact of sensitivities and scenarios on the capital plan and capital ratios.  Risk appetite – by gaining a better understanding of the drivers of, and the underlying risks associated with, risk appetite.  Risk monitoring – by monitoring the risks and horizon-scanning events that could potentially affect NatWest Group’s financial strength and capital position.  Risk mitigation – by identifying actions to mitigate risks, or those that could be taken, in the event of adverse changes to the business or economic environment. Principal risk mitigating actions are documented in NatWest Group’s recovery plan. Reverse stress testing is also carried out in order to identify and assess scenarios that would cause NatWest Group’s business model to become unviable. Reverse stress testing allows potential vulnerabilities in the business model to be examined more fully. Stress testing usage within NatWest Group Contingency planning & management actions Assess financial performance Capital adequacy Earnings stability Sector review & credit limit setting Business vulnerabilities analysis Tail risk assessment Early warning indicators (4) Risk mitigation (1) Strategic financial & capital planning (2) Risk appetite (3) Risk monitoring (4) Risk mitigation Assess financial performance Capital adequacy Early warning indicators Contingency planning & management actions Earnings stability Sector review & credit limit setting Business vulnerabilities analysis Tail risk assessment (3) Risk monitoring (3) Risk appetite (1) Strategic financial & capital planning Stress testing usage within NatWest Group STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 162

Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 178 Capital sufficiency – going concern forward-looking view Going concern capital requirements are examined on a forward-looking basis – including as part of the annual budgeting process – by assessing the resilience of capital adequacy and leverage ratios under hypothetical future states. These assessments include assumptions about regulatory and accounting factors (such as IFRS 9). They incorporate economic variables and key assumptions on balance sheet and P&L drivers, such as impairments, to demonstrate that NatWest Group and its operating subsidiaries maintain sufficient capital. A range of future states are tested. In particular, capital requirements are assessed:  Based on a forecast of future business performance, given expectations of economic and market conditions over the forecast period.  Based on a forecast of future business performance under adverse economic and market conditions over the forecast period. Scenarios of different severity may be examined. The potential impact of normal and adverse economic and market conditions on capital requirements is assessed through stress testing, the results of which are not only used widely across NatWest Group but also by the regulators to set specific capital buffers. NatWest Group takes part in stress tests run by regulatory authorities to test industry-wide vulnerabilities under crystallising global and domestic systemic risks. Stress and peak-to-trough movements are used to help assess the amount of capital NatWest Group needs to hold in stress conditions in accordance with the capital risk appetite framework. Internal assessment of capital adequacy An internal assessment of material risks is carried out annually to enable an evaluation of the amount, type and distribution of capital required to cover these risks. This is referred to as the Internal Capital Adequacy Assessment Process (ICAAP). The ICAAP consists of a point-in-time assessment of exposures and risks at the end of the financial year together with a forward-looking stress capital assessment. The ICAAP is approved by the Board and submitted to the PRA. The ICAAP is used to form a view of capital adequacy separately to the minimum regulatory requirements. The ICAAP is used by the PRA to assess NatWest Group’s specific capital requirements through the Pillar 2 framework. Capital allocation NatWest Group has mechanisms to allocate capital across its legal entities and businesses. These aim to optimise the use of capital resources taking into account applicable regulatory requirements, strategic and business objectives and risk appetite. The framework for allocating capital is approved by the CFO with support from the Asset & Liability Management Committee. Governance Capital management is subject to substantial review and governance. The Board approves the capital plans, including those for key legal entities and businesses as well as the results of the stress tests relating to those capital plans. Stress testing – liquidity Liquidity risk monitoring and contingency planning A suite of tools is used to monitor, limit and stress test the liquidity and funding risks on the balance sheet. Limit frameworks are in place to control the level of liquidity risk, asset and liability mismatches and funding concentrations. Liquidity and funding risks are reviewed at significant legal entity and business levels daily, with performance reported to the Asset & Liability Management Committee on a regular basis. Liquidity condition indicators are monitored daily. This ensures any build-up of stress is detected early and the response escalated appropriately through recovery planning. Internal assessment of liquidity Under the liquidity risk management framework, NatWest Group maintains the Internal Liquidity Adequacy Assessment Process. This includes assessment of net stressed liquidity outflows under a range of severe but plausible stress scenarios. Each scenario evaluates either an idiosyncratic, market-wide or combined stress event as described in the table below. Type Description Idiosyncratic scenario The market perceives NatWest Group to be suffering from a severe stress event, which results in an immediate assumption of increased credit risk or concerns over solvency. Market-wide scenario A market stress event affecting all participants in a market through contagion, potential counterparty failure and other market risks. NatWest Group is affected under this scenario but no more severely than any other participants with equivalent exposure. Combined scenario This scenario models the combined impact of an idiosyncratic and market stress occurring at once, severely affecting funding markets and the liquidity of some assets. NatWest Group uses the most severe outcome to set the internal stress testing scenario which underpins its internal liquidity risk appetite. This complements the regulatory liquidity coverage ratio requirement. Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 179 Stress testing – recovery and resolution planning The NatWest Group recovery plan explains how NatWest Group and its subsidiaries – as a consolidated group – would identify and respond to a financial stress event and restore its financial position so that it remains viable on an ongoing basis. The recovery plan ensures risks that could delay the implementation of a recovery strategy are highlighted and preparations are made to minimise the impact of these risks. Preparations include:  Developing a series of recovery indicators to provide early warning of potential stress events.  Clarifying roles, responsibilities and escalation routes to minimise uncertainty or delay.  Developing a recovery playbook to provide a concise description of the actions required during recovery.  Detailing a range of options to address different stress conditions.  Appointing dedicated option owners to reduce the risk of delay and capacity concerns. The plan is intended to enable NatWest Group to maintain critical services and products it provides to its customers, maintain its core business lines and operate within risk appetite while restoring NatWest Group’s financial condition. It is assessed for appropriateness on an ongoing basis and reviewed and approved by the Board prior to submission to the PRA on a biennial basis. Individual recovery plans are also prepared for NatWest Holdings Limited, NatWest Markets Plc, RBS International Limited, and NatWest Markets N.V.. These plans detail the recovery options, recovery indicators and escalation routes for each entity. Fire drill simulations of possible recovery events are used to test the effectiveness of NatWest Group and individual legal entity recovery plans. The fire drills are designed to replicate possible financial stress conditions and allow senior management to rehearse the responses and decisions that may be required in an actual stress event. The results and lessons learnt from the fire drills are used to enhance NatWest Group’s approach to recovery planning. Under the resolution assessment part of the PRA rulebook, NatWest Group is required to carry out an assessment of its preparations for resolution, submit a report of the assessment to the PRA and publish a summary of this report. Resolution would be implemented if NatWest Group was assessed by the UK authorities to have failed and the appropriate regulator put it into resolution. The process of resolution is owned and implemented by the Bank of England (as the UK resolution authority). NatWest Group ensures ongoing maintenance and enhancements of its resolution capabilities, in line with regulatory requirements. Stress testing – market risk Non-traded market risk Non-traded exposures are reported to the PRA on a quarterly basis. This provides the regulator with an overview of NatWest Group’s banking book interest rate exposure. The report includes detailed product information analysed by interest rate driver and other characteristics, including accounting classification, currency and counterparty type. Scenario analysis based on hypothetical adverse scenarios is performed on non-traded exposures as part of the Bank of England and European Banking Authority stress test exercises. NatWest Group also produces an internal scenario analysis as part of its financial planning cycles. Non-traded exposures are capitalised through the ICAAP. This covers gap risk, basis risk, credit spread risk, pipeline risk, structural foreign exchange risk, prepayment risk, equity risk and accounting volatility risk. The ICAAP is completed with a combination of value and earnings measures. The total non-traded market risk capital requirement is determined by adding the different charges for each sub risk type. The ICAAP methodology captures at least ten years of historical volatility, produced with a 99% confidence level. Methodologies are reviewed by NatWest Group Model Risk and the results are approved by the NatWest Group Technical Asset & Liability Management Committee. Non-traded market risk stress results are combined with those for other risks into the capital plan presented to the Board. The cross-risk capital planning process is conducted once a year, with a planning horizon of five years. The scenario narratives cover both regulatory scenarios and macroeconomic scenarios identified by NatWest Group. Vulnerability-based stress testing begins with the analysis of a portfolio and expresses its key vulnerabilities in terms of plausible vulnerability scenarios under which the portfolio would suffer material losses. These scenarios can be historical, macroeconomic or forward-looking/hypothetical. Vulnerability-based stress testing is used for internal management information and is not subject to limits. The results for relevant scenarios are reported to senior management. Traded market risk NatWest Group carries out regular market risk stress testing to identify vulnerabilities and potential losses in excess of, or not captured in, value-at-risk. The calculated stresses measure the impact of changes in risk factors on the fair values of the trading portfolios. NatWest Group conducts historical, macroeconomic and vulnerability-based stress testing. Historical stress testing is a measure that is used for internal management. Using the historical simulation framework employed for value-at-risk, the current portfolio is stressed using historical data since 1 January 2005. This methodology simulates the impact of the 99.9 percentile loss that would be incurred by historical risk factor movements over the period, assuming variable holding periods specific to the risk factors and the businesses. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 163

Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 179 Stress testing – recovery and resolution planning The NatWest Group recovery plan explains how NatWest Group and its subsidiaries – as a consolidated group – would identify and respond to a financial stress event and restore its financial position so that it remains viable on an ongoing basis. The recovery plan ensures risks that could delay the implementation of a recovery strategy are highlighted and preparations are made to minimise the impact of these risks. Preparations include:  Developing a series of recovery indicators to provide early warning of potential stress events.  Clarifying roles, responsibilities and escalation routes to minimise uncertainty or delay.  Developing a recovery playbook to provide a concise description of the actions required during recovery.  Detailing a range of options to address different stress conditions.  Appointing dedicated option owners to reduce the risk of delay and capacity concerns. The plan is intended to enable NatWest Group to maintain critical services and products it provides to its customers, maintain its core business lines and operate within risk appetite while restoring NatWest Group’s financial condition. It is assessed for appropriateness on an ongoing basis and reviewed and approved by the Board prior to submission to the PRA on a biennial basis. Individual recovery plans are also prepared for NatWest Holdings Limited, NatWest Markets Plc, RBS International Limited, and NatWest Markets N.V.. These plans detail the recovery options, recovery indicators and escalation routes for each entity. Fire drill simulations of possible recovery events are used to test the effectiveness of NatWest Group and individual legal entity recovery plans. The fire drills are designed to replicate possible financial stress conditions and allow senior management to rehearse the responses and decisions that may be required in an actual stress event. The results and lessons learnt from the fire drills are used to enhance NatWest Group’s approach to recovery planning. Under the resolution assessment part of the PRA rulebook, NatWest Group is required to carry out an assessment of its preparations for resolution, submit a report of the assessment to the PRA and publish a summary of this report. Resolution would be implemented if NatWest Group was assessed by the UK authorities to have failed and the appropriate regulator put it into resolution. The process of resolution is owned and implemented by the Bank of England (as the UK resolution authority). NatWest Group ensures ongoing maintenance and enhancements of its resolution capabilities, in line with regulatory requirements. Stress testing – market risk Non-traded market risk Non-traded exposures are reported to the PRA on a quarterly basis. This provides the regulator with an overview of NatWest Group’s banking book interest rate exposure. The report includes detailed product information analysed by interest rate driver and other characteristics, including accounting classification, currency and counterparty type. Scenario analysis based on hypothetical adverse scenarios is performed on non-traded exposures as part of the Bank of England and European Banking Authority stress test exercises. NatWest Group also produces an internal scenario analysis as part of its financial planning cycles. Non-traded exposures are capitalised through the ICAAP. This covers gap risk, basis risk, credit spread risk, pipeline risk, structural foreign exchange risk, prepayment risk, equity risk and accounting volatility risk. The ICAAP is completed with a combination of value and earnings measures. The total non-traded market risk capital requirement is determined by adding the different charges for each sub risk type. The ICAAP methodology captures at least ten years of historical volatility, produced with a 99% confidence level. Methodologies are reviewed by NatWest Group Model Risk and the results are approved by the NatWest Group Technical Asset & Liability Management Committee. Non-traded market risk stress results are combined with those for other risks into the capital plan presented to the Board. The cross-risk capital planning process is conducted once a year, with a planning horizon of five years. The scenario narratives cover both regulatory scenarios and macroeconomic scenarios identified by NatWest Group. Vulnerability-based stress testing begins with the analysis of a portfolio and expresses its key vulnerabilities in terms of plausible vulnerability scenarios under which the portfolio would suffer material losses. These scenarios can be historical, macroeconomic or forward-looking/hypothetical. Vulnerability-based stress testing is used for internal management information and is not subject to limits. The results for relevant scenarios are reported to senior management. Traded market risk NatWest Group carries out regular market risk stress testing to identify vulnerabilities and potential losses in excess of, or not captured in, value-at-risk. The calculated stresses measure the impact of changes in risk factors on the fair values of the trading portfolios. NatWest Group conducts historical, macroeconomic and vulnerability-based stress testing. Historical stress testing is a measure that is used for internal management. Using the historical simulation framework employed for value-at-risk, the current portfolio is stressed using historical data since 1 January 2005. This methodology simulates the impact of the 99.9 percentile loss that would be incurred by historical risk factor movements over the period, assuming variable holding periods specific to the risk factors and the businesses. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 164

Risk management framework continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 180 Historical stress tests form part of the market risk limit framework and their results are reported regularly to senior management. Macroeconomic stress tests are carried out periodically as part of the bank-wide, cross-risk capital planning process. The scenario narratives are translated into risk factor shocks using historical events and insights by economists, risk managers and the first line. Market risk stress results are combined with those for other risks into the capital plan presented to the Board. The cross-risk capital planning process is conducted once a year, with a planning horizon of five years. The scenario narratives cover both regulatory scenarios and macroeconomic scenarios identified by NatWest Group. Vulnerability-based stress testing begins with the analysis of a portfolio and expresses its key vulnerabilities in terms of plausible, vulnerability scenarios under which the portfolio would suffer material losses. These scenarios can be historical, macroeconomic or forward-looking/hypothetical. Vulnerability-based stress testing is used for internal management information and is not subject to limits. The results for relevant scenarios are reported to senior management. Internal scenarios – climate In 2023, NatWest Group deployed a new in-house corporate transition risk model, as part of an internal scenario analysis exercise, to assess climate transition related credit risks to corporate counterparties. This involved running the following two climate scenarios:  A disruptive policy response scenario, where the introduction of policy from the Network for Greening the Financial System delayed transition scenario, is accelerated to this decade.  Inevitable policy response 1.8°C scenario, which anticipates investor, corporate and civil society pressure will push policymakers to make changes between 2023 and 2033, that could result in warming at or below 1.8°C by 2100. These scenarios tested NatWest Group’s resilience to alternative transition pathways, including a disruptive transition, and to identify losses that are sensitive to scenario policy and technology assumptions. The corporate transition risk model and internal exercise builds on the learnings from the Climate Biennial Exploratory Scenario and integrates climate into ICAAP. The model is capable of accounting for sector specific exposure to climate-related transition risks and counterparty specific response to a limited set of demand shocks and rising carbon prices, by mitigating emissions and passing costs through to customers. Regulatory stress testing The Bank of England published the results of the 2022 annual cyclical scenario (ACS) stress test on 12 July 2023. NatWest Group remained above its CET1 capital and Tier 1 leverage ratio hurdle rates in stress and was not required to strengthen its capital position as a result of the stress tests. The results of this stress test, and other relevant information, will be used to help inform NatWest Group capital buffers (both the UK countercyclical capital buffer rate and PRA buffers). The 2022 stress test aimed to assess the impact of a UK and global macroeconomic stress on UK banks, spanning a five-year period from Q3 2022 to Q2 2027. It is a coherent ‘tail risk’ scenario, designed to be severe and broad enough to assess the resilience of UK banks to a range of adverse shocks. The stress scenario is broadly similar to the 2019 ACS and more severe overall than the global financial crisis, with the key difference being elevated levels of inflation. Annual UK inflation averaged around 11% over the first three years of the scenario, peaking at 17% in early 2023. The stress test was based on an end-of-June 2022 balance sheet starting position. Further details can be found at: https://www.bankofengland.co.uk/stress-testing/2023/bank-of-england-stress-testing-results Following the UK’s exit from the European Union, only relevant European subsidiaries of NatWest Group take part in the European Banking Authority stress tests. NatWest Group itself does not participate. NatWest Group is taking part in the Bank of England’s system-wide exploratory scenario in 2023/24. The objective of the exercise is to understand the risks and behaviours flowing from non-bank financial institutions under stress, and how these risks could amplify market shocks and pose a risk to financial stability. The Bank of England will publish a report on this scenario in 2024 following completion of the exercise. Credit risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 181 Page Introduction Definition, sources of risk and key developments in 2023 181 Governance and risk appetite 182 Identification and measurement 182 Mitigation 182 Assessment and monitoring 183 Problem debt management 184 Forbearance 185 Credit grading models 186 Impairment, provisioning and write-offs 186 Governance and post model adjustments 187 Significant increase in credit risk 189 Asset lifetimes 189 Economic loss drivers 190 Measurement uncertainty and ECL sensitivity analysis 196 Measurement uncertainty and ECL adequacy 199 Movement in ECL provision 199 Credit risk – Banking activities Financial instruments within the scope of the IFRS 9 ECL framework 200 Segment analysis – portfolio summary 201 Segmental loans and impairment metrics 204 Sector analysis – portfolio summary 207 Wholesale forbearance 213 Credit risk enhancement and mitigation 215 Personal portfolio 216 Commercial real estate 221 Flow statements 222 Stage 2 decomposition – arrears status and contributing factors 230 Stage 2 decomposition – by a significant increase in credit risk trigger 232 Stage 3 vintage analysis 234 Asset quality 235 Credit risk – Trading activities Securities financing transactions and collateral 239 Derivatives 240 Debt securities 241 Cross border exposure 242 Definition (audited) Credit risk is the risk that customers, counterparties or issuers fail to meet a contractual obligation to settle outstanding amounts. Sources of risk (audited) The principal sources of credit risk for NatWest Group are lending, off-balance sheet products, derivatives and securities financing, and debt securities. NatWest Group is also exposed to settlement risk through foreign exchange, trade finance and payments activities. Key developments in 2023  Personal lending grew as a result of strong demand across both mortgages and unsecured lending, although mortgage demand reduced during the second half of the year in line with trends in the UK mortgage market. Adjustments were made to affordability assumptions and stress rates to ensure that lending continued to be assessed appropriately, given the high interest rate and inflationary environment. Support for customers was proactively promoted during the year and the number of customers requesting support (primarily forbearance) increased gradually. Although there was an increase in arrears during the year, this was partly driven by overall growth in Retail Banking portfolios in recent years, as well as adjustments to lending criteria following COVID-19. Indicators of difficulty to pay remain at or below levels observed before COVID-19.  Wholesale lending increased during the year, driven by financial institutions sectors. Sector appetite continues to be reviewed regularly, with particular focus on sector clusters and sub-sectors that are deemed to represent a heightened risk, including due to cost of living, supply chain and inflationary pressures.  Overall expected credit loss (ECL) increased during 2023 reflecting portfolio growth alongside broadly stable portfolio performance. There were Stage 3 default flow increases, particularly in the Personal portfolio, but these were broadly in line with expectations due to growth and normalisation of risk parameters. This was mitigated by a net ECL reduction from 2023 updates to economic scenarios and weightings. ECL post model adjustments increased during the year reflecting continued economic uncertainty from inflation, higher interest rates and liquidity concerns.  NatWest Group continued to align its financial planning process with the climate transition planning process. This included adding climate policy and technology-related transition assumptions into NatWest Group’s base case macroeconomic scenario used for financial planning and assessment of ECL in this IFRS 9 reporting period. This resulted in an increase in ECL of £6 million.  Several models were redeveloped in 2023, most notably IFRS 9 probability of default (PD) and loss given default (LGD) models for business loans and stress testing models for Personal mortgages, financial institutions and non-UK corporates economic response models for Wholesale lending. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 165

Credit risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 181 Page Introduction Credit risk – Banking activities Credit risk – Trading activities Definition (audited) Credit risk is the risk that customers, counterparties or issuers fail to meet a contractual obligation to settle outstanding amounts. Sources of risk (audited) The principal sources of credit risk for NatWest Group are lending, off-balance sheet products, derivatives and securities financing, and debt securities. NatWest Group is also exposed to settlement risk through foreign exchange, trade finance and payments activities. Key developments in 2023  Personal lending grew as a result of strong demand across both mortgages and unsecured lending, although mortgage demand reduced during the second half of the year in line with trends in the UK mortgage market. Adjustments were made to affordability assumptions and stress rates to ensure that lending continued to be assessed appropriately, given the high interest rate and inflationary environment. Support for customers was proactively promoted during the year and the number of customers requesting support (primarily forbearance) increased gradually. Although there was an increase in arrears during the year, this was partly driven by overall growth in Retail Banking portfolios in recent years, as well as adjustments to lending criteria following COVID-19. Indicators of difficulty to pay remain at or below levels observed before COVID-19.  Wholesale lending increased during the year, driven by financial institutions sectors. Sector appetite continues to be reviewed regularly, with particular focus on sector clusters and sub-sectors that are deemed to represent a heightened risk, including due to cost of living, supply chain and inflationary pressures.  Overall expected credit loss (ECL) increased during 2023 reflecting portfolio growth alongside broadly stable portfolio performance. There were Stage 3 default flow increases, particularly in the Personal portfolio, but these were broadly in line with expectations due to growth and normalisation of risk parameters. This was mitigated by a net ECL reduction from 2023 updates to economic scenarios and weightings. ECL post model adjustments increased during the year reflecting continued economic uncertainty from inflation, higher interest rates and liquidity concerns.  NatWest Group continued to align its financial planning process with the climate transition planning process. This included adding climate policy and technology-related transition assumptions into NatWest Group’s base case macroeconomic scenario used for financial planning and assessment of ECL in this IFRS 9 reporting period. This resulted in an increase in ECL of £6 million.  Several models were redeveloped in 2023, most notably IFRS 9 probability of default (PD) and loss given default (LGD) models for business loans and stress testing models for Personal mortgages, financial institutions and non-UK corporates economic response models for Wholesale lending. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION n Definition, sources of risk and key developments in 2023 166 Governance and risk appetite 167 Identification and measurement 167 Mitigation 167 Assessment and monitoring 168 Problem debt management 169 Forbearance 170 Credit grading models 171 Impairment, provisioning and write-offs 171 Governance and post model adjustments 172 Significant increase in credit risk 174 Asset lifetimes 174 Economic loss drivers 175 Measurement uncertainty and ECL sensitivity analysis 181 Measurement uncertainty and ECL adequacy 184 Movement in ECL provision 184 s Financial instruments within the scope of the IFRS 9 ECL framework 185 Segment analysis – portfolio summary 186 Segmental loans and impairment metrics 189 Sector analysis – portfolio summary 192 Wholesale forbearance 198 Credit risk enhancement and mitigation 200 Personal portfolio 201 Commercial real estate 206 Flow statements 207 Stage 2 decomposition – arrears status and contributing factors 215 Stage 2 decomposition – by a significant increase in credit risk trigger 217 Stage 3 vintage analysis 219 Asset quality 220 s Securities financing transactions and collateral 224 Derivatives 225 Debt securities 226 Cross border exposure 227 NatWest Group 2023 Annual Report on Form 20-F 166

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 182 Governance (audited) The credit risk function provides oversight and challenge of frontline credit risk management activities. Governance activities include:  Defining and proposing credit risk appetite measures for Board approval.  Establishing credit risk policy, standards and toolkits which set out the mandatory limits and parameters required to ensure that credit risk is managed within risk appetite and which provide the minimum standards for the identification, assessment, management, monitoring and reporting of credit risk.  Oversight of the first line of defence to ensure that credit risk remains within the appetite set by the Board and that it is being managed adequately and effectively.  Assessing the adequacy of ECL provisions including approving key IFRS 9 inputs (such as significant increase in credit risk (SICR) thresholds) and any necessary in-model and post model adjustments through NatWest Group and business unit provisions and model committees.  Development and approval of credit grading models.  Providing regular reporting on credit risk to the Board Risk Committee and Board. Risk appetite Credit risk appetite is approved by the Board and is set and monitored through risk appetite frameworks tailored to NatWest Group’s Personal and Wholesale segments. Risk appetite statements and associated measures are reviewed at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. Personal The Personal credit risk appetite framework sets limits that control the quality and concentration of both existing and new business for each relevant business segment. These risk appetite measures consider the segments’ ability to grow sustainably and the level of losses expected under stress. Credit risk is further controlled through operational limits specific to customer or product characteristics. Wholesale For Wholesale credit, the framework has been designed to reflect factors that influence the ability to operate within risk appetite. Tools such as stress testing and economic capital are used to measure credit risk volatility and develop links between the framework and risk appetite limits. Operational limits are used to manage concentrations of risk which may arise across four lenses – single name, sector, country and product and asset classes. The framework is supported by a suite of transactional acceptance standards that set out the risk parameters within which businesses should operate. Identification and measurement Credit stewardship (audited) Risks are identified through relationship management and credit stewardship of customers and portfolios. Credit stewardship takes place throughout the customer relationship, beginning with the initial approval. It includes the application of credit assessment standards, credit risk mitigation and collateral, ensuring that credit documentation is complete and appropriate, carrying out regular portfolio or customer reviews and problem debt identification and management. Asset quality (audited) All credit grades map to an asset quality (AQ) scale, used for financial reporting. This AQ scale is based on Basel PDs. Performing loans are defined as AQ1-AQ9 (where the PD is less than 100%) and defaulted non-performing loans as AQ10 or Stage 3 under IFRS 9 (where the PD is 100%). Loans are defined as defaulted when the payment status becomes 90 days past due, or earlier if there is clear evidence that the borrower is unlikely to repay, for example bankruptcy or insolvency. Counterparty credit risk Counterparty credit risk arises from the obligations of customers under derivative and securities financing transactions. NatWest Group mitigates counterparty credit risk through collateralisation and netting agreements, which allow amounts owed by NatWest Group to a counterparty to be netted against amounts the counterparty owes NatWest Group. Mitigation Mitigation techniques, as set out in the appropriate credit risk toolkits and transactional acceptance standards, are used in the management of credit portfolios across NatWest Group. These techniques mitigate credit concentrations in relation to an individual customer, a borrower group or a collection of related borrowers. Where possible, customer credit balances are netted against obligations. Mitigation tools can include structuring a security interest in a physical or financial asset, the use of credit derivatives including credit default swaps, credit-linked debt instruments and securitisation structures, and the use of guarantees and similar instruments (for example, credit insurance) from related and third parties. Property is used to mitigate credit risk across a number of portfolios, in particular residential mortgage lending and commercial real estate (CRE). The valuation methodologies for collateral in the form of residential mortgage property and CRE are detailed below. Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 183 Residential mortgages – NatWest Group takes collateral in the form of residential property to mitigate the credit risk arising from mortgages. NatWest Group values residential property individually during the loan underwriting process, either by obtaining an appraisal by a suitably qualified appraiser (for example, Royal Institution of Chartered Surveyors (RICS)) or using a statistically valid model. In both cases, a sample of the valuation outputs are periodically reviewed by an independent RICS qualified appraiser. NatWest Group updates Retail Banking UK residential property values quarterly using country (Scotland, Wales and Northern Ireland) or English regional specific Office for National Statistics House Price indices. Within the Private Banking and RBSI segments, properties securing loans greater than £2.5 million or €3 million are revalued every three years. The current indexed value of the property is a component of the ECL provisioning calculation. Commercial real estate valuations – NatWest Group has an actively managed panel of chartered surveying firms that cover the spectrum of geography and property sectors in which NatWest Group takes collateral. Suitable RICS registered valuers for particular assets are contracted through a service agreement to ensure consistency of quality and advice. In the UK, an independent third-party market indexation is applied to update external valuations for commercial property once they are more than a year old. For loan obligations in excess of £2.5 million and where the charged property has a book value in excess of £0.5 million, a formal valuation review is commissioned at least every three years. Assessment and monitoring Practices for credit stewardship – including credit assessment, approval and monitoring as well as the identification and management of problem debts – differ between the Personal and Wholesale portfolios. Personal Personal customers are served through a lending approach that entails offering a large number of small-value loans. To ensure that these lending decisions are made consistently, NatWest Group analyses internal credit information as well as external data supplied by credit reference agencies (including historical debt servicing behaviour of customers with respect to both NatWest Group and other lenders). NatWest Group then sets its lending rules accordingly, developing different rules for different products. The process is then largely automated, with each customer receiving an individual credit score that reflects both internal and external behaviours and this score is compared with the lending rules set. For relatively high-value, complex personal loans, including some residential mortgage lending, specialist credit managers make the final lending decisions. These decisions are made within specified delegated authority limits that are issued dependent on the experience of the individual. Underwriting standards and portfolio performance are monitored on an ongoing basis to ensure they remain adequate in the current market environment and are not weakened materially to sustain growth. The actual performance of each portfolio is tracked relative to operational limits. The limits apply to a range of credit risk-related measures including projected credit default rates across products and the loan-to-value (LTV) ratio of the mortgage portfolios. Where operational limits identify areas of concern management action is taken to adjust credit or business strategy. Wholesale Wholesale customers, including corporates, banks and other financial institutions are managed on an individual basis. Customers are aggregated as a single risk when sufficiently interconnected to the extent that a failure of one could lead to the failure of another. A credit assessment is carried out before credit facilities are made available to customers. The assessment process is dependent on the complexity of the transaction. Credit approvals are subject to environmental, social and governance risk policies which restrict exposure to certain highly carbon intensive industries as well as those with potentially heightened reputational impacts. Customer specific climate risk commentary is now mandatory. For lower risk transactions below specific thresholds, credit decisions can be approved through a combination of fully automated or relationship manager self-sanctioning within the business. This process is facilitated through an auto-decision making system, which utilises scorecards, strategies and policy rules. For all other transactions, credit is only granted to customers following joint approval by an approver from the business and the credit risk function or by two credit officers. The joint business and credit approvers act within a delegated approval authority under the Wholesale Credit Authorities framework policy. The level of delegated authority held by approvers is dependent on their experience and expertise with only a small number of senior executives holding the highest approval authority. Transactional acceptance standards provide detailed transactional lending and risk acceptance metrics and structuring guidance. As such, these standards provide a mechanism to manage risk appetite at the customer/transaction level and are supplementary to the established credit risk appetite. Credit quality through PD credit grades or performance against a combination of risk triggers in business banking, and LGD are reviewed and if appropriate reapproved annually. The review process assesses borrower performance, including reconfirmation or adjustment of risk parameter estimates; the adequacy of security; compliance with terms and conditions; and refinancing risk. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 167

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 183 Residential mortgages – NatWest Group takes collateral in the form of residential property to mitigate the credit risk arising from mortgages. NatWest Group values residential property individually during the loan underwriting process, either by obtaining an appraisal by a suitably qualified appraiser (for example, Royal Institution of Chartered Surveyors (RICS)) or using a statistically valid model. In both cases, a sample of the valuation outputs are periodically reviewed by an independent RICS qualified appraiser. NatWest Group updates Retail Banking UK residential property values quarterly using country (Scotland, Wales and Northern Ireland) or English regional specific Office for National Statistics House Price indices. Within the Private Banking and RBSI segments, properties securing loans greater than £2.5 million or €3 million are revalued every three years. The current indexed value of the property is a component of the ECL provisioning calculation. Commercial real estate valuations – NatWest Group has an actively managed panel of chartered surveying firms that cover the spectrum of geography and property sectors in which NatWest Group takes collateral. Suitable RICS registered valuers for particular assets are contracted through a service agreement to ensure consistency of quality and advice. In the UK, an independent third-party market indexation is applied to update external valuations for commercial property once they are more than a year old. For loan obligations in excess of £2.5 million and where the charged property has a book value in excess of £0.5 million, a formal valuation review is commissioned at least every three years. Assessment and monitoring Practices for credit stewardship – including credit assessment, approval and monitoring as well as the identification and management of problem debts – differ between the Personal and Wholesale portfolios. Personal Personal customers are served through a lending approach that entails offering a large number of small-value loans. To ensure that these lending decisions are made consistently, NatWest Group analyses internal credit information as well as external data supplied by credit reference agencies (including historical debt servicing behaviour of customers with respect to both NatWest Group and other lenders). NatWest Group then sets its lending rules accordingly, developing different rules for different products. The process is then largely automated, with each customer receiving an individual credit score that reflects both internal and external behaviours and this score is compared with the lending rules set. For relatively high-value, complex personal loans, including some residential mortgage lending, specialist credit managers make the final lending decisions. These decisions are made within specified delegated authority limits that are issued dependent on the experience of the individual. Underwriting standards and portfolio performance are monitored on an ongoing basis to ensure they remain adequate in the current market environment and are not weakened materially to sustain growth. The actual performance of each portfolio is tracked relative to operational limits. The limits apply to a range of credit risk-related measures including projected credit default rates across products and the loan-to-value (LTV) ratio of the mortgage portfolios. Where operational limits identify areas of concern management action is taken to adjust credit or business strategy. Wholesale Wholesale customers, including corporates, banks and other financial institutions are managed on an individual basis. Customers are aggregated as a single risk when sufficiently interconnected to the extent that a failure of one could lead to the failure of another. A credit assessment is carried out before credit facilities are made available to customers. The assessment process is dependent on the complexity of the transaction. Credit approvals are subject to environmental, social and governance risk policies which restrict exposure to certain highly carbon intensive industries as well as those with potentially heightened reputational impacts. Customer specific climate risk commentary is now mandatory. For lower risk transactions below specific thresholds, credit decisions can be approved through a combination of fully automated or relationship manager self-sanctioning within the business. This process is facilitated through an auto-decision making system, which utilises scorecards, strategies and policy rules. For all other transactions, credit is only granted to customers following joint approval by an approver from the business and the credit risk function or by two credit officers. The joint business and credit approvers act within a delegated approval authority under the Wholesale Credit Authorities framework policy. The level of delegated authority held by approvers is dependent on their experience and expertise with only a small number of senior executives holding the highest approval authority. Transactional acceptance standards provide detailed transactional lending and risk acceptance metrics and structuring guidance. As such, these standards provide a mechanism to manage risk appetite at the customer/transaction level and are supplementary to the established credit risk appetite. Credit quality through PD credit grades or performance against a combination of risk triggers in business banking, and LGD are reviewed and if appropriate reapproved annually. The review process assesses borrower performance, including reconfirmation or adjustment of risk parameter estimates; the adequacy of security; compliance with terms and conditions; and refinancing risk. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 168

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 184 Problem debt management Personal Early problem identification Pre-emptive triggers are in place to help identify customers that may be at risk of being in financial difficulty. These triggers are both internal, using NatWest Group data, and external using information from credit reference agencies. Proactive contact is then made with the customer to establish if they require help with managing their finances. By adopting this approach, the aim is to prevent a customer’s financial position deteriorating. Personal customers experiencing financial difficulty are managed by the Collections team. If the Collections team is unable to provide appropriate support after discussing suitable options with the customer, management of that customer moves to the Recoveries team. If at any point in the collections and recoveries process, the customer is identified as being potentially vulnerable, the customer will be separated from the regular process and supported by a specialist team to ensure the customer receives appropriate support for their circumstances. In July 2023, Mortgage Charter support was introduced for residential mortgage customers. Mortgage Charter support includes temporary interest only or term extensions at the customer’s request. A request for Mortgage Charter does not, of itself trigger transfer to a specialist team. Collections When a customer exceeds an agreed limit or misses a regular monthly payment the customer is contacted by NatWest Group and requested to remedy the position. If the situation is not resolved then, where appropriate, the Collections team will become more involved and the customer will be supported by skilled debt management staff who endeavour to provide customers with bespoke solutions. Solutions include short-term account restructuring, refinance loans and forbearance which can include interest suspension and ‘breathing space’. All treatments available to customers experiencing financial difficulties are reviewed to ensure they remain appropriate for customers impacted by current economic conditions. In the event that an affordable and sustainable agreement with a customer cannot be reached, the debt will transition to the Recoveries team. For provisioning purposes, under IFRS 9, exposure to customers managed by the Collections team is categorised as Stage 2 and subject to a lifetime loss assessment, unless it is 90 days past due or has triggered any other unlikeliness to pay indicators, in which case it is categorised as Stage 3. Recoveries The Recoveries team will issue a notice of intention to default to the customer and, if appropriate, a formal demand, while also registering the account with credit reference agencies where appropriate. Following this, the customer’s debt may then be placed with a third-party debt collection agency, or alternatively a solicitor, in order to agree an affordable repayment plan with the customer. An option that may also be considered, is the sale of unsecured debt. Exposures subject to formal debt recovery are defaulted and, under IFRS 9, categorised as Stage 3. Wholesale Early problem identification Each segment and sector have defined early warning indicators to identify customers experiencing financial difficulty, and to increase monitoring if needed. Early warning indicators may be internal, such as a customer’s bank account activity, or external, such as a publicly-listed customer’s share price. If early warning indicators show a customer is experiencing potential or actual difficulty, or if relationship managers or credit officers identify other signs of financial difficulty, they may decide to classify the customer within the Risk of Credit Loss framework. There is an equivalent process for Business Banking customers, with problem debt cases reallocated to increased monitoring and support under a Portfolio Management Relationship team or the Financial Health and Support Team. Broader macro-economic trends including commodity prices, foreign exchange rates and consumer and government spend are also tracked, helping inform decisions on sector risk appetite. Customer level early warning indicators are regularly reviewed to ensure alignment with prevailing economic conditions, ensuring both the volume and focus of alerts is aligned to the point-in-time risk within each sector. The aligned Risk of Credit Loss and Viability framework This framework focuses on all Wholesale customers to provide early identification of credit deterioration, support intelligent risk-taking, ensure fair and consistent customer outcomes and provide key insights into Wholesale lending portfolios. Expert judgment is applied by experienced credit risk officers to classify cases into categories that reflect progressively deteriorating credit risk to NatWest Group. There are two classifications in the framework that apply to non-defaulted customers who are in financial stress – Heightened Monitoring and Risk of Credit Loss. For the purposes of provisioning, all exposures categorised as Heightened Monitoring or Risk of Credit Loss are categorised as Stage 2 and subject to a lifetime loss assessment. The framework also applies to those customers that have met NatWest Group’s default criteria (AQ10 exposures). Defaulted exposures are categorised as Stage 3 impaired for provisioning purposes. Heightened Monitoring customers are performing customers that have met certain characteristics, which have led to significant credit deterioration. Collectively, characteristics reflect circumstances that may affect the customer’s ability to meet repayment obligations. Characteristics include trading issues, covenant breaches, material PD downgrades and past due facilities. Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 185 Heightened Monitoring customers require pre-emptive actions (outside the customer’s normal trading patterns) to return or maintain their facilities within NatWest Group’s current risk appetite. Risk of Credit Loss customers are performing customers that have met the criteria for Heightened Monitoring and also pose a risk of credit loss to NatWest Group in the next 12 months should mitigating action not be taken or not be successful. Once classified as either Heightened Monitoring or Risk of Credit Loss, a number of mandatory actions are taken in accordance with policies. Actions include a review of the customer’s credit grade, facility and security documentation and the valuation of security. Depending on the severity of the financial difficulty and the size of the exposure, the customer relationship strategy is reassessed by credit officers, by specialist credit risk or relationship management units in the relevant business, or by Restructuring. Agreed customer management strategies are regularly monitored by both the business and credit teams. The largest Risk of Credit Loss exposures are regularly reviewed by a Risk of Credit Loss forum. The forum members are experienced credit, business and restructuring specialists. The purpose of the forum is to review and challenge the strategies undertaken for customers that pose the largest risk of credit loss to NatWest Group. Appropriate corrective action is taken when circumstances emerge that may affect the customer’s ability to service its debt. Corrective actions may include granting a customer various types of concessions. Any decision to approve a concession will be a function of specific appetite, the credit quality of the customer, the market environment and the loan structure and security. All customers granted forbearance are classified Heightened Monitoring as a minimum. Other potential outcomes of the relationship review are to: return the customer to a satisfactory status, offer additional lending and continue monitoring, transfer the relationship to Restructuring if appropriate, or exit the relationship. The aligned Risk of Credit Loss and Viability framework does not apply to problem debt management for business banking customers. These customers are, where necessary, managed by specialist problem debt management teams, depending on the size of exposure or by the business banking recoveries team where a loan has been impaired. Restructuring Where customers are categorised as Risk of Credit Loss and the lending exposure is above £1 million, relationships are supported by the Restructuring team. The objective of Restructuring is to protect NatWest Group’s capital. Restructuring does this by working with corporate and commercial customers in financial difficulty to help them understand their options and how their restructuring or repayment strategies can be delivered. Helping viable customers return to financial health and restoring a normal banking relationship is always the preferred outcome; however, where this is not possible, NatWest Group will work with customers to achieve a solvent outcome. Throughout this period, the mainstream relationship manager will remain an integral part of the customer relationship. Insolvency is considered as a last resort and if deemed necessary, NatWest Group will work to recover its capital in a fair and efficient manner, while upholding the fair treatment of customers and NatWest Group’s core values. Forbearance (audited) Forbearance takes place when a concession is made on the contractual terms of a loan/debt in response to a customer’s financial difficulties. The aim of forbearance is to support and restore the customer to financial health while minimising risk. To ensure that forbearance is appropriate for the needs of the customer, minimum standards are applied when assessing, recording, monitoring and reporting forbearance. A credit exposure may be forborne more than once, generally where a temporary concession has been granted and circumstances warrant another temporary or permanent revision of the loan’s terms. Loans are reported as forborne until they meet the exit criteria as detailed in the appropriate regulatory guidance. These include being classified as performing for two years since the last forbearance event, making regular repayments and the loan/debt being less than 30 days past due. Types of forbearance Personal In the Personal portfolio, forbearance may involve payment concessions, loan rescheduling (including extensions in contractual maturity) and capitalisation of arrears. Forbearance support is provided for both mortgages and unsecured lending. Wholesale In the Wholesale portfolio, forbearance may involve covenant waivers, amendments to margins, payment concessions and loan rescheduling (including extensions in contractual maturity), capitalisation of arrears, and debt forgiveness or debt-for-equity swaps. Monitoring of forbearance Personal For Personal portfolios, forborne loans are separated and regularly monitored and reported while the forbearance strategy is implemented, until they exit forbearance. Wholesale In the Wholesale portfolio, customer PDs and facility LGDs are reassessed prior to finalising any forbearance arrangement. The ultimate outcome of a forbearance strategy is highly dependent on the co-operation of the borrower and a viable business or repayment outcome. Where forbearance is no longer appropriate, NatWest Group will consider other options such as the enforcement of security, insolvency proceedings or both, although these are options of last resort. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 169

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 185 Heightened Monitoring customers require pre-emptive actions (outside the customer’s normal trading patterns) to return or maintain their facilities within NatWest Group’s current risk appetite. Risk of Credit Loss customers are performing customers that have met the criteria for Heightened Monitoring and also pose a risk of credit loss to NatWest Group in the next 12 months should mitigating action not be taken or not be successful. Once classified as either Heightened Monitoring or Risk of Credit Loss, a number of mandatory actions are taken in accordance with policies. Actions include a review of the customer’s credit grade, facility and security documentation and the valuation of security. Depending on the severity of the financial difficulty and the size of the exposure, the customer relationship strategy is reassessed by credit officers, by specialist credit risk or relationship management units in the relevant business, or by Restructuring. Agreed customer management strategies are regularly monitored by both the business and credit teams. The largest Risk of Credit Loss exposures are regularly reviewed by a Risk of Credit Loss forum. The forum members are experienced credit, business and restructuring specialists. The purpose of the forum is to review and challenge the strategies undertaken for customers that pose the largest risk of credit loss to NatWest Group. Appropriate corrective action is taken when circumstances emerge that may affect the customer’s ability to service its debt. Corrective actions may include granting a customer various types of concessions. Any decision to approve a concession will be a function of specific appetite, the credit quality of the customer, the market environment and the loan structure and security. All customers granted forbearance are classified Heightened Monitoring as a minimum. Other potential outcomes of the relationship review are to: return the customer to a satisfactory status, offer additional lending and continue monitoring, transfer the relationship to Restructuring if appropriate, or exit the relationship. The aligned Risk of Credit Loss and Viability framework does not apply to problem debt management for business banking customers. These customers are, where necessary, managed by specialist problem debt management teams, depending on the size of exposure or by the business banking recoveries team where a loan has been impaired. Restructuring Where customers are categorised as Risk of Credit Loss and the lending exposure is above £1 million, relationships are supported by the Restructuring team. The objective of Restructuring is to protect NatWest Group’s capital. Restructuring does this by working with corporate and commercial customers in financial difficulty to help them understand their options and how their restructuring or repayment strategies can be delivered. Helping viable customers return to financial health and restoring a normal banking relationship is always the preferred outcome; however, where this is not possible, NatWest Group will work with customers to achieve a solvent outcome. Throughout this period, the mainstream relationship manager will remain an integral part of the customer relationship. Insolvency is considered as a last resort and if deemed necessary, NatWest Group will work to recover its capital in a fair and efficient manner, while upholding the fair treatment of customers and NatWest Group’s core values. Forbearance (audited) Forbearance takes place when a concession is made on the contractual terms of a loan/debt in response to a customer’s financial difficulties. The aim of forbearance is to support and restore the customer to financial health while minimising risk. To ensure that forbearance is appropriate for the needs of the customer, minimum standards are applied when assessing, recording, monitoring and reporting forbearance. A credit exposure may be forborne more than once, generally where a temporary concession has been granted and circumstances warrant another temporary or permanent revision of the loan’s terms. Loans are reported as forborne until they meet the exit criteria as detailed in the appropriate regulatory guidance. These include being classified as performing for two years since the last forbearance event, making regular repayments and the loan/debt being less than 30 days past due. Types of forbearance Personal In the Personal portfolio, forbearance may involve payment concessions, loan rescheduling (including extensions in contractual maturity) and capitalisation of arrears. Forbearance support is provided for both mortgages and unsecured lending. Wholesale In the Wholesale portfolio, forbearance may involve covenant waivers, amendments to margins, payment concessions and loan rescheduling (including extensions in contractual maturity), capitalisation of arrears, and debt forgiveness or debt-for-equity swaps. Monitoring of forbearance Personal For Personal portfolios, forborne loans are separated and regularly monitored and reported while the forbearance strategy is implemented, until they exit forbearance. Wholesale In the Wholesale portfolio, customer PDs and facility LGDs are reassessed prior to finalising any forbearance arrangement. The ultimate outcome of a forbearance strategy is highly dependent on the co-operation of the borrower and a viable business or repayment outcome. Where forbearance is no longer appropriate, NatWest Group will consider other options such as the enforcement of security, insolvency proceedings or both, although these are options of last resort. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 170

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 186 Provisioning for forbearance (audited) Personal The methodology used for provisioning in respect of Personal forborne loans will differ depending on whether the loans are performing or non-performing and which business is managing them due to local market conditions. Granting forbearance will only change the arrears status of the loan in specific circumstances, which can include capitalisation of principal and interest in arrears, where the loan may be returned to the performing book if the customer has demonstrated an ability to meet regular payments and is likely to continue to do so. The loan would continue to be reported as forborne until it meets the exit criteria set out by the appropriate regulatory guidance. For ECL provisioning, all forborne but performing exposures are categorised as Stage 2 and are subject to a lifetime loss provisioning assessment. Where the forbearance treatment includes the cessation of interest on the customer balance (i.e. non-accrual), this will be treated as a Stage 3 default. For non-performing forborne loans, the Stage 3 loss assessment process is the same as for non-forborne loans. Wholesale Provisions for forborne loans are assessed in accordance with normal provisioning policies. The customer’s financial position and prospects – as well as the likely effect of the forbearance, including any concessions granted, and revised PD or LGD gradings – are considered in order to establish whether an impairment provision increase is required. Wholesale loans granted forbearance are individually credit assessed in most cases. Performing loans subject to forbearance treatment are categorised as Stage 2 and subject to a lifetime loss assessment. Forbearance may result in the value of the outstanding debt exceeding the present value of the estimated future cash flows. This difference will lead to a customer being classified as non-performing. In the case of non-performing forborne loans, an individual loan impairment provision assessment generally takes place prior to forbearance being granted. The amount of the loan impairment provision may change once the terms of the forbearance are known, resulting in an additional provision charge or a release of the provision in the period the forbearance is granted. Credit grading models Credit grading models is the collective term used to describe all models, frameworks and methodologies used to calculate PD, exposure at default (EAD), LGD, maturity and the production of credit grades. Credit grading models are designed to provide:  An assessment of customer and transaction characteristics.  A meaningful differentiation of credit risk.  Accurate internal default rate, loss and exposure estimates that are used in the capital calculation or wider risk management purposes. Impairment, provisioning and write-offs (audited) In the overall assessment of credit risk, impairment provisioning and write-offs are used as key indicators of credit quality. NatWest Group’s IFRS 9 provisioning models, which use existing IRB models as a starting point, incorporate term structures and forward-looking information. Regulatory conservatism within the IRB models has been removed as appropriate to comply with the IFRS 9 requirement for unbiased ECL estimates. Five key areas may materially influence the measurement of credit impairment under IFRS 9 – two of these relate to model build and three relate to model application: Model build:  The determination of economic indicators that have most influence on credit loss for each portfolio and the severity of impact (this leverages existing stress testing models which are reviewed annually).  The build of term structures to extend the determination of the risk of loss beyond 12 months that will influence the impact of lifetime loss for exposures in Stage 2. Model application:  The assessment of the SICR and the formation of a framework capable of consistent application.  The determination of asset lifetimes that reflect behavioural characteristics while also representing management actions and processes (using historical data and experience).  The choice of forward-looking economic scenarios and their respective probability weights. For accounting policy information refer to Accounting policy 2.3 IFRS 9 ECL model design principles (audited) Modelling of ECL for IFRS 9 follows the conventional approach to divide the estimation of credit losses into its component parts of PD, LGD and EAD. To meet IFRS 9 requirements, the PD, LGD and EAD parameters differ from their Pillar 1 internal ratings based (IRB) counterparts in the following aspects: Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 187  Unbiased – material regulatory conservatism has been removed from IFRS 9 parameters to produce unbiased estimates.  Point-in-time – IFRS 9 parameters reflect actual economic conditions at the reporting date instead of long-run average or downturn conditions.  Economic forecasts – IFRS 9 PD estimates and, where appropriate, EAD and LGD estimates reflect forward-looking economic conditions.  Lifetime measurement – IFRS 9 PD, LGD and EAD are provided as multi-period term structures up to exposure lifetimes instead of over a fixed one-year horizon. IFRS 9 requires that at each reporting date, an entity shall assess whether the credit risk on an account has increased significantly since initial recognition. Part of this assessment requires a comparison to be made between the current lifetime PD (i.e. the PD over the remaining lifetime at the reporting date) and the equivalent lifetime PD as determined at the date of initial recognition. For assets originated before IFRS 9 was introduced, comparable lifetime origination PDs did not exist. These have been retrospectively created using the relevant model inputs applicable at initial recognition. PD estimates Personal models Personal PD models follow a discrete multi-horizon survival approach, predicting quarterly PDs up to lifetime at account level, with a key driver being scores from related IRB PD models. Forward-looking economic information is brought in by economic response models, which leverage the existing stress test model suite. The current suite of PD models was introduced in 2022 replacing the previous, first-generation models to remediate a range of model weaknesses. Wholesale models Wholesale PD models use a point-in-time/through-the-cycle framework to convert one-year regulatory PDs into point-in-time estimates that reflect economic conditions at the reporting date. The framework utilises credit cycle indices (CCIs) for a comprehensive set of region/industry segments. Further detail on CCIs is provided in the Economic loss drivers section. One year point-in-time PDs are extended to forward-looking lifetime PDs using a conditional transition matrix approach and a set of econometric forecasting models. LGD estimates The general approach for the IFRS 9 LGD models is to leverage corresponding IRB LGD models with bespoke adjustments to ensure estimates are unbiased and, where relevant, forward-looking. Personal Forward-looking information has only been incorporated for the secured portfolios, where changes in property prices can be readily accommodated. Analysis has shown minimal impact of economic conditions on LGDs for the other Personal portfolios. Wholesale Forward-looking economic information is incorporated into LGD estimates using the existing point-in-time/through-the-cycle framework. For low default portfolios, including sovereigns and banks, loss data is too scarce to substantiate estimates that vary with economic conditions. Consequently, for these portfolios, LGD estimates are assumed to be constant throughout the projection horizon. EAD estimates Personal The IFRS 9 Personal modelling approach for EAD is dependent on product type.  Revolving products use the existing IRB models as a basis, with appropriate adjustments incorporating a term structure based on time to default.  Amortising products use an amortising schedule, where a formula is used to calculate the expected balance based on remaining terms and interest rates. Analysis has indicated that there is minimal impact on EAD arising from changes in the economy for all Personal portfolios except mortgages. Therefore, forward-looking information is only incorporated in the mortgage EAD model (through forecast changes in interest rates). Wholesale For Wholesale, EAD values are projected using product specific credit conversion factors (CCFs), closely following the product segmentation and approach of the respective IRB model. However, the CCFs are estimated over multi-year time horizons and contain no regulatory conservatism or downturn assumptions. No explicit forward-looking information is incorporated, on the basis of analysis showing the temporal variation in CCFs is mainly attributable to changes in exposure management practices rather than economic conditions. Governance and post model adjustments (audited) The IFRS 9 PD, EAD and LGD models are subject to NatWest Group’s model risk policy that stipulates periodic model monitoring, periodic re-validation and defines approval procedures and authorities according to model materiality. Various post model adjustments were applied where management judged they were necessary to ensure an adequate level of overall ECL provision. All post model adjustments were subject to review, challenge and approval through model or provisioning committees. Post model adjustments will remain a key focus area of NatWest Group’s ongoing ECL adequacy assessment process. A holistic framework has been established including reviewing a range of economic data, external benchmark information and portfolio performance trends with a particular focus on segments of the portfolio (both commercial and consumer) that are likely to be more susceptible to high inflation, high interest rates and supply chain disruption. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION The transfer of Wholesale loans from impaired to performing status follows assessment by relationship managers and credit. When no further losses are anticipated and the customer is expected to meet the loan’s revised terms, any provision is written-off or released and the balance of the loan can be returned to performing status once the exit criteria, as set out by regulatory guidance, are met. Refer to pages 198 and 201 for further details on Wholesale and Personal forbearance. NatWest Group 2023 Annual Report on Form 20-F 171

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 187  Unbiased – material regulatory conservatism has been removed from IFRS 9 parameters to produce unbiased estimates.  Point-in-time – IFRS 9 parameters reflect actual economic conditions at the reporting date instead of long-run average or downturn conditions.  Economic forecasts – IFRS 9 PD estimates and, where appropriate, EAD and LGD estimates reflect forward-looking economic conditions.  Lifetime measurement – IFRS 9 PD, LGD and EAD are provided as multi-period term structures up to exposure lifetimes instead of over a fixed one-year horizon. IFRS 9 requires that at each reporting date, an entity shall assess whether the credit risk on an account has increased significantly since initial recognition. Part of this assessment requires a comparison to be made between the current lifetime PD (i.e. the PD over the remaining lifetime at the reporting date) and the equivalent lifetime PD as determined at the date of initial recognition. For assets originated before IFRS 9 was introduced, comparable lifetime origination PDs did not exist. These have been retrospectively created using the relevant model inputs applicable at initial recognition. PD estimates Personal models Personal PD models follow a discrete multi-horizon survival approach, predicting quarterly PDs up to lifetime at account level, with a key driver being scores from related IRB PD models. Forward-looking economic information is brought in by economic response models, which leverage the existing stress test model suite. The current suite of PD models was introduced in 2022 replacing the previous, first-generation models to remediate a range of model weaknesses. Wholesale models Wholesale PD models use a point-in-time/through-the-cycle framework to convert one-year regulatory PDs into point-in-time estimates that reflect economic conditions at the reporting date. The framework utilises credit cycle indices (CCIs) for a comprehensive set of region/industry segments. Further detail on CCIs is provided in the Economic loss drivers section. One year point-in-time PDs are extended to forward-looking lifetime PDs using a conditional transition matrix approach and a set of econometric forecasting models. LGD estimates The general approach for the IFRS 9 LGD models is to leverage corresponding IRB LGD models with bespoke adjustments to ensure estimates are unbiased and, where relevant, forward-looking. Personal Forward-looking information has only been incorporated for the secured portfolios, where changes in property prices can be readily accommodated. Analysis has shown minimal impact of economic conditions on LGDs for the other Personal portfolios. Wholesale Forward-looking economic information is incorporated into LGD estimates using the existing point-in-time/through-the-cycle framework. For low default portfolios, including sovereigns and banks, loss data is too scarce to substantiate estimates that vary with economic conditions. Consequently, for these portfolios, LGD estimates are assumed to be constant throughout the projection horizon. EAD estimates Personal The IFRS 9 Personal modelling approach for EAD is dependent on product type.  Revolving products use the existing IRB models as a basis, with appropriate adjustments incorporating a term structure based on time to default.  Amortising products use an amortising schedule, where a formula is used to calculate the expected balance based on remaining terms and interest rates. Analysis has indicated that there is minimal impact on EAD arising from changes in the economy for all Personal portfolios except mortgages. Therefore, forward-looking information is only incorporated in the mortgage EAD model (through forecast changes in interest rates). Wholesale For Wholesale, EAD values are projected using product specific credit conversion factors (CCFs), closely following the product segmentation and approach of the respective IRB model. However, the CCFs are estimated over multi-year time horizons and contain no regulatory conservatism or downturn assumptions. No explicit forward-looking information is incorporated, on the basis of analysis showing the temporal variation in CCFs is mainly attributable to changes in exposure management practices rather than economic conditions. Governance and post model adjustments (audited) The IFRS 9 PD, EAD and LGD models are subject to NatWest Group’s model risk policy that stipulates periodic model monitoring, periodic re-validation and defines approval procedures and authorities according to model materiality. Various post model adjustments were applied where management judged they were necessary to ensure an adequate level of overall ECL provision. All post model adjustments were subject to review, challenge and approval through model or provisioning committees. Post model adjustments will remain a key focus area of NatWest Group’s ongoing ECL adequacy assessment process. A holistic framework has been established including reviewing a range of economic data, external benchmark information and portfolio performance trends with a particular focus on segments of the portfolio (both commercial and consumer) that are likely to be more susceptible to high inflation, high interest rates and supply chain disruption. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 172

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 188 ECL post model adjustments The table below shows ECL post model adjustments. Retail Banking Commercial Central items Mortgages Other Private Banking & Institutional & other (1) Total 2023 £m £m £m £m £m £m Deferred model calibrations - - 1 23 - 24 Economic uncertainty 118 39 13 256 3 429 Other adjustments 1 - - 8 23 32 Total 119 39 14 287 26 485 Of which: - Stage 1 75 14 6 115 10 220 - Stage 2 31 25 8 167 9 240 - Stage 3 13 - - 5 7 25 2022 Economic uncertainty 102 51 6 191 2 352 Other adjustments 8 20 - 16 15 59 Total 110 71 6 207 17 411 Of which: - Stage 1 62 27 3 63 - 155 - Stage 2 32 44 3 139 16 234 - Stage 3 16 - - 5 1 22 . Post model adjustments increased since 31 December 2022, with notable shifts in all categories. This reflected:  The addition of deferred model calibration post model adjustments to account for elevated refinance risks on deteriorated exposures largely due to pressures from inflation and liquidity.  The increase in the economic uncertainty post model adjustments for Wholesale portfolios relating to inflation, supply chain and liquidity prompted by continued affordability risks, as a result of higher interest rates and sustained inflation. This was partially offset by a reduction in COVID-19 related post model adjustments.  Retail Banking – The post model adjustments for economic uncertainty increased slightly to £157 million at 31 December 2023, from £153 million at 31 December 2022. Continued consumer affordability risks, as a result of higher interest rates and sustained inflation, prompted an uplift in the cost of living post model adjustment (up from £127 million to £144 million). The cost of living post model adjustment captured the risk on segments in the Retail Banking portfolio that are more susceptible to the effects of cost of living rises. It focused on key affordability lenses, including customers with lower income in fuel poverty, over-indebted borrowers and customers vulnerable to a potential mortgage rate shock. This increase during the year was partly offset by some LGD post model adjustment reductions. Additionally, the judgemental post model adjustment relating to the modelling of cards EAD (£20 million at 31 December 2022) was discontinued at H1 2023 and the latest update to the post model adjustment for legacy higher risk interest only residential mortgages resulted in a £7 million reduction in the post model adjustment from 31 December 2022, reflecting latest analysis of the portfolio segment.  Commercial & Institutional – The post model adjustments for economic uncertainty increased to £256 million at 31 December 2023, from £191 million at 31 December 2022. It included an overlay of £50 million at 31 December 2023, from £108 million at 31 December 2022, to cover the residual risks from COVID-19, including the risk that government support schemes could affect future recoveries and concerns surrounding associated debt, to customers that have utilised government support schemes. The inflation and supply chain post model adjustment was maintained with a mechanistic adjustment, via a sector-level downgrade, being applied to the sectors that were considered most at risk from these headwinds. A number of additional sectors were added to the sector-level downgrade reflecting the ongoing pressures from inflation being higher for longer plus broader concerns around reducing cash reserves across many sectors. The impact of the sector-level downgrades is a post model adjustment increase to £206 million at 31 December 2023 from £83 million at 31 December 2022, reflecting these significant headwinds which are not fully captured in the models. The £23 million judgemental overlay for deferred model calibrations relates to refinance risk with the existing mechanistic modelling approach not fully capturing the risk on deteriorated exposures. Other adjustments included an overlay of £7 million to mitigate the effect of operational timing delays in the identification and flagging of a SICR. Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 189 Significant increase in credit risk (SICR) (audited) Exposures that are considered significantly credit deteriorated since initial recognition are classified in Stage 2 and assessed for lifetime ECL measurement (exposures not considered deteriorated carry a 12 month ECL). NatWest Group has adopted a framework to identify deterioration based primarily on relative movements in lifetime PD supported by additional qualitative backstops. The principles applied are consistent across NatWest Group and align to credit risk management practices, where appropriate. The framework comprises the following elements:  IFRS 9 lifetime PD assessment (the primary driver) – on modelled portfolios, the assessment is based on the relative deterioration in forward-looking lifetime PD and is assessed monthly. To assess whether credit deterioration has occurred, the residual lifetime PD at balance sheet date (which PD is established at date of initial recognition (DOIR)) is compared to the current PD. If the current lifetime PD exceeds the residual origination PD by more than a threshold amount, deterioration is assumed to have occurred and the exposure transferred into Stage 2 for a lifetime loss assessment. For Wholesale, a doubling of PD would indicate a SICR subject to a minimum PD uplift of 0.1%. For Personal portfolios, the criteria vary by risk band, with lower risk exposures needing to deteriorate more than higher risk exposures, as outlined in the following table:  Qualitative high-risk backstops – the PD assessment is complemented with the use of qualitative high-risk backstops to further inform whether significant deterioration in lifetime risk of default has occurred. The qualitative high-risk backstop assessment includes the use of the mandatory 30+ days past due backstop, as prescribed by IFRS 9 guidance, and other features such as forbearance support, Wholesale exposures managed within the Risk of Credit Loss framework, and adverse credit bureau results for Personal customers.  Persistence (Personal and business banking customers only) – the persistence rule ensures that accounts which have met the criteria for PD driven deterioration are still considered to be significantly deteriorated for three months thereafter. This additional rule enhances the timeliness of capture in Stage 2. The persistence rule is applied to PD driven deterioration only. The criteria are based on a significant amount of empirical analysis and seek to meet three key objectives:  Criteria effectiveness – the criteria should be effective in identifying significant credit deterioration and prospective default population.  Stage 2 stability – the criteria should not introduce unnecessary volatility in the Stage 2 population.  Portfolio analysis – the criteria should produce results which are intuitive when reported as part of the wider credit portfolio. Monitoring the effect on relative PD deterioration when originating new lending at times of weaker economic outlook (therefore, higher PDs at initial recognition) is important to ensure SICR criteria remains effective. Asset lifetimes (audited) The choice of initial recognition and asset duration is another critical judgment in determining the quantum of lifetime losses that apply.  The date of initial recognition reflects the date that a transaction (or account) was first recognised on the balance sheet; the PD recorded at that time provides the baseline used for subsequent determination of SICR as detailed above.  For asset duration, the approach applied (in line with IFRS 9 requirements) is:  Term lending – the contractual maturity date, reduced for behavioural trends where appropriate (such as, expected prepayment and amortisation).  Revolving facilities – for Personal portfolios (except credit cards), asset duration is based on behavioural life and this is normally greater than contractual life (which would typically be overnight). For Wholesale portfolios, asset duration is based on annual customer review schedules and will be set to the next review date. In the case of credit cards, the most significant judgment is to reflect the operational practice of card reissuance and the associated credit assessment as enabling a formal re-origination trigger. As a consequence, a capped lifetime approach of up to 36 months is used on credit card balances. If the approach was uncapped the ECL impact is estimated at approximately £110 million (2022 – £80 million). However, credit card balances originated under the 0% balance transfer product and representing approximately 37% (2022 – 19%) of performing card balances, have their ECL calculated on a behavioural lifetime approach as opposed to being capped at a maximum of three years. The capped approach reflects NatWest Group practice of a credit-based review of customers prior to credit card issuance and complies with IFRS 9. Benchmarking information indicates that peer UK banks use behavioural approaches in the main for credit card portfolios with average durations between three and ten years. Across Europe, durations are shorter and are, in some cases, as low as one year. Personal risk bands PD bandings (based on residual lifetime PD calculated at DOIR) PD deterioration threshold criteria Risk band A <0.762% PD@DOIR + 1% Risk band B <4.306% PD@DOIR + 3% Risk band C >=4.306% 1.7 x PD@DOIR STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 173

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 189 Significant increase in credit risk (SICR) (audited) Exposures that are considered significantly credit deteriorated since initial recognition are classified in Stage 2 and assessed for lifetime ECL measurement (exposures not considered deteriorated carry a 12 month ECL). NatWest Group has adopted a framework to identify deterioration based primarily on relative movements in lifetime PD supported by additional qualitative backstops. The principles applied are consistent across NatWest Group and align to credit risk management practices, where appropriate. The framework comprises the following elements:  IFRS 9 lifetime PD assessment (the primary driver) – on modelled portfolios, the assessment is based on the relative deterioration in forward-looking lifetime PD and is assessed monthly. To assess whether credit deterioration has occurred, the residual lifetime PD at balance sheet date (which PD is established at date of initial recognition (DOIR)) is compared to the current PD. If the current lifetime PD exceeds the residual origination PD by more than a threshold amount, deterioration is assumed to have occurred and the exposure transferred into Stage 2 for a lifetime loss assessment. For Wholesale, a doubling of PD would indicate a SICR subject to a minimum PD uplift of 0.1%. For Personal portfolios, the criteria vary by risk band, with lower risk exposures needing to deteriorate more than higher risk exposures, as outlined in the following table:  Qualitative high-risk backstops – the PD assessment is complemented with the use of qualitative high-risk backstops to further inform whether significant deterioration in lifetime risk of default has occurred. The qualitative high-risk backstop assessment includes the use of the mandatory 30+ days past due backstop, as prescribed by IFRS 9 guidance, and other features such as forbearance support, Wholesale exposures managed within the Risk of Credit Loss framework, and adverse credit bureau results for Personal customers.  Persistence (Personal and business banking customers only) – the persistence rule ensures that accounts which have met the criteria for PD driven deterioration are still considered to be significantly deteriorated for three months thereafter. This additional rule enhances the timeliness of capture in Stage 2. The persistence rule is applied to PD driven deterioration only. The criteria are based on a significant amount of empirical analysis and seek to meet three key objectives:  Criteria effectiveness – the criteria should be effective in identifying significant credit deterioration and prospective default population.  Stage 2 stability – the criteria should not introduce unnecessary volatility in the Stage 2 population.  Portfolio analysis – the criteria should produce results which are intuitive when reported as part of the wider credit portfolio. Monitoring the effect on relative PD deterioration when originating new lending at times of weaker economic outlook (therefore, higher PDs at initial recognition) is important to ensure SICR criteria remains effective. Asset lifetimes (audited) The choice of initial recognition and asset duration is another critical judgment in determining the quantum of lifetime losses that apply.  The date of initial recognition reflects the date that a transaction (or account) was first recognised on the balance sheet; the PD recorded at that time provides the baseline used for subsequent determination of SICR as detailed above.  For asset duration, the approach applied (in line with IFRS 9 requirements) is:  Term lending – the contractual maturity date, reduced for behavioural trends where appropriate (such as, expected prepayment and amortisation).  Revolving facilities – for Personal portfolios (except credit cards), asset duration is based on behavioural life and this is normally greater than contractual life (which would typically be overnight). For Wholesale portfolios, asset duration is based on annual customer review schedules and will be set to the next review date. In the case of credit cards, the most significant judgment is to reflect the operational practice of card reissuance and the associated credit assessment as enabling a formal re-origination trigger. As a consequence, a capped lifetime approach of up to 36 months is used on credit card balances. If the approach was uncapped the ECL impact is estimated at approximately £110 million (2022 – £80 million). However, credit card balances originated under the 0% balance transfer product and representing approximately 37% (2022 – 19%) of performing card balances, have their ECL calculated on a behavioural lifetime approach as opposed to being capped at a maximum of three years. The capped approach reflects NatWest Group practice of a credit-based review of customers prior to credit card issuance and complies with IFRS 9. Benchmarking information indicates that peer UK banks use behavioural approaches in the main for credit card portfolios with average durations between three and ten years. Across Europe, durations are shorter and are, in some cases, as low as one year. Personal risk bands PD bandings (based on residual lifetime PD calculated at DOIR) PD deterioration threshold criteria Risk band A <0.762% PD@DOIR + 1% Risk band B <4.306% PD@DOIR + 3% Risk band C >=4.306% 1.7 x PD@DOIR STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 174

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 190 Economic loss drivers (audited) Introduction The portfolio segmentation and selection of economic loss drivers for IFRS 9 follows the approach used in stress testing. To enable robust modelling the forecasting models for each portfolio segment (defined by product or asset class and where relevant, industry sector and region) are based on a selected, small number of economic variables, (typically three to four) that best explain the temporal variations in portfolio loss rates. The process to select economic loss drivers involves empirical analysis and expert judgement. The most significant economic loss drivers for the most material portfolios are shown in the table below: Portfolio Economic loss drivers UK Personal mortgages UK unemployment rate, sterling swap rate, UK house price index, UK real wage UK Personal unsecured UK unemployment rate, sterling swap rate, UK real wage UK corporates UK stock price index, UK gross domestic product, Bank of England base rate UK commercial real estate UK stock price index, UK commercial property price index, UK GDP, Bank of England base rate Economic scenarios At 31 December 2023, the range of anticipated future economic conditions was defined by a set of four internally developed scenarios and their respective probabilities. In addition to the base case, they comprised upside, downside and extreme downside scenarios. The scenarios primarily reflected the current risks faced by the economy, particularly in relation to the path of inflation and interest rates. For 2023, the four scenarios were deemed appropriate in capturing the uncertainty in economic forecasts and the non-linearity in outcomes under different scenarios. These four scenarios were developed to provide sufficient coverage across potential rises in unemployment, inflation, asset price declines and the degree of permanent damage to the economy, around which there remains pronounced levels of uncertainty. Upside – This scenario assumes robust growth as inflation falls sharply and rates are lowered more quickly than expected. Consumer spending is supported by savings built up since COVID-19 and further helped by fiscal support and strong business investment. The labour market remains resilient, with the unemployment rate falling. The housing market slows down compared to the previous year but remains robust. Compared to 31 December 2022, the upside scenario remains similarly configured, exploring a more benign set of economic outcomes, including a stronger performing stock market, real estate prices, and supported by a stronger global growth backdrop, relative to the base case view. Reflecting recent outturn data, inflation falls back quicker and the labour market is tighter than previously assumed. Base case – High inflation and tight monetary policy leads to muted economic growth. However, continued disinflation allows an easing cycle to start in 2024. The unemployment rate rises modestly but there are no wide-spread job losses. Inflation moderates and falls to a target level of 2% by early 2025. The housing market experiences modest nominal price decline but the extent of the decline is lower than experienced during prior stresses. Housing market activities remain weak but gains pace gradually as interest rates fall and real income recovers. Since 31 December 2022, the economic outlook has improved as energy prices fell sharply and the labour market remained resilient. The near-term inflation outlook remains elevated and upside risks remain but they have reduced since last year. Rates increased to levels higher than expected previously and are expected to remain higher for longer. Economic growth is still expected to be muted in the near-term. The base case now assumes muted growth in 2023 as opposed to a mild recession assumed previously. The unemployment rate still rises but the peak is marginally lower and is underpinned by a resilient labour market The peak to trough house price correction remains broadly similar to the previous assumption but the timing of the fall is more spread out. Downside – Inflation resurges as energy prices rise and core inflation remains persistently high. The economy experiences a recession as consumer confidence weakens due to a fall in real income. Interest rates are raised higher than the base case and remain elevated for longer. High rates are assumed to have a more significant impact on the labour market. Unemployment is higher than the base case scenario while house prices experience declines comparable to previous episodes of stress. Compared to 31 December 2022, the downside scenario explores risks associated with ongoing price pressures and significantly higher interest rates across the period. This contrasts with last year’s scenario, which assumed lower rates than the base case view. Partly as a result, UK economic activity and labour market are slightly weaker. Nominal asset prices, while experiencing declines comparable with past downturns, perform slightly better than previously assumed. Extreme downside – This scenario assumes a classical recession with loss of consumer confidence leading to a deep economic recession. This results in widespread job losses with the unemployment rate rising above the levels seen during the 2008 financial crisis. Rates are cut sharply in response, leading to some support to the recovery. House prices lose approximately a third of their value. Compared to 31 December 2022, the extreme downside again captures an extreme set of economic outcomes, with very sharp falls in asset prices and a marked deterioration in the labour market. The key difference is the assumed path for interest rates. Unlike at 31 December 2022, when recessionary risks were explored in the context of a stubbornly high inflation environment, both inflation and interest rates are now assumed to follow a significantly lower trajectory – consistent with recession driven by material weakness in domestic demand. Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 191 Economic loss drivers (audited) The main macroeconomic variables for each of the four scenarios used for expected credit loss (ECL) modelling are set out in the main macroeconomic variables table below. Main macroeconomic variables 31 December 2023 31 December 2022 Extreme Weighted Extreme Weighted Upside Base case Downside downside average Upside Base case Downside downside average Five-year summary % % % % % % % % % % GDP 1.8 1.0 0.5 (0.3) 0.9 2.2 1.3 0.8 0.4 1.2 Unemployment 3.5 4.6 5.2 6.8 4.8 3.9 4.5 4.9 6.7 4.8 House price index 3.9 0.3 (0.4) (5.7) 0.3 5.1 0.8 (0.7) (4.4) 0.6 Commercial real estate price 3.1 (0.2) (2.0) (6.8) (0.6) 1.2 (1.9) (2.8) (9.1) (2.5) Consumer price index 1.7 2.6 5.2 1.8 2.8 3.6 4.2 4.4 8.2 4.8 Bank of England base rate 3.8 3.7 5.6 2.9 4.0 2.4 3.1 1.5 4.5 2.8 UK stock price index 4.8 3.3 1.2 (0.4) 2.8 3.0 1.4 (1.1) (3.7) 0.5 World GDP 3.7 3.2 2.7 1.8 3.0 3.7 3.3 1.7 1.1 2.7 Probability weight 21.2 45.0 20.4 13.4 18.6 45.0 20.8 15.6 (1) The five-year summary runs from 2023-27 for 31 December 2023 and from 2022-26 for 31 December 2022. (2) The table shows CAGR for annual GDP, average levels for the unemployment rate and Bank of England base rate and Q4 to Q4 CAGR for other parameters. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 175

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 191 Economic loss drivers (audited) The main macroeconomic variables for each of the four scenarios used for expected credit loss (ECL) modelling are set out in the main macroeconomic variables table below. Main macroeconomic variables 31 December 2023 31 December 2022 Extreme Weighted Extreme Weighted Upside Base case Downside downside average Upside Base case Downside downside average Five-year summary % % % % % % % % % % GDP 1.8 1.0 0.5 (0.3) 0.9 2.2 1.3 0.8 0.4 1.2 Unemployment 3.5 4.6 5.2 6.8 4.8 3.9 4.5 4.9 6.7 4.8 House price index 3.9 0.3 (0.4) (5.7) 0.3 5.1 0.8 (0.7) (4.4) 0.6 Commercial real estate price 3.1 (0.2) (2.0) (6.8) (0.6) 1.2 (1.9) (2.8) (9.1) (2.5) Consumer price index 1.7 2.6 5.2 1.8 2.8 3.6 4.2 4.4 8.2 4.8 Bank of England base rate 3.8 3.7 5.6 2.9 4.0 2.4 3.1 1.5 4.5 2.8 UK stock price index 4.8 3.3 1.2 (0.4) 2.8 3.0 1.4 (1.1) (3.7) 0.5 World GDP 3.7 3.2 2.7 1.8 3.0 3.7 3.3 1.7 1.1 2.7 Probability weight 21.2 45.0 20.4 13.4 18.6 45.0 20.8 15.6 (1) The five-year summary runs from 2023-27 for 31 December 2023 and from 2022-26 for 31 December 2022. (2) The table shows CAGR for annual GDP, average levels for the unemployment rate and Bank of England base rate and Q4 to Q4 CAGR for other parameters. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 176

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 192 Economic loss drivers (audited) Climate transition During 2023, NatWest Group continued to align its financial planning process with the climate transition planning process. This included adding climate policy and technology related transition assumptions into NatWest Group’s base case macroeconomic scenario used for financial planning and assessment of ECL in this IFRS 9 reporting period. This resulted in an increase in ECL of less than £1 million. As in the initial iteration of the Climate transition plan, included in NatWest Group’s 2022 Climate-related Disclosures Report, NatWest Group assesses the effects of climate transition policies within the base case macroeconomic scenario, using the UK Climate Change Committee (CCC) Balanced Net Zero (BNZ) scenario, aligned with the UK CCC sixth carbon budget, as a starting point. In addition, NatWest Group included estimated average policy delay into the climate economic assumptions for IFRS 9 purposes, based on the credibility ratings for sectoral policies provided by the UK CCC 2022 Progress Report to Parliament, to reflect estimated time delays based on credibility ratings as follows:  Credible policies – estimated zero years of delayed adjustment to the BNZ pathway for the associated policy.  Policies with some or significant risk – estimated three and five years of delay respectively for the associated policy.  Policies with insufficient plans – estimated ten years of delay for the associated policy. The base case macroeconomic scenario now explicitly includes assumptions about the changes in transition policy expressed as an additional implicit carbon price. Implicit carbon price is an additional cost related to greenhouse gas emissions as a result of climate transition policy. NatWest Group assumes that between now and 2028, the transition policy will change slowly, and the implicit carbon price will increase modestly by £10.5/tCO2e, which is consistent with the UK CCC BNZ scenario. The base case macroeconomic scenario also included assumptions about abatement technology development and specific sectors’ transition, for example, the switch from fossil fuels to renewable energy sources. NatWest Group will continue to enhance this analysis, including updates in the UK CCC 2023 Progress Report to Parliament published in June 2023. While previous NatWest Group IFRS 9 base case scenarios included some climate transition considerations, they were based on all enacted policies and available technologies. The new approach described here applies to explicitly identifying the effect of additional climate transition policy. NatWest Group and its customers have a dependency on timely and appropriate government policies to provide the necessary impetus for technology development and customer behaviour changes, to enable the UK’s successful transition to net zero. Policy delays and risks outlined in the UK CCC 2022 and 2023 Progress Reports, if not adequately addressed in a timely manner, put at risk the UK’s net zero transition and in turn that of NatWest Group and its customers. For this first iteration of climate economic assumptions included within the base case macroeconomic scenario, NatWest Group focused on policy and technology related transition risks. It is assumed that in more extreme scenarios it is likely that climate policy changes would offset adverse/benign economic conditions. NatWest Group’s tools, methodologies and assessment of climate risks will continue to evolve to further align financial planning and climate transition planning processes. Probability weightings of scenarios NatWest Group’s quantitative approach to IFRS 9 multiple economic scenarios (MES) involves selecting a suitable set of discrete scenarios to characterise the distribution of risks in the economic outlook and assigning appropriate probability weights. This quantitative approach is used for 31 December 2023. The approach involves comparing UK GDP paths for NatWest Group’s scenarios against a set of 1,000 model runs, following which, a percentile in the distribution is established that most closely corresponded to the scenario. Probability weight for base case is set first based on judgement, while probability weights for the alternate scenarios are assigned based on these percentiles scores. The assigned probability weights were judged to be aligned with the subjective assessment of balance of the risks in the economy. The weights were broadly comparable to those used at 31 December 2022 but with slightly less downside skew. This is reasonable as the inflation outturn since then has been encouraging, with continued disinflation and a reduced risk of stagflation. However, the risks still remain elevated and there is considerable uncertainty in the economic outlook, particularly with respect to persistence and the range of outcomes on inflation. Given that backdrop, NatWest Group judges it appropriate that downside-biased scenarios have higher combined probability weights than the upside-biased scenario. It presents good coverage to the range of outcomes assumed in the scenarios, including the potential for a robust recovery on the upside and exceptionally challenging outcomes on the downside. A 21.2% weighting was applied to the upside scenario, a 45.0% weighting applied to the base case scenario, a 20.4% weighting applied to the downside scenario and a 13.4% weighting applied to the extreme downside scenario. Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 193 Economic loss drivers UK gross domestic product (£bn) 2023Q1 2024Q1 2025Q1 2026Q1 2027Q1 2028Q1 2000 2100 2200 2300 2400 2500 2600 Upside Base case Downside Extreme downside Bank of England base rate (%) 2023Q1 2024Q1 2025Q1 2026Q1 2027Q1 2028Q1 0 1 2 3 4 5 6 7 Upside Base case Downside Extreme downside UK unemployment rate (%) 2023Q1 2024Q1 2025Q1 2026Q1 2027Q1 2028Q1 0 1 2 3 4 5 6 7 8 9 Upside Base case Downside Extreme downside STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 177

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 193 Economic loss drivers UK gross domestic product (£bn) 2023Q1 2024Q1 2025Q1 2026Q1 2027Q1 2028Q1 2000 2100 2200 2300 2400 2500 2600 Upside Base case Downside Extreme downside Bank of England base rate (%) 2023Q1 2024Q1 2025Q1 2026Q1 2027Q1 2028Q1 0 1 2 3 4 5 6 7 Upside Base case Downside Extreme downside UK unemployment rate (%) 2023Q1 2024Q1 2025Q1 2026Q1 2027Q1 2028Q1 0 1 2 3 4 5 6 7 8 9 Upside Base case Downside Extreme downside STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 178

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 194 Economic loss drivers (audited) Annual figures GDP - annual growth Consumer price index - four quarter change Upside % Base case % Downside % Extreme downside % Weighted average % Upside % Base case % Downside % Extreme downside % Weighted average % 2023 0.5 0.5 0.5 0.5 0.5 2023 4.6 4.6 4.6 4.6 4.6 2024 3.6 0.4 (1.1) (2.7) 0.3 2024 0.9 2.5 8.5 (1.2) 2.9 2025 2.3 1.3 0.4 (1.6) 1.0 2025 0.7 2.0 5.3 1.7 2.4 2026 1.2 1.6 1.2 1.2 1.4 2026 1.1 1.9 3.8 2.0 2.1 2027 1.2 1.4 1.3 1.2 1.3 2027 1.2 1.9 3.7 2.0 2.2 2028 1.2 1.4 1.3 1.2 1.3 2028 1.1 1.9 3.6 2.0 2.1 Unemployment rate - annual average Bank of England base rate - annual average Upside % Base case % Downside % Extreme downside % Weighted average % Upside % Base case % Downside % Extreme downside % Weighted average % 2023 4.2 4.2 4.2 4.2 4.2 2023 4.68 4.68 4.68 4.68 4.68 2024 3.9 4.7 5.2 6.2 4.8 2024 4.79 4.77 6.10 4.00 4.94 2025 3.2 4.7 5.8 8.4 5.1 2025 3.46 3.46 6.08 2.06 3.81 2026 3.2 4.6 5.6 8.0 5.0 2026 3.17 2.85 5.69 2.00 3.38 2027 3.3 4.6 5.5 7.4 4.8 2027 2.75 2.75 5.31 2.00 3.17 2028 3.3 4.5 5.3 6.7 4.7 2028 2.50 2.75 5.06 2.25 3.10 House price index - four quarter change UK stock price index - four quarter change Upside % Base case % Downside % Extreme downside % Weighted average % Upside % Base case % Downside % Extreme downside % Weighted average % 2023 (2.9) (2.9) (2.9) (2.9) (2.9) 2023 3.7 3.7 3.7 3.7 3.7 2024 7.2 (5.0) (7.1) (11.5) (3.7) 2024 8.1 3.2 (17.4) (41.5) (5.9) 2025 9.4 3.1 (3.1) (14.2) 1.2 2025 5.1 3.2 8.7 24.9 6.5 2026 2.8 3.4 5.5 (5.8) 2.7 2026 3.6 3.2 7.9 16.7 5.5 2027 3.3 3.4 6.1 7.2 4.3 2027 3.6 3.2 5.6 11.0 4.6 2028 3.5 3.4 4.4 6.6 3.9 2028 2.9 3.2 5.3 9.9 4.3 Commercial real estate price - four quarter change Upside % Base case % Downside % Extreme downside % Weighted average % 2023 (7.2) (7.2) (7.2) (7.2) (7.2) 2024 12.7 - (7.3) (18.4) (1.2) 2025 3.5 2.7 (2.0) (20.0) (0.5) 2026 4.6 2.0 3.8 6.7 3.4 2027 2.9 1.9 3.1 8.5 3.0 2028 1.3 0.8 2.6 8.6 2.0 Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 195 Economic loss drivers (audited) Worst points 31 December 2023 31 December 2022 Extreme Weighted Extreme Weighted Downside downside average Downside downside average % Quarter % Quarter % % Quarter % Quarter % GDP (1.2) Q3 2024 (4.5) Q4 2024 0.3 (3.2) Q4 2023 (4.7) Q4 2023 (0.8) Unemployment rate - peak 5.8 Q1 2025 8.5 Q2 2025 5.2 6.0 Q1 2024 8.5 Q3 2024 5.4 House price index (12.5) Q4 2025 (31.7) Q2 2026 (6.5) (15.0) Q1 2025 (26.2) Q3 2025 (3.4) Commercial real estate price (16.6) Q1 2025 (39.9) Q3 2025 (10.2) (21.8) Q4 2023 (46.8) Q3 2024 (16.4) Consumer price index - highest four quarter change 10.3 Q1 2023 10.3 Q1 2023 10.3 15.7 Q1 2023 17.0 Q4 2023 11.7 Bank of England base rate - extreme level 6.5 Q4 2024 5.3 Q4 2023 5.3 4.0 Q1 2023 6.0 Q1 2024 4.1 UK stock price index (14.3) Q4 2024 (39.3) Q4 2024 (2.4) (26.0) Q4 2023 (48.7) Q4 2023 (14.1) (1) Unless specified otherwise, the figures show falls relative to the starting period. The calculations are performed over five years, with a starting point of Q4 2022 for 31 December 2023 scenarios and Q4 2021 for 31 December 2022 scenarios. Use of the scenarios in Personal lending Personal lending follows a discrete scenario approach. The PD, EAD, LGD and resultant ECL for each discrete scenario is calculated using product specific economic response models. Probability weighted averages across the suite of economic scenarios are then calculated for each of the model outputs, with the weighted PD being used for staging purposes. Business Banking utilises the Personal lending methodology rather than the Wholesale lending methodology. Use of the scenarios in Wholesale lending Wholesale lending follows a continuous scenario approach to calculate ECL. PD and LGD values arising from multiple economic forecasts (based on the concept of credit cycle indices) are simulated around the central projection. The central projection is a weighted average of economic scenarios with the scenarios translated into credit cycle indices using the Wholesale economic response models. UK economic uncertainty The high inflation environment alongside high interest rates are presenting significant headwinds for some businesses and consumers, in many cases compounding. These cost pressures remain a feature of the economic environment, though they are expected to moderate over 2024 and 2025 in the base case scenario. NatWest Group has considered where these are most likely to affect the customer base, with the cost of borrowing during 2023 for both businesses and consumers presenting an additional affordability challenge. The effects of these risks are not expected to be fully captured by forward-looking credit modelling, particularly given the high inflation environment, low unemployment base case outlook. Any incremental ECL effects for these risks will be captured via post model adjustments and are detailed further in the Governance and post model adjustments section. Model and monitoring enhancements During 2023, the monitoring framework for the retail model suite was enhanced to enable more granular performance tracking at key segment levels, such as balance transfers versus non-balance transfers for the credit cards models. A new Business Banking PD, EAD and LGD model suite was redeveloped in 2023, ensuring appropriate treatment of government-guaranteed loans. In addition, the retail economic response models, which are used to bring forward-looking information into the IFRS 9 PD models, were redeveloped to bring in more inflationary drivers. In Wholesale lending, new economic response models were introduced in 2022 and 2023 that follow an improved modelling approach and put higher weight on stock price indices compared to previous models. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 179

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 195 Economic loss drivers (audited) Worst points 31 December 2023 31 December 2022 Extreme Weighted Extreme Weighted Downside downside average Downside downside average % Quarter % Quarter % % Quarter % Quarter % GDP (1.2) Q3 2024 (4.5) Q4 2024 0.3 (3.2) Q4 2023 (4.7) Q4 2023 (0.8) Unemployment rate - peak 5.8 Q1 2025 8.5 Q2 2025 5.2 6.0 Q1 2024 8.5 Q3 2024 5.4 House price index (12.5) Q4 2025 (31.7) Q2 2026 (6.5) (15.0) Q1 2025 (26.2) Q3 2025 (3.4) Commercial real estate price (16.6) Q1 2025 (39.9) Q3 2025 (10.2) (21.8) Q4 2023 (46.8) Q3 2024 (16.4) Consumer price index - highest four quarter change 10.3 Q1 2023 10.3 Q1 2023 10.3 15.7 Q1 2023 17.0 Q4 2023 11.7 Bank of England base rate - extreme level 6.5 Q4 2024 5.3 Q4 2023 5.3 4.0 Q1 2023 6.0 Q1 2024 4.1 UK stock price index (14.3) Q4 2024 (39.3) Q4 2024 (2.4) (26.0) Q4 2023 (48.7) Q4 2023 (14.1) (1) Unless specified otherwise, the figures show falls relative to the starting period. The calculations are performed over five years, with a starting point of Q4 2022 for 31 December 2023 scenarios and Q4 2021 for 31 December 2022 scenarios. Use of the scenarios in Personal lending Personal lending follows a discrete scenario approach. The PD, EAD, LGD and resultant ECL for each discrete scenario is calculated using product specific economic response models. Probability weighted averages across the suite of economic scenarios are then calculated for each of the model outputs, with the weighted PD being used for staging purposes. Business Banking utilises the Personal lending methodology rather than the Wholesale lending methodology. Use of the scenarios in Wholesale lending Wholesale lending follows a continuous scenario approach to calculate ECL. PD and LGD values arising from multiple economic forecasts (based on the concept of credit cycle indices) are simulated around the central projection. The central projection is a weighted average of economic scenarios with the scenarios translated into credit cycle indices using the Wholesale economic response models. UK economic uncertainty The high inflation environment alongside high interest rates are presenting significant headwinds for some businesses and consumers, in many cases compounding. These cost pressures remain a feature of the economic environment, though they are expected to moderate over 2024 and 2025 in the base case scenario. NatWest Group has considered where these are most likely to affect the customer base, with the cost of borrowing during 2023 for both businesses and consumers presenting an additional affordability challenge. The effects of these risks are not expected to be fully captured by forward-looking credit modelling, particularly given the high inflation environment, low unemployment base case outlook. Any incremental ECL effects for these risks will be captured via post model adjustments and are detailed further in the Governance and post model adjustments section. Model and monitoring enhancements During 2023, the monitoring framework for the retail model suite was enhanced to enable more granular performance tracking at key segment levels, such as balance transfers versus non-balance transfers for the credit cards models. A new Business Banking PD, EAD and LGD model suite was redeveloped in 2023, ensuring appropriate treatment of government-guaranteed loans. In addition, the retail economic response models, which are used to bring forward-looking information into the IFRS 9 PD models, were redeveloped to bring in more inflationary drivers. In Wholesale lending, new economic response models were introduced in 2022 and 2023 that follow an improved modelling approach and put higher weight on stock price indices compared to previous models. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 180

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 196 Measurement uncertainty and ECL sensitivity analysis (audited) The recognition and measurement of ECL is complex and involves the use of significant judgment and estimation, particularly in times of economic volatility and uncertainty. This includes the formulation and incorporation of multiple forward-looking economic conditions into ECL to meet the measurement objective of IFRS 9. The ECL provision is sensitive to the model inputs and economic assumptions underlying the estimate. The impact arising from the base case, upside, downside and extreme downside scenarios was simulated. These scenarios are used in the methodology for Personal multiple economic scenarios as described in the Economic loss drivers section. In the simulations, NatWest Group has assumed that the economic macro variables associated with these scenarios replace the existing base case economic assumptions, giving them a 100% probability weighting and therefore serving as a single economic scenario. These scenarios were applied to all modelled portfolios in the analysis below, with the simulation impacting both PDs and LGDs. Post model adjustments included in the ECL estimates that were modelled were sensitised in line with the modelled ECL movements, but those that were judgmental in nature, primarily those for deferred model calibrations and economic uncertainty, were not (refer to the Governance and post model adjustments section) on the basis these would be re-evaluated by management through ECL governance for any new economic scenario outlook and not be subject to an automated calculation. As expected, the scenarios create differing impacts on ECL by portfolio and the impacts are deemed reasonable. In this simulation, it is assumed that existing modelled relationships between key economic variables and loss drivers hold, but in practice other factors would also have an impact, for example, potential customer behaviour changes and policy changes by lenders that might impact on the wider availability of credit. The focus of the simulations is on ECL provisioning requirements on performing exposures in Stage 1 and Stage 2. The simulations are run on a stand-alone basis and are independent of each other; the potential ECL impacts reflect the simulated impact at 31 December 2023. Scenario impacts on SICR should be considered when evaluating the ECL movements of Stage 1 and Stage 2. In all scenarios the total exposure was the same but exposure by stage varied in each scenario. Stage 3 provisions are not subject to the same level of measurement uncertainty – default is an observed event as at the balance sheet date. Stage 3 provisions therefore were not considered in this analysis. NatWest Group’s core criterion to identify a SICR is founded on PD deterioration. Under the simulations, PDs change and result in exposures moving between Stage 1 and Stage 2 contributing to the ECL impact. Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 197 Measurement uncertainty and ECL sensitivity analysis (audited) Moderate Moderate Extreme Base upside downside downside 2023 Actual scenario scenario scenario scenario Stage 1 modelled loans (£m) Retail Banking - mortgages 173,982 174,642 175,311 171,320 165,143 Retail Banking - unsecured 8,802 8,838 8,992 8,652 8,334 Wholesale - property 26,933 27,088 27,200 26,645 22,326 Wholesale - non-property 123,228 124,107 124,742 122,243 104,657 332,945 334,675 336,245 328,860 300,460 Stage 1 modelled ECL (£m) Retail Banking - mortgages 86 86 84 84 79 Retail Banking - unsecured 221 222 219 221 211 Wholesale - property 102 80 61 131 184 Wholesale - non-property 276 246 211 331 434 685 634 575 767 908 Stage 1 coverage Retail Banking - mortgages 0.05% 0.05% 0.05% 0.05% 0.05% Retail Banking - unsecured 2.51% 2.51% 2.44% 2.55% 2.53% Wholesale - property 0.38% 0.30% 0.22% 0.49% 0.82% Wholesale - non-property 0.22% 0.20% 0.17% 0.27% 0.41% 0.21% 0.19% 0.17% 0.23% 0.30% Stage 2 modelled loans (£m) Retail Banking - mortgages 17,825 17,165 16,496 20,487 26,664 Retail Banking - unsecured 3,772 3,736 3,582 3,922 4,240 Wholesale - property 3,306 3,151 3,039 3,594 7,913 Wholesale - non-property 13,512 12,633 11,998 14,497 32,083 38,415 36,685 35,115 42,500 70,900 Stage 2 modelled ECL (£m) Retail Banking - mortgages 60 56 48 70 100 Retail Banking - unsecured 445 435 383 487 554 Wholesale - property 93 80 68 111 273 Wholesale - non-property 364 310 264 432 789 962 881 763 1,100 1,716 Stage 2 coverage Retail Banking - mortgages 0.34% 0.33% 0.29% 0.34% 0.38% Retail Banking - unsecured 11.80% 11.64% 10.69% 12.42% 13.07% Wholesale - property 2.81% 2.54% 2.24% 3.09% 3.45% Wholesale - non-property 2.69% 2.45% 2.20% 2.98% 2.46% 2.50% 2.40% 2.17% 2.59% 2.42% STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 181

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 197 Measurement uncertainty and ECL sensitivity analysis (audited) Moderate Moderate Extreme Base upside downside downside 2023 Actual scenario scenario scenario scenario Stage 1 modelled loans (£m) Retail Banking - mortgages 173,982 174,642 175,311 171,320 165,143 Retail Banking - unsecured 8,802 8,838 8,992 8,652 8,334 Wholesale - property 26,933 27,088 27,200 26,645 22,326 Wholesale - non-property 123,228 124,107 124,742 122,243 104,657 332,945 334,675 336,245 328,860 300,460 Stage 1 modelled ECL (£m) Retail Banking - mortgages 86 86 84 84 79 Retail Banking - unsecured 221 222 219 221 211 Wholesale - property 102 80 61 131 184 Wholesale - non-property 276 246 211 331 434 685 634 575 767 908 Stage 1 coverage Retail Banking - mortgages 0.05% 0.05% 0.05% 0.05% 0.05% Retail Banking - unsecured 2.51% 2.51% 2.44% 2.55% 2.53% Wholesale - property 0.38% 0.30% 0.22% 0.49% 0.82% Wholesale - non-property 0.22% 0.20% 0.17% 0.27% 0.41% 0.21% 0.19% 0.17% 0.23% 0.30% Stage 2 modelled loans (£m) Retail Banking - mortgages 17,825 17,165 16,496 20,487 26,664 Retail Banking - unsecured 3,772 3,736 3,582 3,922 4,240 Wholesale - property 3,306 3,151 3,039 3,594 7,913 Wholesale - non-property 13,512 12,633 11,998 14,497 32,083 38,415 36,685 35,115 42,500 70,900 Stage 2 modelled ECL (£m) Retail Banking - mortgages 60 56 48 70 100 Retail Banking - unsecured 445 435 383 487 554 Wholesale - property 93 80 68 111 273 Wholesale - non-property 364 310 264 432 789 962 881 763 1,100 1,716 Stage 2 coverage Retail Banking - mortgages 0.34% 0.33% 0.29% 0.34% 0.38% Retail Banking - unsecured 11.80% 11.64% 10.69% 12.42% 13.07% Wholesale - property 2.81% 2.54% 2.24% 3.09% 3.45% Wholesale - non-property 2.69% 2.45% 2.20% 2.98% 2.46% 2.50% 2.40% 2.17% 2.59% 2.42% STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 182

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 198 Measurement uncertainty and ECL sensitivity analysis (audited) Moderate Moderate Extreme Base upside downside downside 2023 Actual scenario scenario scenario scenario Stage 1 and Stage 2 modelled loans (£m) Retail Banking - mortgages 191,807 191,807 191,807 191,807 191,807 Retail Banking - unsecured 12,574 12,574 12,574 12,574 12,574 Wholesale - property 30,239 30,239 30,239 30,239 30,239 Wholesale - non-property 136,740 136,740 136,740 136,740 136,740 371,360 371,360 371,360 371,360 371,360 Stage 1 and Stage 2 modelled ECL (£m) Retail Banking - mortgages 146 142 132 154 179 Retail Banking - unsecured 666 657 602 708 765 Wholesale - property 195 160 129 242 457 Wholesale - non-property 640 556 475 763 1,223 1,647 1,515 1,338 1,867 2,624 Stage 1 and Stage 2 coverage Retail Banking - mortgages 0.08% 0.07% 0.07% 0.08% 0.09% Retail Banking - unsecured 5.30% 5.23% 4.79% 5.63% 6.08% Wholesale - property 0.64% 0.53% 0.43% 0.80% 1.51% Wholesale - non-property 0.47% 0.41% 0.35% 0.56% 0.89% 0.44% 0.41% 0.36% 0.50% 0.71% Reconciliation to Stage 1 and Stage 2 ECL (£m) ECL on modelled exposure 1,647 1,515 1,338 1,867 2,624 ECL on UBIDAC modelled exposures 8 8 8 8 8 ECL on non-modelled exposures 30 30 30 30 30 Total Stage 1 and Stage 2 ECL (£m) 1,685 1,553 1,376 1,905 2,662 Variance to actual total Stage 1 and Stage 2 ECL (£m) (132) (309) 220 977 Reconciliation to Stage 1 and Stage 2 flow exposure (£m) Modelled loans 371,360 371,360 371,360 371,360 371,360 UBIDAC loans 318 318 318 318 318 Non-modelled loans 19,522 19,522 19,522 19,522 19,522 Other asset classes 153,439 153,439 153,439 153,439 153,439 (1) Variations in future undrawn exposure values across the scenarios are modelled, however the exposure position reported is that used to calculate modelled ECL as at 31 December 2023 and therefore does not include variation in future undrawn exposure values. (2) Reflects ECL for all modelled exposure in scope for IFRS 9. The analysis excludes non-modelled portfolios and exposure relating to bonds and cash. (3) Exposures related to Ulster Bank RoI continuing operations were not included in the simulations, the current Ulster Bank RoI ECL has been included across all scenarios to enable reconciliation to other disclosures. (4) All simulations are run on a stand-alone basis and are independent of each other, with the potential ECL impact reflecting the simulated impact as at 31 December 2023 The simulations change the composition of Stage 1 and Stage 2 exposure but total exposure is unchanged under each scenario as the loan population is static. (5) Refer to the Economic loss drivers section for details of economic scenarios. (6) Refer to the NatWest Group plc 2022 Annual Report and Accounts for 2022 comparatives. Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 199 Measurement uncertainty and ECL adequacy (audited)  If the economics were as negative as observed in the extreme downside (i.e. 100% probability weighting), total Stage 1 and Stage 2 ECL was simulated to increase by around £1 billion (approximately 58%). In this scenario, Stage 2 exposure increased significantly and was the key driver of the simulated ECL rise. The movement in Stage 2 balances in the other simulations was less significant.  In the Wholesale portfolio, there was a significant increase in ECL under both a moderate and extreme downside scenario. The Wholesale property ECL increase was mainly due to commercial real estate prices which showed negative growth until 2025 and significant deterioration in the stock index. The non-property increase was mainly due to GDP contraction and significant deterioration in the stock index.  A net improvement in the economic scenarios since 2022 resulted in a reduction in modelled ECL.  Given that continued uncertainty remained due to high inflation, high interest rates during 2023 and supply chain disruption, NatWest Group utilised a framework of quantitative and qualitative measures to support the levels of ECL coverage. This included economic data, credit performance insights, supply chain contagion analysis and problem debt trends. This was particularly important for consideration of post model adjustments.  As the effects of these economic risks evolve into 2024, there is a risk of further credit deterioration. However, the income statement effect of this should have been mitigated by the forward-looking provisions retained on the balance sheet at 31 December 2023.  There are a number of key factors that could drive further downside to impairments, through deteriorating economic and credit metrics and increased stage migration as credit risk increases for more customers. Such factors which could impact the IFRS 9 models, include an adverse deterioration in unemployment and GDP in the economies in which NatWest Group operates. Movement in ECL provision (1) The table below shows the main ECL provision movements during the year. ECL provision £m At 1 January 2023 3,434 Transfers to disposal groups and reclassifications (80) Changes in economic forecasts (125) Changes in risk metrics and exposure: Stage 1 and Stage 2 95 Changes in risk metrics and exposure: Stage 3 557 Judgmental changes: Changes in post model adjustments for Stage 1, Stage 2 and Stage 3 74 Write-offs and other (310) At 31 December 2023 3,645 At 1 January 2022 3,806 2022 movements (372) At 31 December 2022 3,434 (1) The above table is not within the scope of the independent auditors’ report.  During the year, overall ECL increased reflecting portfolio growth alongside broadly stable portfolio performance. There were Stage 3 default flow increases, particularly in the Personal portfolio, but these were broadly in line with expectations due to growth and normalisation of risk parameters. This was mitigated by a net ECL reduction from 2023 updates to economic scenarios and weightings.  Judgemental ECL post model adjustments, increased from 31 December 2022, reflecting continued economic uncertainty from inflation being higher for longer, higher interest rates and liquidity concerns, and represented 13% of total ECL (2022 – 12%).  For the Wholesale portfolio, default levels were lower than historic trends as the effects of higher inflation, supply chain disruption and higher interest rates, had to date, not led to a significant change in defaults.  Stage 3 balances increased due to default flows, as described above, alongside reduced write-off activity in 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 183

Credit risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 199 Measurement uncertainty and ECL adequacy (audited)  If the economics were as negative as observed in the extreme downside (i.e. 100% probability weighting), total Stage 1 and Stage 2 ECL was simulated to increase by around £1 billion (approximately 58%). In this scenario, Stage 2 exposure increased significantly and was the key driver of the simulated ECL rise. The movement in Stage 2 balances in the other simulations was less significant.  In the Wholesale portfolio, there was a significant increase in ECL under both a moderate and extreme downside scenario. The Wholesale property ECL increase was mainly due to commercial real estate prices which showed negative growth until 2025 and significant deterioration in the stock index. The non-property increase was mainly due to GDP contraction and significant deterioration in the stock index.  A net improvement in the economic scenarios since 2022 resulted in a reduction in modelled ECL.  Given that continued uncertainty remained due to high inflation, high interest rates during 2023 and supply chain disruption, NatWest Group utilised a framework of quantitative and qualitative measures to support the levels of ECL coverage. This included economic data, credit performance insights, supply chain contagion analysis and problem debt trends. This was particularly important for consideration of post model adjustments.  As the effects of these economic risks evolve into 2024, there is a risk of further credit deterioration. However, the income statement effect of this should have been mitigated by the forward-looking provisions retained on the balance sheet at 31 December 2023.  There are a number of key factors that could drive further downside to impairments, through deteriorating economic and credit metrics and increased stage migration as credit risk increases for more customers. Such factors which could impact the IFRS 9 models, include an adverse deterioration in unemployment and GDP in the economies in which NatWest Group operates. Movement in ECL provision (1) The table below shows the main ECL provision movements during the year. ECL provision £m At 1 January 2023 3,434 Transfers to disposal groups and reclassifications (80) Changes in economic forecasts (125) Changes in risk metrics and exposure: Stage 1 and Stage 2 95 Changes in risk metrics and exposure: Stage 3 557 Judgmental changes: Changes in post model adjustments for Stage 1, Stage 2 and Stage 3 74 Write-offs and other (310) At 31 December 2023 3,645 At 1 January 2022 3,806 2022 movements (372) At 31 December 2022 3,434 (1) The above table is not within the scope of the independent auditors’ report.  During the year, overall ECL increased reflecting portfolio growth alongside broadly stable portfolio performance. There were Stage 3 default flow increases, particularly in the Personal portfolio, but these were broadly in line with expectations due to growth and normalisation of risk parameters. This was mitigated by a net ECL reduction from 2023 updates to economic scenarios and weightings.  Judgemental ECL post model adjustments, increased from 31 December 2022, reflecting continued economic uncertainty from inflation being higher for longer, higher interest rates and liquidity concerns, and represented 13% of total ECL (2022 – 12%).  For the Wholesale portfolio, default levels were lower than historic trends as the effects of higher inflation, supply chain disruption and higher interest rates, had to date, not led to a significant change in defaults.  Stage 3 balances increased due to default flows, as described above, alongside reduced write-off activity in 2023. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 184

Credit risk – Banking activities NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 200 Introduction This section details the credit risk profile of NatWest Group’s banking activities. Refer to Accounting policy 2.3 and Note 15 to the consolidated financial statements for policies and critical judgments relating to impairment loss determination. Financial instruments within the scope of the IFRS 9 ECL framework (audited) Refer to Note 10 to the consolidated financial statements for balance sheet analysis of financial assets that are classified as amortised cost or fair value through other comprehensive income (FVOCI), the starting point for IFRS 9 ECL framework assessment. 31 December 2023 31 December 2022 Gross ECL Net Gross ECL Net £bn £bn £bn £bn £bn £bn Balance sheet total gross amortised cost and FVOCI 553.8 554.3 In scope of IFRS 9 ECL framework 545.3 550.3 % in scope 98% 99% Loans to customers - in scope - amortised cost 385.3 3.6 381.7 370.1 3.3 366.8 Loans to customers - in scope - FVOCI 0.1 - 0.1 0.1 - 0.1 Loans to banks - in scope - amortised cost 6.7 - 6.7 6.9 - 6.9 Total loans - in scope 392.1 3.6 388.5 377.1 3.3 373.8 Stage 1 348.6 0.7 347.9 325.2 0.6 324.6 Stage 2 37.9 0.9 37.0 46.8 0.9 45.9 Stage 3 5.6 2.0 3.6 5.1 1.8 3.3 Other financial assets - in scope - amortised cost 124.9 - 124.9 156.4 - 156.4 Other financial assets - in scope - FVOCI 28.3 - 28.3 16.8 - 16.8 Total other financial assets - in scope 153.2 - 153.2 173.2 - 173.2 Stage 1 152.0 - 152.0 172.4 - 172.4 Stage 2 1.2 - 1.2 0.8 - 0.8 Out of scope of IFRS 9 ECL framework 8.5 na 8.5 4.0 na 4.0 Loans to customers - out of scope - amortised cost (0.4) na (0.4) (0.4) na (0.4) Loans to banks - out of scope - amortised cost 0.3 na 0.3 0.2 na 0.2 Other financial assets - out of scope - amortised cost 8.3 na 8.3 4.1 na 4.1 Other financial assets - out of scope - FVOCI 0.3 na 0.3 0.1 na 0.1 na = not applicable The assets outside the scope of IFRS 9 ECL framework were as follows:  Settlement balances, items in the course of collection, cash balances and other non-credit risk assets of £8.6 billion (2022 – £4.3 billion). These were assessed as having no ECL unless there was evidence that they were defaulted.  Equity shares of £0.3 billion (2022 – £0.4 billion) as not within the IFRS 9 ECL framework by definition.  Fair value adjustments on loans hedged by interest rate swaps, where the underlying loan was within the IFRS 9 ECL scope of £(0.3) billion (2022 – £(0.6) billion). Contingent liabilities and commitments In addition to contingent liabilities and commitments disclosed in Note 26 to the consolidated financial statements, reputationally-committed limits were also included in the scope of the IFRS 9 ECL framework. These were offset by £0.1 billion (2022 – £(0.1) billion) out of scope balances primarily related to facilities that, if drawn, would not be classified as amortised cost or FVOCI, or undrawn limits relating to financial assets exclusions. Total contingent liabilities (including financial guarantees) and commitments within IFRS 9 ECL scope of £132.0 billion (2022 – £137.2 billion) comprised Stage 1 £120.6 billion (2022 – £119.2 billion); Stage 2 £10.7 billion (2022 – £17.3 billion); and Stage 3 £0.7 billion (2022 – £0.7 billion). The ECL relating to off balance sheet exposures was £0.1 billion (2022 – £0.1 billion). The total ECL in the remainder of the Credit risk section of £3.6 billion (2022 – £3.4 billion) included ECL for both on and off-balance sheet exposures for non-disposal groups. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 201 Segment analysis – portfolio summary (audited) The table below shows gross loans and ECL, by segment and stage, within the scope of the IFRS 9 ECL framework. Retail Private Commercial & Central items Banking Banking Institutional & other Total 2023 £m £m £m £m £m Loans - amortised cost and FVOCI (1) Stage 1 182,297 17,565 119,047 29,677 348,586 Stage 2 21,208 906 15,771 6 37,891 Stage 3 3,133 258 2,162 10 5,563 Of which: individual - 186 845 - 1,031 Of which: collective 3,133 72 1,317 10 4,532 Subtotal excluding disposal group loans 206,638 18,729 136,980 29,693 392,040 Disposal group loans 67 67 Total 29,760 392,107 ECL provisions (2) Stage 1 306 20 356 27 709 Stage 2 502 20 447 7 976 Stage 3 1,097 34 819 10 1,960 Of which: individual - 34 298 - 332 Of which: collective 1,097 - 521 10 1,628 Subtotal excluding ECL provisions on disposal group loans 1,905 74 1,622 44 3,645 ECL provisions on disposal group loans 36 36 Total 80 3,681 ECL provisions coverage (3) Stage 1 (%) 0.17 0.11 0.30 0.09 0.20 Stage 2 (%) 2.37 2.21 2.83 nm 2.58 Stage 3 (%) 35.01 13.18 37.88 100.00 35.23 ECL provisions coverage excluding disposal group loans 0.92 0.40 1.18 0.15 0.93 ECL provisions coverage on disposal group loans 53.73 53.73 Total 0.27 0.94 Impairment (releases)/losses ECL (release)/charge (4) 465 14 94 5 578 Stage 1 (172) (9) (222) 6 (397) Stage 2 440 15 182 8 645 Stage 3 197 8 134 (9) 330 Of which: individual - 8 80 1 89 Of which: collective 197 - 54 (10) 241 Continuing operations 465 14 94 5 578 Discontinued operations (6) (6) Total (1) 572 Amounts written-off 188 2 122 7 319 Of which: individual - 2 40 - 42 Of which: collective 188 - 82 7 277 For the notes to this table refer to the following page. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 185

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 201 Segment analysis – portfolio summary (audited) The table below shows gross loans and ECL, by segment and stage, within the scope of the IFRS 9 ECL framework. Retail Private Commercial & Central items Banking Banking Institutional & other Total 2023 £m £m £m £m £m Loans - amortised cost and FVOCI (1) Stage 1 182,297 17,565 119,047 29,677 348,586 Stage 2 21,208 906 15,771 6 37,891 Stage 3 3,133 258 2,162 10 5,563 Of which: individual - 186 845 - 1,031 Of which: collective 3,133 72 1,317 10 4,532 Subtotal excluding disposal group loans 206,638 18,729 136,980 29,693 392,040 Disposal group loans 67 67 Total 29,760 392,107 ECL provisions (2) Stage 1 306 20 356 27 709 Stage 2 502 20 447 7 976 Stage 3 1,097 34 819 10 1,960 Of which: individual - 34 298 - 332 Of which: collective 1,097 - 521 10 1,628 Subtotal excluding ECL provisions on disposal group loans 1,905 74 1,622 44 3,645 ECL provisions on disposal group loans 36 36 Total 80 3,681 ECL provisions coverage (3) Stage 1 (%) 0.17 0.11 0.30 0.09 0.20 Stage 2 (%) 2.37 2.21 2.83 nm 2.58 Stage 3 (%) 35.01 13.18 37.88 100.00 35.23 ECL provisions coverage excluding disposal group loans 0.92 0.40 1.18 0.15 0.93 ECL provisions coverage on disposal group loans 53.73 53.73 Total 0.27 0.94 Impairment (releases)/losses ECL (release)/charge (4) 465 14 94 5 578 Stage 1 (172) (9) (222) 6 (397) Stage 2 440 15 182 8 645 Stage 3 197 8 134 (9) 330 Of which: individual - 8 80 1 89 Of which: collective 197 - 54 (10) 241 Continuing operations 465 14 94 5 578 Discontinued operations (6) (6) Total (1) 572 Amounts written-off 188 2 122 7 319 Of which: individual - 2 40 - 42 Of which: collective 188 - 82 7 277 For the notes to this table refer to the following page. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 186

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 202 Segment analysis – portfolio summary (audited) Retail Private Commercial & Central items Banking Banking Institutional & other Total 2022 £m £m £m £m £m Loans - amortised cost and FVOCI (1) Stage 1 174,727 18,367 108,791 23,339 325,224 Stage 2 21,561 801 24,226 245 46,833 Stage 3 2,565 242 2,166 123 5,096 Of which: individual - 168 905 48 1,121 Of which: collective 2,565 74 1,261 75 3,975 Subtotal excluding disposal group loans 198,853 19,410 135,183 23,707 377,153 Disposal group loans 1,502 1,502 Total 25,209 378,655 ECL provisions (2) Stage 1 251 21 342 18 632 Stage 2 450 14 534 45 1,043 Stage 3 917 26 747 69 1,759 Of which: individual - 26 251 10 287 Of which: collective 917 - 496 59 1,472 Subtotal excluding ECL provisions on disposal group loans 1,618 61 1,623 132 3,434 ECL provisions on disposal group loans 53 53 Total 185 3,487 ECL provisions coverage (3) Stage 1 (%) 0.14 0.11 0.31 0.08 0.19 Stage 2 (%) 2.09 1.75 2.20 18.37 2.23 Stage 3 (%) 35.75 10.74 34.49 56.10 34.52 ECL provisions coverage excluding disposal group loans 0.81 0.31 1.20 0.56 0.91 ECL provisions coverage on disposal group loans 3.53 3.53 Total 0.73 0.92 Impairment (releases)/losses ECL (release)/charge (4) 229 (2) 122 (12) 337 Stage 1 (146) 2 (135) (11) (290) Stage 2 268 (7) 108 24 393 Stage 3 107 3 149 (25) 234 Of which: individual - 3 57 (6) 54 Of which: collective 107 - 92 (19) 180 Continuing operations 229 (2) 122 (12) 337 Discontinued operations (71) (71) Total (83) 266 Amounts written-off 216 15 224 27 482 Of which: individual - 15 153 - 168 Of which: collective 216 - 71 27 314 (1) Includes loans to customers and banks. (2) Includes £9 million (2022 – £3 million) related to assets classified as FVOCI and £0.1 billion (2022 – £0.1 billion) related to off-balance sheet exposures. (3) 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. Some segments with a high proportion of debt securities or unutilised exposure may result in a not meaningful coverage ratio. (4) Includes a £16 million release (2022 – £3 million charge) related to other financial assets, of which £6 million charge (2022 – nil) related to assets classified as FVOCI, and includes a £9 million release (2022 – £5 million release) related to contingent liabilities. (5) The table shows gross loans only and excludes amounts that were outside the scope of the ECL framework. Refer to the Financial instruments within the scope of the IFRS 9 ECL framework section for further details. Other financial assets within the scope of the IFRS 9 ECL framework were cash and balances at central banks totalling £103.1 billion (2022 – £143.3 billion) and debt securities of £50.1 billion (2022 – £29.9 billion). Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 203 Segment analysis – portfolio summary (audited) The table below shows Ulster Bank RoI disposal groups for Personal and Wholesale, by stage, for gross loans, off-balance sheet exposures and ECL. The tables in the rest of the Credit risk section are shown on a continuing basis and therefore exclude these exposures. Off-balance sheet Loans - amortised cost and FVOCI Loan Contingent ECL provisions Stage 1 Stage 2 Stage 3 Total commitments liabilities Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m £m £m Personal 2 4 2 8 - - - 1 1 2 Wholesale 6 15 38 59 1 2 3 7 24 34 Total 8 19 40 67 1 2 3 8 25 36 2022 Personal - - - - - - - - - - Wholesale 1,269 193 40 1,502 413 19 17 19 17 53 Total 1,269 193 40 1,502 413 19 17 19 17 53 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 187

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 203 Segment analysis – portfolio summary (audited) The table below shows Ulster Bank RoI disposal groups for Personal and Wholesale, by stage, for gross loans, off-balance sheet exposures and ECL. The tables in the rest of the Credit risk section are shown on a continuing basis and therefore exclude these exposures. Off-balance sheet Loans - amortised cost and FVOCI Loan Contingent ECL provisions Stage 1 Stage 2 Stage 3 Total commitments liabilities Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m £m £m Personal 2 4 2 8 - - - 1 1 2 Wholesale 6 15 38 59 1 2 3 7 24 34 Total 8 19 40 67 1 2 3 8 25 36 2022 Personal - - - - - - - - - - Wholesale 1,269 193 40 1,502 413 19 17 19 17 53 Total 1,269 193 40 1,502 413 19 17 19 17 53 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 188

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 204 Segmental loans and impairment metrics (audited) The table below shows gross loans and ECL provisions, by days past due, by segment and stage, within the scope of the ECL framework. Gross loans ECL provisions (2) Stage 2 (1) Stage 2 (1) Not past Not past Stage 1 due 1-30 DPD >30 DPD Total Stage 3 Total Stage 1 due 1-30 DPD >30 DPD Total Stage 3 Total 2023 £m £m £m £m £m £m £m £m £m £m £m £m £m £m Retail Banking 182,297 20,128 738 342 21,208 3,133 206,638 306 453 15 34 502 1,097 1,905 Private Banking 17,565 772 77 57 906 258 18,729 20 18 1 1 20 34 74 Personal 14,296 158 73 24 255 209 14,760 3 2 - - 2 20 25 Wholesale 3,269 614 4 33 651 49 3,969 17 16 1 1 18 14 49 Commercial & Institutional 119,047 14,689 657 425 15,771 2,162 136,980 356 415 21 11 447 819 1,622 Personal 2,268 15 21 7 43 52 2,363 2 - - - - 16 18 Wholesale 116,779 14,674 636 418 15,728 2,110 134,617 354 415 21 11 447 803 1,604 Central items & other 29,677 5 - 1 6 10 29,693 27 6 - 1 7 10 44 Personal 4 2 - 1 3 6 13 5 1 - 1 2 9 16 Wholesale 29,673 3 - - 3 4 29,680 22 5 - - 5 1 28 Total loans 348,586 35,594 1,472 825 37,891 5,563 392,040 709 892 37 47 976 1,960 3,645 Of which: Personal 198,865 20,303 832 374 21,509 3,400 223,774 316 456 15 35 506 1,142 1,964 Wholesale 149,721 15,291 640 451 16,382 2,163 168,266 393 436 22 12 470 818 1,681 2022 Retail Banking 174,727 20,653 605 303 21,561 2,565 198,853 251 406 14 30 450 917 1,618 Private Banking 18,367 730 39 32 801 242 19,410 21 14 - - 14 26 61 Personal 15,182 122 35 16 173 207 15,562 5 1 - - 1 17 23 Wholesale 3,185 608 4 16 628 35 3,848 16 13 - - 13 9 38 Commercial & Institutional 108,791 22,520 956 750 24,226 2,166 135,183 342 491 26 17 534 747 1,623 Personal 2,475 17 17 7 41 46 2,562 3 1 - - 1 12 16 Wholesale 106,316 22,503 939 743 24,185 2,120 132,621 339 490 26 17 533 735 1,607 Central items & other 23,339 234 4 7 245 123 23,707 18 42 1 2 45 69 132 Personal 54 70 3 6 79 13 146 1 11 1 2 14 11 26 Wholesale 23,285 164 1 1 166 110 23,561 17 31 - - 31 58 106 Total loans 325,224 44,137 1,604 1,092 46,833 5,096 377,153 632 953 41 49 1,043 1,759 3,434 Of which: Personal 192,438 20,862 660 332 21,854 2,831 217,123 260 419 15 32 466 957 1,683 Wholesale 132,786 23,275 944 760 24,979 2,265 160,030 372 534 26 17 577 802 1,751 For the notes to this table refer to the following page. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 205 Segmental loans and impairment metrics (audited) The table below shows ECL and ECL provisions coverage, by days past due, by segment and stage, within the scope of the ECL framework. ECL provisions coverage ECL Stage 2 (1,2) Total (release) Amounts Stage 1 Not past due 1-30 DPD >30 DPD Total Stage 3 Total /charge written-off 2023 % % % % % % % £m £m Retail Banking 0.17 2.25 2.03 9.94 2.37 35.01 0.92 465 188 Private Banking 0.11 2.33 1.30 1.75 2.21 13.18 0.40 14 2 Personal 0.02 1.27 - - 0.78 9.57 0.17 (3) 2 Wholesale 0.52 2.61 25.00 3.03 2.76 28.57 1.23 17 - Commercial & Institutional 0.30 2.83 3.20 2.59 2.83 37.88 1.18 94 122 Personal 0.09 - - - - 30.77 0.76 5 1 Wholesale 0.30 2.83 3.30 2.63 2.84 38.06 1.19 89 121 Central items & other 0.09 nm - nm nm nm 0.15 5 7 Personal nm nm - nm nm nm nm 15 2 Wholesale 0.07 nm - - nm 25.00 0.09 (10) 5 Total loans 0.20 2.51 2.51 5.70 2.58 35.23 0.93 578 319 Of which: Personal 0.16 2.25 1.80 9.36 2.35 33.59 0.88 482 193 Wholesale 0.26 2.85 3.44 2.66 2.87 37.82 1.00 96 126 2022 Retail Banking 0.14 1.97 2.31 9.90 2.09 35.75 0.81 229 216 Private Banking 0.11 1.92 - - 1.75 10.74 0.31 (2) 15 Personal 0.03 0.82 - - 0.58 8.21 0.15 (3) 2 Wholesale 0.50 2.14 - - 2.07 25.71 0.99 1 13 Commercial & Institutional 0.31 2.18 2.72 2.27 2.20 34.49 1.20 122 224 Personal 0.12 5.88 - - 2.44 26.09 0.62 4 2 Wholesale 0.32 2.18 2.77 2.29 2.20 34.67 1.21 118 222 Central items & other 0.08 17.95 25.00 28.57 18.37 56.10 0.56 (12) 27 Personal 1.85 15.71 33.33 33.33 17.72 84.62 17.81 11 1 Wholesale 0.07 18.90 - - 18.67 52.73 0.45 (23) 26 Total loans 0.19 2.16 2.56 4.49 2.23 34.52 0.91 337 482 Of which: Personal 0.14 2.01 2.27 9.64 2.13 33.80 0.78 241 221 Wholesale 0.28 2.29 2.75 2.24 2.31 35.41 1.09 96 261 (1) 30 DPD – 30 days past due, the mandatory 30 days past due backstop as prescribed by the IFRS 9 guidance for a SICR. (2) Some segments with a high proportion of debt securities or unutilised exposure may result in a not meaningful coverage ratio. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 189

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 205 Segmental loans and impairment metrics (audited) The table below shows ECL and ECL provisions coverage, by days past due, by segment and stage, within the scope of the ECL framework. ECL provisions coverage ECL Stage 2 (1,2) Total (release) Amounts Stage 1 Not past due 1-30 DPD >30 DPD Total Stage 3 Total /charge written-off 2023 % % % % % % % £m £m Retail Banking 0.17 2.25 2.03 9.94 2.37 35.01 0.92 465 188 Private Banking 0.11 2.33 1.30 1.75 2.21 13.18 0.40 14 2 Personal 0.02 1.27 - - 0.78 9.57 0.17 (3) 2 Wholesale 0.52 2.61 25.00 3.03 2.76 28.57 1.23 17 - Commercial & Institutional 0.30 2.83 3.20 2.59 2.83 37.88 1.18 94 122 Personal 0.09 - - - - 30.77 0.76 5 1 Wholesale 0.30 2.83 3.30 2.63 2.84 38.06 1.19 89 121 Central items & other 0.09 nm - nm nm nm 0.15 5 7 Personal nm nm - nm nm nm nm 15 2 Wholesale 0.07 nm - - nm 25.00 0.09 (10) 5 Total loans 0.20 2.51 2.51 5.70 2.58 35.23 0.93 578 319 Of which: Personal 0.16 2.25 1.80 9.36 2.35 33.59 0.88 482 193 Wholesale 0.26 2.85 3.44 2.66 2.87 37.82 1.00 96 126 2022 Retail Banking 0.14 1.97 2.31 9.90 2.09 35.75 0.81 229 216 Private Banking 0.11 1.92 - - 1.75 10.74 0.31 (2) 15 Personal 0.03 0.82 - - 0.58 8.21 0.15 (3) 2 Wholesale 0.50 2.14 - - 2.07 25.71 0.99 1 13 Commercial & Institutional 0.31 2.18 2.72 2.27 2.20 34.49 1.20 122 224 Personal 0.12 5.88 - - 2.44 26.09 0.62 4 2 Wholesale 0.32 2.18 2.77 2.29 2.20 34.67 1.21 118 222 Central items & other 0.08 17.95 25.00 28.57 18.37 56.10 0.56 (12) 27 Personal 1.85 15.71 33.33 33.33 17.72 84.62 17.81 11 1 Wholesale 0.07 18.90 - - 18.67 52.73 0.45 (23) 26 Total loans 0.19 2.16 2.56 4.49 2.23 34.52 0.91 337 482 Of which: Personal 0.14 2.01 2.27 9.64 2.13 33.80 0.78 241 221 Wholesale 0.28 2.29 2.75 2.24 2.31 35.41 1.09 96 261 (1) 30 DPD – 30 days past due, the mandatory 30 days past due backstop as prescribed by the IFRS 9 guidance for a SICR. (2) Some segments with a high proportion of debt securities or unutilised exposure may result in a not meaningful coverage ratio. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 190

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 206 Segmental loans and impairment metrics (audited)  Retail Banking – Balance sheet growth continued during H2 2023, although at a reduced pace compared to H1 2023, reflecting the wider UK mortgage market trends. Unsecured balances growth in H2 2023, primarily in credit cards, was a continuation of the strong customer demand seen in the first half of the year. Lending criteria and affordability assumptions continue to be reviewed to ensure new business is assessed appropriately in the higher interest rate and inflationary environment. While portfolio performance continued to remain stable, total ECL coverage increased. The rise in coverage was reflective of increased Stage 3 ECL on unsecured portfolios, mainly due to reduced write-off activity, however, Stage 3 inflows were higher this year, in line with growth and normalisation of risk parameters. The modest increase in good book coverage during the year reflected a slight increase in early arrears levels and a rise in the unsecured mix of the portfolio. Furthermore, post model adjustments to capture increased affordability pressures on customers due to high inflation and interest rates have increased during the year, ensuring ECL reflects the continued uncertainty despite modelled ECL reductions due to improved forward-looking economic updates since the end of 2022.  Commercial & Institutional – Growth in exposure in Commercial & Institutional was driven by increased exposure to financial institutions, partially offset by reductions in other sectors including retail. There were also continued repayments of COVID-19 government lending schemes, and strategic reductions in certain sectors. Sector appetite continues to be reviewed regularly, with particular focus on sector clusters and sub-sectors that are vulnerable to inflationary and supply chain pressures or deemed to represent a heightened risk. Stage 2 ECL reduced due to positive portfolio performance and improvements in the latest economic scenarios. Coverage decreased due to portfolio growth with ECL broadly flat, but coverage on Stage 1 and Stage 2 was significantly above pre-COVID-19 levels, reflecting continued economic uncertainty.  Other – Balance sheet growth in 2023 compared to 2022 was mainly due to an increase in central items held in the course of treasury related management activities. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 207 Sector analysis – portfolio summary (audited) The table below shows financial assets and off-balance sheet exposures gross of ECL and related ECL provisions, impairment and past due by sector, asset quality and geographical region. Personal Wholesale Mortgages (1) Credit cards Other personal Total Property Other wholesale FI Sovereign Total Total 2023 £m £m £m £m £m £m £m £m £m £m Loans by geography 208,275 5,904 9,595 223,774 31,207 77,339 57,087 2,633 168,266 392,040 - UK 208,275 5,893 9,592 223,760 30,703 65,033 39,906 2,016 137,658 361,418 - RoI - 11 3 14 9 888 279 - 1,176 1,190 - Other Europe - - - - 375 5,096 7,865 399 13,735 13,735 - RoW - - - - 120 6,322 9,037 218 15,697 15,697 Loans by stage 208,275 5,904 9,595 223,774 31,207 77,339 57,087 2,633 168,266 392,040 - Stage 1 188,140 3,742 6,983 198,865 27,316 63,690 56,105 2,610 149,721 348,586 - Stage 2 17,854 2,022 1,633 21,509 3,270 12,145 966 1 16,382 37,891 - Stage 3 2,281 140 979 3,400 621 1,504 16 22 2,163 5,563 - Of which: individual 122 - 20 142 240 625 2 22 889 1,031 - Of which: collective 2,159 140 959 3,258 381 879 14 - 1,274 4,532 Loans - past due analysis (2) 208,275 5,904 9,595 223,774 31,207 77,339 57,087 2,633 168,266 392,040 - Not past due 205,405 5,743 8,578 219,726 30,264 74,052 56,735 2,633 163,684 383,410 - Past due 1-30 days 1,178 41 71 1,290 491 2,222 332 - 3,045 4,335 - Past due 31-90 days 518 38 112 668 179 437 12 - 628 1,296 - Past due 91-180 days 445 32 103 580 42 71 2 - 115 695 - Past due >180 days 729 50 731 1,510 231 557 6 - 794 2,304 Loans - Stage 2 17,854 2,022 1,633 21,509 3,270 12,145 966 1 16,382 37,891 - Not past due 16,803 1,971 1,529 20,303 3,071 11,287 932 1 15,291 35,594 - Past due 1-30 days 765 27 40 832 100 516 24 - 640 1,472 - Past due 31-90 days 286 24 64 374 99 342 10 - 451 825 Weighted average life (3) - ECL measurement (years) 9 3 6 6 6 6 2 - 6 6 Weighted average 12 months PDs (3) - IFRS 9 (%) 0.50 3.45 5.29 0.75 1.45 1.59 0.19 0.37 1.07 0.89 - Basel (%) 0.67 3.37 3.15 0.84 0.94 1.25 0.17 0.37 0.81 0.83 ECL provisions by geography 420 376 1,168 1,964 398 1,201 66 16 1,681 3,645 - UK 420 365 1,163 1,948 384 999 38 13 1,434 3,382 - RoI - 11 5 16 - 6 1 - 7 23 - Other Europe - - - - 7 146 12 - 165 165 - RoW - - - - 7 50 15 3 75 75 For the notes to this table refer to page 211. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 191

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 207 Sector analysis – portfolio summary (audited) The table below shows financial assets and off-balance sheet exposures gross of ECL and related ECL provisions, impairment and past due by sector, asset quality and geographical region. Personal Wholesale Mortgages (1) Credit cards Other personal Total Property Other wholesale FI Sovereign Total Total 2023 £m £m £m £m £m £m £m £m £m £m Loans by geography 208,275 5,904 9,595 223,774 31,207 77,339 57,087 2,633 168,266 392,040 - UK 208,275 5,893 9,592 223,760 30,703 65,033 39,906 2,016 137,658 361,418 - RoI - 11 3 14 9 888 279 - 1,176 1,190 - Other Europe - - - - 375 5,096 7,865 399 13,735 13,735 - RoW - - - - 120 6,322 9,037 218 15,697 15,697 Loans by stage 208,275 5,904 9,595 223,774 31,207 77,339 57,087 2,633 168,266 392,040 - Stage 1 188,140 3,742 6,983 198,865 27,316 63,690 56,105 2,610 149,721 348,586 - Stage 2 17,854 2,022 1,633 21,509 3,270 12,145 966 1 16,382 37,891 - Stage 3 2,281 140 979 3,400 621 1,504 16 22 2,163 5,563 - Of which: individual 122 - 20 142 240 625 2 22 889 1,031 - Of which: collective 2,159 140 959 3,258 381 879 14 - 1,274 4,532 Loans - past due analysis (2) 208,275 5,904 9,595 223,774 31,207 77,339 57,087 2,633 168,266 392,040 - Not past due 205,405 5,743 8,578 219,726 30,264 74,052 56,735 2,633 163,684 383,410 - Past due 1-30 days 1,178 41 71 1,290 491 2,222 332 - 3,045 4,335 - Past due 31-90 days 518 38 112 668 179 437 12 - 628 1,296 - Past due 91-180 days 445 32 103 580 42 71 2 - 115 695 - Past due >180 days 729 50 731 1,510 231 557 6 - 794 2,304 Loans - Stage 2 17,854 2,022 1,633 21,509 3,270 12,145 966 1 16,382 37,891 - Not past due 16,803 1,971 1,529 20,303 3,071 11,287 932 1 15,291 35,594 - Past due 1-30 days 765 27 40 832 100 516 24 - 640 1,472 - Past due 31-90 days 286 24 64 374 99 342 10 - 451 825 Weighted average life (3) - ECL measurement (years) 9 3 6 6 6 6 2 - 6 6 Weighted average 12 months PDs (3) - IFRS 9 (%) 0.50 3.45 5.29 0.75 1.45 1.59 0.19 0.37 1.07 0.89 - Basel (%) 0.67 3.37 3.15 0.84 0.94 1.25 0.17 0.37 0.81 0.83 ECL provisions by geography 420 376 1,168 1,964 398 1,201 66 16 1,681 3,645 - UK 420 365 1,163 1,948 384 999 38 13 1,434 3,382 - RoI - 11 5 16 - 6 1 - 7 23 - Other Europe - - - - 7 146 12 - 165 165 - RoW - - - - 7 50 15 3 75 75 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION For the notes to this table refer to page 195. NatWest Group 2023 Annual Report on Form 20-F 192

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 208 Sector analysis – portfolio summary (audited) Personal Wholesale Mortgages (1) Credit cards Other personal Total Property Other wholesale FI Sovereign Total Total 2023 £m £m £m £m £m £m £m £m £m £m ECL provisions by stage 420 376 1,168 1,964 398 1,201 66 16 1,681 3,645 - Stage 1 88 76 152 316 102 234 44 13 393 709 - Stage 2 61 207 238 506 98 356 15 1 470 976 - Stage 3 271 93 778 1,142 198 611 7 2 818 1,960 - Of which: individual 12 - 14 26 60 242 2 2 306 332 - Of which: collective 259 93 764 1,116 138 369 5 - 512 1,628 ECL provisions coverage (%) 0.20 6.37 12.17 0.88 1.28 1.55 0.12 0.61 1.00 0.93 - Stage 1 (%) 0.05 2.03 2.18 0.16 0.37 0.37 0.08 0.50 0.26 0.20 - Stage 2 (%) 0.34 10.24 14.57 2.35 3.00 2.93 1.55 100.00 2.87 2.58 - Stage 3 (%) 11.88 66.43 79.47 33.59 31.88 40.63 43.75 9.09 37.82 35.23 ECL (release)/charge 35 193 254 482 34 58 6 (2) 96 578 - UK 35 184 249 468 42 61 (4) (2) 97 565 - RoI - 9 5 14 (2) (8) 1 - (9) 5 - Other Europe - - - - (6) 55 11 - 60 60 - RoW - - - - - (50) (2) - (52) (52) Amounts written-off 32 70 91 193 39 86 1 - 126 319 Loans by residual maturity 208,275 5,904 9,595 223,774 31,207 77,339 57,087 2,633 168,266 392,040 - <1 year 3,375 3,398 3,169 9,942 5,696 25,312 43,497 489 74,994 84,936 - 1-5 year 9,508 2,506 5,431 17,445 17,216 32,573 11,616 1,872 63,277 80,722 - > 5 < 15 year 46,453 - 993 47,446 5,701 14,167 1,939 199 22,006 69,452 - > 15 year 148,939 - 2 148,941 2,594 5,287 35 73 7,989 156,930 Other financial assets by asset quality (4) - - - - 1 2,689 26,816 123,683 153,189 153,189 - AQ1-AQ4 - - - - 1 2,689 26,084 123,683 152,457 152,457 - AQ5-AQ8 - - - - - - 732 - 732 732 Off-balance sheet 9,843 17,284 8,462 35,589 14,205 59,716 22,221 227 96,369 131,958 - Loan commitments 9,843 17,284 8,417 35,544 13,861 57,081 20,765 227 91,934 127,478 - Financial guarantees - - 45 45 344 2,635 1,456 - 4,435 4,480 Off-balance sheet by asset quality (4) 9,843 17,284 8,462 35,589 14,205 59,716 22,221 227 96,369 131,958 - AQ1-AQ4 9,099 448 7,271 16,818 10,916 36,380 20,644 165 68,105 84,923 - AQ5-AQ8 721 16,518 1,162 18,401 3,266 23,030 1,574 45 27,915 46,316 - AQ9 7 6 4 17 3 12 - - 15 32 - AQ10 16 312 25 353 20 294 3 17 334 687 Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 209 Sector analysis – portfolio summary (audited) Personal Wholesale Mortgages (1) Credit cards Other personal Total Property Other wholesale FI Sovereign Total Total 2022 (5) £m £m £m £m £m £m £m £m £m £m Loans by geography 202,957 4,460 9,706 217,123 31,036 78,060 48,138 2,796 160,030 377,153 - UK 202,957 4,420 9,602 216,979 29,935 65,867 32,480 2,253 130,535 347,514 - RoI - 40 104 144 34 1,102 74 - 1,210 1,354 - Other Europe - - - - 607 4,815 6,967 346 12,735 12,735 - RoW - - - - 460 6,276 8,617 197 15,550 15,550 Loans by stage 202,957 4,460 9,706 217,123 31,036 78,060 48,138 2,796 160,030 377,153 - Stage 1 182,245 3,275 6,918 192,438 26,300 56,955 46,738 2,793 132,786 325,224 - Stage 2 18,787 1,076 1,991 21,854 4,035 19,590 1,353 1 24,979 46,833 - Stage 3 1,925 109 797 2,831 701 1,515 47 2 2,265 5,096 - Of which: individual 172 - 13 185 309 592 33 2 936 1,121 - Of which: collective 1,753 109 784 2,646 392 923 14 - 1,329 3,975 Loans - past due analysis (2) 202,957 4,460 9,706 217,123 31,036 78,060 48,138 2,796 160,030 377,153 - Not past due 200,634 4,335 8,825 213,794 29,986 74,251 47,824 2,796 154,857 368,651 - Past due 1-30 days 916 33 86 1,035 462 2,637 278 - 3,377 4,412 - Past due 31-90 days 510 29 104 643 297 563 5 - 865 1,508 - Past due 91-180 days 380 24 79 483 48 35 24 - 107 590 - Past due >180 days 517 39 612 1,168 243 574 7 - 824 1,992 Loans - Stage 2 18,787 1,076 1,991 21,854 4,035 19,590 1,353 1 24,979 46,833 - Not past due 17,951 1,039 1,872 20,862 3,595 18,335 1,344 1 23,275 44,137 - Past due 1-30 days 588 19 53 660 180 759 5 - 944 1,604 - Past due 31-90 days 248 18 66 332 260 496 4 - 760 1,092 Weighted average life (3) - ECL measurement (years) 8 2 6 5 4 6 3 - 5 5 Weighted average 12 months PDs (3) - IFRS 9 (%) 0.50 2.62 4.78 0.71 1.84 2.05 0.23 0.24 1.41 1.01 - Basel (%) 0.65 2.97 3.11 0.79 1.01 1.40 0.16 0.24 0.92 0.85 ECL provisions by geography 376 257 1,050 1,683 420 1,251 63 17 1,751 3,434 - UK 376 254 1,027 1,657 386 1,004 42 13 1,445 3,102 - RoI - 3 23 26 13 66 1 - 80 106 - Other Europe - - - - 13 76 7 - 96 96 - RoW - - - - 8 105 13 4 130 130 For the notes to this table refer to the following page. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION For the notes to this table refer to page 195. NatWest Group 2023 Annual Report on Form 20-F 193

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 209 Sector analysis – portfolio summary (audited) Personal Wholesale Mortgages (1) Credit cards Other personal Total Property Other wholesale FI Sovereign Total Total 2022 (5) £m £m £m £m £m £m £m £m £m £m Loans by geography 202,957 4,460 9,706 217,123 31,036 78,060 48,138 2,796 160,030 377,153 - UK 202,957 4,420 9,602 216,979 29,935 65,867 32,480 2,253 130,535 347,514 - RoI - 40 104 144 34 1,102 74 - 1,210 1,354 - Other Europe - - - - 607 4,815 6,967 346 12,735 12,735 - RoW - - - - 460 6,276 8,617 197 15,550 15,550 Loans by stage 202,957 4,460 9,706 217,123 31,036 78,060 48,138 2,796 160,030 377,153 - Stage 1 182,245 3,275 6,918 192,438 26,300 56,955 46,738 2,793 132,786 325,224 - Stage 2 18,787 1,076 1,991 21,854 4,035 19,590 1,353 1 24,979 46,833 - Stage 3 1,925 109 797 2,831 701 1,515 47 2 2,265 5,096 - Of which: individual 172 - 13 185 309 592 33 2 936 1,121 - Of which: collective 1,753 109 784 2,646 392 923 14 - 1,329 3,975 Loans - past due analysis (2) 202,957 4,460 9,706 217,123 31,036 78,060 48,138 2,796 160,030 377,153 - Not past due 200,634 4,335 8,825 213,794 29,986 74,251 47,824 2,796 154,857 368,651 - Past due 1-30 days 916 33 86 1,035 462 2,637 278 - 3,377 4,412 - Past due 31-90 days 510 29 104 643 297 563 5 - 865 1,508 - Past due 91-180 days 380 24 79 483 48 35 24 - 107 590 - Past due >180 days 517 39 612 1,168 243 574 7 - 824 1,992 Loans - Stage 2 18,787 1,076 1,991 21,854 4,035 19,590 1,353 1 24,979 46,833 - Not past due 17,951 1,039 1,872 20,862 3,595 18,335 1,344 1 23,275 44,137 - Past due 1-30 days 588 19 53 660 180 759 5 - 944 1,604 - Past due 31-90 days 248 18 66 332 260 496 4 - 760 1,092 Weighted average life (3) - ECL measurement (years) 8 2 6 5 4 6 3 - 5 5 Weighted average 12 months PDs (3) - IFRS 9 (%) 0.50 2.62 4.78 0.71 1.84 2.05 0.23 0.24 1.41 1.01 - Basel (%) 0.65 2.97 3.11 0.79 1.01 1.40 0.16 0.24 0.92 0.85 ECL provisions by geography 376 257 1,050 1,683 420 1,251 63 17 1,751 3,434 - UK 376 254 1,027 1,657 386 1,004 42 13 1,445 3,102 - RoI - 3 23 26 13 66 1 - 80 106 - Other Europe - - - - 13 76 7 - 96 96 - RoW - - - - 8 105 13 4 130 130 For the notes to this table refer to the following page. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 194

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 210 Sector analysis – portfolio summary (audited) Personal Wholesale Mortgages (1) Credit cards Other personal Total Property Other wholesale FI Sovereign Total Total 2022 (5) £m £m £m £m £m £m £m £m £m £m ECL provisions by stage 376 257 1,050 1,683 420 1,251 63 17 1,751 3,434 - Stage 1 81 62 117 260 99 226 32 15 372 632 - Stage 2 62 122 282 466 98 465 14 - 577 1,043 - Stage 3 233 73 651 957 223 560 17 2 802 1,759 - Of which: individual 18 - 10 28 79 165 13 2 259 287 - Of which: collective 215 73 641 929 144 395 4 - 543 1,472 ECL provisions coverage (%) 0.19 5.76 10.82 0.78 1.35 1.60 0.13 0.61 1.09 0.91 - Stage 1 (%) 0.04 1.89 1.69 0.14 0.38 0.40 0.07 0.54 0.28 0.19 - Stage 2 (%) 0.33 11.34 14.16 2.13 2.43 2.37 1.03 - 2.31 2.23 - Stage 3 (%) 12.10 66.97 81.68 33.80 31.81 36.96 36.17 100.00 35.41 34.52 ECL (release)/charge (74) 56 259 241 108 (27) 19 (4) 96 337 - UK (74) 57 247 230 103 (51) 14 (4) 62 292 - RoI - (1) 12 11 1 (26) (2) - (27) (16) - Other Europe - - - - 1 04 1 (1) 5 5 - RoW - - - - 3 46 6 1 56 56 Amounts written-off 31 67 123 221 34 187 40 - 261 482 Loans by residual maturity 202,957 4,460 9,706 217,123 31,036 78,060 48,138 2,796 160,030 377,153 - <1 year 3,347 2,655 3,368 9,370 6,118 26,971 36,192 906 70,187 79,557 - 1-5 year 10,968 1,805 5,387 18,160 16,768 33,071 10,380 1,630 61,849 80,009 - > 5 < 15 year 46,500 - 950 47,450 5,259 13,392 1,379 184 20,214 67,664 - > 15 year 142,142 - 1 142,143 2,891 4,626 187 76 7,780 149,923 Other financial assets by asset quality (4) - - - - 49 581 14,704 157,860 173,194 173,194 - AQ1-AQ4 - - - - - 567 14,156 157,860 172,583 172,583 - AQ5-AQ8 - - - - 49 14 548 - 611 611 Off-balance sheet 18,782 15,848 8,547 43,177 14,308 59,718 19,555 268 93,849 137,026 - Loan commitments 18,782 15,848 8,496 43,126 13,895 56,500 18,223 268 88,886 132,012 - Financial guarantees - - 51 51 413 3,218 1,332 - 4,963 5,014 Off-balance sheet by asset quality (4) 18,782 15,848 8,547 43,177 14,308 59,718 19,555 268 93,849 137,026 - AQ1-AQ4 17,676 436 7,353 25,465 11,573 37,265 17,899 205 66,942 92,407 - AQ5-AQ8 1,089 15,048 1,170 17,307 2,706 22,094 1,655 62 26,517 43,824 - AQ9 2 74 4 80 4 25 - - 29 109 - AQ10 15 290 20 325 25 334 1 1 361 686 (1) Includes a portion of Private Banking lending secured against residential real estate, in line with ECL calculation methodology. Private Banking and RBS International mortgages are reported in UK, reflecting the country of lending origination and includes crown dependencies. (2) 30 DPD – 30 days past due, the mandatory 30 days past due backstop as prescribed by the IFRS 9 guidance for a SICR. (3) Not within the scope of the Independent auditors’ report. (4) AQ bandings are based on Basel PDs and mapping is as follows: Internal asset quality band Probability of default range Indicative S&P rating Internal asset quality band Probability of default range Indicative S&P rating AQ1 0% - 0.034% AAA to AA AQ6 1.076% - 2.153% BB- to B+ AQ2 0.034% - 0.048% AA to AA- AQ7 2.153% - 6.089% B+ to B AQ3 0.048% - 0.095% A+ to A AQ8 6.089% - 17.222% B- to CCC+ AQ4 0.095% - 0.381% BBB+ to BBB- AQ9 17.222% - 100% CCC to C AQ5 0.381% - 1.076% BB+ to BB AQ10 100% D £0.3 billion (2022 – £0.3 billion) of AQ10 Personal balances primarily relate to loan commitments, the drawdown of which is effectively prohibited. (5) Previously published sectors for the Wholesale portfolio have been re-presented to reflect updated internal sector reporting. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 211 Sector analysis – portfolio summary (audited) The table below shows ECL by stage, for the Personal portfolio and selected sectors of the Wholesale portfolio including those that contain an element of exposure classified as heightened climate-related risk. Loans - amortised cost and FVOCI Off-balance sheet ECL provisions Stage 1 Stage 2 Stage 3 Total Loan commitments Contingent liabilities Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m £m £m Personal 198,865 21,509 3,400 223,774 35,544 45 316 506 1,142 1,964 Mortgages 188,140 17,854 2,281 208,275 9,843 - 88 61 271 420 Credit cards 3,742 2,022 140 5,904 17,284 - 76 207 93 376 Other personal 6,983 1,633 979 9,595 8,417 45 152 238 778 1,168 Wholesale 149,721 16,382 2,163 168,266 91,934 4,435 393 470 818 1,681 Property 27,316 3,270 621 31,207 13,861 344 102 98 198 398 Financial institutions (1) 56,105 966 16 57,087 20,765 1,456 44 15 7 66 Sovereigns 2,610 1 22 2,633 227 - 13 1 2 16 Other wholesale 63,690 12,145 1,504 77,339 57,081 2,635 234 356 611 1,201 Of which: Agriculture 3,851 1,011 90 4,952 950 21 19 35 34 88 Airlines and aerospace 1,525 454 3 1,982 1,788 178 4 7 2 13 Automotive 7,223 1,008 76 8,307 3,844 103 18 18 26 62 Building materials 1,204 282 72 1,558 1,475 72 6 9 8 23 Chemicals 354 62 4 420 785 13 1 9 1 11 Industrials 2,269 543 70 2,882 2,896 148 10 18 23 51 Land transport & logistics 4,231 578 61 4,870 3,025 184 11 14 18 43 Leisure 4,394 2,245 288 6,927 1,887 145 31 74 91 196 Mining & metals 241 32 4 277 545 7 - - 4 4 Oil and gas 915 125 27 1,067 1,959 237 3 2 29 34 Power utilities 5,604 418 40 6,062 8,257 554 13 13 24 50 Retail 5,846 1,318 224 7,388 4,717 429 23 35 118 176 Shipping 207 35 3 245 71 31 - 1 2 3 Water & waste 3,536 173 13 3,722 1,904 84 4 5 4 13 Total 348,586 37,891 5,563 392,040 127,478 4,480 709 976 1,960 3,645 For the notes to this table refer to the following page. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 195

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 211 Sector analysis – portfolio summary (audited) The table below shows ECL by stage, for the Personal portfolio and selected sectors of the Wholesale portfolio including those that contain an element of exposure classified as heightened climate-related risk. Loans - amortised cost and FVOCI Off-balance sheet ECL provisions Stage 1 Stage 2 Stage 3 Total Loan commitments Contingent liabilities Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m £m £m Personal 198,865 21,509 3,400 223,774 35,544 45 316 506 1,142 1,964 Mortgages 188,140 17,854 2,281 208,275 9,843 - 88 61 271 420 Credit cards 3,742 2,022 140 5,904 17,284 - 76 207 93 376 Other personal 6,983 1,633 979 9,595 8,417 45 152 238 778 1,168 Wholesale 149,721 16,382 2,163 168,266 91,934 4,435 393 470 818 1,681 Property 27,316 3,270 621 31,207 13,861 344 102 98 198 398 Financial institutions (1) 56,105 966 16 57,087 20,765 1,456 44 15 7 66 Sovereigns 2,610 1 22 2,633 227 - 13 1 2 16 Other wholesale 63,690 12,145 1,504 77,339 57,081 2,635 234 356 611 1,201 Of which: Agriculture 3,851 1,011 90 4,952 950 21 19 35 34 88 Airlines and aerospace 1,525 454 3 1,982 1,788 178 4 7 2 13 Automotive 7,223 1,008 76 8,307 3,844 103 18 18 26 62 Building materials 1,204 282 72 1,558 1,475 72 6 9 8 23 Chemicals 354 62 4 420 785 13 1 9 1 11 Industrials 2,269 543 70 2,882 2,896 148 10 18 23 51 Land transport & logistics 4,231 578 61 4,870 3,025 184 11 14 18 43 Leisure 4,394 2,245 288 6,927 1,887 145 31 74 91 196 Mining & metals 241 32 4 277 545 7 - - 4 4 Oil and gas 915 125 27 1,067 1,959 237 3 2 29 34 Power utilities 5,604 418 40 6,062 8,257 554 13 13 24 50 Retail 5,846 1,318 224 7,388 4,717 429 23 35 118 176 Shipping 207 35 3 245 71 31 - 1 2 3 Water & waste 3,536 173 13 3,722 1,904 84 4 5 4 13 Total 348,586 37,891 5,563 392,040 127,478 4,480 709 976 1,960 3,645 For the notes to this table refer to the following page. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 196

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 212 Sector analysis – portfolio summary (audited) Loans - amortised cost and FVOCI Off-balance sheet ECL provisions Stage 1 Stage 2 Stage 3 Total Loan commitments Contingent liabilities Stage 1 Stage 2 Stage 3 Total 2022 (2) £m £m £m £m £m £m £m £m £m £m Personal 192,438 21,854 2,831 217,123 43,126 51 260 466 957 1,683 Mortgages 182,245 18,787 1,925 202,957 18,782 - 81 62 233 376 Credit cards 3,275 1,076 109 4,460 15,848 - 62 122 73 257 Other personal 6,918 1,991 797 9,706 8,496 51 117 282 651 1,050 Wholesale 132,786 24,979 2,265 160,030 88,886 4,963 372 577 802 1,751 Property 26,300 4,035 701 31,036 13,895 413 99 98 223 420 Financial institutions (1) 46,738 1,353 47 48,138 18,223 1,332 32 14 17 63 Sovereigns 2,793 1 2 2,796 269 - 15 - 2 17 Other wholesale 56,955 19,590 1,515 78,060 56,499 3,218 226 465 560 1,251 Of which: Agriculture 3,646 1,034 93 4,773 968 24 21 31 43 95 Airlines and aerospace 483 1,232 19 1,734 1,715 174 2 40 8 50 Automotive 5,776 1,498 30 7,304 4,009 99 18 18 11 47 Building materials 1,244 284 15 1,543 1,407 78 7 7 7 21 Chemicals 384 117 1 502 650 12 1 2 1 4 Industrials 2,148 1,037 82 3,267 3,135 195 10 16 24 50 Land transport & logistics 3,863 1,304 72 5,239 3,373 190 13 34 18 65 Leisure 3,416 3,787 260 7,463 1,907 102 27 147 115 289 Mining & metals 173 230 5 408 545 5 - 1 5 6 Oil and gas 953 159 60 1,172 2,157 248 3 3 31 37 Power utilities 4,228 406 6 4,640 6,960 1,182 9 11 1 21 Retail 6,497 1,746 150 8,393 4,682 416 21 29 68 118 Shipping 161 151 14 326 110 22 - 7 6 13 Water & waste 3,026 335 7 3,368 2,143 101 4 4 4 12 Total 325,224 46,833 5,096 377,153 132,012 5,014 632 1,043 1,759 3,434 (1) Financial institutions include transactions, such as securitisations, where the underlying assets may be in other sectors. (2) Previously published sectors for the Wholesale portfolio have been re-presented to reflect updated internal sector reporting. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 213 Wholesale forbearance (audited) The table below shows Wholesale forbearance, Heightened Monitoring and Risk of Credit Loss by sector. Personal forbearance is disclosed in the Personal portfolio section. The table shows current exposure but reflects risk transfers where there is a guarantee by another customer. Property Financial institution Sovereign Other Total 2023 £m £m £m £m £m Forbearance (flow) 916 56 22 2,568 3,562 Forbearance (stock) 1,071 70 22 3,752 4,915 Heightened Monitoring and Risk of Credit Loss 1,089 276 - 4,119 5,484 2022 Forbearance (flow) 723 105 - 2,598 3,426 Forbearance (stock) 900 107 - 4,742 5,749 Heightened Monitoring and Risk of Credit Loss 920 112 - 3,501 4,533 Sector analysis – portfolio summary (audited)  Loans by geography and sector – In line with NatWest Group’s strategic focus, exposures continued to be mainly in the UK. Exposure to the Republic of Ireland reduced during 2023 as part of the phased withdrawal of Ulster Bank RoI.  Loans by stage – There was an increase in Stage 1 exposure due to mortgage growth in Personal and lending to financial institutions in Wholesale. An overall improvement in forward-looking economics during 2023 drove a reduction in IFRS 9 PDs, meaning a reduction in the proportion of most portfolio segments triggering PD deterioration rules, resulting in a net migration of exposures from Stage 2 into Stage 1 during 2023.  Loans – Past due analysis – In Personal, the value of arrears increased during 2023 as expected with portfolio growth in recent years and adjustments to lending criteria following COVID-19.  Weighted average 12 months PDs – IFRS 9 PDs remained broadly stable overall, with some increases in Personal portfolios, most notably in credit cards which had a PD modelling update. In Wholesale, some reductions were observed in PDs in corporate and property portfolios, linked to the economic scenario updates during the year.  ECL provisions by stage – Portfolio growth was the key driver behind an increase in Stage 1 provisions. Stage 2 provisions reduced during 2023, reflecting broadly stable credit performance of the portfolios and the effect of improved 2023 forward-looking scenario updates. As outlined previously, Stage 3 provisions have yet to be materially affected by the customer affordability risks linked to the current economic uncertainty prevalent in the UK. However, there has been an increase in Stage 3 ECL linked to a modest rise in default levels and reduced write-off activity. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 197

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 213 Wholesale forbearance (audited) The table below shows Wholesale forbearance, Heightened Monitoring and Risk of Credit Loss by sector. Personal forbearance is disclosed in the Personal portfolio section. The table shows current exposure but reflects risk transfers where there is a guarantee by another customer. Property Financial institution Sovereign Other Total 2023 £m £m £m £m £m Forbearance (flow) 916 56 22 2,568 3,562 Forbearance (stock) 1,071 70 22 3,752 4,915 Heightened Monitoring and Risk of Credit Loss 1,089 276 - 4,119 5,484 2022 Forbearance (flow) 723 105 - 2,598 3,426 Forbearance (stock) 900 107 - 4,742 5,749 Heightened Monitoring and Risk of Credit Loss 920 112 - 3,501 4,533 Sector analysis – portfolio summary (audited)  Loans by geography and sector – In line with NatWest Group’s strategic focus, exposures continued to be mainly in the UK. Exposure to the Republic of Ireland reduced during 2023 as part of the phased withdrawal of Ulster Bank RoI.  Loans by stage – There was an increase in Stage 1 exposure due to mortgage growth in Personal and lending to financial institutions in Wholesale. An overall improvement in forward-looking economics during 2023 drove a reduction in IFRS 9 PDs, meaning a reduction in the proportion of most portfolio segments triggering PD deterioration rules, resulting in a net migration of exposures from Stage 2 into Stage 1 during 2023.  Loans – Past due analysis – In Personal, the value of arrears increased during 2023 as expected with portfolio growth in recent years and adjustments to lending criteria following COVID-19.  Weighted average 12 months PDs – IFRS 9 PDs remained broadly stable overall, with some increases in Personal portfolios, most notably in credit cards which had a PD modelling update. In Wholesale, some reductions were observed in PDs in corporate and property portfolios, linked to the economic scenario updates during the year.  ECL provisions by stage – Portfolio growth was the key driver behind an increase in Stage 1 provisions. Stage 2 provisions reduced during 2023, reflecting broadly stable credit performance of the portfolios and the effect of improved 2023 forward-looking scenario updates. As outlined previously, Stage 3 provisions have yet to be materially affected by the customer affordability risks linked to the current economic uncertainty prevalent in the UK. However, there has been an increase in Stage 3 ECL linked to a modest rise in default levels and reduced write-off activity. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 198

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 214 Wholesale support schemes (1) The table below shows the sector split for the Bounce Back Loans Scheme (BBLS) as well as associated debt split by stage. Associated debt refers to non-BBLS lending to customers who also have BBLS lending. Gross carrying amount BBL Associated debt ECL on associated debt Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 31 December 2023 £m £m £m £m £m £m £m £m £m £m £m Wholesale Property 661 150 27 838 687 202 82 971 7 13 33 Financial institutions 16 3 1 20 7 2 - 9 - - - Other 2,210 495 231 2,936 2,080 849 163 3,092 24 53 93 Total 2,887 648 259 3,794 2,774 1,053 245 4,072 31 66 126 Gross carrying amount BBL Associated debt ECL on associated debt Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 31 December 2022 £m £m £m £m £m £m £m £m £m £m £m Wholesale Property 966 186 48 1,200 874 205 60 1,139 10 14 26 Financial institutions 24 4 - 28 9 2 - 11 - - 1 Other 3,233 641 342 4,216 2,338 884 117 3,339 26 57 70 Total 4,223 831 390 5,444 3,221 1,091 177 4,489 36 71 97 (1) Not within the scope of the independent auditors’ report. Sector analysis – portfolio summary (audited)  ECL provisions coverage – Overall provisions coverage remained broadly consistent with 31 December 2022. This was mainly a result of continued stable portfolio performance and MES economics-driven modelled ECL releases contrasted with increased economic uncertainty, captured through ECL post model adjustments.  ECL charge – The impairment charge for 2023 of £578 million primarily reflected the underlying Stage 3 charges and portfolio growth.  Loans by residual maturity – The maturity profile of the portfolios remained consistent with prior periods. In mortgages, as expected, the vast majority of exposures were greater than five years. In unsecured lending, cards and other exposures were concentrated in less than five years. In Wholesale, more than 80% of exposures mature in less than five years.  Other financial assets by asset quality – Consisting almost entirely of cash and balances at central banks and debt securities held in the course of treasury related management activities, these assets were mainly within the AQ1-AQ4 bands.  Off-balance sheet exposures by asset quality – In Personal, undrawn exposures were reflective of available credit lines in credit cards and current accounts. Additionally, the mortgage portfolio had undrawn exposures, where a formal offer had been made to a customer but had not yet drawn down; the value decreased in line with the pipeline of offers. There was also a legacy portfolio of flexible mortgages where a customer had the right and ability to draw down further funds. The asset quality was aligned to the wider portfolio. In Wholesale, off-balance sheet exposures increased due to a rise in securitisations lending within financial institutions, with asset quality in line with existing off-balance sheet exposures.  Wholesale forbearance – Increased levels of forbearance were observed in Q4 2023. The retail, leisure, commercial real estate and power and utilities sectors represented the largest share of completed forbearance. Labour shortages/increased cost of labour, rising energy prices, supply chain issues and higher interest rates continue to weigh on these sectors. Payment holidays and covenant waivers were the most common forms of forbearance granted.  Heightened Monitoring and Risk of Credit Loss – Risk of Credit Loss framework exposures and inflows increased in 2023 compared to 2022. Heightened inflows were seen in the mobility and logistics, renewables and utilities, and technology, media and telecoms sector clusters, offset by decreases in consumer industries. Heightened inflows were seen in the automotive, media, power utilities and leveraged funds sectors, partially offset by leisure, airlines and aerospace and land transport and logistics. Retail SME customers do not form part of the Wholesale Risk of Credit Loss framework. Customers in financial difficulty within this group are managed by specialist problem debt management teams. The balances in arrears and recoveries remained flat in 2023, with inflows continuing to be driven by Bounce Back Loan Scheme (BBLS) exposures. Excluding BBLS balances, the debt value for this population that are in problem debt/recoveries also remained stable. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 215 Credit risk enhancement and mitigation (audited) The table below shows exposures of modelled portfolios within the scope of the ECL framework and related credit risk enhancement and mitigation (CREM). Gross Maximum credit risk CREM by type CREM coverage Exposure post CREM exposure ECL Total Stage 3 Financial (1) Property Other (2) Total Stage 3 Total Stage 3 2023 £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn Financial assets Cash and balances at central banks 103.1 - 103.1 - - - - - - 103.1 - Loans - amortised cost (3) 392.0 3.5 388.5 3.5 37.4 248.2 21.8 307.4 3.1 81.1 0.4 Personal (4) 223.7 1.9 221.8 2.2 0.9 207.5 - 208.4 2.0 13.4 0.2 Wholesale (5) 168.3 1.6 166.7 1.3 36.5 40.7 21.8 99.0 1.1 67.7 0.2 Debt securities 50.1 - 50.1 - - - - - - 50.1 - Total financial assets 545.2 3.5 541.7 3.5 37.4 248.2 21.8 307.4 3.1 234.3 0.4 Contingent liabilities and commitments Personal (6,7) 35.6 - 35.6 0.3 1.0 4.0 - 5.0 - 30.6 0.3 Wholesale 96.4 0.1 96.3 0.4 2.6 7.1 4.1 13.8 0.1 82.5 0.3 Total off-balance sheet 132.0 0.1 131.9 0.7 3.6 11.1 4.1 18.8 0.1 113.1 0.6 Total exposure 677.2 3.6 673.6 4.2 41.0 259.3 25.9 326.2 3.2 347.4 1.0 2022 Financial assets Cash and balances at central banks 143.2 - 143.2 - - - - - - 143.2 - Loans - amortised cost (3) 377.2 3.3 373.9 3.4 31.8 243.1 21.7 296.6 3.0 77.3 0.4 Personal (4) 217.2 1.7 215.5 1.9 0.9 202.1 - 203.0 1.7 12.5 0.2 Wholesale (5) 160.0 1.6 158.4 1.5 30.9 41.0 21.7 93.6 1.3 64.8 0.2 Debt securities 29.9 - 29.9 - - - - - - 29.9 - Total financial assets 550.3 3.3 547.0 3.4 31.8 243.1 21.7 296.6 3.0 250.4 0.4 Contingent liabilities and commitments Personal (6,7) 43.2 - 43.2 0.3 0.7 4.4 - 5.1 - 38.1 0.3 Wholesale 93.9 0.1 93.8 0.4 3.1 7.4 4.0 14.5 0.1 79.3 0.3 Total off-balance sheet 137.0 0.1 136.9 0.7 3.8 11.8 4.0 19.6 0.1 117.3 0.6 Total exposure 687.3 3.4 683.9 4.1 35.6 254.9 25.7 316.2 3.1 367.7 1.0 (1) Includes cash and securities collateral. (2) Includes guarantees, charges over trade debtors, other asset finance related physical collateral as well as the amount by which credit risk exposure is reduced through netting arrangements, mainly cash management pooling, which give NatWest Group a legal right to set off the financial asset against a financial liability due to the same counterparty. (3) NatWest Group holds collateral in respect of individual loans – amortised cost to banks and customers. This collateral includes mortgages over property (both personal and commercial); charges over business assets such as plant and equipment; inventories and trade debtors; and guarantees of lending from parties other than the borrower. NatWest Group obtains collateral in the form of securities in reverse repurchase agreements. Collateral values are capped at the value of the loan. (4) Stage 3 mortgage exposures have relatively limited uncovered exposure reflecting the security held. On unsecured credit cards and other personal borrowing, the residual uncovered amount reflects historical experience of continued cash recovery post default through ongoing engagement with customers. (5) Stage 3 exposures post credit risk enhancement and mitigation in Wholesale mainly represent enterprise value and the impact of written down collateral values; an individual assessment to determine ECL will consider multiple scenarios and in some instances allocate a probability weighting to a collateral value in excess of the written down value. (6) £0.3 billion (2022 – £0.3 billion) Personal Stage 3 balances primarily relate to loan commitments, the draw down of which is effectively prohibited. (7) The Personal gross exposure value includes £5.9 billion (2022 – £14.0 billion) in respect of pipeline mortgages where a committed offer has been made to a customer but where the funds have not yet been drawn down. When drawn down, the exposure would be covered by a security over the borrower’s property. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 199

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 215 Credit risk enhancement and mitigation (audited) The table below shows exposures of modelled portfolios within the scope of the ECL framework and related credit risk enhancement and mitigation (CREM). Gross Maximum credit risk CREM by type CREM coverage Exposure post CREM exposure ECL Total Stage 3 Financial (1) Property Other (2) Total Stage 3 Total Stage 3 2023 £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn Financial assets Cash and balances at central banks 103.1 - 103.1 - - - - - - 103.1 - Loans - amortised cost (3) 392.0 3.5 388.5 3.5 37.4 248.2 21.8 307.4 3.1 81.1 0.4 Personal (4) 223.7 1.9 221.8 2.2 0.9 207.5 - 208.4 2.0 13.4 0.2 Wholesale (5) 168.3 1.6 166.7 1.3 36.5 40.7 21.8 99.0 1.1 67.7 0.2 Debt securities 50.1 - 50.1 - - - - - - 50.1 - Total financial assets 545.2 3.5 541.7 3.5 37.4 248.2 21.8 307.4 3.1 234.3 0.4 Contingent liabilities and commitments Personal (6,7) 35.6 - 35.6 0.3 1.0 4.0 - 5.0 - 30.6 0.3 Wholesale 96.4 0.1 96.3 0.4 2.6 7.1 4.1 13.8 0.1 82.5 0.3 Total off-balance sheet 132.0 0.1 131.9 0.7 3.6 11.1 4.1 18.8 0.1 113.1 0.6 Total exposure 677.2 3.6 673.6 4.2 41.0 259.3 25.9 326.2 3.2 347.4 1.0 2022 Financial assets Cash and balances at central banks 143.2 - 143.2 - - - - - - 143.2 - Loans - amortised cost (3) 377.2 3.3 373.9 3.4 31.8 243.1 21.7 296.6 3.0 77.3 0.4 Personal (4) 217.2 1.7 215.5 1.9 0.9 202.1 - 203.0 1.7 12.5 0.2 Wholesale (5) 160.0 1.6 158.4 1.5 30.9 41.0 21.7 93.6 1.3 64.8 0.2 Debt securities 29.9 - 29.9 - - - - - - 29.9 - Total financial assets 550.3 3.3 547.0 3.4 31.8 243.1 21.7 296.6 3.0 250.4 0.4 Contingent liabilities and commitments Personal (6,7) 43.2 - 43.2 0.3 0.7 4.4 - 5.1 - 38.1 0.3 Wholesale 93.9 0.1 93.8 0.4 3.1 7.4 4.0 14.5 0.1 79.3 0.3 Total off-balance sheet 137.0 0.1 136.9 0.7 3.8 11.8 4.0 19.6 0.1 117.3 0.6 Total exposure 687.3 3.4 683.9 4.1 35.6 254.9 25.7 316.2 3.1 367.7 1.0 (1) Includes cash and securities collateral. (2) Includes guarantees, charges over trade debtors, other asset finance related physical collateral as well as the amount by which credit risk exposure is reduced through netting arrangements, mainly cash management pooling, which give NatWest Group a legal right to set off the financial asset against a financial liability due to the same counterparty. (3) NatWest Group holds collateral in respect of individual loans – amortised cost to banks and customers. This collateral includes mortgages over property (both personal and commercial); charges over business assets such as plant and equipment; inventories and trade debtors; and guarantees of lending from parties other than the borrower. NatWest Group obtains collateral in the form of securities in reverse repurchase agreements. Collateral values are capped at the value of the loan. (4) Stage 3 mortgage exposures have relatively limited uncovered exposure reflecting the security held. On unsecured credit cards and other personal borrowing, the residual uncovered amount reflects historical experience of continued cash recovery post default through ongoing engagement with customers. (5) Stage 3 exposures post credit risk enhancement and mitigation in Wholesale mainly represent enterprise value and the impact of written down collateral values; an individual assessment to determine ECL will consider multiple scenarios and in some instances allocate a probability weighting to a collateral value in excess of the written down value. (6) £0.3 billion (2022 – £0.3 billion) Personal Stage 3 balances primarily relate to loan commitments, the draw down of which is effectively prohibited. (7) The Personal gross exposure value includes £5.9 billion (2022 – £14.0 billion) in respect of pipeline mortgages where a committed offer has been made to a customer but where the funds have not yet been drawn down. When drawn down, the exposure would be covered by a security over the borrower’s property. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 200

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 216 Personal portfolio (audited) Disclosures in the Personal portfolio section include drawn exposure (gross of provisions). 2023 Retail Private Commercial & Central items Banking Banking Institutional & other Total Personal lending £m £m £m £m £m Mortgages 192,915 13,222 2,200 - 208,337 Of which: Owner occupied 174,167 11,629 1,464 - 187,260 Buy-to-let 18,748 1,593 736 - 21,077 Interest only 25,805 11,631 461 - 37,897 Mixed (1) 10,068 25 10 - 10,103 ECL provisions (2) 397 12 6 - 415 Other personal lending (3) 13,758 1,395 222 13 15,388 ECL provisions (2) 1,508 12 2 16 1,538 Total personal lending 206,673 14,617 2,422 13 223,725 Mortgage LTV ratios - Owner occupied 55% 59% 56% - 55% - Stage 1 55% 59% 54% - 55% - Stage 2 54% 63% 54% - 54% - Stage 3 48% 61% 72% - 49% - Buy-to-let 52% 59% 52% - 53% - Stage 1 52% 60% 52% - 53% - Stage 2 50% 57% 49% - 50% - Stage 3 50% 53% 58% - 51% Gross new mortgage lending 29,664 1,400 180 - 31,244 Of which: Owner occupied 27,718 1,267 136 - 29,121 - LTV > 90% 1,173 - - - 1,173 Weighted average LTV (4) 70% 63% 69% - 70% Buy-to-let 1,946 133 44 - 2,123 Weighted average LTV (4) 58% 65% 52% - 58% Interest only 2,680 1,224 23 - 3,927 Mixed (1) 1,568 2 - - 1,570 Mortgage forbearance Forbearance flow (5) 569 22 9 - 600 Forbearance stock 1,416 28 15 - 1,459 Current 950 10 6 - 966 1-3 months in arrears 116 2 2 - 120 >3 months in arrears 350 16 7 - 373 For the notes to this table refer to the following page. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 217 Personal portfolio (audited) 2022 Retail Private Commercial & Central items Banking Banking Institutional & other Total Personal lending £m £m £m £m £m Mortgages 186,891 13,709 2,357 - 202,957 Of which: Owner occupied 168,790 12,096 1,541 - 182,427 Buy-to-let 18,101 1,613 816 - 20,530 Interest only 21,469 11,877 519 - 33,865 Mixed (1) 9,768 1 16 - 9,785 ECL provisions (2) 355 9 6 - 370 Other personal lending (3) 11,935 1,853 267 143 14,198 ECL provisions (2) 1,257 15 3 26 1,301 Total personal lending 198,826 15,562 2,624 143 217,155 Mortgage LTV ratios - Owner occupied 52% 59% 56% - 53% - Stage 1 52% 59% 56% - 53% - Stage 2 52% 61% 60% - 52% - Stage 3 45% 59% 74% - 47% - Buy-to-let 50% 59% 53% - 51% - Stage 1 51% 59% 53% - 52% - Stage 2 49% 53% 48% - 49% - Stage 3 47% 55% 57% - 50% Gross new mortgage lending 41,227 2,968 327 - 44,522 Of which: Owner occupied 36,305 2,701 221 - 39,227 - LTV > 90% 1,265 - - - 1,265 Weighted average LTV (4) 69% 65% 65% - 69% Buy-to-let 4,922 267 106 - 5,295 Weighted average LTV (4) 64% 66% 60% - 64% Interest only 5,323 2,664 62 - 8,049 Mixed (1) 2,309 - 2 - 2,311 Mortgage forbearance Forbearance flow (5) 182 7 4 - 193 Forbearance stock 1,015 16 8 - 1,039 Current 649 8 6 - 663 1-3 months in arrears 133 - 2 - 135 >3 months in arrears 233 8 - - 241 (1) Includes accounts which have an interest only sub-account and a capital and interest sub-account to provide a more comprehensive view of interest only exposures. (2) Retail Banking excludes a non-material amount of lending and provisions held on relatively small legacy portfolios. (3) Comprises unsecured lending except for Private Banking, which includes both secured and unsecured lending. It excludes loans that are commercial in nature. (4) New mortgage lending LTV reflects the LTV at the time of lending. (5) Forbearance flows only include an account once per year, although some accounts may be subject to multiple forbearance deals. Forbearance deals post default are excluded from these flows. For the key points to this table refer to the following page. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 201

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 217 Personal portfolio (audited) 2022 Retail Private Commercial & Central items Banking Banking Institutional & other Total Personal lending £m £m £m £m £m Mortgages 186,891 13,709 2,357 - 202,957 Of which: Owner occupied 168,790 12,096 1,541 - 182,427 Buy-to-let 18,101 1,613 816 - 20,530 Interest only 21,469 11,877 519 - 33,865 Mixed (1) 9,768 1 16 - 9,785 ECL provisions (2) 355 9 6 - 370 Other personal lending (3) 11,935 1,853 267 143 14,198 ECL provisions (2) 1,257 15 3 26 1,301 Total personal lending 198,826 15,562 2,624 143 217,155 Mortgage LTV ratios - Owner occupied 52% 59% 56% - 53% - Stage 1 52% 59% 56% - 53% - Stage 2 52% 61% 60% - 52% - Stage 3 45% 59% 74% - 47% - Buy-to-let 50% 59% 53% - 51% - Stage 1 51% 59% 53% - 52% - Stage 2 49% 53% 48% - 49% - Stage 3 47% 55% 57% - 50% Gross new mortgage lending 41,227 2,968 327 - 44,522 Of which: Owner occupied 36,305 2,701 221 - 39,227 - LTV > 90% 1,265 - - - 1,265 Weighted average LTV (4) 69% 65% 65% - 69% Buy-to-let 4,922 267 106 - 5,295 Weighted average LTV (4) 64% 66% 60% - 64% Interest only 5,323 2,664 62 - 8,049 Mixed (1) 2,309 - 2 - 2,311 Mortgage forbearance Forbearance flow (5) 182 7 4 - 193 Forbearance stock 1,015 16 8 - 1,039 Current 649 8 6 - 663 1-3 months in arrears 133 - 2 - 135 >3 months in arrears 233 8 - - 241 (1) Includes accounts which have an interest only sub-account and a capital and interest sub-account to provide a more comprehensive view of interest only exposures. (2) Retail Banking excludes a non-material amount of lending and provisions held on relatively small legacy portfolios. (3) Comprises unsecured lending except for Private Banking, which includes both secured and unsecured lending. It excludes loans that are commercial in nature. (4) New mortgage lending LTV reflects the LTV at the time of lending. (5) Forbearance flows only include an account once per year, although some accounts may be subject to multiple forbearance deals. Forbearance deals post default are excluded from these flows. For the key points to this table refer to the following page. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 202

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 218 Personal portfolio (audited) Mortgage LTV distribution by stage The table below shows gross mortgage lending and related ECL by LTV band for the Retail Banking portfolio. Mortgage lending not within the scope of governance and post model adjustments reflected portfolios carried at fair value. Mortgages ECL provisions ECL provisions coverage Retail Banking Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m % % % % ≤50% 68,092 7,447 1,145 76,684 27 18 134 179 0.0 0.2 11.7 0.2 >50% and ≤70% 65,777 7,011 767 73,555 35 26 85 146 0.1 0.4 11.1 0.2 >70% and ≤80% 22,537 1,633 113 24,283 13 7 15 35 0.1 0.4 13.3 0.1 >80% and ≤90% 13,583 1,143 47 14,773 9 6 7 22 0.1 0.5 14.9 0.1 >90% and ≤100% 3,008 370 14 3,392 2 3 3 8 0.1 0.8 21.4 0.2 >100% 22 6 11 39 - - 5 5 - - 45.5 12.8 Total with LTVs 173,019 17,610 2,097 192,726 86 60 249 395 0.1 0.3 11.9 0.2 Other 186 1 2 189 1 - 1 2 0.5 - 50.0 1.1 Total 173,205 17,611 2,099 192,915 87 60 250 397 0.1 0.3 11.9 0.2 2022 ≤50% 71,321 8,257 1,036 80,614 26 20 121 167 - 0.2 11.7 0.2 >50% and ≤70% 68,178 7,792 616 76,586 32 30 71 133 - 0.4 11.5 0.2 >70% and ≤80% 17,602 1,602 62 19,266 7 6 11 24 - 0.4 17.7 0.1 >80% and ≤90% 7,918 944 17 8,879 6 5 5 16 0.1 0.5 29.4 0.2 >90% and ≤100% 1,409 18 6 1,433 3 - 2 5 0.2 - 33.3 0.3 >100% 35 7 10 52 2 - 4 6 5.7 - 40.0 11.5 Total with LTVs 166,463 18,620 1,747 186,830 76 61 214 351 - 0.3 12.3 0.2 Other 59 1 1 61 3 - 1 4 5.1 - 100.0 6.6 Total 166,522 18,621 1,748 186,891 79 61 215 355 - 0.3 12.3 0.2  Growth in the mortgage portfolio decreased in the second half of 2023, consistent with trends in the wider UK mortgage market.  Mortgage portfolio LTV increased, partly due to the higher relative proportion of new business from recent years’ strong lending performance, as well as easing of house prices reflected in the Office for National Statistics house price indices.  The proportion of overall interest only mortgage balances increased in 2023 driven by the implementation of the Mortgage Charter. Interest only new lending reduced during the year consistent with the reduction in buy-to-let new lending.  Portfolios and new business were closely monitored against agreed operating limits. These included loan-to-value ratios, buy-to-let concentrations, new-build concentrations and credit quality. Lending criteria, affordability calculations and assumptions for new lending were adjusted during the year, considering inflationary pressure and interest rate rises, to maintain credit quality in line with appetite and to ensure customers are assessed fairly.  Support for customers was proactively promoted during the year. The flow and stock of forbearance increased during the year. The reported forbearance values included customers who used Mortgage Charter support if indicators of financial stress were already present before Mortgage Charter support was taken. The number of customers requesting support outside of Mortgage Charter (primarily forbearance) increased gradually during the year, but remained within expectations.  Other personal lending balances increased during the year mainly as a result of credit card new business. Lending criteria were carefully managed and the credit quality (based on new business PD) of the new business written improved, compared to 2022.  As noted previously, ECL increased. For further details on the movements in ECL provisions at product level, refer to the Flow statements section. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 219 Personal portfolio (audited) Retail Banking mortgage LTV distribution by region The table below shows gross mortgage lending by LTV band for Retail Banking, by geographical region. Flood risk (1) Weighted Lending at high/ ≤50% 50%≤80% 80%≤100% >100% Total average LTV Other Total Total very high risk (2) 2023 £m £m £m £m £m % £m £m % % South East 14,645 18,510 3,107 1 36,263 54 2 36,265 19 5.0 Greater London 14,689 18,044 2,366 1 35,100 53 3 35,103 18 6.1 Scotland 5,051 5,938 1,445 1 12,435 54 2 12,437 6 4.2 North West 7,314 8,629 1,881 2 17,826 54 2 17,828 9 4.9 South West 7,308 8,296 1,379 1 16,984 53 1 16,985 9 3.7 West Midlands 5,391 7,072 1,404 1 13,868 55 1 13,869 7 2.5 East of England 8,576 11,810 2,208 - 22,594 55 2 22,596 12 4.5 Rest of the UK 13,711 19,540 4,374 32 37,657 56 175 37,832 20 4.5 Total 76,685 97,839 18,164 39 192,727 54 188 192,915 100 4.7 2022 South East 15,856 17,670 1,396 1 34,923 51 3 34,926 19 4.1 Greater London 15,200 17,550 1,336 1 34,087 51 3 34,090 18 2.3 Scotland 5,024 6,174 1,163 1 12,362 54 1 12,363 7 3.2 North West 7,670 8,672 1,236 2 17,580 52 2 17,582 9 2.2 South West 7,874 7,922 627 - 16,423 50 1 16,424 9 3.0 West Midlands 5,477 7,014 862 1 13,354 53 1 13,355 7 1.2 East of England 9,241 11,492 987 2 21,722 52 2 21,724 12 2.1 Rest of the UK 14,312 19,408 2,712 43 36,475 54 48 36,523 19 3.2 Total 80,654 95,902 10,319 51 186,926 52 61 186,987 100 2.8 (1) Not within the scope of the independent auditors’ report. (2) Flood risk is modelled by calculating an estimated loss for each flood source different types of flooding (Fluvial, pluvial, tidal), annualised for each source and combined for a total flood score. Flood defences are considered where available. Flood scores are allocated per property based on the potential annualised loss (£) to a property dependent on the type, frequency and depth of flooding modelled across different return periods. The scoring ranges from 0 to 100, with 0 being lowest and 100 being the highest risk. A score of 61 and above is considered to be high risk and properties with a score of 81 and above considered to be very high risk after flood mitigants are taken into account. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 203

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 219 Personal portfolio (audited) Retail Banking mortgage LTV distribution by region The table below shows gross mortgage lending by LTV band for Retail Banking, by geographical region. Flood risk (1) Weighted Lending at high/ ≤50% 50%≤80% 80%≤100% >100% Total average LTV Other Total Total very high risk (2) 2023 £m £m £m £m £m % £m £m % % South East 14,645 18,510 3,107 1 36,263 54 2 36,265 19 5.0 Greater London 14,689 18,044 2,366 1 35,100 53 3 35,103 18 6.1 Scotland 5,051 5,938 1,445 1 12,435 54 2 12,437 6 4.2 North West 7,314 8,629 1,881 2 17,826 54 2 17,828 9 4.9 South West 7,308 8,296 1,379 1 16,984 53 1 16,985 9 3.7 West Midlands 5,391 7,072 1,404 1 13,868 55 1 13,869 7 2.5 East of England 8,576 11,810 2,208 - 22,594 55 2 22,596 12 4.5 Rest of the UK 13,711 19,540 4,374 32 37,657 56 175 37,832 20 4.5 Total 76,685 97,839 18,164 39 192,727 54 188 192,915 100 4.7 2022 South East 15,856 17,670 1,396 1 34,923 51 3 34,926 19 4.1 Greater London 15,200 17,550 1,336 1 34,087 51 3 34,090 18 2.3 Scotland 5,024 6,174 1,163 1 12,362 54 1 12,363 7 3.2 North West 7,670 8,672 1,236 2 17,580 52 2 17,582 9 2.2 South West 7,874 7,922 627 - 16,423 50 1 16,424 9 3.0 West Midlands 5,477 7,014 862 1 13,354 53 1 13,355 7 1.2 East of England 9,241 11,492 987 2 21,722 52 2 21,724 12 2.1 Rest of the UK 14,312 19,408 2,712 43 36,475 54 48 36,523 19 3.2 Total 80,654 95,902 10,319 51 186,926 52 61 186,987 100 2.8 (1) Not within the scope of the independent auditors’ report. (2) Flood risk is modelled by calculating an estimated loss for each flood source different types of flooding (Fluvial, pluvial, tidal), annualised for each source and combined for a total flood score. Flood defences are considered where available. Flood scores are allocated per property based on the potential annualised loss (£) to a property dependent on the type, frequency and depth of flooding modelled across different return periods. The scoring ranges from 0 to 100, with 0 being lowest and 100 being the highest risk. A score of 61 and above is considered to be high risk and properties with a score of 81 and above considered to be very high risk after flood mitigants are taken into account. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 204

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 220 Personal portfolio (audited) Retail Banking fixed rate mortgages by roll-off date (1) The table below shows gross fixed rate mortgage lending for Retail Banking, by roll-off date. 2023 2022 Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Retail Banking mortgages - gross exposure £m £m £m £m £m £m £m £m Fixed rate roll-off < 1 year 30,867 3,670 295 34,832 37,391 4,644 276 42,311 >1 year < 2 years 39,013 3,513 290 42,816 32,266 4,063 240 36,569 > 2 years 87,402 7,461 590 95,453 84,116 7,103 438 91,657 Total 157,282 14,644 1,175 173,101 153,773 15,810 954 170,537 Retail Banking mortgages by Energy Performance Certificate (EPC) rating (1) The table below represents the energy efficiency of Retail Banking residential mortgages. 31 December 2023 31 December 2022 Owner occupied Buy-to-let Total Owner occupied Buy-to-let Total EPC rating £bn £bn £bn £bn £bn £bn A 547 13 560 424 12 436 B 21,566 1,458 23,024 19,874 1,342 21,216 C 29,764 5,712 35,476 28,049 5,228 33,277 D 46,924 6,056 52,980 47,497 6,033 53,530 E 16,027 1,557 17,584 17,153 1,687 18,840 F 3,360 62 3,422 3,691 86 3,777 G 736 16 752 789 21 810 Unclassified 55,243 3,874 59,117 51,313 3,692 55,005 Total 174,167 18,748 192,915 168,790 18,101 186,891 (1) Not within the scope of the independent auditors’ report. (2) As at 31 December 2023, £140.8 billion, 67.6%, of the total residential mortgages portfolio had Energy Performance Certificate (EPC) data available (2022 – £138.8 billion, 68.3%). Of which, 44.1% were rated as EPC A to C (2022 – 41.6%). Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 221 Commercial real estate (CRE) CRE LTV distribution by stage (audited) The table below shows CRE current exposure and related ECL by LTV band. Gross loans ECL provisions ECL provisions coverage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m % % % % ≤50% 7,173 664 61 7,898 38 15 9 62 0.5 2.3 14.8 0.8 >50% and ≤70% 3,165 619 94 3,878 22 21 18 61 0.7 3.4 19.1 1.6 >70% and ≤100% 319 112 84 515 3 6 21 30 0.9 5.4 25.0 5.8 >100% 241 6 26 273 1 1 16 18 0.4 16.7 61.5 6.6 Total with LTVs 10,898 1,401 265 12,564 64 43 64 171 0.6 3.1 24.2 1.4 Total portfolio average LTV 47% 51% 72% 48% Other (1) 2,189 390 45 2,624 10 7 19 36 0.5 1.8 42.2 1.4 Investment 13,087 1,791 310 15,188 74 50 83 207 0.6 2.8 26.8 1.4 Development (2) 1,717 147 49 1,913 12 5 25 42 0.7 3.4 51.0 2.2 Total 14,804 1,938 359 17,101 86 55 108 249 0.6 2.8 30.1 1.5 2022 ≤50% 7,010 658 57 7,725 36 12 16 64 0.5 1.8 28.1 0.8 >50% and ≤70% 3,515 798 43 4,356 23 18 12 53 0.7 2.3 27.9 1.2 >70% and ≤100% 259 82 156 497 1 3 42 46 0.4 3.7 26.9 9.1 >100% 102 10 23 135 1 1 14 16 1.0 10.0 60.9 11.8 Total with LTVs 10,886 1,548 279 12,713 61 34 84 179 0.6 2.2 30.1 1.4 Total portfolio average LTV 45% 52% 75% 47% Other (1) 1,800 627 55 2,482 9 15 27 51 0.5 2.4 49.1 2.0 Investment 12,686 2,175 334 15,195 70 49 111 230 0.6 2.3 33.2 1.5 Development (2) 1,553 332 57 1,942 13 8 28 49 0.8 2.4 49.1 2.5 Total 14,239 2,507 391 17,137 83 57 139 279 0.6 2.3 35.6 1.6 (1) Relates mainly to business banking and unsecured corporate lending. (2) Relates to the development of commercial and residential properties. LTV is not a meaningful measure for this type of lending activity.  Overall – The majority of the CRE portfolio was located and managed in the UK. Business appetite and strategy was aligned across NatWest Group.  2023 trends – In H2 2023, conditions were impacted by the uncertain interest rate outlook. Investment volumes were at historic lows for much of 2023, and values continued to drift downwards in some sectors. There were some early signs of improving sentiment following a sharp reduction in medium-term interest rates, but valuations remain somewhat uncertain, particularly in the office sector.  Credit quality – The CRE portfolio has coped well to date with the fall in capital values and increase in rates, with no significant increase to loans coming into the Risk of Credit Loss Framework.  Risk appetite – Lending appetite is subject to regular review. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 205

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 221 Commercial real estate (CRE) CRE LTV distribution by stage (audited) The table below shows CRE current exposure and related ECL by LTV band. Gross loans ECL provisions ECL provisions coverage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m % % % % ≤50% 7,173 664 61 7,898 38 15 9 62 0.5 2.3 14.8 0.8 >50% and ≤70% 3,165 619 94 3,878 22 21 18 61 0.7 3.4 19.1 1.6 >70% and ≤100% 319 112 84 515 3 6 21 30 0.9 5.4 25.0 5.8 >100% 241 6 26 273 1 1 16 18 0.4 16.7 61.5 6.6 Total with LTVs 10,898 1,401 265 12,564 64 43 64 171 0.6 3.1 24.2 1.4 Total portfolio average LTV 47% 51% 72% 48% Other (1) 2,189 390 45 2,624 10 7 19 36 0.5 1.8 42.2 1.4 Investment 13,087 1,791 310 15,188 74 50 83 207 0.6 2.8 26.8 1.4 Development (2) 1,717 147 49 1,913 12 5 25 42 0.7 3.4 51.0 2.2 Total 14,804 1,938 359 17,101 86 55 108 249 0.6 2.8 30.1 1.5 2022 ≤50% 7,010 658 57 7,725 36 12 16 64 0.5 1.8 28.1 0.8 >50% and ≤70% 3,515 798 43 4,356 23 18 12 53 0.7 2.3 27.9 1.2 >70% and ≤100% 259 82 156 497 1 3 42 46 0.4 3.7 26.9 9.1 >100% 102 10 23 135 1 1 14 16 1.0 10.0 60.9 11.8 Total with LTVs 10,886 1,548 279 12,713 61 34 84 179 0.6 2.2 30.1 1.4 Total portfolio average LTV 45% 52% 75% 47% Other (1) 1,800 627 55 2,482 9 15 27 51 0.5 2.4 49.1 2.0 Investment 12,686 2,175 334 15,195 70 49 111 230 0.6 2.3 33.2 1.5 Development (2) 1,553 332 57 1,942 13 8 28 49 0.8 2.4 49.1 2.5 Total 14,239 2,507 391 17,137 83 57 139 279 0.6 2.3 35.6 1.6 (1) Relates mainly to business banking and unsecured corporate lending. (2) Relates to the development of commercial and residential properties. LTV is not a meaningful measure for this type of lending activity.  Overall – The majority of the CRE portfolio was located and managed in the UK. Business appetite and strategy was aligned across NatWest Group.  2023 trends – In H2 2023, conditions were impacted by the uncertain interest rate outlook. Investment volumes were at historic lows for much of 2023, and values continued to drift downwards in some sectors. There were some early signs of improving sentiment following a sharp reduction in medium-term interest rates, but valuations remain somewhat uncertain, particularly in the office sector.  Credit quality – The CRE portfolio has coped well to date with the fall in capital values and increase in rates, with no significant increase to loans coming into the Risk of Credit Loss Framework.  Risk appetite – Lending appetite is subject to regular review. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 206

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 222 Flow statements (audited) The flow statements that follow show the main ECL and related income statement movements. They also show the changes in ECL as well as the changes in related financial assets used in determining ECL. Due to differences in scope, exposures may differ from those reported in other tables, principally in relation to exposures in Stage 1 and Stage 2. These differences do not have a material ECL effect. Other points to note:  Financial assets include treasury liquidity portfolios, comprising balances at central banks and debt securities, as well as loans. Both modelled and non-modelled portfolios are included.  Stage transfers (for example, exposures moving from Stage 1 into Stage 2) are a key feature of the ECL movements, with the net re-measurement cost of transitioning to a worse stage being a primary driver of income statement charges. Similarly, there is an ECL benefit for accounts improving stage.  Changes in risk parameters shows the reassessment of the ECL within a given stage, including any ECL overlays and residual income statement gains or losses at the point of write-off or accounting write-down.  Other (P&L only items) includes any subsequent changes in the value of written-down assets (for example, fortuitous recoveries) along with other direct write-off items such as direct recovery costs. Other (P&L only items) affects the income statement but does not affect balance sheet ECL movements.  Amounts written-off represent the gross asset written-down against accounts with ECL, including the net asset write-down for any debt sale activity.  There were some flows from Stage 1 into Stage 3 including transfers due to unexpected default events with a post model adjustment in place for Commercial & Institutional to account for this risk.  The effect of any change in post model adjustments during the year is typically reported under changes in risk parameters, as are any effects arising from changes to the underlying models. Refer to the section on Governance and post model adjustments for further details.  All movements are captured monthly and aggregated. Interest suspended post default is included within Stage 3 ECL with the movement in the value of suspended interest during the year reported under currency translation and other adjustments. Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL NatWest Group total £m £m £m £m £m £m £m £m At 1 January 2023 507,539 632 48,482 1,043 5,231 1,759 561,252 3,434 Currency translation and other adjustments (2,462) 3 (232) 6 128 145 (2,566) 154 Transfers from Stage 1 to Stage 2 (49,502) (318) 49,502 318 - - - - Transfers from Stage 2 to Stage 1 47,264 762 (47,264) (762) - - - - Transfers to Stage 3 (336) (6) (3,221) (293) 3,557 299 - - Transfers from Stage 3 311 32 631 61 (942) (93) - - Net re-measurement of ECL on stage transfer (544) 810 241 507 Changes in risk parameters (52) 17 306 271 Other changes in net exposure 1,530 205 (7,516) (188) (1,946) (193) (7,932) (176) Other (P&L only items) (6) 6 (24) (24) Income statement (releases)/charges (397) 645 330 578 Transfers to disposal groups and fair value 1 (5) (86) (34) (90) (41) (175) (80) Amounts written-off - - (2) (2) (317) (317) (319) (319) Unwinding of discount - - - (146) (146) At 31 December 2023 504,345 709 40,294 976 5,621 1,960 550,260 3,645 Net carrying amount 503,636 39,318 3,661 546,615 At 1 January 2022 546,178 302 35,557 1,478 5,238 2,026 586,973 3,806 2022 movements (38,639) 330 12,925 (435) (7) (267) (25,721) (372) At 31 December 2022 507,539 632 48,482 1,043 5,231 1,759 561,252 3,434 Net carrying amount 506,907 47,439 3,472 557,818 Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 223 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Retail Banking - mortgages £m £m £m £m £m £m £m £m At 1 January 2023 165,264 79 18,831 61 1,762 215 185,857 355 Currency translation and other adjustments - (1) - 1 78 77 78 77 Transfers from Stage 1 to Stage 2 (18,779) (19) 18,779 19 - - - - Transfers from Stage 2 to Stage 1 16,742 37 (16,742) (37) - - - - Transfers to Stage 3 (61) - (1,028) (7) 1,089 7 - - Transfers from Stage 3 40 1 294 7 (334) (8) - - Net re-measurement of ECL on stage transfer (21) 27 6 12 Changes in risk parameters 24 (5) 72 91 Other changes in net exposure 10,832 (13) (2,307) (6) (497) (43) 8,028 (62) Other (P&L only items) - - (9) (9) Income statement (releases)/charges (10) 16 26 32 Amounts written-off - - - - (30) (30) (30) (30) Unwinding of discount - - (46) (46) At 31 December 2023 174,038 87 17,827 60 2,068 250 193,933 397 Net carrying amount 173,951 17,767 1,818 193,536 At 1 January 2022 159,966 24 10,748 155 1,267 250 171,981 429 2022 movements 5,298 55 8,083 (94) 495 (35) 13,876 (74) At 31 December 2022 165,264 79 18,831 61 1,762 215 185,857 355 Net carrying amount 165,185 18,770 1,547 185,502  ECL levels for mortgages increased during 2023, reflecting continued strong growth. While portfolio performance remained stable, increased economic uncertainty is captured through ECL post model adjustments (reflected in changes in risk parameters).  There were net flows into Stage 2 from Stage 1 with an upward trend in early arrears coupled with the collective migration into Stage 2 of higher risk customers utilising new Mortgage Charter treatments (approximately £0.9 billion exposure). PDs remained broadly stable due to the impact of improved economics since 2022 and balance paydown within Stage 2 resulted in a lower Stage 2 balance in 2023.  The increase in the cost of living post model adjustment during 2023 proportionately allocated more ECL to Stage 1 given the forward-looking nature of the affordability threat. Refer to the Governance and post model adjustments section for more information.  The Stage 3 inflows remained broadly stable, albeit with signs of an upward drift in default rates, reflecting slightly poorer arrears performance on mortgages recently rolled off onto higher product rates. Furthermore, the increase in Stage 3 ECL overall reflected recent house price index deterioration.  The relatively small ECL cost for net re-measurement on stage transfer included the effect of risk targeted ECL adjustments, when previously in the good book. Refer to the Governance and post model adjustments section for further details.  Write-off occurs once the repossessed property has been sold and there is a residual shortfall balance remaining outstanding. This would typically be within five years from default but can be longer. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 207

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 223 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Retail Banking - mortgages £m £m £m £m £m £m £m £m At 1 January 2023 165,264 79 18,831 61 1,762 215 185,857 355 Currency translation and other adjustments - (1) - 1 78 77 78 77 Transfers from Stage 1 to Stage 2 (18,779) (19) 18,779 19 - - - - Transfers from Stage 2 to Stage 1 16,742 37 (16,742) (37) - - - - Transfers to Stage 3 (61) - (1,028) (7) 1,089 7 - - Transfers from Stage 3 40 1 294 7 (334) (8) - - Net re-measurement of ECL on stage transfer (21) 27 6 12 Changes in risk parameters 24 (5) 72 91 Other changes in net exposure 10,832 (13) (2,307) (6) (497) (43) 8,028 (62) Other (P&L only items) - - (9) (9) Income statement (releases)/charges (10) 16 26 32 Amounts written-off - - - - (30) (30) (30) (30) Unwinding of discount - - (46) (46) At 31 December 2023 174,038 87 17,827 60 2,068 250 193,933 397 Net carrying amount 173,951 17,767 1,818 193,536 At 1 January 2022 159,966 24 10,748 155 1,267 250 171,981 429 2022 movements 5,298 55 8,083 (94) 495 (35) 13,876 (74) At 31 December 2022 165,264 79 18,831 61 1,762 215 185,857 355 Net carrying amount 165,185 18,770 1,547 185,502  ECL levels for mortgages increased during 2023, reflecting continued strong growth. While portfolio performance remained stable, increased economic uncertainty is captured through ECL post model adjustments (reflected in changes in risk parameters).  There were net flows into Stage 2 from Stage 1 with an upward trend in early arrears coupled with the collective migration into Stage 2 of higher risk customers utilising new Mortgage Charter treatments (approximately £0.9 billion exposure). PDs remained broadly stable due to the impact of improved economics since 2022 and balance paydown within Stage 2 resulted in a lower Stage 2 balance in 2023.  The increase in the cost of living post model adjustment during 2023 proportionately allocated more ECL to Stage 1 given the forward-looking nature of the affordability threat. Refer to the Governance and post model adjustments section for more information.  The Stage 3 inflows remained broadly stable, albeit with signs of an upward drift in default rates, reflecting slightly poorer arrears performance on mortgages recently rolled off onto higher product rates. Furthermore, the increase in Stage 3 ECL overall reflected recent house price index deterioration.  The relatively small ECL cost for net re-measurement on stage transfer included the effect of risk targeted ECL adjustments, when previously in the good book. Refer to the Governance and post model adjustments section for further details.  Write-off occurs once the repossessed property has been sold and there is a residual shortfall balance remaining outstanding. This would typically be within five years from default but can be longer. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 208

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 224 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Retail Banking - credit cards £m £m £m £m £m £m £m £m At 1 January 2023 3,062 61 1,098 120 113 71 4,273 252 Currency translation and other adjustments - - - - 4 4 4 4 Transfers from Stage 1 to Stage 2 (1,933) (42) 1,933 42 - - - - Transfers from Stage 2 to Stage 1 753 52 (753) (52) - - - - Transfers to Stage 3 (21) (1) (122) (45) 143 46 - - Transfers from Stage 3 2 1 7 3 (9) (4) - - Net re-measurement of ECL on stage transfer (31) 162 41 172 Changes in risk parameters 18 25 8 51 Other changes in net exposure 1,612 12 (117) (51) (36) (1) 1,459 (40) Other (P&L only items) - - 1 1 Income statement (releases)/charges (1) 136 49 184 Amounts written-off - - - - (69) (69) (69) (69) Unwinding of discount - - (7) (7) At 31 December 2023 3,475 70 2,046 204 146 89 5,667 363 Net carrying amount 3,405 1,842 57 5,304 At 1 January 2022 2,740 58 947 141 91 60 3,778 259 2022 movements 322 3 151 (21) 22 11 495 (7) At 31 December 2022 3,062 61 1,098 120 113 71 4,273 252 Net carrying amount 3,001 978 42 4,021  The overall increase in ECL was mainly due to the increase in Stage 2 ECL.  While portfolio performance remained stable, a net flow into Stage 2 from Stage 1 was observed as PDs increased with observed unemployment and PD modelling updates capturing more economic downside.  Credit card balances continued to grow since the 2022 year end, in line with industry trends in the UK, reflecting strong customer demand, while sustaining robust risk appetite.  Stage 3 inflows remained relatively stable during the year, although there was a modest upward trend in default levels, in line with growth and normalisation of risk parameters.  Charge-off (analogous to partial write-off) typically occurs after 12 missed payments. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 225 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Retail Banking - other personal unsecured £m £m £m £m £m £m £m £m At 1 January 2023 4,784 111 2,028 269 779 631 7,591 1,011 Currency translation and other adjustments - - - - 26 26 26 26 Transfers from Stage 1 to Stage 2 (2,775) (118) 2,775 118 - - - - Transfers from Stage 2 to Stage 1 2,284 317 (2,284) (317) - - - - Transfers to Stage 3 (61) (3) (326) (128) 387 131 - - Transfers from Stage 3 7 3 23 9 (30) (12) - - Net re-measurement of ECL on stage transfer (224) 329 53 - 158 Changes in risk parameters (41) 14 82 55 Other changes in net exposure 1,001 104 (558) (55) (111) (33) 332 16 Other (P&L only items) - - 20 20 Income statement (releases)/charges (161) 288 122 249 Amounts written-off - - (1) (1) (88) (88) (89) (89) Unwinding of discount - - (32) (32) At 31 December 2023 5,240 149 1,657 238 963 758 7,860 1,145 Net carrying amount 5,091 1,419 205 6,715 At 1 January 2022 4,548 52 1,967 294 629 540 7,144 886 2022 movements 236 59 61 (25) 150 91 447 125 At 31 December 2022 4,784 111 2,028 269 779 631 7,591 1,011 Net carrying amount 4,673 1,759 148 6,580  Total ECL increased, mainly in Stage 3. While default levels were broadly stable, they were higher than in 2022. This increase was in line with growth and normalisation of risk parameters. Furthermore, write-off levels were lower during 2023, which sustained a higher Stage 3 ECL position at 31 December 2023.  A slight rise in early arrears levels since 2022 and modest PD increases during the year resulted in a net migration from Stage 1 into Stage 2. However, good book ECL and coverage levels were largely consistent with 2022, with the improved economic outlook since 2022 mitigating further IFRS 9 PD increases and balance paydown within Stage 2.  Unsecured retail balances grew steadily until Q3 2023 but, in line with industry trends in the UK, stabilised in the last quarter of the year.  Write-off occurs once recovery activity with the customer has been concluded or there are no further recoveries expected, but no later than six years after default. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 209

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 225 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Retail Banking - other personal unsecured £m £m £m £m £m £m £m £m At 1 January 2023 4,784 111 2,028 269 779 631 7,591 1,011 Currency translation and other adjustments - - - - 26 26 26 26 Transfers from Stage 1 to Stage 2 (2,775) (118) 2,775 118 - - - - Transfers from Stage 2 to Stage 1 2,284 317 (2,284) (317) - - - - Transfers to Stage 3 (61) (3) (326) (128) 387 131 - - Transfers from Stage 3 7 3 23 9 (30) (12) - - Net re-measurement of ECL on stage transfer (224) 329 53 - 158 Changes in risk parameters (41) 14 82 55 Other changes in net exposure 1,001 104 (558) (55) (111) (33) 332 16 Other (P&L only items) - - 20 20 Income statement (releases)/charges (161) 288 122 249 Amounts written-off - - (1) (1) (88) (88) (89) (89) Unwinding of discount - - (32) (32) At 31 December 2023 5,240 149 1,657 238 963 758 7,860 1,145 Net carrying amount 5,091 1,419 205 6,715 At 1 January 2022 4,548 52 1,967 294 629 540 7,144 886 2022 movements 236 59 61 (25) 150 91 447 125 At 31 December 2022 4,784 111 2,028 269 779 631 7,591 1,011 Net carrying amount 4,673 1,759 148 6,580  Total ECL increased, mainly in Stage 3. While default levels were broadly stable, they were higher than in 2022. This increase was in line with growth and normalisation of risk parameters. Furthermore, write-off levels were lower during 2023, which sustained a higher Stage 3 ECL position at 31 December 2023.  A slight rise in early arrears levels since 2022 and modest PD increases during the year resulted in a net migration from Stage 1 into Stage 2. However, good book ECL and coverage levels were largely consistent with 2022, with the improved economic outlook since 2022 mitigating further IFRS 9 PD increases and balance paydown within Stage 2.  Unsecured retail balances grew steadily until Q3 2023 but, in line with industry trends in the UK, stabilised in the last quarter of the year.  Write-off occurs once recovery activity with the customer has been concluded or there are no further recoveries expected, but no later than six years after default. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 210

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 226 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Commercial & Institutional total £m £m £m £m £m £m £m £m At 1 January 2023 160,352 342 24,711 534 2,198 747 187,261 1,623 Currency translation and other adjustments (1,702) 1 (226) (1) 26 46 (1,902) 46 Inter-group transfers - - - - - - - - Transfers from Stage 1 to Stage 2 (23,886) (129) 23,886 129 - - - - Transfers from Stage 2 to Stage 1 25,353 334 (25,353) (334) - - - - Transfers to Stage 3 (109) (2) (1,523) (90) 1,632 92 - - Transfers from Stage 3 180 27 266 34 (446) (61) - - Net re-measurement of ECL on stage transfer (253) 276 129 152 Changes in risk parameters (62) (42) 136 32 Other changes in net exposure 16,114 98 (4,731) (58) (1,128) (95) 10,255 (55) Other (P&L only items) (5) 6 (36) (35) Income statement (releases)/charges (222) 182 134 94 Amounts written-off - - (1) (1) (121) (121) (122) (122) Unwinding of discount - - (54) (54) At 31 December 2022 176,302 356 17,029 447 2,161 819 195,492 1,622 Net carrying amount 175,946 16,582 1,342 193,870 At 1 January 2022 152,224 129 19,731 785 2,155 750 174,110 1,664 2022 movements 8,128 213 4,980 (251) 43 (3) 13,151 (41) At 31 December 2022 160,352 342 24,711 534 2,198 747 187,261 1,623 Net carrying amount 160,010 24,177 1,451 185,638  Growth in exposures was mainly driven by financial institutions sectors.  ECL remained broadly stable during 2023 reflecting stable portfolio performance.  Reductions in modelled ECL from improving economic variables and risk metrics were partially offset by increases in post model adjustments to capture continued economic uncertainty.  Stage 3 ECL increased mainly due to charges on a few individual customers.  Overall impairment charges were low as the effects of inflation, high interest rates and supply chain disruption have, to date, not led to a significant increase in defaults. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 227 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Commercial & Institutional - corporate £m £m £m £m £m £m £m £m At 1 January 2023 53,595 218 19,235 431 1,434 504 74,264 1,153 Currency translation and other adjustments (419) 2 (180) - 25 41 (574) 43 Inter-group transfers 88 1 (66) - (30) (2) (8) (1) Transfers from Stage 1 to Stage 2 (17,161) (96) 17,161 96 - - - - Transfers from Stage 2 to Stage 1 18,525 246 (18,525) (246) - - - - Transfers to Stage 3 (91) (2) (1,098) (69) 1,189 71 - - Transfers from Stage 3 124 21 204 26 (328) (47) - - Net re-measurement of ECL on stage transfer (189) 202 103 116 Changes in risk parameters (36) (44) 126 46 Other changes in net exposure 6,741 61 (4,455) (51) (758) (75) 1,528 (65) Other (P&L only items) (5) 5 (37) (37) Income statement (releases)/charges (169) 112 117 60 Amounts written-off - - (1) (1) (78) (78) (79) (79) Unwinding of discount - - (41) (41) At 31 December 2023 61,402 226 12,275 344 1,454 602 75,131 1,172 Net carrying amount 61,176 11,931 852 73,959  There was modest exposure growth, with increased new lending largely offset by repayments.  ECL remained broadly flat but reductions in Stage 2 ECL from repayments were offset by an increase in Stage 3 from a few individual customers.  Overall impairment charges were low as the effects of inflation, high interest rates and supply chain disruption have, to date, not led to a significant increase in defaults. The 2023 charge was largely driven by charges on a few individual customers. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 211

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 227 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Commercial & Institutional - corporate £m £m £m £m £m £m £m £m At 1 January 2023 53,595 218 19,235 431 1,434 504 74,264 1,153 Currency translation and other adjustments (419) 2 (180) - 25 41 (574) 43 Inter-group transfers 88 1 (66) - (30) (2) (8) (1) Transfers from Stage 1 to Stage 2 (17,161) (96) 17,161 96 - - - - Transfers from Stage 2 to Stage 1 18,525 246 (18,525) (246) - - - - Transfers to Stage 3 (91) (2) (1,098) (69) 1,189 71 - - Transfers from Stage 3 124 21 204 26 (328) (47) - - Net re-measurement of ECL on stage transfer (189) 202 103 116 Changes in risk parameters (36) (44) 126 46 Other changes in net exposure 6,741 61 (4,455) (51) (758) (75) 1,528 (65) Other (P&L only items) (5) 5 (37) (37) Income statement (releases)/charges (169) 112 117 60 Amounts written-off - - (1) (1) (78) (78) (79) (79) Unwinding of discount - - (41) (41) At 31 December 2023 61,402 226 12,275 344 1,454 602 75,131 1,172 Net carrying amount 61,176 11,931 852 73,959  There was modest exposure growth, with increased new lending largely offset by repayments.  ECL remained broadly flat but reductions in Stage 2 ECL from repayments were offset by an increase in Stage 3 from a few individual customers.  Overall impairment charges were low as the effects of inflation, high interest rates and supply chain disruption have, to date, not led to a significant increase in defaults. The 2023 charge was largely driven by charges on a few individual customers. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 212

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 228 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Commercial & Institutional - property £m £m £m £m £m £m £m £m At 1 January 2023 24,878 92 3,986 89 628 214 29,492 395 Currency translation and other adjustments (6) (1) (8) - 1 (2) (13) (3) Inter-group transfers (38) - (8) - 7 1 (39) 1 Transfers from Stage 1 to Stage 2 (5,010) (30) 5,010 30 - - - - Transfers from Stage 2 to Stage 1 4,498 77 (4,498) (77) - - - - Transfers to Stage 3 (14) (1) (401) (20) 415 21 - - Transfers from Stage 3 43 4 56 7 (99) (11) - - Net re-measurement of ECL on stage transfer (54) 64 24 34 Changes in risk parameters (24) 2 8 (14) Other changes in net exposure 1,689 31 (982) (6) (313) (16) 394 9 Other (P&L only items) - - - - Income statement (releases)/charges (47) 60 16 29 Amounts written-off - - - - (33) (33) (33) (33) Unwinding of discount - - (11) (11) At 31 December 2023 26,040 94 3,155 89 606 195 29,801 378 Net carrying amount 25,946 3,066 411 29,423  The property portfolio remained stable throughout 2023 with minor movements on exposure and ECL.  Overall, there was a small reduction on ECL as write-offs exceeded impairment charges.  Impairment charges were lower than historic trends, as the effects of inflation, high interest rates and supply chain disruption have, to date, not led to a significant increase in defaults. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 229 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Commercial & Institutional - other £m £m £m £m £m £m £m £m At 1 January 2023 81,879 32 1,490 14 136 29 83,505 75 Currency translation and other adjustments (1,278) (1) (38) - - 5 (1,316) 4 Inter-group transfers (49) - 74 - 22 - 47 - Transfers from Stage 1 to Stage 2 (1,716) (3) 1,716 3 - - - - Transfers from Stage 2 to Stage 1 2,330 12 (2,330) (12) - - - - Transfers to Stage 3 (4) - (24) (1) 28 1 - - Transfers from Stage 3 15 2 6 - (21) (2) - - Net re-measurement of ECL on stage transfer (11) 11 3 3 Changes in risk parameters (2) 1 - (1) Other changes in net exposure 7,683 7 705 (2) (56) (4) 8,332 1 Other (P&L only items) - - 2 2 Income statement (releases)/charges (6) 10 1 5 Amounts written-off - - - - (8) (8) (8) (8) Unwinding of discount - - (2) (2) At 31 December 2023 88,860 36 1,599 14 101 22 90,560 72 Net carrying amount 88,824 1,585 79 90,488  Growth in exposure was observed due to increased lending in the securitisation sector.  The growth was within high quality assets, so ECL was broadly flat with write-offs exceeding impairment charges.  Overall impairment charges were low as the effects of inflation, high interest rates and supply chain disruption have, to date, not led to a significant increase in defaults. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 213

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 229 Flow statements (audited) Stage 1 Stage 2 Stage 3 Total Financial assets ECL Financial assets ECL Financial assets ECL Financial assets ECL Commercial & Institutional - other £m £m £m £m £m £m £m £m At 1 January 2023 81,879 32 1,490 14 136 29 83,505 75 Currency translation and other adjustments (1,278) (1) (38) - - 5 (1,316) 4 Inter-group transfers (49) - 74 - 22 - 47 - Transfers from Stage 1 to Stage 2 (1,716) (3) 1,716 3 - - - - Transfers from Stage 2 to Stage 1 2,330 12 (2,330) (12) - - - - Transfers to Stage 3 (4) - (24) (1) 28 1 - - Transfers from Stage 3 15 2 6 - (21) (2) - - Net re-measurement of ECL on stage transfer (11) 11 3 3 Changes in risk parameters (2) 1 - (1) Other changes in net exposure 7,683 7 705 (2) (56) (4) 8,332 1 Other (P&L only items) - - 2 2 Income statement (releases)/charges (6) 10 1 5 Amounts written-off - - - - (8) (8) (8) (8) Unwinding of discount - - (2) (2) At 31 December 2023 88,860 36 1,599 14 101 22 90,560 72 Net carrying amount 88,824 1,585 79 90,488  Growth in exposure was observed due to increased lending in the securitisation sector.  The growth was within high quality assets, so ECL was broadly flat with write-offs exceeding impairment charges.  Overall impairment charges were low as the effects of inflation, high interest rates and supply chain disruption have, to date, not led to a significant increase in defaults. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 214

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 230 Stage 2 decomposition arrears status and contributing factors The tables below show Stage 2 decomposition for the Personal and Wholesale portfolios. UK mortgages Credit cards Other Total Loans ECL Loans ECL Loans ECL Loans ECL 2023 £m £m £m £m £m £m £m £m Personal Currently >30 DPD 291 1 14 7 51 19 356 27 Currently <=30 DPD 17,563 60 2,008 200 1,582 219 21,153 479 - PD deterioration 12,807 48 1,455 160 831 126 15,093 334 - PD persistence 2,317 6 481 32 373 33 3,171 71 - Other driver (adverse credit, forbearance etc) 2,439 6 72 8 378 60 2,889 74 Total Stage 2 17,854 61 2,022 207 1,633 238 21,509 506 2022 Personal Currently >30 DPD 205 1 10 5 52 18 267 24 Currently <=30 DPD 18,582 61 1,066 117 1,939 264 21,587 442 - PD deterioration 16,342 56 805 97 1,093 150 18,240 303 - PD persistence 867 2 200 13 185 16 1,252 31 - Other driver (adverse credit, forbearance etc) 1,373 3 61 7 661 98 2,095 108 Total Stage 2 18,787 62 1,076 122 1,991 282 21,854 466  The levels of PD driven deterioration decreased in 2023, mainly in the mortgage portfolio. The economic scenario updates during 2023 resulted in a reduction in lifetime PDs for the mortgage and personal loan portfolios. This drove a segment of lower risk cases out of PD SICR deterioration (and captured in PD persistence in the case of Q4 MES update).  The PD modelling update during H1 2023 on the credit card portfolio resulted in more downside risk captured through modelled ECL and this, alongside modest increase in early arrears levels, led to more PD SICR deterioration being captured during 2023.  Higher risk mortgage customers who utilised the new Mortgage Charter measures were collectively migrated into Stage 2, approximately £0.9 billion of exposures, and captured in the other driver category.  Accounts that are less than 30 days past due continue to represent the vast majority of the Stage 2 population, whilst noting that the greater than 30 days past due population increased during 2023. As expected, ECL coverage was higher in accounts that were more than 30 days past due than those in Stage 2 for other reasons. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 231 Stage 2 decomposition arrears status and contributing factors Property Corporate Financial institutions Sovereign Total Loans ECL Loans ECL Loans ECL Loans ECL Loans ECL 2023 £m £m £m £m £m £m £m £m £m £m Wholesale Currently >30 DPD 99 4 342 9 10 - - - 451 13 Currently <=30 DPD 3,171 94 11,803 347 956 15 1 1 15,931 457 - PD deterioration 2,166 72 7,465 222 750 8 - - 10,381 302 - PD persistence 220 4 838 16 13 - - - 1,071 20 - Other driver (forbearance, RoCL etc) 785 18 3,500 109 193 7 1 1 4,479 135 Total Stage 2 3,270 98 12,145 356 966 15 1 1 16,382 470 2022 Wholesale Currently >30 DPD 255 3 487 11 3 - - - 745 14 Currently <=30 DPD 3,780 95 19,103 454 1,350 14 1 - 24,234 563 - PD deterioration 2,503 62 15,714 357 1,230 10 - - 19,447 429 - PD persistence 81 3 269 9 5 - - - 355 12 - Other driver (forbearance, RoCL etc) 1,196 30 3,120 88 115 4 1 - 4,432 122 Total Stage 2 4,035 98 19,590 465 1,353 14 1 - 24,979 577  The improved economic outlook, including a more optimistic forecast for stock index and commercial real estate valuations, resulted in a reduction of IFRS 9 PDs. Consequently, compared to 2022, a large proportion of exposure no longer exhibited a SICR and migrated back into Stage 1 resulting in a reduction in Stage 2 exposure.  PD deterioration remained the primary trigger for identifying a SICR and Stage 2 treatment. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 215

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 231 Stage 2 decomposition arrears status and contributing factors Property Corporate Financial institutions Sovereign Total Loans ECL Loans ECL Loans ECL Loans ECL Loans ECL 2023 £m £m £m £m £m £m £m £m £m £m Wholesale Currently >30 DPD 99 4 342 9 10 - - - 451 13 Currently <=30 DPD 3,171 94 11,803 347 956 15 1 1 15,931 457 - PD deterioration 2,166 72 7,465 222 750 8 - - 10,381 302 - PD persistence 220 4 838 16 13 - - - 1,071 20 - Other driver (forbearance, RoCL etc) 785 18 3,500 109 193 7 1 1 4,479 135 Total Stage 2 3,270 98 12,145 356 966 15 1 1 16,382 470 2022 Wholesale Currently >30 DPD 255 3 487 11 3 - - - 745 14 Currently <=30 DPD 3,780 95 19,103 454 1,350 14 1 - 24,234 563 - PD deterioration 2,503 62 15,714 357 1,230 10 - - 19,447 429 - PD persistence 81 3 269 9 5 - - - 355 12 - Other driver (forbearance, RoCL etc) 1,196 30 3,120 88 115 4 1 - 4,432 122 Total Stage 2 4,035 98 19,590 465 1,353 14 1 - 24,979 577  The improved economic outlook, including a more optimistic forecast for stock index and commercial real estate valuations, resulted in a reduction of IFRS 9 PDs. Consequently, compared to 2022, a large proportion of exposure no longer exhibited a SICR and migrated back into Stage 1 resulting in a reduction in Stage 2 exposure.  PD deterioration remained the primary trigger for identifying a SICR and Stage 2 treatment. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 216

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 232 Stage 2 decomposition by a significant increase in credit risk trigger UK mortgages Credit cards Other Total 2023 £m % £m % £m % £m % Personal trigger (1) PD movement 12,969 72.5 1,469 72.7 866 52.9 15,304 71.1 PD persistence 2,317 13.0 481 23.8 374 22.9 3,172 14.7 Adverse credit bureau recorded with credit reference agency 1,047 5.9 49 2.4 99 6.1 1,195 5.6 Forbearance support provided 137 0.8 1 - 11 0.7 149 0.7 Customers in collections 178 1.0 2 0.1 8 0.5 188 0.9 Collective SICR and other reasons (2) 1,087 6.1 20 1.0 266 16.3 1,373 6.4 Days past due >30 119 0.7 - - 9 0.6 128 0.6 17,854 100.0 2,022 100.0 1,633 100.0 21,509 100.0 2022 Personal trigger (1) PD movement 16,477 87.7 814 75.7 1,129 56.7 18,420 84.3 PD persistence 866 4.6 200 18.6 186 9.3 1,252 5.7 Adverse credit bureau recorded with credit reference agency 929 4.9 52 4.8 96 4.8 1,077 4.9 Forbearance support provided 101 0.5 1 0.1 17 0.9 119 0.5 Customers in collections 153 0.8 2 0.2 4 0.2 159 0.7 Collective SICR and other reasons (2) 195 1.0 7 0.7 546 27.4 748 3.4 Days past due >30 66 0.4 - - 13 0.7 79 0.4 18,787 100.0 1,076 100.0 1,991 100.0 21,854 100.0 For the notes to this table refer to the following page.  PD-related SICR triggers continued to represent the vast majority of Stage 2.  The levels of PD driven deterioration decreased in 2023, mainly in the mortgage portfolio. The economic scenario updates during 2023 resulted in a reduction in lifetime PDs for the mortgage and personal loan portfolios, which drove a segment of lower risk cases out of PD SICR deterioration.  The Q4 2023 economic modelling updates that reduced PDs on mortgages and loans are captured in PD persistence category (for at least three months).  The PD modelling update during H1 2023 on the credit card portfolio resulted in more downside risk captured through modelled ECL and this, alongside modest increase in early arrears levels, led to more PD SICR deterioration being captured during 2023.  Higher risk mortgage customers who utilised the new Mortgage Charter measures are collectively migrated into Stage 2, approximately £0.9 billion of exposures. This is captured in the collective SICR and other reasons category. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 233 Stage 2 decomposition by a significant increase in credit risk trigger Property Corporate Financial institutions Sovereign Total 2023 £m % £m % £m % £m % £m % Wholesale trigger (1) PD movement 2,211 67.6 7,611 62.5 760 78.7 - - 10,582 64.6 PD persistence 223 6.8 847 7.0 13 1.3 - - 1,083 6.6 Risk of Credit Loss 563 17.2 2,630 21.7 120 12.4 - - 3,313 20.2 Forbearance support provided 49 1.6 373 3.1 - - - - 422 2.6 Customers in collections 7 0.2 23 0.2 - - - - 30 0.2 Collective SICR and other reasons (2) 70 2.1 457 3.8 72 7.5 1 100.0 600 3.7 Days past due >30 147 4.5 204 1.7 1 0.1 - - 352 2.1 3,270 100.0 12,145 100.0 966 100.0 1 100.0 16,382 100.0 2022 Wholesale trigger (1) PD movement 2,569 63.7 15,962 81.5 1,231 91.0 - - 19,762 79.2 PD persistence 82 2.0 269 1.4 5 0.4 - - 356 1.4 Risk of Credit Loss 596 14.8 1,664 8.5 32 2.4 - - 2,292 9.2 Forbearance support provided 41 1.0 476 2.4 19 1.4 - - 536 2.1 Customers in collections 13 0.3 44 0.2 - - - - 57 0.2 Collective SICR and other reasons (2) 566 14.0 970 5.0 64 4.7 1 100.0 1,601 6.4 Days past due >30 168 4.2 205 1.0 2 0.1 - - 375 1.5 4,035 100.0 19,590 100.0 1,353 100.0 1 100.0 24,979 100.0 (1) The table is prepared on a hierarchical basis from top to bottom, for example, accounts with PD deterioration may also trigger backstop(s) but are only reported under PD deterioration. (2) Includes cases where a PD assessment cannot be made and accounts where the PD has deteriorated beyond a prescribed backstop threshold aligned to risk management practices.  PD deterioration continued to be the primary trigger of migration of exposures from Stage 1 into Stage 2. As the economic outlook improved, there was a reduction in cases triggering Stage 2.  Moving exposures on to the Risk of Credit Loss framework remained an important backstop indicator of a SICR. The exposures classified under the Stage 2 Risk of Credit Loss framework trigger increased over the year, as less exposures were captured under the PD deterioration Stage 2 trigger. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 217

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 233 Stage 2 decomposition by a significant increase in credit risk trigger Property Corporate Financial institutions Sovereign Total 2023 £m % £m % £m % £m % £m % Wholesale trigger (1) PD movement 2,211 67.6 7,611 62.5 760 78.7 - - 10,582 64.6 PD persistence 223 6.8 847 7.0 13 1.3 - - 1,083 6.6 Risk of Credit Loss 563 17.2 2,630 21.7 120 12.4 - - 3,313 20.2 Forbearance support provided 49 1.6 373 3.1 - - - - 422 2.6 Customers in collections 7 0.2 23 0.2 - - - - 30 0.2 Collective SICR and other reasons (2) 70 2.1 457 3.8 72 7.5 1 100.0 600 3.7 Days past due >30 147 4.5 204 1.7 1 0.1 - - 352 2.1 3,270 100.0 12,145 100.0 966 100.0 1 100.0 16,382 100.0 2022 Wholesale trigger (1) PD movement 2,569 63.7 15,962 81.5 1,231 91.0 - - 19,762 79.2 PD persistence 82 2.0 269 1.4 5 0.4 - - 356 1.4 Risk of Credit Loss 596 14.8 1,664 8.5 32 2.4 - - 2,292 9.2 Forbearance support provided 41 1.0 476 2.4 19 1.4 - - 536 2.1 Customers in collections 13 0.3 44 0.2 - - - - 57 0.2 Collective SICR and other reasons (2) 566 14.0 970 5.0 64 4.7 1 100.0 1,601 6.4 Days past due >30 168 4.2 205 1.0 2 0.1 - - 375 1.5 4,035 100.0 19,590 100.0 1,353 100.0 1 100.0 24,979 100.0 (1) The table is prepared on a hierarchical basis from top to bottom, for example, accounts with PD deterioration may also trigger backstop(s) but are only reported under PD deterioration. (2) Includes cases where a PD assessment cannot be made and accounts where the PD has deteriorated beyond a prescribed backstop threshold aligned to risk management practices.  PD deterioration continued to be the primary trigger of migration of exposures from Stage 1 into Stage 2. As the economic outlook improved, there was a reduction in cases triggering Stage 2.  Moving exposures on to the Risk of Credit Loss framework remained an important backstop indicator of a SICR. The exposures classified under the Stage 2 Risk of Credit Loss framework trigger increased over the year, as less exposures were captured under the PD deterioration Stage 2 trigger. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 218

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 234 Stage 3 vintage analysis The table below shows estimated vintage analysis of the material Stage 3 portfolios. 2023 2022 Retail Banking mortgages (1) Wholesale Retail Banking mortgages (1) Wholesale Stage 3 loans (£bn) 2.0 2.2 1.7 2.3 Vintage (time in default): <1 year 45% 40% 43% 46% 1-3 years 32% 35% 26% 26% 3-5 years 9% 12% 12% 10% >5 years 14% 13% 19% 18% 100% 100% 100% 100% (1) Retail Banking excludes a non-material amount of lending held on relatively small legacy portfolios. (2) Comparative data for Wholesale has been re-presented to correct the ageing profile.  The increase in the proportion of loans in Stage 3 for less than three years was mainly due to the adoption of the new regulatory definition of default from January 2022, including cases captured due to the regulatory default probation rules alone (which represented approximately 11% of Stage 3 Retail Banking mortgages and 9% of Stage 3 Wholesale balances). Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 235 Asset quality (audited) The table below shows asset quality bands of gross loans and ECL, by stage, for the Personal portfolio. Gross loans ECL provisions ECL provisions coverage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m % % % % UK mortgages AQ1-AQ4 110,694 7,572 - 118,266 51 20 - 71 0.1 0.3 - 0.1 AQ5-AQ8 77,290 9,578 - 86,868 37 37 - 74 0.1 0.4 - 0.1 AQ9 156 704 - 860 - 4 - 4 - 0.6 - 0.5 AQ10 - - 2,281 2,281 - - 271 271 - - 11.9 11.9 188,140 17,854 2,281 208,275 88 61 271 420 0.1 0.3 11.9 0.2 Credit cards AQ1-AQ4 124 - - 124 1 - - 1 0.8 - - 0.8 AQ5-AQ8 3,612 1,965 - 5,577 75 193 - 268 2.1 9.8 - 4.8 AQ9 6 57 - 63 - 14 - 14 - 24.6 - 22.2 AQ10 - - 140 140 - - 93 93 - - 66.4 66.4 3,742 2,022 140 5,904 76 207 93 376 2.0 10.2 66.4 6.4 Other personal AQ1-AQ4 764 150 - 914 11 23 - 34 1.4 15.3 - 3.7 AQ5-AQ8 6,178 1,374 - 7,552 138 180 - 318 2.2 13.1 - 4.2 AQ9 41 109 - 150 3 35 - 38 7.3 32.1 - 25.3 AQ10 - - 979 979 - - 778 778 - - 79.5 79.5 6,983 1,633 979 9,595 152 238 778 1,168 2.2 14.6 79.5 12.2 Total AQ1-AQ4 111,582 7,722 - 119,304 63 43 - 106 0.1 0.6 - 0.1 AQ5-AQ8 87,080 12,917 - 99,997 250 410 - 660 0.3 3.2 - 0.7 AQ9 203 870 - 1,073 3 53 - 56 1.5 6.1 - 5.2 AQ10 - - 3,400 3,400 - - 1,142 1,142 - - 33.6 33.6 198,865 21,509 3,400 223,774 316 506 1,142 1,964 0.2 2.4 33.6 0.9 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 219

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 235 Asset quality (audited) The table below shows asset quality bands of gross loans and ECL, by stage, for the Personal portfolio. Gross loans ECL provisions ECL provisions coverage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m % % % % UK mortgages AQ1-AQ4 110,694 7,572 - 118,266 51 20 - 71 0.1 0.3 - 0.1 AQ5-AQ8 77,290 9,578 - 86,868 37 37 - 74 0.1 0.4 - 0.1 AQ9 156 704 - 860 - 4 - 4 - 0.6 - 0.5 AQ10 - - 2,281 2,281 - - 271 271 - - 11.9 11.9 188,140 17,854 2,281 208,275 88 61 271 420 0.1 0.3 11.9 0.2 Credit cards AQ1-AQ4 124 - - 124 1 - - 1 0.8 - - 0.8 AQ5-AQ8 3,612 1,965 - 5,577 75 193 - 268 2.1 9.8 - 4.8 AQ9 6 57 - 63 - 14 - 14 - 24.6 - 22.2 AQ10 - - 140 140 - - 93 93 - - 66.4 66.4 3,742 2,022 140 5,904 76 207 93 376 2.0 10.2 66.4 6.4 Other personal AQ1-AQ4 764 150 - 914 11 23 - 34 1.4 15.3 - 3.7 AQ5-AQ8 6,178 1,374 - 7,552 138 180 - 318 2.2 13.1 - 4.2 AQ9 41 109 - 150 3 35 - 38 7.3 32.1 - 25.3 AQ10 - - 979 979 - - 778 778 - - 79.5 79.5 6,983 1,633 979 9,595 152 238 778 1,168 2.2 14.6 79.5 12.2 Total AQ1-AQ4 111,582 7,722 - 119,304 63 43 - 106 0.1 0.6 - 0.1 AQ5-AQ8 87,080 12,917 - 99,997 250 410 - 660 0.3 3.2 - 0.7 AQ9 203 870 - 1,073 3 53 - 56 1.5 6.1 - 5.2 AQ10 - - 3,400 3,400 - - 1,142 1,142 - - 33.6 33.6 198,865 21,509 3,400 223,774 316 506 1,142 1,964 0.2 2.4 33.6 0.9 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 220

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 236 Asset quality (audited) Gross loans ECL provisions ECL provisions coverage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2022 £m £m £m £m £m £m £m £m % % % % UK mortgages AQ1-AQ4 116,559 9,208 - 125,767 45 24 - 69 0.0 0.3 - 0.1 AQ5-AQ8 65,510 8,962 - 74,472 36 34 - 70 0.1 0.4 - 0.1 AQ9 176 617 - 793 - 4 - 4 - 0.7 - 0.5 AQ10 - - 1,925 1,925 - - 233 233 - - 12.1 12.1 182,245 18,787 1,925 202,957 81 62 233 376 00 0.3 12.1 0.2 Credit cards AQ1-AQ4 98 - - 98 - - - - - - - - AQ5-AQ8 3,172 1,036 - 4,208 61 112 - 173 1.9 10.8 - 4.1 AQ9 5 40 - 45 1 10 - 11 20.0 25.0 - 24.4 AQ10 - - 109 109 - - 73 73 - - 67.0 67.0 3,275 1,076 109 4,460 62 122 73 257 1.9 11.3 67.0 5.8 Other personal AQ1-AQ4 1,047 128 - 1,175 11 17 - 28 1.1 13.3 - 2.4 AQ5-AQ8 5,843 1,732 - 7,575 104 224 - 328 1.8 12.9 - 4.3 AQ9 28 131 - 159 2 41 - 43 7.1 31.3 - 27.0 AQ10 - - 797 797 - - 651 651 - - 81.7 81.7 6,918 1,991 797 9,706 117 282 651 1,050 1.7 14.2 81.7 10.8 Total personal AQ1-AQ4 117,704 9,336 - 127,040 56 41 - 97 0.1 0.4 - 0.1 AQ5-AQ8 74,525 11,730 - 86,255 201 370 - 571 0.3 3.2 - 0.7 AQ9 209 788 - 997 3 55 - 58 1.4 7.0 - 5.8 AQ10 - - 2,831 2,831 - - 957 957 - - 33.8 33.8 192,438 21,854 2,831 217,123 260 466 957 1,683 0.1 2.1 33.8 0.8  In the Personal portfolio, the majority of exposures were in AQ4 and AQ5 within mortgages. The higher proportion of UK mortgage loans in bands AQ5-AQ8 was reflected in the overall average Basel PD for mortgages marginally increasing from 0.65% to 0.67%.  In other personal, the relatively high level of exposures in AQ10 reflected that impaired assets can be held on the balance sheet, with commensurate ECL provision, for up to six years after default. Furthermore, write-off levels were lower during 2023 than 2022. Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 237 Asset quality (audited) The table below shows asset quality bands of gross loans and ECL, by stage, for the Wholesale portfolio. Gross loans ECL provisions ECL provisions coverage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m % % % % Property AQ1-AQ4 14,961 405 - 15,366 16 5 - 21 0.1 1.2 - 0.1 AQ5-AQ8 12,346 2,799 - 15,145 86 88 - 174 0.7 3.1 - 1.2 AQ9 9 66 - 75 - 5 - 5 - 7.6 - 6.7 AQ10 - - 621 621 - - 198 198 - - 31.9 31.9 27,316 3,270 621 31,207 102 98 198 398 0.4 3.0 31.9 1.3 Other AQ1-AQ4 25,914 937 - 26,851 27 13 - 40 0.1 1.4 - 0.2 AQ5-AQ8 37,738 10,935 - 48,673 207 323 - 530 0.6 3.0 - 1.1 AQ9 38 273 - 311 - 20 - 20 - 7.3 - 6.4 AQ10 - - 1,504 1,504 - - 611 611 - - 40.6 40.6 63,690 12,145 1,504 77,339 234 356 611 1,201 0.4 2.9 40.6 1.6 Financial institutions AQ1-AQ4 52,702 665 - 53,367 28 6 - 34 0.1 0.9 - 0.1 AQ5-AQ8 3,402 284 - 3,686 16 9 - 25 0.5 3.2 - 0.7 AQ9 1 17 - 18 - - - - - - - - AQ10 - - 16 16 - - 7 7 - - 43.8 43.8 56,105 966 16 57,087 44 15 7 66 0.1 1.6 43.8 0.1 Sovereign AQ1-AQ4 2,487 1 - 2,488 13 1 - 14 0.5 100.0 - 0.6 AQ5-AQ8 123 - - 123 - - - - - - - - AQ9 - - - - - - - - - - - - AQ10 - - 22 22 - - 2 2 - - 9.1 9.1 2,610 1 22 2,633 13 1 2 16 0.5 100.0 9.1 0.6 Total AQ1-AQ4 96,064 2,008 - 98,072 84 25 - 109 0.1 1.3 - 0.1 AQ5-AQ8 53,609 14,018 - 67,627 309 420 - 729 0.6 3.0 - 1.1 AQ9 48 356 - 404 - 25 - 25 - 7.0 - 6.2 AQ10 - - 2,163 2,163 - - 818 818 - - 37.8 37.8 149,721 16,382 2,163 168,266 393 470 818 1,681 0.3 2.9 37.8 1.0 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 221

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 237 Asset quality (audited) The table below shows asset quality bands of gross loans and ECL, by stage, for the Wholesale portfolio. Gross loans ECL provisions ECL provisions coverage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2023 £m £m £m £m £m £m £m £m % % % % Property AQ1-AQ4 14,961 405 - 15,366 16 5 - 21 0.1 1.2 - 0.1 AQ5-AQ8 12,346 2,799 - 15,145 86 88 - 174 0.7 3.1 - 1.2 AQ9 9 66 - 75 - 5 - 5 - 7.6 - 6.7 AQ10 - - 621 621 - - 198 198 - - 31.9 31.9 27,316 3,270 621 31,207 102 98 198 398 0.4 3.0 31.9 1.3 Other AQ1-AQ4 25,914 937 - 26,851 27 13 - 40 0.1 1.4 - 0.2 AQ5-AQ8 37,738 10,935 - 48,673 207 323 - 530 0.6 3.0 - 1.1 AQ9 38 273 - 311 - 20 - 20 - 7.3 - 6.4 AQ10 - - 1,504 1,504 - - 611 611 - - 40.6 40.6 63,690 12,145 1,504 77,339 234 356 611 1,201 0.4 2.9 40.6 1.6 Financial institutions AQ1-AQ4 52,702 665 - 53,367 28 6 - 34 0.1 0.9 - 0.1 AQ5-AQ8 3,402 284 - 3,686 16 9 - 25 0.5 3.2 - 0.7 AQ9 1 17 - 18 - - - - - - - - AQ10 - - 16 16 - - 7 7 - - 43.8 43.8 56,105 966 16 57,087 44 15 7 66 0.1 1.6 43.8 0.1 Sovereign AQ1-AQ4 2,487 1 - 2,488 13 1 - 14 0.5 100.0 - 0.6 AQ5-AQ8 123 - - 123 - - - - - - - - AQ9 - - - - - - - - - - - - AQ10 - - 22 22 - - 2 2 - - 9.1 9.1 2,610 1 22 2,633 13 1 2 16 0.5 100.0 9.1 0.6 Total AQ1-AQ4 96,064 2,008 - 98,072 84 25 - 109 0.1 1.3 - 0.1 AQ5-AQ8 53,609 14,018 - 67,627 309 420 - 729 0.6 3.0 - 1.1 AQ9 48 356 - 404 - 25 - 25 - 7.0 - 6.2 AQ10 - - 2,163 2,163 - - 818 818 - - 37.8 37.8 149,721 16,382 2,163 168,266 393 470 818 1,681 0.3 2.9 37.8 1.0 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 222

Credit risk – Banking activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 238 Asset quality (audited) Gross loans ECL provisions ECL provisions coverage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2022 £m £m £m £m £m £m £m £m % % % % Property AQ1-AQ4 14,497 542 - 15,039 16 4 - 20 0.1 0.7 - 0.1 AQ5-AQ8 11,792 3,401 - 15,193 83 89 - 172 0.7 2.6 - 1.1 AQ9 11 92 - 103 - 5 - 5 - 5.4 - 4.9 AQ10 - - 701 701 - - 223 223 - - 31.8 31.8 26,300 4,035 701 31,036 99 98 223 420 0.4 2.4 31.8 1.4 Other AQ1-AQ4 20,409 5,316 - 25,725 24 38 - 62 0.1 0.7 - 0.2 AQ5-AQ8 36,511 13,942 - 50,453 202 404 - 606 0.6 2.9 - 1.2 AQ9 35 332 - 367 - 23 - 23 - 6.9 - 6.3 AQ10 - - 1,515 1,515 - - 560 560 - - 37.0 37.0 56,955 19,590 1,515 78,060 226 465 560 1,251 0.4 2.4 37.0 1.6 Financial institutions AQ1-AQ4 44,257 914 - 45,171 18 5 - 23 0.0 0.6 - 0.1 AQ5-AQ8 2,479 429 - 2,908 14 9 - 23 0.6 2.1 - 0.8 AQ9 2 10 - 12 - - - - - - - - AQ10 - - 47 47 - - 17 17 - - 36.2 36.2 46,738 1,353 47 48,138 32 14 17 63 0.1 1.0 36.2 0.1 Sovereign AQ1-AQ4 2,678 1 - 2,679 15 - - 15 0.6 - - 0.6 AQ5-AQ8 115 - - 115 - - - - - - - - AQ9 - - - - - - - - - - - - AQ10 - - 2 2 - - 2 2 - - 100.0 100.0 2,793 1 2 2,796 15 - 2 17 0.5 — 100.0 0.6 Total AQ1-AQ4 81,841 6,773 - 88,614 73 47 - 120 0.1 0.7 - 0.1 AQ5-AQ8 50,897 17,772 - 68,669 299 502 - 801 0.6 2.8 - 1.2 AQ9 48 434 - 482 - 28 - 28 - 6.5 - 5.8 AQ10 - - 2,265 2,265 - - 802 802 - - 35.4 35.4 132,786 24,979 2,265 160,030 372 577 802 1,751 0.3 2.3 35.4 1.1  Asset quality remained stable.  Customer credit grades were reassessed as and when a request for financing was made, a scheduled customer credit review performed or a material credit event specific to that customer occurred. Credit grades are reassessed for all customers at least annually.  ECL provisions coverage showed the expected trend, with increased coverage in the weaker asset quality bands within Stage 2 compared to Stage 1 and within Stage 3 compared to Stage 2. Credit risk – Trading activities NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 239 This section details the credit risk profile of NatWest Group’s trading activities. Securities financing transactions and collateral (audited) The table below shows securities financing transactions in Commercial & Institutional and Central items & other. Balance sheet captions include balances held at all classifications under IFRS. Reverse Repos Repos Of which: Outside netting Of which: Outside netting Total can be offset arrangements Total can be offset arrangements 2023 £m £m £m £m £m £m Gross 77,508 77,050 458 66,767 66,047 720 IFRS offset (25,903) (25,903) - (25,903) (25,903) - Carrying value 51,605 51,147 458 40,864 40,144 720 Master netting arrangements (669) (669) - (669) (669) - Securities collateral (50,287) (50,287) - (39,475) (39,475) - Potential for offset not recognised under IFRS (50,956) (50,956) - (40,144) (40,144) - Net 649 191 458 720 - 720 2022 Gross 61,775 61,241 534 55,226 50,743 4,483 IFRS offset (20,211) (20,211) - (20,211) (20,211) - Carrying value 41,564 41,030 534 35,015 30,532 4,483 Master netting arrangements (2,445) (2,445) - (2,445) (2,445) - Securities collateral (38,387) (38,387) - (28,087) (28,087) - Potential for offset not recognised under IFRS (40,832) (40,832) - (30,532) (30,532) - Net 732 198 534 4,483 - 4,483 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 223

Credit risk – Trading activities NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 239 This section details the credit risk profile of NatWest Group’s trading activities. Securities financing transactions and collateral (audited) The table below shows securities financing transactions in Commercial & Institutional and Central items & other. Balance sheet captions include balances held at all classifications under IFRS. Reverse Repos Repos Of which: Outside netting Of which: Outside netting Total can be offset arrangements Total can be offset arrangements 2023 £m £m £m £m £m £m Gross 77,508 77,050 458 66,767 66,047 720 IFRS offset (25,903) (25,903) - (25,903) (25,903) - Carrying value 51,605 51,147 458 40,864 40,144 720 Master netting arrangements (669) (669) - (669) (669) - Securities collateral (50,287) (50,287) - (39,475) (39,475) - Potential for offset not recognised under IFRS (50,956) (50,956) - (40,144) (40,144) - Net 649 191 458 720 - 720 2022 Gross 61,775 61,241 534 55,226 50,743 4,483 IFRS offset (20,211) (20,211) - (20,211) (20,211) - Carrying value 41,564 41,030 534 35,015 30,532 4,483 Master netting arrangements (2,445) (2,445) - (2,445) (2,445) - Securities collateral (38,387) (38,387) - (28,087) (28,087) - Potential for offset not recognised under IFRS (40,832) (40,832) - (30,532) (30,532) - Net 732 198 534 4,483 - 4,483 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 224

Credit risk – Trading activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 240 Derivatives (audited) The table below shows derivatives by type of contract. The master netting agreements and collateral shown do not result in a net presentation on the balance sheet under IFRS. A significant proportion of the derivatives relate to trading activities in Commercial & Institutional. The table also includes hedging derivatives in Central items & other. 2023 2022 Notional GBP USD EUR Other Total Assets Liabilities Notional Assets Liabilities £bn £bn £bn £bn £bn £m £m £bn £m £m Gross exposure 99,501 96,264 118,275 116,158 IFRS offset (20,597) (23,869) (18,730) (22,111) Carrying value 3,244 3,025 6,012 1,122 13,403 78,904 72,395 13,925 99,545 94,047 Of which: Interest rate (1) 2,952 1,623 5,466 227 10,268 44,563 38,483 10,742 53,480 48,535 Exchange rate 291 1,397 537 895 3,120 34,161 33,586 3,168 45,829 45,237 Credit 1 5 9 - 15 180 326 15 236 275 Carrying value 13,403 78,904 72,395 13,925 99,545 94,047 Counterparty mark-to-market netting (60,355) (60,355) (77,365) (77,365) Cash collateral (12,284) (6,788) (14,079) (9,761) Securities collateral (3,408) (1,664) (4,571) (1,185) Net exposure 2,857 3,588 3,530 5,736 Banks (2) 335 555 648 711 Other financial institutions (3) 1,422 1,304 1,732 1,969 Corporate (4) 1,063 1,690 1,068 2,969 Government (5) 37 39 82 87 Net exposure 2,857 3,588 3,530 5,736 UK 1,283 1,912 1,271 2,878 Europe 800 1,209 1,196 2,015 US 607 381 753 626 RoW 167 86 310 217 Net exposure 2,857 3,588 3,530 5,736 Asset quality of uncollateralised derivative assets AQ1-AQ4 2,382 3,014 AQ5-AQ8 471 500 AQ9-AQ10 4 16 Net exposure 2,857 3,530 (1) The notional amount of interest rate derivatives includes £7,280 billion (2022 – £8,065 billion) in respect of contracts cleared through central clearing counterparties. (2) Transactions with certain counterparties with whom NatWest Group has netting arrangements but collateral is not posted on a daily basis; certain transactions with specific terms that may not fall within netting and collateral arrangements; derivative positions in certain jurisdictions where the collateral agreements are not deemed to be legally enforceable. (3) Includes transactions with securitisation vehicles and funds where collateral posting is contingent on NatWest Group’s external rating. (4) Mainly large corporates with whom NatWest Group may have netting arrangements in place, but operational capability does not support collateral posting. (5) Sovereigns and supranational entities with no collateral arrangements, collateral arrangements that are not considered enforceable, or one-way collateral agreements in their favour. Credit risk – Trading activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 241 Debt securities (audited) The table below shows debt securities held at mandatory fair value through profit or loss by issuer as well as ratings based on the lowest of Standard & Poor’s, Moody’s and Fitch. Refer to Note 13 on Trading assets and liabilities for details on short positions. Central and local government UK US Other Financial institutions Corporate Total 2023 £m £m £m £m £m £m AAA - - 1,333 1,132 - 2,465 AA to AA+ - 2,600 19 762 4 3,385 A to AA- 2,729 - 1,017 251 283 4,280 BBB- to A- - - 693 295 489 1,477 Non-investment grade - - - 198 149 347 Unrated - - - - - - Total 2,729 2,600 3,062 2,638 925 11,954 2022 AAA - - 469 766 3 1,238 AA to AA+ - 2,345 1,042 1,114 21 4,522 A to AA- 2,205 - 372 77 29 2,683 BBB- to A- - - 916 149 296 1,361 Non-investment grade - - - 65 49 114 Unrated - - - 1 3 4 Total 2,205 2,345 2,799 2,172 401 9,922 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 225

Credit risk – Trading activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 241 Debt securities (audited) The table below shows debt securities held at mandatory fair value through profit or loss by issuer as well as ratings based on the lowest of Standard & Poor’s, Moody’s and Fitch. Refer to Note 13 on Trading assets and liabilities for details on short positions. Central and local government UK US Other Financial institutions Corporate Total 2023 £m £m £m £m £m £m AAA - - 1,333 1,132 - 2,465 AA to AA+ - 2,600 19 762 4 3,385 A to AA- 2,729 - 1,017 251 283 4,280 BBB- to A- - - 693 295 489 1,477 Non-investment grade - - - 198 149 347 Unrated - - - - - - Total 2,729 2,600 3,062 2,638 925 11,954 2022 AAA - - 469 766 3 1,238 AA to AA+ - 2,345 1,042 1,114 21 4,522 A to AA- 2,205 - 372 77 29 2,683 BBB- to A- - - 916 149 296 1,361 Non-investment grade - - - 65 49 114 Unrated - - - 1 3 4 Total 2,205 2,345 2,799 2,172 401 9,922 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 226

Credit risk – Trading activities continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 242 Cross border exposure Cross border exposures comprise both banking and trading activities, including reverse repurchase agreements. Exposures comprise loans and advances, including finance leases and instalment credit receivables, and other monetary assets, such as debt securities. The geographical breakdown is based on the country of domicile of the borrower or guarantor of ultimate risk. Cross border exposures include non-local currency claims of overseas offices on local residents but exclude exposures to local residents in local currencies. The table shows cross border exposures greater than 0.5% of NatWest Group’s total assets. Government Banks Other Total Short positions Net of short positions 2023 £m £m £m £m £m £m Western Europe 7,830 10,109 26,508 44,447 4,655 39,792 Of which: France 2,229 2,105 7,839 12,173 1,183 10,990 Germany 1,614 4,525 1,065 7,204 1,905 5,299 Luxembourg 1 317 7,045 7,363 - 7,363 Ireland 29 90 3,622 3,741 99 3,642 Jersey - - 4,394 4,394 - 4,394 United States 6,764 3,440 16,356 26,560 2,974 23,586 Canada 1,262 2,059 1,132 4,453 17 4,436 2022 Western Europe 5,608 7,385 19,018 32,011 4,438 27,573 Of which: France 1,875 1,911 3,958 7,744 1,414 6,330 Germany 794 3,717 839 5,350 1,053 4,297 Luxembourg 1 190 5,640 5,831 5 5,826 Ireland 28 70 2,823 2,921 66 2,855 Jersey - - 3,019 3,019 - 3,019 United States 8,080 3,852 12,931 24,863 1,429 23,434 Canada 35 1,885 402 2,322 12 2,310 Capital, liquidity and funding risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 243 NatWest Group continually ensures a comprehensive approach is taken to the management of capital, liquidity and funding, underpinned by frameworks, risk appetite and policies, to manage and mitigate its capital, liquidity and funding risks. The framework ensures the tools and capability are in place to facilitate the management and mitigation of risk ensuring NatWest Group operates within its regulatory requirements and risk appetite. Definitions (audited) Regulatory capital consists of reserves and instruments issued that are available, have a degree of permanency and are capable of absorbing losses. A number of strict conditions set by regulators must be satisfied to be eligible as capital. Capital risk is the inability to conduct business in base or stress conditions on a risk or leverage basis due to insufficient qualifying capital as well as the failure to assess, monitor, plan and manage capital adequacy requirements. Liquidity consists of assets that can be readily converted to cash within a short timeframe at a reliable value. Liquidity risk is the risk of being unable to meet actual or potential financial obligations in a timely manner when they fall due in the short term. Funding consists of on-balance sheet liabilities that are used to provide cash to finance assets. Funding risk is the risk that current or prospective financial obligations cannot be met as they fall due in the medium to long term, either at all or without increasing funding costs unacceptably. Liquidity and funding risks arise in a number of ways, including through the maturity transformation role that banks perform. The risks are dependent on factors such as:  Maturity profile;  Composition of sources and uses of funding;  The quality and size of the liquidity portfolio;  Wholesale market conditions; and  Depositor and investor behaviour. Sources of risk (audited) Capital The eligibility of instruments and financial resources as regulatory capital is laid down by applicable regulation. Capital is categorised under two tiers (Tier 1 and Tier 2) according to the ability to absorb losses, degree of permanency and the ranking of absorbing losses on either a going or gone concern basis. There are three broad categories of capital across these two tiers:  CET1 capital - CET1 capital must be perpetual and capable of unrestricted and immediate use to cover risks or losses as soon as these occur. This includes ordinary shares issued and retained earnings.  Additional Tier 1 (AT1) capital - This is the second type of loss absorbing capital and must be capable of absorbing losses on a going concern basis. These instruments are either written down or converted into CET1 capital when the CET1 ratio falls below a pre-specified level.  Tier 2 capital - Tier 2 capital is supplementary capital and provides loss absorption on a gone concern basis. Tier 2 capital absorbs losses after Tier 1 capital. It typically consists of subordinated debt securities with a minimum maturity of five years at the point of issuance. Minimum requirement for own funds and eligible liabilities (MREL) In addition to capital, other specific loss-absorbing instruments, including senior notes and Tier 2 capital instruments with certain qualifying criteria issued by NatWest Group, may be used to cover certain gone concern capital requirements, which is referred to as MREL. Gone concern refers to the situation in which resources must be available to enable an orderly resolution, in the event that the Bank of England (BoE) deems that NatWest Group has failed or is likely to fail. Liquidity NatWest Group maintains a prudent approach to the definition of liquidity portfolio to ensure it is available when and where required, taking into account regulatory, legal and other constraints. Following ringfencing legislation, liquidity is no longer considered fungible across NatWest Group. Principal liquidity portfolios are maintained in the UK Domestic Liquidity Sub-Group (UKDoLSub) (primarily in NatWest Bank Plc), NatWest Markets Plc, RBS International Limited, NWM N.V and NatWest Bank Europe GmbH. Some disclosures in this section where relevant are presented, on a consolidated basis, for NatWest Group and the UK DoLSub. Liquidity portfolio is divided into primary and secondary liquidity as follows:  Primary liquidity is LCR eligible assets and includes cash and balances at central banks, Treasury bills and high quality government securities.  Secondary liquidity is assets eligible as collateral for local central bank liquidity facilities. These assets include own-issued securitisations or whole loans that are retained on balance sheet and pre-positioned with a central bank so that they may be converted into additional sources of liquidity at very short notice. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 227

Capital, liquidity and funding risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 243 NatWest Group continually ensures a comprehensive approach is taken to the management of capital, liquidity and funding, underpinned by frameworks, risk appetite and policies, to manage and mitigate its capital, liquidity and funding risks. The framework ensures the tools and capability are in place to facilitate the management and mitigation of risk ensuring NatWest Group operates within its regulatory requirements and risk appetite. Definitions (audited) Regulatory capital consists of reserves and instruments issued that are available, have a degree of permanency and are capable of absorbing losses. A number of strict conditions set by regulators must be satisfied to be eligible as capital. Capital risk is the inability to conduct business in base or stress conditions on a risk or leverage basis due to insufficient qualifying capital as well as the failure to assess, monitor, plan and manage capital adequacy requirements. Liquidity consists of assets that can be readily converted to cash within a short timeframe at a reliable value. Liquidity risk is the risk of being unable to meet actual or potential financial obligations in a timely manner when they fall due in the short term. Funding consists of on-balance sheet liabilities that are used to provide cash to finance assets. Funding risk is the risk that current or prospective financial obligations cannot be met as they fall due in the medium to long term, either at all or without increasing funding costs unacceptably. Liquidity and funding risks arise in a number of ways, including through the maturity transformation role that banks perform. The risks are dependent on factors such as:  Maturity profile;  Composition of sources and uses of funding;  The quality and size of the liquidity portfolio;  Wholesale market conditions; and  Depositor and investor behaviour. Sources of risk (audited) Capital The eligibility of instruments and financial resources as regulatory capital is laid down by applicable regulation. Capital is categorised under two tiers (Tier 1 and Tier 2) according to the ability to absorb losses, degree of permanency and the ranking of absorbing losses on either a going or gone concern basis. There are three broad categories of capital across these two tiers:  CET1 capital - CET1 capital must be perpetual and capable of unrestricted and immediate use to cover risks or losses as soon as these occur. This includes ordinary shares issued and retained earnings.  Additional Tier 1 (AT1) capital - This is the second type of loss absorbing capital and must be capable of absorbing losses on a going concern basis. These instruments are either written down or converted into CET1 capital when the CET1 ratio falls below a pre-specified level.  Tier 2 capital - Tier 2 capital is supplementary capital and provides loss absorption on a gone concern basis. Tier 2 capital absorbs losses after Tier 1 capital. It typically consists of subordinated debt securities with a minimum maturity of five years at the point of issuance. Minimum requirement for own funds and eligible liabilities (MREL) In addition to capital, other specific loss-absorbing instruments, including senior notes and Tier 2 capital instruments with certain qualifying criteria issued by NatWest Group, may be used to cover certain gone concern capital requirements, which is referred to as MREL. Gone concern refers to the situation in which resources must be available to enable an orderly resolution, in the event that the Bank of England (BoE) deems that NatWest Group has failed or is likely to fail. Liquidity NatWest Group maintains a prudent approach to the definition of liquidity portfolio to ensure it is available when and where required, taking into account regulatory, legal and other constraints. Following ringfencing legislation, liquidity is no longer considered fungible across NatWest Group. Principal liquidity portfolios are maintained in the UK Domestic Liquidity Sub-Group (UKDoLSub) (primarily in NatWest Bank Plc), NatWest Markets Plc, RBS International Limited, NWM N.V and NatWest Bank Europe GmbH. Some disclosures in this section where relevant are presented, on a consolidated basis, for NatWest Group and the UK DoLSub. Liquidity portfolio is divided into primary and secondary liquidity as follows:  Primary liquidity is LCR eligible assets and includes cash and balances at central banks, Treasury bills and high quality government securities.  Secondary liquidity is assets eligible as collateral for local central bank liquidity facilities. These assets include own-issued securitisations or whole loans that are retained on balance sheet and pre-positioned with a central bank so that they may be converted into additional sources of liquidity at very short notice. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 228

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 244 Funding NatWest Group maintains a diversified set of funding sources, including customer deposits, wholesale deposits and term debt issuance taking into account regulatory metrics (Net Stable Funding Ratio). The principal levels at which funding risk is managed are at NatWest Group, NatWest Holdings Group, UK DoLSub, NatWest Markets Plc, RBS International Limited, NWM N.V. and NatWest Bank Europe GmbH. NatWest Group also retains access to central bank funding facilities. For further details on capital constituents and the regulatory framework covering capital, liquidity and funding requirements, refer to the 2023 NatWest Group Pillar 3 Report. Capital risk management Capital management ensures that there is sufficient capital and other loss-absorbing instruments to operate effectively including meeting minimum regulatory requirements, operating within Board-approved risk appetite, maintaining its credit rating and supporting its strategic goals. Capital management is critical in supporting the businesses and is enacted through an end-to-end framework across businesses and legal entities. Capital is managed within the organisation at the following levels; NatWest Group consolidated, NWH Group sub consolidated, NatWest Markets Plc, NatWest Markets N.V. and RBS International Limited. The banking subsidiaries within NWH Group are governed by the same principles, processes and management as NatWest Group. Note that although the aforementioned entities are regulated in line with Basel III principles, local implementation of the framework differs across geographies. Produce capital plans Capital plans are produced for NatWest Group, its key operating entities and its businesses over a five year planning horizon under expected and stress conditions. Stressed capital plans are produced to support internal stress testing in the ICAAP for regulatory purposes. Shorter term forecasts are developed frequently in response to actual performance, changes in internal and external business environment and to manage risks and opportunities. Assess capital adequacy Capital plans are developed to maintain capital of sufficient quantity and quality to support NatWest Group’s business, its subsidiaries and strategic plans over the planning horizon within approved risk appetite, as determined via stress testing, and minimum regulatory requirements. Capital resources and capital requirements are assessed across a defined planning horizon. Impact assessment captures input from across NatWest Group including from businesses. Inform capital actions Capital planning informs potential capital actions including buy backs, redemptions, dividends and new issuance to external investors or via internal transactions. Decisions on capital actions will be influenced by strategic and regulatory requirements, risk appetite, costs and prevailing market conditions. As part of capital planning, NatWest Group will monitor its portfolio of external capital securities and assess the optimal blend and most cost effective means of financing. Capital planning is one of the tools that NatWest Group uses to monitor and manage capital risk on a going and gone concern basis, including the risk of excessive leverage. Liquidity risk management NatWest Group manages its liquidity risk taking into account regulatory, legal and other constraints to ensure sufficient liquidity is available where required to cover liquidity stresses. The principal levels at which liquidity risk is managed are:  NatWest Group  NatWest Holdings Group  UK DoLSub  NatWest Markets Plc  NatWest Markets Securities Inc.  RBS International Limited  NWM N.V.  NatWest Bank Europe GmbH The UK DoLSub is PRA regulated and comprises NatWest Group’s three licensed deposit-taking UK banks: National Westminster Bank Plc (NWB Plc), The Royal Bank of Scotland plc (RBS plc) and Coutts & Company. NatWest Group categorises its liquidity portfolio, including its locally managed liquidity portfolios, into primary and secondary liquid assets. The size of the liquidity portfolios are determined by referencing NatWest Group’s liquidity risk appetite. NatWest Group retains a prudent approach to setting the composition of the liquidity portfolios, which is subject to internal policies applicable to all entities and limits over quality of counterparty, maturity mix and currency mix. RBS International Limited and NWM N.V. hold locally managed portfolios that comply with local regulations that may differ from PRA rules. The liquidity value of the portfolio is determined by taking current market prices and applying a discount or haircut, to give a liquidity value that represents the amount of cash that can be generated by the asset. Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 245 Funding risk management NatWest Group manages funding risk through a comprehensive framework which measures and monitors the funding risk on the balance sheet including quantitative and qualitative analysis of the behavioural aspects of its assets and liabilities as well as the funding concentration. Prudential regulation changes that may impact capital requirements NatWest Group faces numerous changes in prudential regulation that may impact the minimum amount of capital it must hold and consequently may increase funding costs and reduce return on equity. Regulatory changes are actively monitored by NatWest Group, including engagement with industry associations and regulators and participation in quantitative impact studies. Monitoring the changing regulatory landscape forms a fundamental part of capital planning and management of its business. NatWest Group believes that its strategy to focus on simpler, lower risk activities within a more resilient recovery and resolution framework will enable it to manage the impact of these. UK and EU implementation of Basel framework The Basel framework is an internationally agreed set of measures developed by the Basel Committee on Banking Supervision (BCBS). The Basel III standards are minimum requirements which apply to internationally active banks, which ensure a global level playing field on financial regulation. Individual jurisdictions must decide how to implement the standards. From 1 January 2021, NatWest Group has been regulated under the on-shored CRR and associated on-shored binding technical standards which were created by the European Union (Withdrawal) Act 2018 and amending statutory instruments. As the Withdrawal Act applied to the CRR in place as of 31 December 2020, changes to the CRR in the EU are not reflected in the UK CRR unless separately legislated and amended by statutory instruments. Going forward, the Financial Services Bill gives the PRA the power to write prudential rules directly into the PRA rulebook and it will co-ordinate with HM Treasury to implement any required changes to the UK CRR. On 1 January 2022, PRA implemented changes to the UK CRR to align to the Basel III standards which included the introduction of a new standardised approach for counterparty credit risk (SA-CCR), amendments to the LCR and NSFR rules as well as new regulation applicable to internal ratings (IRB) models. Changes were also introduced to the UK Leverage Ratio framework. Equivalent reforms were implemented in the EU in June 2021, known as CRR2. On 30 November 2022, the PRA published its consultation paper CP16/22 setting out its proposed rules and expectations with respect to the remaining Basel III standards to be implemented in the UK, also referred to as “Basel 3.1 standards”. This will complete the implementation of post-global financial crisis prudential reforms, which were designed to i) increase the quantity of capital in the system, per unit of risk; ii) increase the quality of capital held by firms; and iii) improve the accuracy of risk-management firms, reducing the variability of risk-weighted assets (RWAs). The Basel 3.1 changes mainly impact capital requirements for STD and IRB Credit Risk, Market Risk, Credit Valuation Adjustment (CVA), Counterparty Credit Risk (CCR) and Operational Risk. An aggregate “output floor” is also being introduced to ensure that total RWAs for firms using advanced or internally modelled methods and subject to the floor cannot fall below 72.5% of RWAs under the standardised approach. The proposal does not include further changes to the Leverage Ratio, Large Exposures and Liquidity Risk frameworks. The consultation paper has been followed up with the publication of the PRA’s policy statement PS17/23 Implementation of the Basel 3.1 standards near-final part 1. This contains the near final rules on Market Risk, CVA, CCR and Operational Risk sections, along with some Pillar 2 guidance relating to these topics. Part 2, containing rules on the remaining Basel 3.1 changes, is expected to be published in Q2 2024. The PRA rules are expected to be implemented from 1 July 2025. Equivalent changes relating to the Basel 3.1 standards will be implemented in EU by CRR3 and CRD6 for which the European Commission issued a proposal in October 2021, with the near final rules published December 2023. The EU implementation date is expected to be 1 January 2025. Their impact will be limited to NatWest Group’s EU subsidiaries. Other developments in 2023 On 13 November 2023, the PRA published PS14/13 which formally phased out the CET1 capital deduction for NPEs (Non- Performing Exposures). The requirement was originally introduced in EU CRR and adopted in the UK; however, the PRA considered that it would not be appropriate in a UK context to apply the NPE deduction requirement going forward. Capital disclosures as of 31 December 2023 reflect the benefit because of the reversal of this deduction. On 20 November 2023, the PRA announced its 2023 list of O-SIIs (Other Systemically Important Institutions) as well as the 2023 O-SII buffers for ring-fenced banks (RFBs). The PRA is required to identify O-SIIs on an annual basis. NatWest Group Plc is part of the PRA’s O-SII list and the O-SII buffer for its ring-fenced sub-group (i.e. NatWest Holdings Group) was kept at 1.5%. The 2023 O-SII rates will apply from 1 January 2025. An O-SII buffer can apply to O-SIIs, or parts of an O-SII that are ring-fenced banks. NatWest Group, as a third-country group with two or more subsidiary banking institutions in the EU, was approved by the European Central Bank (ECB) to establish a dual IPU (Intermediate Parent Undertaking) structure on behalf of its European subsidiaries. As a result, NatWest Bank Europe GmbH, a wholly owned subsidiary of NatWest Holdings Group, will act as the ring-fenced IPU. RBS Holdings N.V., a wholly owned subsidiary of NatWest Markets Plc, will act as the non-ring fenced IPU. Both IPUs became subject to ECB supervision from 1 January 2024. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Capital planning is integrated into NatWest Group’s wider annual budgeting process and is assessed and updated at least monthly. Regular returns are submitted to the PRA which include a two-year rolling forecast view. Other elements of capital management, including risk appetite and stress testing, are set out on pages 160 to 162. NatWest Group 2023 Annual Report on Form 20-F 229

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 245 Funding risk management NatWest Group manages funding risk through a comprehensive framework which measures and monitors the funding risk on the balance sheet including quantitative and qualitative analysis of the behavioural aspects of its assets and liabilities as well as the funding concentration. Prudential regulation changes that may impact capital requirements NatWest Group faces numerous changes in prudential regulation that may impact the minimum amount of capital it must hold and consequently may increase funding costs and reduce return on equity. Regulatory changes are actively monitored by NatWest Group, including engagement with industry associations and regulators and participation in quantitative impact studies. Monitoring the changing regulatory landscape forms a fundamental part of capital planning and management of its business. NatWest Group believes that its strategy to focus on simpler, lower risk activities within a more resilient recovery and resolution framework will enable it to manage the impact of these. UK and EU implementation of Basel framework The Basel framework is an internationally agreed set of measures developed by the Basel Committee on Banking Supervision (BCBS). The Basel III standards are minimum requirements which apply to internationally active banks, which ensure a global level playing field on financial regulation. Individual jurisdictions must decide how to implement the standards. From 1 January 2021, NatWest Group has been regulated under the on-shored CRR and associated on-shored binding technical standards which were created by the European Union (Withdrawal) Act 2018 and amending statutory instruments. As the Withdrawal Act applied to the CRR in place as of 31 December 2020, changes to the CRR in the EU are not reflected in the UK CRR unless separately legislated and amended by statutory instruments. Going forward, the Financial Services Bill gives the PRA the power to write prudential rules directly into the PRA rulebook and it will co-ordinate with HM Treasury to implement any required changes to the UK CRR. On 1 January 2022, PRA implemented changes to the UK CRR to align to the Basel III standards which included the introduction of a new standardised approach for counterparty credit risk (SA-CCR), amendments to the LCR and NSFR rules as well as new regulation applicable to internal ratings (IRB) models. Changes were also introduced to the UK Leverage Ratio framework. Equivalent reforms were implemented in the EU in June 2021, known as CRR2. On 30 November 2022, the PRA published its consultation paper CP16/22 setting out its proposed rules and expectations with respect to the remaining Basel III standards to be implemented in the UK, also referred to as “Basel 3.1 standards”. This will complete the implementation of post-global financial crisis prudential reforms, which were designed to i) increase the quantity of capital in the system, per unit of risk; ii) increase the quality of capital held by firms; and iii) improve the accuracy of risk-management firms, reducing the variability of risk-weighted assets (RWAs). The Basel 3.1 changes mainly impact capital requirements for STD and IRB Credit Risk, Market Risk, Credit Valuation Adjustment (CVA), Counterparty Credit Risk (CCR) and Operational Risk. An aggregate “output floor” is also being introduced to ensure that total RWAs for firms using advanced or internally modelled methods and subject to the floor cannot fall below 72.5% of RWAs under the standardised approach. The proposal does not include further changes to the Leverage Ratio, Large Exposures and Liquidity Risk frameworks. The consultation paper has been followed up with the publication of the PRA’s policy statement PS17/23 Implementation of the Basel 3.1 standards near-final part 1. This contains the near final rules on Market Risk, CVA, CCR and Operational Risk sections, along with some Pillar 2 guidance relating to these topics. Part 2, containing rules on the remaining Basel 3.1 changes, is expected to be published in Q2 2024. The PRA rules are expected to be implemented from 1 July 2025. Equivalent changes relating to the Basel 3.1 standards will be implemented in EU by CRR3 and CRD6 for which the European Commission issued a proposal in October 2021, with the near final rules published December 2023. The EU implementation date is expected to be 1 January 2025. Their impact will be limited to NatWest Group’s EU subsidiaries. Other developments in 2023 On 13 November 2023, the PRA published PS14/13 which formally phased out the CET1 capital deduction for NPEs (Non- Performing Exposures). The requirement was originally introduced in EU CRR and adopted in the UK; however, the PRA considered that it would not be appropriate in a UK context to apply the NPE deduction requirement going forward. Capital disclosures as of 31 December 2023 reflect the benefit because of the reversal of this deduction. On 20 November 2023, the PRA announced its 2023 list of O-SIIs (Other Systemically Important Institutions) as well as the 2023 O-SII buffers for ring-fenced banks (RFBs). The PRA is required to identify O-SIIs on an annual basis. NatWest Group Plc is part of the PRA’s O-SII list and the O-SII buffer for its ring-fenced sub-group (i.e. NatWest Holdings Group) was kept at 1.5%. The 2023 O-SII rates will apply from 1 January 2025. An O-SII buffer can apply to O-SIIs, or parts of an O-SII that are ring-fenced banks. NatWest Group, as a third-country group with two or more subsidiary banking institutions in the EU, was approved by the European Central Bank (ECB) to establish a dual IPU (Intermediate Parent Undertaking) structure on behalf of its European subsidiaries. As a result, NatWest Bank Europe GmbH, a wholly owned subsidiary of NatWest Holdings Group, will act as the ring-fenced IPU. RBS Holdings N.V., a wholly owned subsidiary of NatWest Markets Plc, will act as the non-ring fenced IPU. Both IPUs became subject to ECB supervision from 1 January 2024. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 230

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 246 Summary of future changes to prudential regulation in UK that may impact NatWest Group The table below covers expected future changes to prudential regulation in the UK which may impact NatWest Group at a consolidated level. Certain entities within the group will be exposed to changes in prudential regulation from other legislative bodies and/or local supervisory authorities where NatWest Group’s entities are authorised (e.g. EU and Jersey) on a solo basis and these changes may be different in substance, scope and timing than those highlighted below. Area of development Key changes Source of changes/implementation date IFRS 9 transitional relief In respect to ECL provisions  IFRS 9 CET1 add-back phased out in period to 31 December 2024  The transitional factor will reduce further from 50% to 25% from January 2024  Implementation: 1 January 2024 Capital – Output floor  Level of application: Applies at highest level of application: Consolidated level for UK Groups; sub-consolidated level for Ring Fenced sub-groups.  Capital stack: Applies to full capital stack including capital buffers.  Transitional period for the application; starting with 50% at 1 July 2025 through to 72.5% at 1 January 2030.  PRA Basel 3.1 CP16/22  Implementation: 1 July 2025 Credit risk (STD, IRB, FIRB)  Significant revisions to standardised credit risk, including to unrated corporates, SMEs, specialised lending, mortgages & equity exposures.  Changes to IRB; restrictions on IRB modelling (switch to standardised on central governments and equities, switch to FIRB on financial institutions and large corporates), inclusion of input floors and other modelling changes.  Removal of SME & Infrastructure supporting factors (IRB & standardised).  Amendments to credit risk mitigation, including the withdrawal of some internal modelling approaches, the removal of double default and a new risk weight substitution approach on some exposures.  PRA Basel 3.1 CP16/22  Implementation: 1 July 2025 Market risk  Implementation of FRTB - new standardised & modelled approaches (Expected Shortfall replaces VaR), revised banking/trading book boundary.  Model approval applications are required to be provided during 2024 for standardised MR & CVA.  PRA Basel 3.1 CP16/22  Near final rules published in PRA PS17/23  Implementation: 1 July 2025 CVA & counterparty credit risk  Removal of modelled approach.  New standardised approach, aligned to Basel framework, including the removal of CVA exemptions on sovereigns, non-financial counterparties and pension funds.  Reduced SA-CCR alpha factor from 1.4 to 1 for non-financial counterparties and pension funds.  PRA Basel 3.1 CP16/22  Near final rules published in PRA PS17/23  Implementation: 1 July 2025 Operational risk  New standardised approach  Internal loss multiplier (ILM) set to 1.  Changes to the income requirements in scope of the business indicator.  PRA Basel 3.1 CP16/22  Near final rules published in PRA PS17/23  Implementation: 1 July 2025 Pillar 2  PRA commitment to review Pillar 2A methodologies in 2024, to adjust requirements ahead of implementation of the Pillar 1  PRA Basel 3.1 CP16/22  Implementation: 1 July 2025 Capitalisation of foreign exchange positions for market risk  PRA proposal to clarify that items held at historical foreign exchange rates, which only re-value in certain circumstances, are not included in Pillar 1 foreign exchange risk requirements as their sensitivity to foreign exchange rates is generally zero.  PRA consultation under CP17/23 closes on 31 January 2023  Implementation: 1 July 2025 Identification and management of step-in risk, shadow banking entities and groups of connected clients  PRA proposal to implement Basel guidelines for step-in risk in the PRA Rulebook.  PRA proposal to adopt EBA guidelines for limits on exposures to shadow banking entities and connected clients in the Large Exposures (CRR) part of the PRA Rulebook.  PRA consultation under CP23/23 closes on 5 March 2024  Implementation: 1 January 2026 Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 247 Key points CET1 ratio 13.4% (2022 – 14.2%) MREL £55.8bn (2022 - £55.5bn) RWAs £183.0bn (2022 - £176.1bn) The CET1 ratio decreased 80 basis points due to a £6.9 billion increase in RWAs and a £0.6 billion decrease in CET1. The CET1 capital decrease was mainly driven by  distributions to shareholders of £3.6 billion (210 basis points); consisting of directed buyback of £1.3 billion; an ordinary interim dividend of £0.5 billion; a foreseeable final ordinary dividend of £1.0 billion; and a £0.8 billion decrease for the on-market ordinary share buyback programme, of which £0.5 billion is reported as a foreseeable charge;  a £0.2 billion decrease in the IFRS 9 transitional adjustment, primarily due to the annual update in the dynamic stage transition percentage and the end of transition on the static and historic stages;  an increase in the intangible assets deduction of £0.5 billion;  and other movements on reserves and regulatory adjustments of £0.7 billion. These reductions were partially offset by the £4.4 billion attributable profit in the period. Minimum Requirements of own Funds and eligible Liabilities increased by £0.3 billion to £55.8 billion primarily due to a £0.6 billion decrease in CET1, a £0.1 billion decrease in MREL eligible Tier 2 capital and a £1.0 billion increase in senior unsecured debt. The £0.1 billion decrease in eligible Tier 2 capital is driven by redemptions and foreign exchange movements offset by the issuance of €0.7 billion subordinated debt in the period and other regulatory adjustments. The £1.0 billion increase in senior unsecured debt is driven by new issuances offset by redemptions and foreign exchange movements. Total RWAs increased by £6.9 billion to £183.0 billion mainly reflecting:  an increase in credit risk RWAs of £5.6 billion, driven by an increase in IRB Temporary Model Adjustment related to mortgages within Retail Banking as well as increased exposures within Commercial & Institutional and Retail Banking. This was partially offset by reduced exposures within Ulster Bank RoI as a result of the phased withdrawal from the Republic of Ireland.  an increase in counterparty credit risk RWAs of £1.1 billion, primarily due to the call of a credit default swap trade in Q2 2023 and the subsequent removal of credit risk mitigation.  an increase in operational risk RWAs of £1.1 billion following the annual recalculation.  a reduction in market risk RWAs of £0.9 billion, driven by reduced market volatility in H1 and hedging activity as part of ongoing risk management in Q4 2023. UK leverage ratio 5.0% (2022 – 5.4%) Liquidity portfolio £222.8bn (2022 - £232.6bn) LCR 144% (2022 – 145%) NSFR 133% (2022 – 145%) The leverage ratio decreased by 40 basis points to 5.0%. The decrease was due to a £0.6 billion reduction in Tier 1 capital and a £28.2 billion increase in leverage exposure. The key driver in the leverage exposure was an increase in other financial assets partially offset by a reduction in held for sale assets. The portfolio decreased by £9.8 billion to £222.8 billion, with primary liquidity decreasing by £20.6 billion to £148.1 billion. The decrease in primary liquidity is driven by increased lending and reduced deposits, offset by UBIDAC asset sale and increased certificates of deposit and commercial paper issuance. The growth in secondary liquidity is due to an increase in the pre-positioned collateral at the Bank of England. The Liquidity Coverage Ratio (LCR) decreased to 144% during the year driven by growth in customer lending and reduced customer deposits offset by an increase in wholesale funding and UBIDAC asset sale. The net stable funding ratio (NSFR) decreased 12% during the year to 133% driven by reduced customer deposits and increased lending. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 231

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 247 Key points CET1 ratio 13.4% (2022 – 14.2%) MREL £55.8bn (2022 - £55.5bn) RWAs £183.0bn (2022 - £176.1bn) The CET1 ratio decreased 80 basis points due to a £6.9 billion increase in RWAs and a £0.6 billion decrease in CET1. The CET1 capital decrease was mainly driven by  distributions to shareholders of £3.6 billion (210 basis points); consisting of directed buyback of £1.3 billion; an ordinary interim dividend of £0.5 billion; a foreseeable final ordinary dividend of £1.0 billion; and a £0.8 billion decrease for the on-market ordinary share buyback programme, of which £0.5 billion is reported as a foreseeable charge;  a £0.2 billion decrease in the IFRS 9 transitional adjustment, primarily due to the annual update in the dynamic stage transition percentage and the end of transition on the static and historic stages;  an increase in the intangible assets deduction of £0.5 billion;  and other movements on reserves and regulatory adjustments of £0.7 billion. These reductions were partially offset by the £4.4 billion attributable profit in the period. Minimum Requirements of own Funds and eligible Liabilities increased by £0.3 billion to £55.8 billion primarily due to a £0.6 billion decrease in CET1, a £0.1 billion decrease in MREL eligible Tier 2 capital and a £1.0 billion increase in senior unsecured debt. The £0.1 billion decrease in eligible Tier 2 capital is driven by redemptions and foreign exchange movements offset by the issuance of €0.7 billion subordinated debt in the period and other regulatory adjustments. The £1.0 billion increase in senior unsecured debt is driven by new issuances offset by redemptions and foreign exchange movements. Total RWAs increased by £6.9 billion to £183.0 billion mainly reflecting:  an increase in credit risk RWAs of £5.6 billion, driven by an increase in IRB Temporary Model Adjustment related to mortgages within Retail Banking as well as increased exposures within Commercial & Institutional and Retail Banking. This was partially offset by reduced exposures within Ulster Bank RoI as a result of the phased withdrawal from the Republic of Ireland.  an increase in counterparty credit risk RWAs of £1.1 billion, primarily due to the call of a credit default swap trade in Q2 2023 and the subsequent removal of credit risk mitigation.  an increase in operational risk RWAs of £1.1 billion following the annual recalculation.  a reduction in market risk RWAs of £0.9 billion, driven by reduced market volatility in H1 and hedging activity as part of ongoing risk management in Q4 2023. UK leverage ratio 5.0% (2022 – 5.4%) Liquidity portfolio £222.8bn (2022 - £232.6bn) LCR 144% (2022 – 145%) NSFR 133% (2022 – 145%) The leverage ratio decreased by 40 basis points to 5.0%. The decrease was due to a £0.6 billion reduction in Tier 1 capital and a £28.2 billion increase in leverage exposure. The key driver in the leverage exposure was an increase in other financial assets partially offset by a reduction in held for sale assets. The portfolio decreased by £9.8 billion to £222.8 billion, with primary liquidity decreasing by £20.6 billion to £148.1 billion. The decrease in primary liquidity is driven by increased lending and reduced deposits, offset by UBIDAC asset sale and increased certificates of deposit and commercial paper issuance. The growth in secondary liquidity is due to an increase in the pre-positioned collateral at the Bank of England. The Liquidity Coverage Ratio (LCR) decreased to 144% during the year driven by growth in customer lending and reduced customer deposits offset by an increase in wholesale funding and UBIDAC asset sale. The net stable funding ratio (NSFR) decreased 12% during the year to 133% driven by reduced customer deposits and increased lending. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 232

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 248 Minimum requirements Maximum Distributable Amount (MDA) and Minimum Capital Requirements NatWest Group is subject to minimum capital requirements relative to RWAs. The table below summarises the minimum capital requirements (the sum of Pillar 1 and Pillar 2A), and the additional capital buffers which are held in excess of the regulatory minimum requirements and are usable in stress. Where the CET1 ratio falls below the sum of the minimum capital and the combined buffer requirement, there is a subsequent automatic restriction on the amount available to service discretionary payments (including AT1 coupons), known as the MDA. Note that different capital requirements apply to individual legal entities or sub-groups and the table shown does not reflect any incremental PRA buffer requirements, which are not disclosable. The current capital position provides significant headroom above both our minimum requirements and our MDA threshold requirements. Type CET1 Total Tier 1 Total capital Pillar 1 requirements 4.5% 6.0% 8.0% Pillar 2A requirements 1.8% 2.4% 3.2% Minimum Capital Requirements 6.3% 8.4% 11.2% Capital conservation buffer 2.5% 2.5% 2.5% Countercyclical capital buffer (1) 1.7% 1.7% 1.7% MDA threshold (2) 10.5% n/a n/a Overall capital requirement 10.5% 12.6% 15.4% Capital ratios at 31 December 2023 13.4% 15.5% 18.4% Headroom (3) (4) 2.9% 2.9% 3.0% (1) The Financial Policy Committee increased the UK CCyB rate from 1% to 2% effective from 5 July 2023. The Central Bank of Ireland increased CCyB on Irish exposures from 0% to 0.5% applicable 15 June 2023 and 1% from 24 November 2023. A further increase to 1.5% will be effective 7 June 2024. (2) Pillar 2A requirements for NatWest Group are set as a variable amount with the exception of some fixed add-ons. (3) The headroom does not reflect excess distributable capital and may vary over time. (4) Headroom as at 31 December 2022 was CET1 4.7%, Total Tier 1 4.8% and Total Capital 5.0%. Leverage ratios The table below summarises the minimum ratios of capital to leverage exposure under the binding PRA UK leverage framework applicable for NatWest Group. Type CET1 Total Tier 1 Minimum ratio 2.44% 3.25% Countercyclical leverage ratio buffer (1) 0.6% 0.6% Total 3.04% 3.85% (1) The countercyclical leverage ratio buffer is set at 35% of NatWest Group’s CCyB. The UK CCyB increased from 1% to 2% from 5 July 2023. Foreign exposure may be subject to different CCyB rates depending on the rates set in those jurisdictions. Liquidity and funding ratios The table below summarises the minimum requirements for key liquidity and funding metrics under the PRA framework. Type Liquidity Coverage Ratio (LCR) 100% Net Stable Funding Ratio (NSFR) 100% Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 249 Measurement Capital, risk-weighted assets and leverage: Key metrics The table below sets out the key capital and leverage ratios. NatWest Group is subject to the requirements set out in the PRA Rulebook. The capital and leverage ratios are therefore being presented under these frameworks on a transitional basis. 2023 2022 Capital adequacy ratios (1) % % CET1 13.4 14.2 Tier 1 15.5 16.4 Total 18.4 19.3 RWAs £m £m Credit risk 147,598 141,963 Counterparty credit risk 7,830 6,723 Market risk 7,363 8,300 Operational risk 20,198 19,115 Total RWAs 182,989 176,101 Capital £m £m CET1 24,440 24,992 Tier1 28,315 28,867 Total 33,632 33,920 Leverage ratios £m £m Tier 1 capital 28,315 28,867 UK leverage exposure 562,843 534,613 UK leverage ratio (%) (2) 5.0% 5.4% UK average Tier 1 capital (3) 28,323 29,564 UK average leverage exposure (3) 571,225 531,429 UK average leverage ratio (%) (3) 5.0% 5.6% (1) 31 December 2023 includes the transitional arrangements for the capital impact of IFRS 9 expected credit loss (ECL) accounting and prior periods also include the transitional relief on grandfathered capital instruments. The impact of the IFRS 9 transitional adjustments at 31 December 2023 was £0.2 billion for CET1 capital, £54 million for total capital and £17 million RWAs (31 December 2022 - £0.4 billion CET1 capital, £36 million total capital and £71 million RWAs). Excluding these adjustments, the CET1 ratio would be 13.2% (31 December 2022 - 14.0%). The transitional relief on grandfathered instruments at 31 December 2023 was nil (31 December 2022 - £0.1 billion). Excluding both the transitional relief on grandfathered capital instruments and the transitional arrangements for the capital impact of IFRS 9 expected credit loss (ECL) accounting, the end-point Tier 1 capital ratio would be 15.4% (31 December 2022 – 16.2%) and the end-point Total capital ratio would be 18.4% (31 December 2022 – 19.3%). (2) The UK leverage exposure and transitional Tier 1 capital are calculated in accordance with current PRA rules. Excluding the IFRS 9 transitional adjustment, the UK leverage ratio would be 5.0% (31 December 2022 – 5.3%). (3) Based on the daily average of on-balance sheet items and three month-end average of off-balance sheet items and Tier 1 capital. Capital flow statement The table below analyses the movement in CET1, AT1 and Tier 2 capital for the year ended 31 December 2023. It is being presented on a transitional basis based on current PRA rules. CET1 AT1 Tier 2 Total £m £m £m £m At 31 December 2022 24,992 3,875 5,053 33,920 Attributable profit for the period 4,394 4,394 Ordinary interim dividend paid (491) (491) Directed buyback (1,259) (1,259) Foreseeable ordinary dividends (1,013) (1,013) Foreseeable charges (870) (870) Foreign exchange reserve (637) (637) FVOCI reserve 53 53 Own credit 48 48 Share capital and reserve movements in respect of employee share schemes 93 93 Goodwill and intangibles deduction (498) (498) Deferred tax assets (67) (67) Prudential valuation adjustments (4) (4) Net dated subordinated debt instruments 269 269 Foreign exchange movements (115) (115) Adjustment under IFRS 9 transitional arrangements (159) (159) Other movements (142) 110 (32) At 31 December 2023 24,440 3,875 5,317 33,632  For CET1 movements refer to the key points on page 247.  Tier 2 movements of £0.2 billion include an increase of £0.6 billion for a €0.7 billion 5.763% Fixed to Fixed Reset Tier 2 Notes 2034 issued in February 2023, partially offset by the £0.1 billion redemption of the UBIDAC subordinated notes, £0.1 billion partial redemption of 5.125% Subordinated Tier 2 Notes 2024, £0.1 billion redemption of 6.000% Subordinated Tier 2 Notes 2023, amortisation, foreign exchange movements £0.1 billion and maturities with minimum regulatory value.  Within Tier 2, there was also a £0.1 billion increase in the Tier 2 surplus provisions. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 233

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 249 Measurement Capital, risk-weighted assets and leverage: Key metrics The table below sets out the key capital and leverage ratios. NatWest Group is subject to the requirements set out in the PRA Rulebook. The capital and leverage ratios are therefore being presented under these frameworks on a transitional basis. 2023 2022 Capital adequacy ratios (1) % % CET1 13.4 14.2 Tier 1 15.5 16.4 Total 18.4 19.3 RWAs £m £m Credit risk 147,598 141,963 Counterparty credit risk 7,830 6,723 Market risk 7,363 8,300 Operational risk 20,198 19,115 Total RWAs 182,989 176,101 Capital £m £m CET1 24,440 24,992 Tier1 28,315 28,867 Total 33,632 33,920 Leverage ratios £m £m Tier 1 capital 28,315 28,867 UK leverage exposure 562,843 534,613 UK leverage ratio (%) (2) 5.0% 5.4% UK average Tier 1 capital (3) 28,323 29,564 UK average leverage exposure (3) 571,225 531,429 UK average leverage ratio (%) (3) 5.0% 5.6% (1) 31 December 2023 includes the transitional arrangements for the capital impact of IFRS 9 expected credit loss (ECL) accounting and prior periods also include the transitional relief on grandfathered capital instruments. The impact of the IFRS 9 transitional adjustments at 31 December 2023 was £0.2 billion for CET1 capital, £54 million for total capital and £17 million RWAs (31 December 2022 - £0.4 billion CET1 capital, £36 million total capital and £71 million RWAs). Excluding these adjustments, the CET1 ratio would be 13.2% (31 December 2022 - 14.0%). The transitional relief on grandfathered instruments at 31 December 2023 was nil (31 December 2022 - £0.1 billion). Excluding both the transitional relief on grandfathered capital instruments and the transitional arrangements for the capital impact of IFRS 9 expected credit loss (ECL) accounting, the end-point Tier 1 capital ratio would be 15.4% (31 December 2022 – 16.2%) and the end-point Total capital ratio would be 18.4% (31 December 2022 – 19.3%). (2) The UK leverage exposure and transitional Tier 1 capital are calculated in accordance with current PRA rules. Excluding the IFRS 9 transitional adjustment, the UK leverage ratio would be 5.0% (31 December 2022 – 5.3%). (3) Based on the daily average of on-balance sheet items and three month-end average of off-balance sheet items and Tier 1 capital. Capital flow statement The table below analyses the movement in CET1, AT1 and Tier 2 capital for the year ended 31 December 2023. It is being presented on a transitional basis based on current PRA rules. CET1 AT1 Tier 2 Total £m £m £m £m At 31 December 2022 24,992 3,875 5,053 33,920 Attributable profit for the period 4,394 4,394 Ordinary interim dividend paid (491) (491) Directed buyback (1,259) (1,259) Foreseeable ordinary dividends (1,013) (1,013) Foreseeable charges (870) (870) Foreign exchange reserve (637) (637) FVOCI reserve 53 53 Own credit 48 48 Share capital and reserve movements in respect of employee share schemes 93 93 Goodwill and intangibles deduction (498) (498) Deferred tax assets (67) (67) Prudential valuation adjustments (4) (4) Net dated subordinated debt instruments 269 269 Foreign exchange movements (115) (115) Adjustment under IFRS 9 transitional arrangements (159) (159) Other movements (142) 110 (32) At 31 December 2023 24,440 3,875 5,317 33,632  Tier 2 movements of £0.2 billion include an increase of £0.6 billion for a €0.7 billion 5.763% Fixed to Fixed Reset Tier 2 Notes 2034 issued in February 2023, partially offset by the £0.1 billion redemption of the UBIDAC subordinated notes, £0.1 billion partial redemption of 5.125% Subordinated Tier 2 Notes 2024, £0.1 billion redemption of 6.000% Subordinated Tier 2 Notes 2023, amortisation, foreign exchange movements £0.1 billion and maturities with minimum regulatory value.  Within Tier 2, there was also a £0.1 billion increase in the Tier 2 surplus provisions. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION  For CET1 movements refer to the key points on page 232. NatWest Group 2023 Annual Report on Form 20-F 234

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 250 Risk-weighted assets The table below analyses the movement in RWAs during the year, by key drivers. Credit Counterparty Market Operational risk credit risk risk risk Total £bn £bn £bn £bn £bn At 31 December 2022 142.0 6.7 8.3 19.1 176.1 Foreign exchange movement (0.9) - - - (0.9) Business movement 8.4 0.2 (0.9) 1.1 8.8 Risk parameter changes (1.9) - - - (1.9) Model updates 3.0 - - - 3.0 Other movement - 0.9 - - 0.9 Acquisitions and disposals (3.0) - - - (3.0) At 31 December 2023 147.6 7.8 7.4 20.2 183.0 The table below analyses the movement in RWAs by segment during the year. Retail Private Commercial & Central items Total NatWest Banking Banking Institutional & other (1) Group Total RWAs £bn £bn £bn £bn £bn At 31 December 2022 54.7 11.2 103.2 7.0 176.1 Foreign exchange movement - - (0.8) (0.1) (0.9) Business movement 3.6 - 6.3 (1.1) 8.8 Risk parameter changes - - (1.9) - (1.9) Model updates 3.3 - (0.3) - 3.0 Other movement - - 0.9 - 0.9 Acquisitions and disposals - - - (3.0) (3.0) At 31 December 2023 61.6 11.2 107.4 2.8 183.0 Credit risk 53.9 9.8 81.9 2.0 147.6 Counterparty credit risk 0.3 - 7.5 - 7.8 Market risk 0.2 - 7.2 - 7.4 Operational risk 7.2 1.4 10.8 0.8 20.2 Total RWAs 61.6 11.2 107.4 2.8 183.0 (1) £1.4 billion of Central items & other relates to Ulster RoI. Total RWAs increased by £6.9 billion during the period mainly reflecting:  Business movements totalling £8.8 billion, primarily driven by increased credit risk exposures within Commercial & Institutional and Retail Banking. There is an additional increase following the annual recalculation of operational risk RWAs. This was partially offset by a reduction in market risk RWAs reflecting reduced market volatility and tighter risk management in Q4 2023.  Model updates totalling £3.0 billion, driven by IRB Temporary Model Adjustment related to mortgages within Retail Banking with a partial offset within Commercial & Institutional.  Other changes of £0.9 billion, driven by the termination of portfolio credit default swap resulting in removal of the CRM benefit.  Disposals relating to the phased withdrawal from the Republic of Ireland, reducing RWAs by £3.0 billion.  Risk parameters reflecting changes in regulatory treatment for certain structured transactions, reducing RWAs by £1.9 billion. Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 251 Leverage exposure The leverage metrics for UK entities are calculated in accordance with the Leverage ratio (CRR) part of the PRA Rulebook. 31 December 31 December 2023 2022 £m £m Cash and balances at central banks 104,262 144,832 Trading assets 45,551 45,577 Derivatives 78,904 99,545 Financial assets 439,449 404,374 Other assets 23,605 18,864 Assets of disposal groups 902 6,861 Total assets 692,673 720,053 Derivatives - netting and variation margin (79,299) (100,356) - potential future exposures 17,212 18,327 Securities financing transactions gross up 1,868 4,147 Other off balance sheet items 50,961 46,144 Regulatory deductions and other adjustments (16,043) (7,114) Claims on central banks (100,735) (141,144) Exclusion of bounce back loans (3,794) (5,444) UK leverage exposure 562,843 534,613 UK leverage ratio (%) 5.0 5.4 Liquidity key metrics The table below sets out the key liquidity and related metrics monitored by NatWest Group. 2023 2022 NatWest Group UK DoLSub NatWest Group UK DoLSub Liquidity Coverage Ratio 144% 138% 145% 131% Stressed Outflow Coverage (1) 153% 143% 150% 131% Net Stable Funding Ratio 133% 126% 145% 137% (1) NatWest Group’s Stressed Outflow Coverage (SOC) is an internal measure calculated by reference to liquid assets as a percentage of net stressed contractual and behavioural outflows over three months under the worst of three severe stress scenarios of a market-wide stress, an idiosyncratic stress and a combination of both as per ILAAP. This assessment is performed in accordance with PRA guidance. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 235

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 251 Leverage exposure The leverage metrics for UK entities are calculated in accordance with the Leverage ratio (CRR) part of the PRA Rulebook. 31 December 31 December 2023 2022 £m £m Cash and balances at central banks 104,262 144,832 Trading assets 45,551 45,577 Derivatives 78,904 99,545 Financial assets 439,449 404,374 Other assets 23,605 18,864 Assets of disposal groups 902 6,861 Total assets 692,673 720,053 Derivatives - netting and variation margin (79,299) (100,356) - potential future exposures 17,212 18,327 Securities financing transactions gross up 1,868 4,147 Other off balance sheet items 50,961 46,144 Regulatory deductions and other adjustments (16,043) (7,114) Claims on central banks (100,735) (141,144) Exclusion of bounce back loans (3,794) (5,444) UK leverage exposure 562,843 534,613 UK leverage ratio (%) 5.0 5.4 Liquidity key metrics The table below sets out the key liquidity and related metrics monitored by NatWest Group. 2023 2022 NatWest Group UK DoLSub NatWest Group UK DoLSub Liquidity Coverage Ratio 144% 138% 145% 131% Stressed Outflow Coverage (1) 153% 143% 150% 131% Net Stable Funding Ratio 133% 126% 145% 137% (1) NatWest Group’s Stressed Outflow Coverage (SOC) is an internal measure calculated by reference to liquid assets as a percentage of net stressed contractual and behavioural outflows over three months under the worst of three severe stress scenarios of a market-wide stress, an idiosyncratic stress and a combination of both as per ILAAP. This assessment is performed in accordance with PRA guidance. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 236

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 252 Minimum requirements of own funds and eligible liabilities (MREL) 2023 2022 Par value (1) Balance sheet value Regulatory value MREL value (3) Par value Balance sheet value Regulatory value (2) MREL value £bn £bn £bn £bn £bn £bn £bn £bn CET1 capital (4) 24.4 24.4 24.4 24.4 25.0 25.0 25.0 25.0 Tier 1 capital: end-point CRR compliant AT1 of which: NatWest Group plc (holdco) 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 of which: NatWest Group plc operating subsidiaries (opcos) - - - - - - - - 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 Tier 1 capital: end-point CRR non-compliant (5) of which: holdco - - - - - - - - of which: opcos 0.1 0.1 - - 0.1 0.1 - - 0.1 0.1 - - 0.1 0.1 - - Tier 2 capital: end-point CRR compliant of which: holdco 5.6 5.3 5.2 5.2 6.0 5.5 4.9 5.4 of which: opcos - - - - 0.1 0.1 - - 5.6 5.3 5.2 5.2 6.1 5.6 4.9 5.4 Tier 2 capital: end-point CRR non compliant (5) of which: holdco - - - - - - - - of which: opcos 0.2 0.3 - - 0.3 0.5 0.1 - 0.2 0.3 - - 0.3 0.5 0.1 - Senior unsecured debt securities of which: holdco 22.2 21.7 - 22.2 23.4 22.3 - 21.2 of which: opcos 33.4 29.9 - - 26.1 22.9 - — 55.6 51.6 - 22.2 49.5 45.2 - 21.2 Tier 2 capital Other regulatory adjustments - - 0.1 0.1 - - - - Total 89.8 85.6 33.6 55.8 84.9 80.3 33.9 55.5 RWAs 183.0 176.1 UK leverage exposure 562.9 534.6 MREL as a ratio of RWAs 30.5% 31.5% MREL as a ratio of UK leverage exposure 9.9% 10.4% (1) Par value reflects the nominal value of securities issued. (2) Regulatory amounts as at December 2022 reported for AT1, Tier 1, and Tier 2 instruments from operating companies incudes grandfathered instrument as per the transitional provisions allowed under CRR2 (until 28 June 2025). 3 Tier 2 instruments from UBIDAC were classified as grandfathered which were redeemed in November 2023. (3) MREL value reflects NatWest Group’s interpretation of the Bank of England’s approach to setting a minimum requirement for own funds and eligible liabilities (MREL), published in December 2021 (Updating June 2018). Liabilities excluded from MREL include instruments with less than one year remaining to maturity, structured debt, operating company senior debt, and other instruments that do not meet the MREL criteria. The MREL calculation includes Tier 1 and Tier 2 securities before the application of any regulatory caps or adjustments. (4) Shareholders’ equity was £37.2 billion (2022 - £36.5 billion). (5) CRR2 non-compliant instruments- as at Dec 2022, all Tier 1 and Tier 2 instruments were grandfathered under CRR2 compliance (until 28 June 2025) were reported under Tier 1 capital: end-point CRR non-compliant and Tier 2 capital: end-point CRR non-compliant category. As at December 2023, we have no grandfathered instrument outstanding. Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 253 Minimum requirements of own funds and eligible liabilities (MREL) continued The following table illustrates the components of the stock of outstanding issuance in NatWest Group and its operating subsidiaries including external and internal issuances. NatWest NWM RBS NatWest Holdings NatWest Securities International Group plc Limited NWB Plc RBS plc UBIDAC NWM Plc Markets N.V. Inc.(6) Limited (7) £bn £bn £bn £bn £bn £bn £bn £bn £bn Additional Tier 1 Externally issued 3.9 - 0.1 - - - - - - Additional Tier 1 Internally issued - 3.7 2.5 0.5 - 0.9 0.2 - 0.3 3.9 3.7 2.6 0.5 - 0.9 0.2 - 0.3 Tier 2 Externally issued 5.3 - - - - - 0.3 - - Tier 2 Internally issued - 4.7 3.6 0.4 - 1.0 0.1 0.3 - 5.3 4.7 3.6 0.4 - 1.0 0.4 0.3 - Senior unsecured Externally issued 21.7 - - - - - - - - Senior unsecured Internally issued - 11.4 6.5 1.4 0.5 3.1 - - 0.3 21.7 11.4 6.5 1.4 0.5 3.1 - - 0.3 Total outstanding issuance 30.9 19.8 12.7 2.3 0.5 5.0 0.6 0.3 0.6 (1) For AT1 & Tier 2, the balances are the IFRS balance sheet carrying amounts, which may differ from the amount which the instrument contributes to regulatory capital. Regulatory balances exclude, for example, issuance costs and fair value movements, while dated capital is required to be amortised on a straight-line basis over the final five years of maturity. (2) Balance sheet amounts reported for AT1 and Tier 2 instruments are before grandfathering restrictions imposed by CRR. (3) Internal issuance for NWB Plc, RBS plc and UBIDAC represents AT1, Tier 2 or Senior unsecured issuance to NatWest Holdings Limited and for NWM N.V. and NWM SI to NWM Plc. (4) The balances are the IFRS balance sheet carrying amounts for Senior unsecured debt category and it does not include CP, CD and short term/medium notes issued from NatWest Group operating subsidiaries (5) The above table does not include CET1 numbers. (6) NWM Securities Inc - regulated under US broker dealer rules. (7) RBS International limited - MREL resolution rules under consultation in Jersey. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION The following table illustrates the components of estimated Minimum requirements of own funds and eligible liabilities (MREL) in NatWest Group and operating subsidiaries and includes external issuances only. The roll-off profile relating to senior debt and subordinated debt instruments is set out on page 239. NatWest Group 2023 Annual Report on Form 20-F 237

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 253 Minimum requirements of own funds and eligible liabilities (MREL) continued The following table illustrates the components of the stock of outstanding issuance in NatWest Group and its operating subsidiaries including external and internal issuances. NatWest NWM RBS NatWest Holdings NatWest Securities International Group plc Limited NWB Plc RBS plc UBIDAC NWM Plc Markets N.V. Inc.(6) Limited (7) £bn £bn £bn £bn £bn £bn £bn £bn £bn Additional Tier 1 Externally issued 3.9 - 0.1 - - - - - - Additional Tier 1 Internally issued - 3.7 2.5 0.5 - 0.9 0.2 - 0.3 3.9 3.7 2.6 0.5 - 0.9 0.2 - 0.3 Tier 2 Externally issued 5.3 - - - - - 0.3 - - Tier 2 Internally issued - 4.7 3.6 0.4 - 1.0 0.1 0.3 - 5.3 4.7 3.6 0.4 - 1.0 0.4 0.3 - Senior unsecured Externally issued 21.7 - - - - - - - - Senior unsecured Internally issued - 11.4 6.5 1.4 0.5 3.1 - - 0.3 21.7 11.4 6.5 1.4 0.5 3.1 - - 0.3 Total outstanding issuance 30.9 19.8 12.7 2.3 0.5 5.0 0.6 0.3 0.6 (1) For AT1 & Tier 2, the balances are the IFRS balance sheet carrying amounts, which may differ from the amount which the instrument contributes to regulatory capital. Regulatory balances exclude, for example, issuance costs and fair value movements, while dated capital is required to be amortised on a straight-line basis over the final five years of maturity. (2) Balance sheet amounts reported for AT1 and Tier 2 instruments are before grandfathering restrictions imposed by CRR. (3) Internal issuance for NWB Plc, RBS plc and UBIDAC represents AT1, Tier 2 or Senior unsecured issuance to NatWest Holdings Limited and for NWM N.V. and NWM SI to NWM Plc. (4) The balances are the IFRS balance sheet carrying amounts for Senior unsecured debt category and it does not include CP, CD and short term/medium notes issued from NatWest Group operating subsidiaries (5) The above table does not include CET1 numbers. (6) NWM Securities Inc - regulated under US broker dealer rules. (7) RBS International limited - MREL resolution rules under consultation in Jersey. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 238

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 254 Roll-off profile The following table illustrates the roll-off profile and weighted average spreads of NatWest Group’s major wholesale funding programmes. As at and for year Roll-off profile Senior debt roll-off profile (1) ended 31 December 2023 H1 2024 H2 2024 2025 2026 2027 & 2028 2029 & later NatWest Group plc - amount (£m) 21,660 - - 2,865 4,385 5,727 8,683 - weighted average rate spread (bps) 182 - - 176 221 167 173 NWM Plc - amount (£m) 20,338 4,014 2,362 5,611 3,785 3,841 725 - weighted average rate spread (bps) 42 69 31 49 41 (7) 122 NatWest Bank Plc - amount (£m) 6,008 5,042 966 - - - - - weighted average rate spread (bps) 36 34 46 - - - - NWM N.V. - amount (£m) 2,193 948 959 65 77 - 144 - weighted average rate spread (bps) (69) (115) (62) (49) 106 - 94 Covered bonds - amount (£m) 2,122 2,122 - - - - - - weighted average rate spread (bps) 158 158 - - - - - Total notes issued - amount (£m) 52,321 12,126 4,287 8,541 8,247 9,568 9,552 Weighted average rate spread (bps) 99 55 14 91 137 99 168 Subordinated debt instruments roll-off profile (2) NatWest Group plc (£m) 5,318 417 574 957 919 1,909 542 NWM Plc (£m) 20 - - - 18 - 2 NWM N.V. (£m) 255 - - - - - 255 Total (£m) 5,593 417 574 957 937 1,909 799 (1) Based on final contractual instrument maturity. (2) Based on first call date of instrument, however this does not indicate NatWest Group’s strategy on capital and funding management. The table above does not include debt accounted Tier 1 instruments although those instruments form part of the total subordinated debt balance. (3) The weighted average spread reflects the average net funding cost to NatWest Group and is calculated on an indicative basis and are quoted over term SONIA at the time of issuance. (4) The roll-off table is based on sterling-equivalent balance sheet values. Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 255 Liquidity portfolio The table below shows the composition of the liquidity portfolio with primary liquidity aligned to high-quality liquid assets on a regulatory LCR basis. Secondary liquidity comprises of assets which are eligible as collateral for local central bank liquidity facilities and do not form part of the LCR eligible high-quality liquid assets. 2023 2022 (7) NatWest Group (1) NWH Group (2) UK DoL Sub NatWest Group NWH Group UK DoL Sub £m £m £m £m £m £m Cash and balances at central banks 99,855 68,495 67,954 142,011 108,047 104,606 High quality government/MDB/PSE and GSE bonds (4) 36,250 26,510 26,510 22,141 11,921 11,714 Extremely high quality covered bonds 4,164 4,164 4,164 2,093 2,092 1,812 LCR level 1 Eligible Assets 140,269 99,169 98,628 166,245 122,060 118,132 LCR level 2 Eligible Assets (5) 7,796 7,320 7,320 2,401 2,072 2,032 Primary liquidity (HQLA) (6) 148,065 106,489 105,948 168,646 124,132 120,164 Secondary liquidity 74,722 74,683 74,683 63,917 63,849 63,849 Total liquidity value 222,787 181,172 180,631 232,563 187,981 184,013 (1) NatWest Group includes the UK Domestic Liquidity Sub-Group (NWB Plc, RBS plc and Coutts & Co) NatWest Markets Plc and other significant operating subsidiaries that hold liquidity portfolios. These include The Royal Bank of Scotland International Limited and NWM N.V. who hold managed portfolios that comply with local regulations that may differ from PRA rules. (2) NWH Group comprises UK DoLSub and NatWest Bank Europe GmbH who hold managed portfolios that comply with local regulations that may differ from PRA rules. (3) NatWest Markets Plc liquidity portfolio is reported in the NatWest Markets Plc Annual Report and Accounts. (4) Multilateral development bank abbreviated to MDB, public sector entities abbreviated to PSE and government sponsored entities abbreviated to GSE. (5) Includes Level 2A and Level 2B. (6) High-quality liquid assets abbreviated to HQLA. (7) Comparative periods have been re-presented on an LCR basis in line with the Liquidity portfolio definition as of 31 December 2023 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 239

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 255 Liquidity portfolio The table below shows the composition of the liquidity portfolio with primary liquidity aligned to high-quality liquid assets on a regulatory LCR basis. Secondary liquidity comprises of assets which are eligible as collateral for local central bank liquidity facilities and do not form part of the LCR eligible high-quality liquid assets. 2023 2022 (7) NatWest Group (1) NWH Group (2) UK DoL Sub NatWest Group NWH Group UK DoL Sub £m £m £m £m £m £m Cash and balances at central banks 99,855 68,495 67,954 142,011 108,047 104,606 High quality government/MDB/PSE and GSE bonds (4) 36,250 26,510 26,510 22,141 11,921 11,714 Extremely high quality covered bonds 4,164 4,164 4,164 2,093 2,092 1,812 LCR level 1 Eligible Assets 140,269 99,169 98,628 166,245 122,060 118,132 LCR level 2 Eligible Assets (5) 7,796 7,320 7,320 2,401 2,072 2,032 Primary liquidity (HQLA) (6) 148,065 106,489 105,948 168,646 124,132 120,164 Secondary liquidity 74,722 74,683 74,683 63,917 63,849 63,849 Total liquidity value 222,787 181,172 180,631 232,563 187,981 184,013 (1) NatWest Group includes the UK Domestic Liquidity Sub-Group (NWB Plc, RBS plc and Coutts & Co) NatWest Markets Plc and other significant operating subsidiaries that hold liquidity portfolios. These include The Royal Bank of Scotland International Limited and NWM N.V. who hold managed portfolios that comply with local regulations that may differ from PRA rules. (2) NWH Group comprises UK DoLSub and NatWest Bank Europe GmbH who hold managed portfolios that comply with local regulations that may differ from PRA rules. (3) NatWest Markets Plc liquidity portfolio is reported in the NatWest Markets Plc Annual Report and Accounts. (4) Multilateral development bank abbreviated to MDB, public sector entities abbreviated to PSE and government sponsored entities abbreviated to GSE. (5) Includes Level 2A and Level 2B. (6) High-quality liquid assets abbreviated to HQLA. (7) Comparative periods have been re-presented on an LCR basis in line with the Liquidity portfolio definition as of 31 December 2023 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 240

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 256 Funding sources (audited) The table below shows the carrying values of the principal funding sources based on contractual maturity. Balance sheet captions include balances held at all classifications under IFRS 9. 2023 2022 Short-term less Long-term more Short-term less Long-term more than 1 year than 1 year Total than 1 year than 1 year Total £m £m £m £m £m £m Bank Deposits Repos 3,118 - 3,118 1,446 - 1,446 Other bank deposits (1) 5,836 13,236 19,072 6,353 12,642 18,995 8,954 13,236 22,190 7,799 12,642 20,441 Customer Deposits Repos 10,844 - 10,844 9,575 254 9,829 Non-bank financial institutions 46,875 13 46,888 50,226 9 50,235 Personal 216,456 6,436 222,892 224,706 1,209 225,915 Corporate 150,718 35 150,753 164,314 25 164,339 424,893 6,484 431,377 448,821 1,497 450,318 Trading liabilities (2) Repos (3) 26,634 268 26,902 23,740 - 23,740 Derivatives collateral 15,075 - 15,075 17,680 - 17,680 Other bank and customer deposits 768 382 1,150 413 654 1,067 Debt securities in issue - Medium term notes 418 288 706 54 743 797 42,895 938 43,833 41,887 1,397 43,284 Other financial liabilities Customer deposits 194 1,086 1,280 253 797 1,050 Debt securities in issue: Commercial paper and certificates of deposit 11,116 205 11,321 5,587 85 5,672 Medium term notes 6,878 32,625 39,503 6,934 31,750 38,684 Covered bonds 2,122 - 2,122 804 2,038 2,842 Securitisation - 863 863 - 859 859 20,310 34,779 55,089 13,578 35,529 49,107 Subordinated liabilities 1,047 4,667 5,714 974 5,286 6,260 Total funding 498,099 60,104 558,203 513,059 56,351 569,410 Of which: available in resolution (4) - - 26,561 - - 24,899 (1) Includes £12.0 billion (2022 – £12.0 billion) relating to Term Funding Scheme with additional incentives for Small and Medium-sized Enterprises participation. (2) Excludes short positions of £9.8 billion (2022 – £9.5 billion). (3) Comprises central & other bank repos of £4.0 billion (2022 – £1.6 billion), other financial institution repos of £20.4 billion (2022 – £19.4 billion) and other corporate repos of £2.5 billion (2022 – £2.7 billion). (4) Eligible liabilities (as defined in the Banking Act 2009 as amended from time to time) that meet the eligibility criteria set out in the regulations, rules, policies, guidelines, or statements of the Bank of England including the Statement of Policy published by the Bank of England in December 2021 (updating June 2018). The balance consists of £21.7 billion (2022 – £20.0 billion) under debt securities in issue (senior MREL) and £4.9 billion (2022 – £4.9 billion) under subordinated liabilities. Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 257 Contractual maturity (audited) This table shows the residual maturity of financial instruments, based on contractual date of maturity of NatWest Group’s banking activities, including hedging derivatives. Trading activities, comprising mandatory fair value through profit or loss (MFVTPL) assets and held-for-trading (HFT) liabilities have been excluded from the maturity analysis and are shown in total in the table below. Banking activities Less than 6 months- More than Trading 1 months 1-3 months 3-6 months 1 year Subtotal 1-3 years 3-5 years 5 years Total activities Total 2023 £m £m £m £m £m £m £m £m £m £m £m Cash and balances at central banks 104,262 - - - 104,262 - - - 104,262 - 104,262 Trading assets - - - - - - - - - 45,551 45,551 Derivatives (1) (4) (5) (4) (14) 42 84 1 113 78,791 78,904 Settlement balances 7,231 - - - 7,231 - - - 7,231 - 7,231 Loans to banks - amortised cost 5,120 90 1,429 11 6,650 14 250 - 6,914 - 6,914 Loans to customers - amortised cost (1) 34,507 20,130 13,602 23,299 91,538 60,679 43,477 189,266 384,960 - 384,960 Personal 4,643 2,337 3,201 6,133 16,314 23,138 21,203 162,890 223,545 - 223,545 Corporate 19,226 4,551 4,569 7,787 36,133 28,661 20,020 24,679 109,493 - 109,493 Non-bank financial institutions 10,638 13,242 5,832 9,379 39,091 8,880 2,254 1,697 51,922 - 51,922 Other financial assets 2,278 1,835 2,669 2,920 9,702 10,929 10,815 18,948 50,394 708 51,102 Total financial assets 153,397 22,051 17,695 26,226 219,369 71,664 54,626 208,215 553,874 125,050 678,924 2022 Total financial assets 187,577 18,259 16,461 25,223 247,520 68,679 50,450 187,808 554,457 145,766 700,223 (1) Loans to customers excludes £3.5 billion (2022 - £3.3 billion) of impairment provisions. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 241

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 257 Contractual maturity (audited) This table shows the residual maturity of financial instruments, based on contractual date of maturity of NatWest Group’s banking activities, including hedging derivatives. Trading activities, comprising mandatory fair value through profit or loss (MFVTPL) assets and held-for-trading (HFT) liabilities have been excluded from the maturity analysis and are shown in total in the table below. Banking activities Less than 6 months- More than Trading 1 months 1-3 months 3-6 months 1 year Subtotal 1-3 years 3-5 years 5 years Total activities Total 2023 £m £m £m £m £m £m £m £m £m £m £m Cash and balances at central banks 104,262 - - - 104,262 - - - 104,262 - 104,262 Trading assets - - - - - - - - - 45,551 45,551 Derivatives (1) (4) (5) (4) (14) 42 84 1 113 78,791 78,904 Settlement balances 7,231 - - - 7,231 - - - 7,231 - 7,231 Loans to banks - amortised cost 5,120 90 1,429 11 6,650 14 250 - 6,914 - 6,914 Loans to customers - amortised cost (1) 34,507 20,130 13,602 23,299 91,538 60,679 43,477 189,266 384,960 - 384,960 Personal 4,643 2,337 3,201 6,133 16,314 23,138 21,203 162,890 223,545 - 223,545 Corporate 19,226 4,551 4,569 7,787 36,133 28,661 20,020 24,679 109,493 - 109,493 Non-bank financial institutions 10,638 13,242 5,832 9,379 39,091 8,880 2,254 1,697 51,922 - 51,922 Other financial assets 2,278 1,835 2,669 2,920 9,702 10,929 10,815 18,948 50,394 708 51,102 Total financial assets 153,397 22,051 17,695 26,226 219,369 71,664 54,626 208,215 553,874 125,050 678,924 2022 Total financial assets 187,577 18,259 16,461 25,223 247,520 68,679 50,450 187,808 554,457 145,766 700,223 (1) Loans to customers excludes £3.5 billion (2022 - £3.3 billion) of impairment provisions. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 242

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 258 Contractual maturity (audited) Banking activities Less than More than Trading 1 months 1-3 months 3-6 months 6 months - 1 year Subtotal 1-3 years 3-5 years 5 years Total activities Total 2023 £m £m £m £m £m £m £m £m £m £m £m Bank deposits excluding repos 4,822 217 527 270 5,836 5,036 8,200 - 19,072 - 19,072 Bank repos 2,649 469 - - 3,118 - - - 3,118 - 3,118 Customer repos 8,287 32 2,029 496 10,844 - - - 10,844 - 10,844 Customer deposits excluding repos 364,492 20,485 13,501 15,571 414,049 6,456 9 19 420,533 - 420,533 Personal 193,523 4,574 6,163 12,196 216,456 6,433 3 - 222,892 - 222,892 Corporate 129,939 11,376 6,656 2,747 150,718 13 3 19 150,753 - 150,753 Non-bank financial institutions 41,030 4,535 682 628 46,875 10 3 - 46,888 - 46,888 Settlement balances 6,645 - - - 6,645 - - - 6,645 - 6,645 Trading liabilities - - - - - - - - - 53,636 53,636 Derivatives 14 14 23 63 114 125 20 10 269 72,126 72,395 Other financial liabilities 2,797 5,918 6,379 5,216 20,310 17,496 12,590 4,693 55,089 - 55,089 CPs and CDs 1,673 3,222 3,860 2,361 11,116 205 - - 11,321 - 11,321 Medium term notes 50 2,674 1,416 2,738 6,878 16,188 11,953 4,484 39,503 - 39,503 Covered bonds 1,047 - 1,075 - 2,122 - - - 2,122 - 2,122 Securitisations - - - - - 297 377 189 863 - 863 Customer deposits DFV 27 22 28 117 194 806 260 20 1,280 - 1,280 Subordinated liabilities - 43 431 573 1,047 1,877 1,874 916 5,714 - 5,714 Notes in circulation 3,237 - - - 3,237 - - - 3,237 - 3,237 Lease liabilities 14 17 24 47 102 156 94 318 670 - 670 Total financial liabilities 392,957 27,195 22,914 22,236 465,302 31,146 22,787 5,956 525,191 125,762 650,953 2022 Total financial liabilities 436,251 19,253 12,620 8,483 476,607 26,194 20,782 9,023 532,606 146,723 679,329 Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 259 Senior notes and subordinated liabilities - residual maturity profile by instrument type (audited) The table below shows NatWest Group’s debt securities in issue and subordinated liabilities by residual maturity. Trading liabilities Other financial liabilities Debt securities in issue Debt securities Commercial Covered Subordinated Total notes in issue MTNs paper and CDs MTNs bonds Securitisation liabilities Total in issue 2023 £m £m £m £m £m £m £m £m Less than 1 year 418 11,116 6,878 2,122 - 1,047 21,163 21,581 1-3 years 48 205 16,188 - 297 1,877 18,567 18,615 3-5 years - - 11,953 - 376 1,874 14,203 14,203 More than 5 years 240 - 4,484 - 190 916 5,590 5,830 Total 706 11,321 39,503 2,122 863 5,714 59,523 60,229 2022 Less than 1 year 54 5,587 6,934 804 - 974 14,299 14,353 1-3 years 475 73 15,161 2,038 296 2,195 19,763 20,238 3-5 years 35 12 9,989 - 375 1,458 11,834 11,869 More than 5 years 233 - 6,600 - 188 1,633 8,421 8,654 Total 797 5,672 38,684 2,842 859 6,260 54,317 55,114 The table below shows the currency breakdown. GBP USD EUR Other Total 2023 £m £m £m £m £m Commercial paper and CDs 4,599 3,015 3,707 - 11,321 MTNs 4,421 17,214 15,496 3,078 40,209 Covered bonds 1,047 - 1,075 - 2,122 Securitisation 863 - - - 863 Subordinated liabilities 2,675 1,551 1,488 - 5,714 Total 13,605 21,780 21,766 3,078 60,229 2022 10,897 22,399 19,050 2,768 55,114 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 243

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 259 Senior notes and subordinated liabilities - residual maturity profile by instrument type (audited) The table below shows NatWest Group’s debt securities in issue and subordinated liabilities by residual maturity. Trading liabilities Other financial liabilities Debt securities in issue Debt securities Commercial Covered Subordinated Total notes in issue MTNs paper and CDs MTNs bonds Securitisation liabilities Total in issue 2023 £m £m £m £m £m £m £m £m Less than 1 year 418 11,116 6,878 2,122 - 1,047 21,163 21,581 1-3 years 48 205 16,188 - 297 1,877 18,567 18,615 3-5 years - - 11,953 - 376 1,874 14,203 14,203 More than 5 years 240 - 4,484 - 190 916 5,590 5,830 Total 706 11,321 39,503 2,122 863 5,714 59,523 60,229 2022 Less than 1 year 54 5,587 6,934 804 - 974 14,299 14,353 1-3 years 475 73 15,161 2,038 296 2,195 19,763 20,238 3-5 years 35 12 9,989 - 375 1,458 11,834 11,869 More than 5 years 233 - 6,600 - 188 1,633 8,421 8,654 Total 797 5,672 38,684 2,842 859 6,260 54,317 55,114 The table below shows the currency breakdown. GBP USD EUR Other Total 2023 £m £m £m £m £m Commercial paper and CDs 4,599 3,015 3,707 - 11,321 MTNs 4,421 17,214 15,496 3,078 40,209 Covered bonds 1,047 - 1,075 - 2,122 Securitisation 863 - - - 863 Subordinated liabilities 2,675 1,551 1,488 - 5,714 Total 13,605 21,780 21,766 3,078 60,229 2022 10,897 22,399 19,050 2,768 55,114 STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 244

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 260 Funding gap: maturity and segment analysis The contractual maturity of loans to customers and customer deposits are shown below. The table demonstrates the maturity transformation role being performed by NatWest Group of lending long-term whilst relying largely on short-term funding. This is possible as the behavioural profiles of many customer deposits, which tend to be repayable on demand, show longer maturity and greater stability than their contractual agreements. NatWest Group forms expectations on customer behaviours through both qualitative and quantitative techniques, incorporating observed customer behaviours over historic time periods, which includes the more recent periods of interest rate change. Customer behaviour assumptions are approved by the Natwest Group Balance Sheet Committee and have been used to prepare the funding gap analysis, which reduces maturity mismatch across the periods shown. Contractual maturity Behavioural maturity Loans to customers (1) Customer deposits Net surplus/(gap) Net surplus/(gap) Greater Greater Greater Greater Less than 1-5 than Less than 1-5 than Less than 1-5 than Less than 1-5 than 1 year years 5 years Total 1 year years 5 years Total 1 year years 5 years Total 1 year years 5 years Total 2023 £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn Retail Banking 12 41 152 205 182 6 - 188 170 (35) (152) (17) (5) (6) (6) (17) Private Banking 3 6 9 18 38 - - 38 35 (6) (9) 20 16 6 (2) 20 Commercial & Institutional 51 58 28 137 199 1 - 200 148 (57) (28) 63 15 50 (2) 63 Central items & other - - - - 2 - - 2 2 - - 2 2 - - 2 Total 66 105 189 360 421 7 - 428 355 (98) (189) 68 28 50 (10) 68 2022 Total 73 103 180 356 450 2 - 452 377 (101) (180) 96 12 74 10 96 (1) Loans to customers and customer deposits include trading assets and trading liabilities respectively and excludes reverse repos and repos.  The net customer funding surplus has decreased by £28 billion during 2023 to £68 billion driven by a £24 billion decline in deposits and a £4 billion increase in loans to customers.  During 2023 there was a change in the customer deposit mix with a shift from instant access and current account to term products, with additional prudence applied to customer account depositor behavioural assumptions. Encumbrance (audited) NatWest Group evaluates the extent to which assets can be financed in a secured form (encumbrance), but certain asset types lend themselves more readily to encumbrance. The typical characteristics that support encumbrance are an ability to pledge those assets to another counterparty or entity through operation of law without necessarily requiring prior notification, homogeneity, predictable and measurable cash flows, and a consistent and uniform underwriting and collection process. Retail assets including residential mortgages, credit card receivables and personal loans display many of these features. NatWest Group categorises its assets into four broad groups, those that are:  Already encumbered and used to support funding currently in place through own-asset securitisations, covered bonds and securities repurchase agreements.  Pre-positioned with central banks as part of funding schemes and those encumbered under such schemes.  Ring-fenced to meet regulatory requirements, where NatWest Group has in place an operational continuity in resolution (OCIR) investment mandate wherein the PRA requires critical service providers to hold segregated liquidity buffers covering at least 50% of their annual fixed overheads.  Unencumbered. In this category, NatWest Group has in place an enablement programme which seeks to identify assets capable of being encumbered and to identify the actions to facilitate such encumbrance whilst not affecting customer relationships or servicing. Programmes to manage the use of assets to actively support funding are established within UK DoLSub and NatWest Markets Plc. Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 261 Balance sheet encumbrance The table shows the retained encumbered assets of NatWest Group. Encumbered as a result of transactions with Unencumbered assets not pre-positioned with central banks counterparties other than central banks Pre-positioned Collateral SFT, & encumbered ring-fenced to Covered derivatives and Total assets held at meet regulatory Readily Other Cannot debts other (1,2) central banks requirement available available (3) be used (4) Total Total (5) 2023 £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn Cash and balances at central banks - 5.1 5.1 - - 99.2 - - 99.2 104.3 Trading assets - 18.9 18.9 - - 2.5 0.5 23.7 26.7 45.6 Derivatives 78.9 78.9 78.9 Settlement balances 7.2 7.2 7.2 Loans to banks - amortised cost - 0.1 0.1 - - 5.3 0.7 0.8 6.8 6.9 Loans to customers - amortised cost (6) 13.4 0.3 13.7 112.0 - 84.9 122.3 48.5 255.7 381.4 Other financial assets (7) - 15.3 15.3 - 1.9 31.9 0.3 1.7 33.9 51.1 Intangible assets 7.6 7.6 7.6 Other assets - - - - - - 2.5 6.3 8.8 8.8 Assets of disposal groups (8) - - - - - - - 0.9 0.9 0.9 Total assets 13.4 39.7 53.1 112.0 1.9 223.8 126.3 175.6 525.7 692.7 2022 Total assets 11.5 33.8 45.3 99.9 1.8 260.1 127.1 185.8 573.0 720.0 (1) Repos and other secured deposits, cash, coin and nostro balance held with the Bank of England as collateral against deposits and notes in circulation are included here rather than within those positioned at the central bank as they are part of normal banking operations. Securities financing transactions (SFT) include collateral given to secure derivative liabilities. (2) Derivative cash collateral of £9.9 billion (2022 - £13 billion) has been included in the encumbered assets. (3) Other assets that are capable of being encumbered are those assets on the balance sheet that are available for funding and collateral purposes but are not readily realisable in their current form. These assets include loans that could be pre-positioned with central banks but have not been subject to internal and external documentation review and diligence work. (4) Cannot be used includes: a) Derivatives, reverse repurchase agreements and trading related settlement balances. b) Non-financial assets such as intangibles, prepayments and deferred tax. c) Loans that are not encumbered and cannot be pre-positioned with central banks on criteria set by the central banks, including those relating to date of origination and level of documentation. d) Non-recourse invoice financing balances and certain shipping loans whose terms and structure prohibit their use as collateral. (5) In accordance with market practice, NatWest Group employs securities recognised on the balance sheet, and securities received under reverse repo transactions as collateral for repos. (6) The pre-positioned and encumbered assets held at central banks of £112.0 billion includes the encumbered residential mortgages of £21.6 billion. £70.9 billion of residential UK mortgages are included in £84.9 billion readily available loans to customers. (7) Other financial assets under SFT, derivatives and other include £0.5 billion of debt securities under the continuing control of NWB Plc. This follows the agreement between NWB Plc and the Group Pension Fund to establish a bankruptcy remote reservoir trust to hold these assets. Refer to Note 5 for additional information. (8) The majority of UBIDAC assets are in contracted loan sale agreements as part of its phased withdrawal strategy and are unavailable for any alternative contingent liquidity arrangements. UBIDAC has in place a committed unsecured liquidity line from NatWest Bank to support the withdrawal. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 245

Capital, liquidity and funding risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 261 Balance sheet encumbrance The table shows the retained encumbered assets of NatWest Group. Encumbered as a result of transactions with Unencumbered assets not pre-positioned with central banks counterparties other than central banks Pre-positioned Collateral SFT, & encumbered ring-fenced to Covered derivatives and Total assets held at meet regulatory Readily Other Cannot debts other (1,2) central banks requirement available available (3) be used (4) Total Total (5) 2023 £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn Cash and balances at central banks - 5.1 5.1 - - 99.2 - - 99.2 104.3 Trading assets - 18.9 18.9 - - 2.5 0.5 23.7 26.7 45.6 Derivatives 78.9 78.9 78.9 Settlement balances 7.2 7.2 7.2 Loans to banks - amortised cost - 0.1 0.1 - - 5.3 0.7 0.8 6.8 6.9 Loans to customers - amortised cost (6) 13.4 0.3 13.7 112.0 - 84.9 122.3 48.5 255.7 381.4 Other financial assets (7) - 15.3 15.3 - 1.9 31.9 0.3 1.7 33.9 51.1 Intangible assets 7.6 7.6 7.6 Other assets - - - - - - 2.5 6.3 8.8 8.8 Assets of disposal groups (8) - - - - - - - 0.9 0.9 0.9 Total assets 13.4 39.7 53.1 112.0 1.9 223.8 126.3 175.6 525.7 692.7 2022 Total assets 11.5 33.8 45.3 99.9 1.8 260.1 127.1 185.8 573.0 720.0 (1) Repos and other secured deposits, cash, coin and nostro balance held with the Bank of England as collateral against deposits and notes in circulation are included here rather than within those positioned at the central bank as they are part of normal banking operations. Securities financing transactions (SFT) include collateral given to secure derivative liabilities. (2) Derivative cash collateral of £9.9 billion (2022 - £13 billion) has been included in the encumbered assets. (3) Other assets that are capable of being encumbered are those assets on the balance sheet that are available for funding and collateral purposes but are not readily realisable in their current form. These assets include loans that could be pre-positioned with central banks but have not been subject to internal and external documentation review and diligence work. (4) Cannot be used includes: a) Derivatives, reverse repurchase agreements and trading related settlement balances. b) Non-financial assets such as intangibles, prepayments and deferred tax. c) Loans that are not encumbered and cannot be pre-positioned with central banks on criteria set by the central banks, including those relating to date of origination and level of documentation. d) Non-recourse invoice financing balances and certain shipping loans whose terms and structure prohibit their use as collateral. (5) In accordance with market practice, NatWest Group employs securities recognised on the balance sheet, and securities received under reverse repo transactions as collateral for repos. (6) The pre-positioned and encumbered assets held at central banks of £112.0 billion includes the encumbered residential mortgages of £21.6 billion. £70.9 billion of residential UK mortgages are included in £84.9 billion readily available loans to customers. (7) Other financial assets under SFT, derivatives and other include £0.5 billion of debt securities under the continuing control of NWB Plc. This follows the agreement between NWB Plc and the Group Pension Fund to establish a bankruptcy remote reservoir trust to hold these assets. Refer to Note 5 for additional information. (8) The majority of UBIDAC assets are in contracted loan sale agreements as part of its phased withdrawal strategy and are unavailable for any alternative contingent liquidity arrangements. UBIDAC has in place a committed unsecured liquidity line from NatWest Bank to support the withdrawal. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 246

Market risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 262 Non-traded market risk Definition (audited) Non-traded market risk is the risk to the value of assets or liabilities outside the trading book, or the risk to income, that arises from changes in market prices such as interest rates, foreign exchange rates and equity prices, or from changes in managed rates. Sources of risk (audited) The key sources of non-traded market risk are interest rate risk, credit spread risk, foreign exchange risk, equity risk and accounting volatility risk. For detailed qualitative and quantitative information on each of these risk types, refer to the separate sub-sections following the VaR table below. Key developments in 2023  In the UK, the Bank of England base rate rose from 3.50% at 31 December 2022 to 5.25% at 31 December 2023 as inflation pressures persisted in the short term. However, the five-year sterling overnight index interest rate swap rate rose from 4.10% at 31 December 2022 to a peak of 5.37% in the third quarter of 2023, but fell back to 3.38% at 31 December 2023. The corresponding ten-year rate rose from 3.75% at 31 December 2022 to a peak of 4.68% in the third quarter of 2023, but fell back to 3.29% at 31 December 2023.  Overall, non-traded market risk VaR increased in 2023, on both an average and period-end basis. This was driven by an increase in credit spread VaR, notably in the second half of the year, reflecting increased holdings of bonds in the liquidity portfolio. Interest rate VaR fell slightly in H2, driven by a reduction in the interest rate-sensitive position, particularly in sterling. By the end of 2023, credit spread risk had replaced interest rate risk as the main driver of non-traded market risk VaR.  NatWest Group’s structural hedge notional reduced to £207 billion at 31 December 2023 from £231 billion at 31 December 2022 mainly as a result of lower current account and instant access savings deposits. This also reflected the impact of changes in the deposit mix, whereby customers have moved balances into fixed-term savings accounts. Higher swap rates were reflected in a higher yield on the structural hedge, which rose from 0.98% in 2022 to 1.47% in 2023.  The sensitivity of net interest earnings to a 25-basis-point upward shift in the yield curve was a cumulative £760 million over three years at 31 December 2023, compared to £893 million at 31 December 2022. The main contributors to the reduced sensitivity were lower volumes of managed margin deposits and current accounts, which included the migration to fixed-term savings accounts.  Sterling strengthened against the US dollar, to 1.27 at 31 December 2023 compared to 1.21 at 31 December 2022. It also strengthened against the euro, to 1.15 at 31 December 2023 compared to 1.13 at 31 December 2022. Net investments in foreign operations decreased by £1.8 billion in sterling equivalent terms over the year, mainly reflecting the UBIDAC wind-down. However, after hedging, residual structural foreign currency exposures were broadly stable, decreasing, in sterling equivalent terms, by £0.2 billion. Governance (audited) Responsibility for identifying, measuring, monitoring and controlling market risk arising from non-trading activities lies with the relevant business. Oversight is provided by the independent Risk function. Risk positions are reported regularly to the Executive Risk Committee, the Board Risk Committee, and the Board as well as to the Asset & Liability Management Committee. Non-traded market risk policy sets out the governance and risk management framework. Risk appetite NatWest Group’s qualitative appetite is set out in the non-traded market risk appetite statement. Its quantitative appetite is expressed in terms of value-at-risk (VaR), stressed value-at-risk (SVaR), sensitivity and stress limits, and earnings-at-risk limits. The limits are reviewed to reflect changes in risk appetite, business plans, portfolio composition and the market and economic environments. To ensure approved limits are not breached and that NatWest Group remains within its risk appetite, triggers have been set and are actively managed. Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 263 Risk measurement Non-traded internal VaR (1-day 99%) The following table shows one-day internal banking book value-at-risk (VaR) at a 99% confidence level, split by risk type. VaR values for each year are calculated based on one-day values for each of the 12 month-end reporting dates. NatWest Group’s VaR metrics are explained on page 271. Each of the key risk types are discussed in greater detail in their individual sub-sections following this table. 2023 2022 Average Maximum Minimum Period end Average Maximum Minimum Period end £m £m £m £m £m £m £m £m Interest rate 38.0 63.2 24.6 24.6 30.4 60.7 7.6 37.7 Credit spread 33.1 54.2 20.9 54.2 36.3 86.6 19.9 20.3 Structural foreign exchange rate 11.2 13.6 8.4 12.1 8.9 11.3 6.1 11.3 Equity 14.2 19.0 10.4 10.4 18.1 22.2 13.7 14.7 Pipeline risk (1) 3.3 7.1 1.4 7.1 1.5 4.5 0.3 2.4 Diversification (2) (34.4) (29.9) (36.9) (34.9) Total 65.4 83.4 52.1 78.5 58.3 91.2 45.5 51.5 (1) Pipeline risk is the risk of loss arising from personal customers owning an option to draw down a loan – typically a mortgage – at a committed rate, where interest rate changes may result in greater or fewer customers than anticipated taking up the committed offer. (2) NatWest Group benefits from diversification across various financial instrument types, currencies and markets. The extent of the diversification benefit depends on the correlation between the assets and risk factors in the portfolio at a particular time. The diversification factor is the sum of the VaR on individual risk types less the total portfolio VaR.  Overall, non-traded market risk VaR increased in 2023, on both an average and period-end basis. This was driven by an increase in credit spread VaR, notably in the second half of the year, reflecting increased holdings of bonds in the liquidity portfolio.  Interest rate VaR fell slightly in H2, driven by a reduction in the interest-rate-sensitive position, particularly in sterling.  By the end of 2023, credit spread risk had replaced interest rate risk as the main driver of non-traded market risk VaR. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group is exposed to non-traded market risk through its banking activities and to traded market risk through its trading activities. Non-traded and traded market risk exposures are managed and discussed separately. The non-traded market risk section begins below. The traded market risk section begins on page 254. Pension-related activities also give rise to market risk. Refer to page 259 for more information on risk related to pensions. The risk appetite statements and associated measures are reviewed at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. For further information on risk appetite and risk controls, refer to pages 160 and 161. NatWest Group 2023 Annual Report on Form 20-F 247

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 263 Risk measurement Non-traded internal VaR (1-day 99%) The following table shows one-day internal banking book value-at-risk (VaR) at a 99% confidence level, split by risk type. VaR values for each year are calculated based on one-day values for each of the 12 month-end reporting dates. 2023 2022 Average Maximum Minimum Period end Average Maximum Minimum Period end £m £m £m £m £m £m £m £m Interest rate 38.0 63.2 24.6 24.6 30.4 60.7 7.6 37.7 Credit spread 33.1 54.2 20.9 54.2 36.3 86.6 19.9 20.3 Structural foreign exchange rate 11.2 13.6 8.4 12.1 8.9 11.3 6.1 11.3 Equity 14.2 19.0 10.4 10.4 18.1 22.2 13.7 14.7 Pipeline risk (1) 3.3 7.1 1.4 7.1 1.5 4.5 0.3 2.4 Diversification (2) (34.4) (29.9) (36.9) (34.9) Total 65.4 83.4 52.1 78.5 58.3 91.2 45.5 51.5 (1) Pipeline risk is the risk of loss arising from personal customers owning an option to draw down a loan – typically a mortgage – at a committed rate, where interest rate changes may result in greater or fewer customers than anticipated taking up the committed offer. (2) NatWest Group benefits from diversification across various financial instrument types, currencies and markets. The extent of the diversification benefit depends on the correlation between the assets and risk factors in the portfolio at a particular time. The diversification factor is the sum of the VaR on individual risk types less the total portfolio VaR.  Overall, non-traded market risk VaR increased in 2023, on both an average and period-end basis. This was driven by an increase in credit spread VaR, notably in the second half of the year, reflecting increased holdings of bonds in the liquidity portfolio.  Interest rate VaR fell slightly in H2, driven by a reduction in the interest-rate-sensitive position, particularly in sterling.  By the end of 2023, credit spread risk had replaced interest rate risk as the main driver of non-traded market risk VaR. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group’s VaR metrics are explained on page 250. Each of the key risk types are discussed in greater detail in their individual sub-sections following this table. NatWest Group 2023 Annual Report on Form 20-F 248

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 264 Interest rate risk Non-traded interest rate risk (NTIRR) arises from the provision to customers of a range of banking products with differing interest rate characteristics. When aggregated, these products form portfolios of assets and liabilities with varying degrees of sensitivity to changes in market interest rates. Mismatches can give rise to volatility in net interest income as interest rates vary. NTIRR comprises the following three primary risk types:  Gap risk: arises from the timing of rate changes in non-trading book instruments. The extent of gap risk depends on whether changes to the term structure of interest rates occur consistently across the yield curve (parallel risk) or differentially by period (non-parallel risk).  Basis risk: captures the impact of relative changes in interest rates for financial instruments that have similar tenors but are priced using different interest rate indices, or on the same interest rate indices but with different tenors.  Option risk: arises from option derivative positions or from optional elements embedded in assets, liabilities and/or off-balance sheet items, where NatWest Group or its customer can alter the level and timing of their cash flows. Option risk also includes pipeline risk. To manage exposures within its risk appetite, NatWest Group aggregates interest rate positions and hedges its residual exposure, primarily with interest rate swaps. Structural hedging aims to reduce gap risk and the sensitivity of earnings to interest rate shocks. It also provides some protection against prolonged periods of falling rates. Structural hedging is explained in greater detail below, followed by information on how NatWest Group measures NTIRR from both an economic value-based and an earnings-based perspective. Structural hedging NatWest Group has a significant pool of stable, non and low interest-bearing liabilities, principally comprising current accounts and savings, in addition to its equity and reserves. A proportion of these balances are hedged, either by investing directly in longer-term fixed-rate assets (such as fixed-rate mortgages) or by using interest rate swaps, which are generally booked as cash flow hedges of floating-rate assets, in order to provide a consistent and predictable revenue stream. After hedging the net interest rate exposure externally, NatWest Group allocates income to equity or products in structural hedges by reference to the relevant interest rate swap curve. Over time, this approach has provided a basis for stable income attribution for management purposes to products and interest rate returns. The programme aims to track a time series of medium-term swap rates, but the yield will be affected by changes in product volumes and NatWest Group’s equity capital. The table below shows hedge income, total yield, incremental income and the period-end and average notional balances allocated to equity and products in respect of the structural hedges managed by NatWest Group. Hedge income represents the fixed leg of the hedge, while incremental income represents the difference between hedge income and short-term cash rates. Both years are presented on a revised basis of preparation vs. the 2022 Annual Report and Accounts. UBIDAC is no longer included. In addition, the ‘Other’ category is no longer used: hedges booked in Coutts & Co. have now been allocated between product hedges and equity hedges, while hedges booked in RBS International have been allocated to product hedges. 2023 2022 Incremental Hedge Period end Average Total Incremental Hedge Period end Average Total income (1) income notional notional yield income (1) income notional notional yield £m £m £bn £bn % £m £m £bn £bn % Equity (611) 418 22 22 1.87 63 372 23 22 1.72 Product (6,321) 2,822 185 199 1.42 (1,074) 1,780 208 197 0.90 Total (6,932) 3,240 207 221 1.47 (1,011) 2,152 231 219 0.98 (1) Incremental income represents the difference between hedge income and an unhedged return that is based on short-term cash rates. For example, the sterling overnight index average (SONIA) is used to estimate incremental income from sterling structural hedges. Equity structural hedges refer to income allocated primarily to equity and reserves. At 31 December 2023, the equity structural hedge notional was allocated between NWH Group and NWM Group in a ratio of approximately 78%/22% respectively. Product structural hedges refer to income allocated to customer products by NWH Group Treasury, mainly current account and savings balances in Commercial & Institutional, Retail Banking and Private Banking. At 31 December 2023, approximately 94% by notional of total structural hedges were sterling-denominated. Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 265  The structural hedge period-end notional fell, mainly due to lower volumes of current account and managed rate savings deposits. This also reflected the impact of changes in the deposit mix, whereby customers have moved balances into fixed-term savings accounts.  The five-year sterling swap rate fell to 3.38% at 31 December 2023 from 4.10% at 31 December 2022. The ten-year sterling swap rate also fell, to 3.29% from 3.75%. The structural hedge yield rose to 1.47% in 2023 from 0.98% in 2022.  Hedge income rose by £1,088 million to £3,240 million from £2,152 million. Despite the increase in hedge income, incremental income fell. This illustrates the relative stability of hedge income compared to an unhedged portfolio that would earn short-term cash rates. Compared to the 49-basis-point increase in the structural hedge total yield, SONIA increased 176 basis points to 5.19% at 31 December 2023 from 3.43% at 31 December 2022. The following table presents the incremental income associated with product structural hedges at segment level. 2023 2022 £m £m Retail Banking (2,644) (463) Commercial & Institutional (3,213) (537) Private Banking & Other (464) (74) Total (6,321) (1,074) NTIRR can be measured using value-based or earnings-based approaches. Value-based approaches measure the change in value of the balance sheet assets and liabilities including all cash flows. Earnings-based approaches measure the potential impact on the income statement of changes in interest rates over a defined horizon, generally one to three years. NatWest Group uses VaR as its value-based approach and sensitivity of net interest earnings as its earnings-based approach. These two approaches provide complementary views of the impact of interest rate risk on the balance sheet at a point in time. The scenarios employed in the net interest earnings sensitivity approach may incorporate assumptions about how NatWest Group and its customers will respond to a change in the level of interest rates. In contrast, the VaR approach measures the sensitivity of the balance sheet at a point in time. Capturing all cash flows, VaR also highlights the impact of duration and repricing risks beyond the one-to-three-year period shown in earnings sensitivity calculations. Value-at-risk VaR is a statistical estimate of the potential change in the market value of a portfolio (and, thus, the impact on the income statement) over a specified time horizon at a given confidence level. NatWest Group’s standard VaR metrics – which assume a time horizon of one trading day and a confidence level of 99% – are based on interest rate repricing gaps at the reporting date. Daily rate moves are modelled using observations from the last 500 business days. These incorporate customer products plus associated funding and hedging transactions as well as non-financial assets and liabilities. Behavioural assumptions are applied as appropriate. The non-traded interest rate risk VaR metrics for NatWest Group’s retail and commercial banking activities are included in the banking book VaR table presented earlier in this section. The VaR captures the risk resulting from mismatches in the repricing dates of assets and liabilities. It also includes any mismatch between the maturity profile of external hedges and NatWest Group’s target maturity profile for the hedge. Sensitivity of net interest earnings Net interest earnings are sensitive to changes in the level of interest rates, mainly because maturing structural hedges are replaced at higher or lower rates and changes to coupons on managed rate customer products do not always match changes in market rates of interest or central bank policy rates. Earnings sensitivity is derived from a market-implied forward rate curve, which will incorporate expected changes in central bank policy rates such as the Bank of England base rate. A simple scenario is shown that projects forward earnings based on the 31 December 2023 balance sheet, which is assumed to remain constant. An earnings projection is derived from the market-implied curve, which is then subject to interest rate shocks. The difference between the market-implied projection and the shock gives an indication of underlying sensitivity to interest rate movements. Reported sensitivities should not be considered a forecast of future performance in these rate scenarios. Actions that could reduce interest earnings sensitivity include changes in pricing strategies on customer loans and deposits as well as hedging. Management action may also be taken to stabilise total income also taking into account non-interest income. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 249

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 265  The structural hedge period-end notional fell, mainly due to lower volumes of current account and managed rate savings deposits. This also reflected the impact of changes in the deposit mix, whereby customers have moved balances into fixed-term savings accounts.  The five-year sterling swap rate fell to 3.38% at 31 December 2023 from 4.10% at 31 December 2022. The ten-year sterling swap rate also fell, to 3.29% from 3.75%. The structural hedge yield rose to 1.47% in 2023 from 0.98% in 2022.  Hedge income rose by £1,088 million to £3,240 million from £2,152 million. Despite the increase in hedge income, incremental income fell. This illustrates the relative stability of hedge income compared to an unhedged portfolio that would earn short-term cash rates. Compared to the 49-basis-point increase in the structural hedge total yield, SONIA increased 176 basis points to 5.19% at 31 December 2023 from 3.43% at 31 December 2022. The following table presents the incremental income associated with product structural hedges at segment level. 2023 2022 £m £m Retail Banking (2,644) (463) Commercial & Institutional (3,213) (537) Private Banking & Other (464) (74) Total (6,321) (1,074) NTIRR can be measured using value-based or earnings-based approaches. Value-based approaches measure the change in value of the balance sheet assets and liabilities including all cash flows. Earnings-based approaches measure the potential impact on the income statement of changes in interest rates over a defined horizon, generally one to three years. NatWest Group uses VaR as its value-based approach and sensitivity of net interest earnings as its earnings-based approach. These two approaches provide complementary views of the impact of interest rate risk on the balance sheet at a point in time. The scenarios employed in the net interest earnings sensitivity approach may incorporate assumptions about how NatWest Group and its customers will respond to a change in the level of interest rates. In contrast, the VaR approach measures the sensitivity of the balance sheet at a point in time. Capturing all cash flows, VaR also highlights the impact of duration and repricing risks beyond the one-to-three-year period shown in earnings sensitivity calculations. Value-at-risk VaR is a statistical estimate of the potential change in the market value of a portfolio (and, thus, the impact on the income statement) over a specified time horizon at a given confidence level. NatWest Group’s standard VaR metrics – which assume a time horizon of one trading day and a confidence level of 99% – are based on interest rate repricing gaps at the reporting date. Daily rate moves are modelled using observations from the last 500 business days. These incorporate customer products plus associated funding and hedging transactions as well as non-financial assets and liabilities. Behavioural assumptions are applied as appropriate. The non-traded interest rate risk VaR metrics for NatWest Group’s retail and commercial banking activities are included in the banking book VaR table presented earlier in this section. The VaR captures the risk resulting from mismatches in the repricing dates of assets and liabilities. It also includes any mismatch between the maturity profile of external hedges and NatWest Group’s target maturity profile for the hedge. Sensitivity of net interest earnings Net interest earnings are sensitive to changes in the level of interest rates, mainly because maturing structural hedges are replaced at higher or lower rates and changes to coupons on managed rate customer products do not always match changes in market rates of interest or central bank policy rates. Earnings sensitivity is derived from a market-implied forward rate curve, which will incorporate expected changes in central bank policy rates such as the Bank of England base rate. A simple scenario is shown that projects forward earnings based on the 31 December 2023 balance sheet, which is assumed to remain constant. An earnings projection is derived from the market-implied curve, which is then subject to interest rate shocks. The difference between the market-implied projection and the shock gives an indication of underlying sensitivity to interest rate movements. Reported sensitivities should not be considered a forecast of future performance in these rate scenarios. Actions that could reduce interest earnings sensitivity include changes in pricing strategies on customer loans and deposits as well as hedging. Management action may also be taken to stabilise total income also taking into account non-interest income. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 250

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 266 Three-year 25-basis-point sensitivity table The table below shows the sensitivity of net interest earnings – for both structural hedges and managed rate accounts – on a one, two and three-year forward-looking basis to an upward or downward interest rate shift of 25 basis points. In all scenarios, yield curves are assumed to move in parallel. For more information and assumptions relating to this and the following table, refer to the previous page. +25 basis points upward shift -25 basis points downward shift Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 2023 £m £m £m £m £m £m Structural hedges 44 138 227 (44) (138) (227) Managed margin 120 117 114 (125) (121) (105) Total 164 255 341 (169) (259) (332) 2022 Structural hedges 50 158 260 (50) (158) (260) Managed margin 148 141 136 (170) (140) (129) Total 198 299 396 (220) (298) (389) (1) Earnings sensitivity considers only the main drivers, namely structural hedging and margin management.  The overall reduction in the sensitivity of net interest income earnings in all scenarios mainly reflects lower managed rate deposit and current account volumes. This includes changes in the deposit mix, whereby customers have moved balances into fixed-term savings from managed-rate savings accounts. One-year 25 and 100-basis-point sensitivity table The following table presents the one-year sensitivity to upward and downward 25-basis-point and 100-basis-point shifts in the yield curve, analysed by currency. 2023 2022 Shifts in yield curve Shifts in yield curve +25 basis points -25 basis points +100 basis points -100 basis points +25 basis points -25 basis points +100 basis points -100 basis points £m £m £m £m £m £m £m Euro 7 (11) 38 (45) 13 (12) 48 (50) Sterling 138 (139) 504 (577) 172 (194) 698 (784) US dollar 14 (14) 54 (56) 10 (11) 42 (53) Other 5 (5) 21 (22) 3 (3) 13 (16) Total 164 (169) 617 (700) 198 (220) 801 (903) Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 267 Sensitivity of fair value through other comprehensive income (FVOCI) portfolios and cash flow hedging reserves to interest rate movements NatWest Group holds most of the bonds in its liquidity portfolio at fair value and the bonds are generally classified as FVOCI for accounting purposes. Valuation changes arising from unexpected movements in market rates are initially recognised in FVOCI reserves. Interest rate swaps are used to implement the structural hedging programme and also hedging of some personal and commercial lending portfolios, primarily fixed-rate mortgages. Generally, these swaps are booked in cash flow hedge accounting relationships. Changes in the valuation of swaps that are in effective cash flow hedge accounting relationships are recognised in cash flow hedge reserves. The table below shows the sensitivity of bonds initially classified as FVOCI and swaps subject to cash flow hedge accounting to a parallel shift in all rates. Valuation changes affecting interest rate swaps that hedge bonds in the liquidity portfolio are also included. Where FVOCI bonds and swaps are booked in fair value hedge accounting relationships, the valuation change affecting both instruments would be recognised in the income statement. Cash flow hedges are assumed to be fully effective. Note that the effectiveness of cash flow and fair value hedge relationships is monitored and regularly tested in accordance with IFRS requirements. Note also that valuation changes affecting the cash flow hedge reserve affect tangible net asset value, but would not be expected to affect CET1 capital. 2023 2022 +25 basis points -25 basis points +100 basis points -100 basis points +25 basis points -25 basis points +100 basis points -100 basis points £m £m £m £m £m £m £m £m FVOCI reserves (1) 1 (10) (1) (3) 2 (13) 5 Cash flow hedge reserves (251) 254 (981) 1,041 (278) 281 (1,097) 1,138 Total (252) 255 (991) 1,040 (281) 283 (1,110) 1,143  The sensitivity of FVOCI and cash flow hedge reserves was broadly stable in 2023 compared to 2022. The movement in cash flow hedge reserves in 2023 is shown in the statement of changes in equity on page 301. Credit spread risk Credit spread risk arises from the potential adverse economic impact of a change in the spread between bond yields and swap rates, where the bond portfolios are accounted at fair value through other comprehensive income. NatWest Group’s bond portfolios primarily comprise high-quality securities maintained as a liquidity buffer to ensure it can continue to meet its obligations in the event that access to wholesale funding markets is restricted. Additionally, other high-quality bond portfolios are held for collateral purposes and to support payment systems. Credit spread risk is monitored daily through sensitivities and VaR measures (refer to the non-traded market risk VaR table earlier in this section). Exposures and limit utilisations are reported to senior management on a regular basis. Dealing mandates in place for the bond portfolios further mitigate the risk by imposing constraints by duration, asset class and credit rating. Foreign exchange risk Non-traded foreign exchange risk arises from three main sources:  Structural foreign exchange rate risk – mainly arises from the capital deployed in foreign subsidiaries and branches.  Transactional foreign exchange rate risk – arises from customer transactions and profits and losses that are in a currency other than the functional currency.  Forecast earnings or costs in foreign currencies – NatWest Group assesses its potential exposure to forecast foreign currency income and expenses. NatWest Group hedges forward some forecast expenses. The most material non-traded open currency positions are the structural foreign exchange exposures arising from investments in foreign subsidiaries and branches. These exposures are assessed and managed to predefined risk appetite levels under delegated authority agreed by the CFO with support from the Asset & Liability Management Committee. NatWest Group seeks to limit the potential volatility impact on its CET1 ratio from exchange rate movements by deliberately maintaining a structural open currency position. Gains or losses arising from the retranslation of net investments in overseas operations are recognised in other comprehensive income and reduce the sensitivity of capital ratios to foreign exchange rate movements primarily arising from the retranslation of non-sterling denominated RWAs. Sensitivity is minimised where, for a given currency, the ratio of the structural open position to RWAs equals the CET1 ratio. The sensitivity of this ratio to exchange rates is monitored monthly and reported to the Asset & Liability Management Committee at least quarterly. Foreign exchange exposures arising from customer transactions are hedged by businesses on a regular basis in line with NatWest Group policy. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 251

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 267 Sensitivity of fair value through other comprehensive income (FVOCI) portfolios and cash flow hedging reserves to interest rate movements NatWest Group holds most of the bonds in its liquidity portfolio at fair value and the bonds are generally classified as FVOCI for accounting purposes. Valuation changes arising from unexpected movements in market rates are initially recognised in FVOCI reserves. Interest rate swaps are used to implement the structural hedging programme and also hedging of some personal and commercial lending portfolios, primarily fixed-rate mortgages. Generally, these swaps are booked in cash flow hedge accounting relationships. Changes in the valuation of swaps that are in effective cash flow hedge accounting relationships are recognised in cash flow hedge reserves. The table below shows the sensitivity of bonds initially classified as FVOCI and swaps subject to cash flow hedge accounting to a parallel shift in all rates. Valuation changes affecting interest rate swaps that hedge bonds in the liquidity portfolio are also included. Where FVOCI bonds and swaps are booked in fair value hedge accounting relationships, the valuation change affecting both instruments would be recognised in the income statement. Cash flow hedges are assumed to be fully effective. Note that the effectiveness of cash flow and fair value hedge relationships is monitored and regularly tested in accordance with IFRS requirements. Note also that valuation changes affecting the cash flow hedge reserve affect tangible net asset value, but would not be expected to affect CET1 capital. 2023 2022 +25 basis points -25 basis points +100 basis points -100 basis points +25 basis points -25 basis points +100 basis points -100 basis points £m £m £m £m £m £m £m £m FVOCI reserves (1) 1 (10) (1) (3) 2 (13) 5 Cash flow hedge reserves (251) 254 (981) 1,041 (278) 281 (1,097) 1,138 Total (252) 255 (991) 1,040 (281) 283 (1,110) 1,143 Credit spread risk Credit spread risk arises from the potential adverse economic impact of a change in the spread between bond yields and swap rates, where the bond portfolios are accounted at fair value through other comprehensive income. NatWest Group’s bond portfolios primarily comprise high-quality securities maintained as a liquidity buffer to ensure it can continue to meet its obligations in the event that access to wholesale funding markets is restricted. Additionally, other high-quality bond portfolios are held for collateral purposes and to support payment systems. Credit spread risk is monitored daily through sensitivities and VaR measures (refer to the non-traded market risk VaR table earlier in this section). Exposures and limit utilisations are reported to senior management on a regular basis. Dealing mandates in place for the bond portfolios further mitigate the risk by imposing constraints by duration, asset class and credit rating. Foreign exchange risk Non-traded foreign exchange risk arises from three main sources:  Structural foreign exchange rate risk – mainly arises from the capital deployed in foreign subsidiaries and branches.  Transactional foreign exchange rate risk – arises from customer transactions and profits and losses that are in a currency other than the functional currency.  Forecast earnings or costs in foreign currencies – NatWest Group assesses its potential exposure to forecast foreign currency income and expenses. NatWest Group hedges forward some forecast expenses. The most material non-traded open currency positions are the structural foreign exchange exposures arising from investments in foreign subsidiaries and branches. These exposures are assessed and managed to predefined risk appetite levels under delegated authority agreed by the CFO with support from the Asset & Liability Management Committee. NatWest Group seeks to limit the potential volatility impact on its CET1 ratio from exchange rate movements by deliberately maintaining a structural open currency position. Gains or losses arising from the retranslation of net investments in overseas operations are recognised in other comprehensive income and reduce the sensitivity of capital ratios to foreign exchange rate movements primarily arising from the retranslation of non-sterling denominated RWAs. Sensitivity is minimised where, for a given currency, the ratio of the structural open position to RWAs equals the CET1 ratio. The sensitivity of this ratio to exchange rates is monitored monthly and reported to the Asset & Liability Management Committee at least quarterly. Foreign exchange exposures arising from customer transactions are hedged by businesses on a regular basis in line with NatWest Group policy. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION  The sensitivity of FVOCI and cash flow hedge reserves was broadly stable in 2023 compared to 2022. The movement in cash flow hedge reserves in 2023 is shown in the statement of changes in equity on page 39. NatWest Group 2023 Annual Report on Form 20-F 252

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 268 Foreign exchange risk The table below shows structural foreign currency exposures. Net investments Net investment Structural foreign currency Residual structural in foreign operations hedges exposures pre-economic hedges Economic hedges (1) foreign currency exposures 2023 £m £m £m £m £m US dollar 1,185 (228) 957 (957) - Euro 4,475 (2,585) 1,890 - 1,890 Other non-sterling 963 (429) 534 - 534 Total 6,623 (3,242) 3,381 (957) 2,424 2022 US dollar 1,278 (303) 975 (975) - Euro 6,189 (4,164) 2,025 - 2,025 Other non-sterling 996 (431) 565 - 565 Total 8,463 (4,898) 3,565 (975) 2,590 (1) Economic hedges of US dollar net investments in foreign operations represent US dollar AT1 equity securities that do not qualify as net investment hedges for accounting purposes. They provide an offset to structural foreign exchange exposures to the extent that there are net assets in overseas operations available, but they are accounted for at historical cost under IFRS until redemption.  The reduction in both net investments in foreign operations and net investment hedges mainly reflected the wind-down of UBIDAC.  Changes in foreign currency exchange rates affect equity in proportion to structural foreign currency exposure pre economic hedges. For example, a 5% strengthening or weakening in foreign currencies against sterling would result in a gain or loss of £0.2 billion in equity, respectively. Equity risk (audited) Non-traded equity risk is the potential variation in income and reserves arising from changes in equity valuations. Equity positions are carried on the balance sheet at fair value based on market prices where available. Equity positions may take the form of shares that are publicly listed on a recognised exchange, such as NatWest Group’s investment in Permanent TSB, privately owned investments such as the investment in Vodeno and shareholdings in industry participations including SWIFT. Further disclosure of NatWest Group’s investments in equity shareholdings, fair value gains and losses and valuation techniques may be found in the notes to the consolidated financial statements. Investments, acquisitions or disposals of a strategic nature are referred to the Acquisitions & Disposals Committee. Once approved by the CFO with support from the Acquisitions & Disposals Committee for execution, such transactions are referred for approval to the Board, the Executive Committee, the Chief Executive, the Chief Financial Officer or as otherwise required. Decisions to acquire or hold equity positions in the non-trading book that are not of a strategic nature are taken by authorised persons with delegated authority. Non-traded equity value at risk is monitored monthly and capital allocation to the risk is included in NatWest Group’s annual Internal Capital Adequacy Assessment Process (ICAAP). Accounting volatility risk Accounting volatility risk arises when an exposure is accounted for at amortised cost but economically hedged by a derivative that is accounted for at fair value. Although this is not an economic risk, the difference in accounting between the exposure and the hedge creates volatility in the income statement. Accounting volatility can be mitigated through hedge accounting. However, residual volatility will remain in cases where accounting rules mean that hedge accounting is not an option, or where there is some hedge ineffectiveness. Accounting volatility risk is reported to the Asset & Liability Management Committee monthly and capitalised as part of the ICAAP. Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 269 Traded market risk Definition (audited) Traded market risk is the risk of losses in trading book positions from fluctuations in market variables, such as interest rates, credit spreads, foreign exchange rates, equity prices, implied volatilities and asset correlations. Sources of risk (audited) Traded market risk mainly arises from NatWest Group’s trading activities. These activities provide a range of financing, risk management and investment services to clients − including corporations and financial institutions − around the world. From a market risk perspective, activities are focused on rates; currencies; and traded credit. NatWest Group undertakes transactions in financial instruments including debt securities, as well as securities financing and derivatives. All material traded market risk resides in NatWest Markets. The key categories are interest rate risk, credit spread risk and foreign currency price risk. Trading activities may also give rise to counterparty credit risk. For further detail refer to the Credit risk section. Key developments in 2023  The year was marked by periods of increased market volatility reflecting UK political developments, global inflationary concerns, the ongoing Russia-Ukraine conflict and the Israel–Hamas conflict.  The significant volatility in Gilts, sterling swaps and inflation entered the rolling window for VaR calculation during 2023. However, traded VaR and SVaR remained within appetite and, on an average basis, at similar levels compared to 2022, aided by NatWest Group’s continued disciplined approach to risk-taking. Governance (audited) Market risk policy statements set out the governance and risk management framework. Responsibility for identifying, measuring, monitoring and controlling market risk arising from trading activities lies with the relevant trading business. The Market Risk function independently advises on, monitors and challenges the risk-taking activities undertaken by the trading business ensuring these are within the constraints of the market risk framework, policies, and risk appetite statements and measures. Risk appetite NatWest Group’s qualitative appetite for traded market risk is set out in the traded market risk appetite statement. Quantitative appetite is expressed in terms of exposure limits. The limits at NatWest Group level comprise value-at-risk (VaR), stressed value-at-risk (SVaR) and stress-testing. More details on these are provided on the following pages. For each trading business, a document known as a dealing authority compiles details of all applicable limits and trading restrictions. The desk-level mandates comprise qualitative limits related to the product types within the scope of each desk, as well as quantitative metrics specific to the desk’s market risk exposures. These additional limits and metrics aim to control various risk dimensions such as exposure size, aged inventory, currency and tenor. The limits are reviewed to reflect changes in risk appetite, business plans, portfolio composition and the market and economic environments and recalibrated to ensure that they remain aligned to NatWest Group RWA targets. Limit reviews focus on optimising the alignment between traded market risk exposure and capital usage. To ensure approved limits are not breached and that NatWest Group remains within its risk appetite, triggers have been set such that if exposures exceed a specified level, action plans are developed by the relevant business and the Market Risk function and implemented. The risk appetite statements and associated measures are reviewed at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. For more detail on risk appetite and risk controls, refer to pages 175 and 176. Monitoring and mitigation Traded market risk is identified and assessed by gathering, analysing, monitoring and reporting market risk information at desk, business, business segment and NatWest Group-wide levels. Industry expertise, continued system developments and techniques such as stress testing are also used to enhance the effectiveness of the identification and assessment of all material market risks. Traded market risk exposures are monitored against limits and analysed daily. A daily report summarising the position of exposures against limits at desk, business, business segment and NatWest Group levels is provided to senior management and market risk managers across the function. Limit reporting is supplemented with regulatory capital and stress testing information as well as ad-hoc reporting. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 253

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 269 Traded market risk Definition (audited) Traded market risk is the risk of losses in trading book positions from fluctuations in market variables, such as interest rates, credit spreads, foreign exchange rates, equity prices, implied volatilities and asset correlations. Sources of risk (audited) Traded market risk mainly arises from NatWest Group’s trading activities. These activities provide a range of financing, risk management and investment services to clients − including corporations and financial institutions − around the world. From a market risk perspective, activities are focused on rates; currencies; and traded credit. NatWest Group undertakes transactions in financial instruments including debt securities, as well as securities financing and derivatives. All material traded market risk resides in NatWest Markets. The key categories are interest rate risk, credit spread risk and foreign currency price risk. Trading activities may also give rise to counterparty credit risk. For further detail refer to the Credit risk section. Key developments in 2023  The year was marked by periods of increased market volatility reflecting UK political developments, global inflationary concerns, the ongoing Russia-Ukraine conflict and the Israel–Hamas conflict.  The significant volatility in Gilts, sterling swaps and inflation entered the rolling window for VaR calculation during 2023. However, traded VaR and SVaR remained within appetite and, on an average basis, at similar levels compared to 2022, aided by NatWest Group’s continued disciplined approach to risk-taking. Governance (audited) Market risk policy statements set out the governance and risk management framework. Responsibility for identifying, measuring, monitoring and controlling market risk arising from trading activities lies with the relevant trading business. The Market Risk function independently advises on, monitors and challenges the risk-taking activities undertaken by the trading business ensuring these are within the constraints of the market risk framework, policies, and risk appetite statements and measures. Risk appetite NatWest Group’s qualitative appetite for traded market risk is set out in the traded market risk appetite statement. Quantitative appetite is expressed in terms of exposure limits. The limits at NatWest Group level comprise value-at-risk (VaR), stressed value-at-risk (SVaR) and stress-testing. More details on these are provided on the following pages. For each trading business, a document known as a dealing authority compiles details of all applicable limits and trading restrictions. The desk-level mandates comprise qualitative limits related to the product types within the scope of each desk, as well as quantitative metrics specific to the desk’s market risk exposures. These additional limits and metrics aim to control various risk dimensions such as exposure size, aged inventory, currency and tenor. The limits are reviewed to reflect changes in risk appetite, business plans, portfolio composition and the market and economic environments and recalibrated to ensure that they remain aligned to NatWest Group RWA targets. Limit reviews focus on optimising the alignment between traded market risk exposure and capital usage. Monitoring and mitigation Traded market risk is identified and assessed by gathering, analysing, monitoring and reporting market risk information at desk, business, business segment and NatWest Group-wide levels. Industry expertise, continued system developments and techniques such as stress testing are also used to enhance the effectiveness of the identification and assessment of all material market risks. Traded market risk exposures are monitored against limits and analysed daily. A daily report summarising the position of exposures against limits at desk, business, business segment and NatWest Group levels is provided to senior management and market risk managers across the function. Limit reporting is supplemented with regulatory capital and stress testing information as well as ad-hoc reporting. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION To ensure approved limits are not breached and that NatWest Group remains within its risk appetite, triggers have been set such that if exposures exceed a specified level, action plans are developed by the relevant business and the Market Risk function and implemented. The risk appetite statements and associated measures are reviewed at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. For more detail on risk appetite and risk controls, refer to pages 160 and 161. NatWest Group 2023 Annual Report on Form 20-F 254

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 270 A risk review of trading businesses is undertaken weekly with senior risk and front office staff. This includes a review of profit and loss drivers, notable position concentrations and other positions of concern. Business profit and loss performance is monitored automatically through loss triggers which, if breached, require a remedial action plan to be agreed between the Market Risk function and the business. The loss triggers are set using both a fall-from-peak approach and an absolute loss level. In addition, regular updates on traded market risk positions are provided to the Executive Risk Committee, the Board Risk Committee and the Board. Measurement NatWest Group uses VaR, SVaR and the incremental risk charge (IRC) to capitalise traded market risk. Risks that are not adequately captured by VaR or SVaR are captured by the Risks Not In VaR (RNIV) framework to ensure that NatWest Group is adequately capitalised for market risk. In addition, stress testing is used to identify any vulnerabilities and potential losses. The key inputs into these measurement methods are market data and risk factor sensitivities. Sensitivities refer to the changes in trade or portfolio value that result from small changes in market parameters that are subject to the market risk limit framework. Revaluation ladders are used in place of sensitivities to capture the impact of large moves in risk factors or the joint impact of two risk factors. These methods have been designed to capture correlation effects and allow NatWest Group to form an aggregated view of its traded market risk across risk types, markets and business lines while also taking into account the characteristics of each risk type. Value-at-risk For internal risk management purposes, VaR assumes a time horizon of one trading day and a confidence level of 99%. The internal VaR model – which captures all trading book positions including those products approved by the regulator – is based on a historical simulation, utilising market data from the previous 500 days. During 2023, an update was made to the VaR model to make it more sensitive to recent market conditions, following approval from the PRA. The model also captures the potential impact of interest rate risk; credit spread risk; foreign currency price risk; equity price risk; and commodity price risk. When simulating potential movements in such risk factors, a combination of absolute, relative and rescaled returns is used. The performance and adequacy of the VaR model are tested regularly through the following processes:  Back-testing: Internal and regulatory back-testing is conducted on a daily basis. Information on internal back-testing is provided in this section. Information on regulatory back-testing appears in the Pillar 3 Report.  Ongoing model validation: VaR model performance is assessed both regularly, and on an ad-hoc basis, if market conditions or portfolio profile change significantly. Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 271 One-day 99% traded internal VaR Traded VaR (1-day 99%) (audited) The table below shows one-day 99% internal VaR for NatWest Group’s trading portfolios, split by exposure type. 2023 2022 Average Maximum Minimum Period end Average Maximum Minimum Period end £m £m £m £m £m £m £m £m Interest rate 9.8 19.3 4.3 7.4 7.3 12.6 4.1 9.0 Credit spread 6.2 7.1 4.9 6.8 7.8 12.0 6.0 6.4 Currency 2.3 7.0 0.9 1.8 3.1 8.0 1.2 1.5 Equity - 0.1 - 0.1 - 0.3 - - Diversification (1) (7.0) (7.2) (7.5) (6.8) Total 11.3 20.0 6.6 8.9 10.7 15.1 7.2 10.1 (1) NatWest Group benefits from diversification across various financial instrument types, currencies and markets. The extent of the diversification benefit depends on the correlation between the assets and risk factors in the portfolio at a particular time. The diversification factor is the sum of the VaR on individual risk types less the total portfolio VaR.  On an average basis, traded VaR remained at similar levels in 2023 compared to 2022.  The increase in average interest rate VaR, compared to 2022, reflected an increase in curve risk in sterling and euro flow trading.  The decrease in average credit spread VaR mostly reflected a tightening of credit spreads on the net longer credit profile over the period. 0 5 10 15 20 25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Trading VaR Interest Rate VaR Credit VaR FX VaR Equity VaR £m STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION  Model Risk Management review: As part of the model lifecycle, all risk models (including the VaR model) are independently reviewed to ensure the model is still fit for purpose given current market conditions and portfolio profile. For further detail on the independent model validation carried out by Model Risk Management refer to page 266. More information relating to pricing and market risk models is presented in the Pillar 3 Report. NatWest Group 2023 Annual Report on Form 20-F 255

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 271 One-day 99% traded internal VaR Traded VaR (1-day 99%) (audited) The table below shows one-day 99% internal VaR for NatWest Group’s trading portfolios, split by exposure type. 2023 2022 Average Maximum Minimum Period end Average Maximum Minimum Period end £m £m £m £m £m £m £m £m Interest rate 9.8 19.3 4.3 7.4 7.3 12.6 4.1 9.0 Credit spread 6.2 7.1 4.9 6.8 7.8 12.0 6.0 6.4 Currency 2.3 7.0 0.9 1.8 3.1 8.0 1.2 1.5 Equity - 0.1 - 0.1 - 0.3 - - Diversification (1) (7.0) (7.2) (7.5) (6.8) Total 11.3 20.0 6.6 8.9 10.7 15.1 7.2 10.1 (1) NatWest Group benefits from diversification across various financial instrument types, currencies and markets. The extent of the diversification benefit depends on the correlation between the assets and risk factors in the portfolio at a particular time. The diversification factor is the sum of the VaR on individual risk types less the total portfolio VaR.  On an average basis, traded VaR remained at similar levels in 2023 compared to 2022.  The increase in average interest rate VaR, compared to 2022, reflected an increase in curve risk in sterling and euro flow trading.  The decrease in average credit spread VaR mostly reflected a tightening of credit spreads on the net longer credit profile over the period. 0 5 10 15 20 25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Trading VaR Interest Rate VaR Credit VaR FX VaR Equity VaR £m STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 256

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 272 VaR back-testing The main approach employed to assess the VaR model’s ongoing performance is back-testing, which counts the number of days when a loss exceeds the corresponding daily VaR estimate, measured at a 99% confidence level. Two types of profit and loss (P&L) are used in back-testing comparisons: Actual P&L and Hypothetical P&L. For more details on the back-testing approach, refer to the Pillar 3 Report. The table below shows internal back-testing exceptions in the major NatWest Markets businesses for the 250-business-day period to 31 December 2023. Internal back-testing compares one-day 99% traded internal VaR with Actual and Hypothetical (Hypo) P&L. Back-testing exceptions Actual Hypo Rates - - Currencies - - Credit 1 1 xVA - -  The back-testing exception was driven by losses in Financials in March 2023 due to increased credit market volatility following the collapse of Silicon Valley Bank. Stressed VaR (SVaR) As with VaR, the SVaR methodology produces estimates of the potential change in the market value of a portfolio, over a specified time horizon, at a given confidence level. SVaR is a VaR-based measure using historical data from a one-year period of stressed market conditions. A simulation of 99% VaR is run on the current portfolio for each 250-day period from 2005 to the current VaR date, moving forward one day at a time. The SVaR is the worst VaR outcome of the simulated results. This is in contrast with VaR, which is based on a rolling 500-day historical data set. A time horizon of ten trading days is assumed with a confidence level of 99%. The internal traded SVaR model captures all trading book positions. 2023 2022 Period Period Average Maximum Minimum end Average Maximum Minimum end £m £m £m £m £m £m £m £m Total internal traded SVaR 56 140 28 36 70 206 34 40  Traded SVaR was, on an average basis, lower in 2023 than in 2022, following the reduction in tenor basis risk in sterling flow trading resulting from the VaR model update in Q3 2022. Risks Not In VaR (RNIVs) The RNIV framework is used to identify and quantify market risks that are not fully captured by the internal VaR and SVaR models. RNIV calculations form an integral part of ongoing model and data improvement efforts to capture all market risks in scope for model approval in VaR and SVaR. For further qualitative and quantitative disclosures on RNIVs, refer to the Market risk section of the Pillar 3 Report. Stress testing Incremental risk charge (IRC) The IRC model quantifies the impact of rating migration and default events on the market value of instruments with embedded credit risk (in particular, bonds and credit default swaps) held in the trading book. It further captures basis risk between different instruments, maturities and reference entities. For further qualitative and quantitative disclosures on the IRC, refer to the Market risk section of the Pillar 3 Report. Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 273 Market risk – linkage to balance sheet The table below analyses NatWest Group’s balance sheet by non-trading and trading business. 2023 2022 Non-trading Trading Non-trading Trading Total business (1) business (2) Total business (1) business (2) £bn £bn £bn £bn £bn £bn Primary market risk factor Assets Cash and balances at central banks 104.3 104.3 - 144.8 144.8 - Interest rate Trading assets 45.6 0.8 44.8 45.6 1.2 44.4 Reverse repos 23.7 - 23.7 21.5 - 21.5 Interest rate Securities 12.0 - 12.0 9.9 - 9.9 Interest rate, credit spreads, equity Other 9.9 0.8 9.1 14.2 1.2 13.0 Interest rate Derivatives 78.9 1.0 77.9 99.5 1.3 98.2 Interest rate, credit spreads, equity Settlement balances 7.2 0.9 6.3 2.6 0.2 2.4 Settlement Loans to banks 6.9 6.8 0.1 7.1 7.0 0.1 Interest rate Loans to customers 381.4 381.4 - 366.3 366.2 0.1 Interest rate Other financial assets 51.1 51.1 - 30.9 30.9 - Interest rate, credit spreads, equity Intangible assets 7.6 7.6 - 7.1 7.1 - Interest rate, credit spreads, equity Other assets 8.8 8.8 - 9.3 9.3 - Assets of disposal groups 0.9 0.9 - 6.9 6.9 - Total assets 692.7 563.6 129.1 720.1 574.9 145.2 Liabilities Bank deposits 22.2 22.2 - 20.4 20.4 - Interest rate Customer deposits 431.4 431.4 - 450.3 450.3 - Interest rate Settlement balances 6.6 - 6.6 2.0 - 2.0 Settlement Trading liabilities 53.6 - 53.6 52.8 - 52.8 Repos 26.9 - 26.9 23.7 - 23.7 Interest rate Short positions 9.8 - 9.8 9.5 - 9.5 Interest rate, credit spreads Other 16.9 - 16.9 19.6 - 19.6 Interest rate Derivatives 72.4 1.2 71.2 94.0 1.5 92.5 Interest rate, credit spreads Other financial liabilities 55.1 55.0 0.1 49.1 49.0 0.1 Interest rate Subordinated liabilities 5.7 5.7 - 6.3 6.3 - Interest rate Notes in circulation 3.2 3.2 - 3.2 3.2 - Interest rate Other liabilities 5.3 5.3 - 5.5 5.5 - Total liabilities 655.5 524.0 131.5 683.6 536.2 147.4 (1) Non-trading businesses are entities that primarily have exposures that are not classified as trading book. For these exposures, with the exception of pension-related activities, the main measurement methods are sensitivity analysis of net interest income, internal non-traded market risk VaR and fair value calculations. For more information refer to the non-traded market risk section. (2) Trading businesses are entities that primarily have exposures that are classified as trading book under regulatory rules. For these exposures, the main methods used by NatWest Group to measure market risk are detailed in the traded market risk section. (3) Foreign exchange risk affects all non-sterling denominated exposures on the balance sheet across trading and non-trading businesses, and therefore has not been listed in the above tables. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION For information on stress testing, refer to page 162. NatWest Group 2023 Annual Report on Form 20-F 257

Market risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 273 Market risk – linkage to balance sheet The table below analyses NatWest Group’s balance sheet by non-trading and trading business. 2023 2022 Non-trading Trading Non-trading Trading Total business (1) business (2) Total business (1) business (2) £bn £bn £bn £bn £bn £bn Primary market risk factor Assets Cash and balances at central banks 104.3 104.3 - 144.8 144.8 - Interest rate Trading assets 45.6 0.8 44.8 45.6 1.2 44.4 Reverse repos 23.7 - 23.7 21.5 - 21.5 Interest rate Securities 12.0 - 12.0 9.9 - 9.9 Interest rate, credit spreads, equity Other 9.9 0.8 9.1 14.2 1.2 13.0 Interest rate Derivatives 78.9 1.0 77.9 99.5 1.3 98.2 Interest rate, credit spreads, equity Settlement balances 7.2 0.9 6.3 2.6 0.2 2.4 Settlement Loans to banks 6.9 6.8 0.1 7.1 7.0 0.1 Interest rate Loans to customers 381.4 381.4 - 366.3 366.2 0.1 Interest rate Other financial assets 51.1 51.1 - 30.9 30.9 - Interest rate, credit spreads, equity Intangible assets 7.6 7.6 - 7.1 7.1 - Interest rate, credit spreads, equity Other assets 8.8 8.8 - 9.3 9.3 - Assets of disposal groups 0.9 0.9 - 6.9 6.9 - Total assets 692.7 563.6 129.1 720.1 574.9 145.2 Liabilities Bank deposits 22.2 22.2 - 20.4 20.4 - Interest rate Customer deposits 431.4 431.4 - 450.3 450.3 - Interest rate Settlement balances 6.6 - 6.6 2.0 - 2.0 Settlement Trading liabilities 53.6 - 53.6 52.8 - 52.8 Repos 26.9 - 26.9 23.7 - 23.7 Interest rate Short positions 9.8 - 9.8 9.5 - 9.5 Interest rate, credit spreads Other 16.9 - 16.9 19.6 - 19.6 Interest rate Derivatives 72.4 1.2 71.2 94.0 1.5 92.5 Interest rate, credit spreads Other financial liabilities 55.1 55.0 0.1 49.1 49.0 0.1 Interest rate Subordinated liabilities 5.7 5.7 - 6.3 6.3 - Interest rate Notes in circulation 3.2 3.2 - 3.2 3.2 - Interest rate Other liabilities 5.3 5.3 - 5.5 5.5 - Total liabilities 655.5 524.0 131.5 683.6 536.2 147.4 (1) Non-trading businesses are entities that primarily have exposures that are not classified as trading book. For these exposures, with the exception of pension-related activities, the main measurement methods are sensitivity analysis of net interest income, internal non-traded market risk VaR and fair value calculations. For more information refer to the non-traded market risk section. (2) Trading businesses are entities that primarily have exposures that are classified as trading book under regulatory rules. For these exposures, the main methods used by NatWest Group to measure market risk are detailed in the traded market risk section. (3) Foreign exchange risk affects all non-sterling denominated exposures on the balance sheet across trading and non-trading businesses, and therefore has not been listed in the above tables. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 258

Pension risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 274 Definition Pension risk is defined as the inability to meet contractual obligations and other liabilities to the established employee or related company pension scheme. Sources of risk NatWest Group has exposure to pension risk through its defined benefit schemes worldwide. The Main section of The NatWest Group Pension Fund (the Main section) is the largest source of pension risk with £33.6 billion of assets and £26.5 billion of liabilities at 31 December 2023 (2022 – £34.0 billion of assets and £24.7 billion of liabilities). Refer to Note 5 to the consolidated financial statements, for further details on NatWest Group’s pension obligations, including sensitivities to the main risk factors. Pension scheme liabilities vary with changes in long-term interest rates and inflation as well as with pensionable salaries, the longevity of scheme members and legislation. Pension scheme assets vary with changes in interest rates, inflation expectations, credit spreads, exchange rates, and equity and property prices. NatWest Group is exposed to the risk that the schemes’ assets, together with future returns and additional future contributions, are estimated to be insufficient to meet liabilities as they fall due. In such circumstances, NatWest Group could be obliged (or might choose) to make additional contributions to the schemes or be required to hold additional capital to mitigate this risk. On 16 June 2023, the High Court issued a ruling in respect of Virgin Media v NTL Pension Trustees II Limited (and others) calling into question the validity of rule amendments made to defined benefit pension schemes contracted-out on a Reference Scheme Test basis between 6 April 1997 and 5 April 2016. Amendments to these pension schemes over this time required confirmation from the Scheme Actuary that the Reference Scheme Test would continue to be met. In the absence of such a confirmation, the Rule amendment would be void. Following the review of a selection of amendments judged as material, the liabilities disclosed in Note 5 to the consolidated financial statements include no adjustments for the potential impact of this ruling. Future developments will be kept under review. Key developments in 2023  A new contractual agreement was reached with the Trustee of the Main section that assets to the value of the remaining contributions previously due to the Main section in 2023 under the Memorandum of Understanding signed with the Trustee in April 2018, would instead be paid to a Reservoir Trust. During the year, it was agreed with the Trustee to establish a bankruptcy remote Reservoir Trust to hold assets with a value equivalent to £471 million. For further details, refer to Note 5 to the consolidated financial statements.  During the year, the Trustee of NWM Group’s largest scheme, the AA section of the NatWest Group Pension Fund (£551 million of liabilities at 31 December 2023), completed a buy-in transaction, passing all material longevity and investment risk for the section to an insurer. For further details, refer to Note 5 to the consolidated financial statements.  Notwithstanding the above developments, NatWest Group’s exposure to pension risk remained generally stable over the year. Governance Risk appetite NatWest Group maintains an independent view of the risk inherent in its pension funds. NatWest Group has a pension risk appetite statement incorporating defined metrics against which risk is measured that is reviewed at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. Policies and standards are in place to provide formal controls for pension risk reporting, modelling, governance and stress testing. A pension risk policy, which sits within the enterprise-wide risk management framework, is also in place and is subject to associated framework controls. Monitoring and measurement Pension risk is monitored by the Executive Risk Committee and the Board Risk Committee, whilst the Asset & Liability Management Committee receives updates on the performance of NatWest Group’s material pension funds. Relevant pension risk matters are escalated to the Board as applicable. NatWest Group also undertakes stress tests on its material defined benefit pension schemes each year. These tests are also used to satisfy the requests of regulatory bodies such as the Bank of England. The stress testing framework includes pension risk capital calculations for the purposes of the Internal Capital Adequacy Assessment Process as well as additional stress tests for a number of internal management purposes. The results of the stress tests and their consequential impact on NatWest Group’s balance sheet, income statement and capital position are incorporated into the overall NatWest Group stress test results. NatWest Bank Plc (a subsidiary of NatWest Group) is the principal employer of the Main section and could be required to fund any deficit that arises. Mitigation Following risk mitigation measures taken by the Trustee in recent years, the Main section is now well protected against interest rate and inflation risks and is being run on a low investment risk basis with relatively small equity risk exposure. The Main section also uses derivatives to manage the allocation of the portfolio to different asset classes and to manage risk within asset classes. The potential impact of climate change is one of the factors considered in managing the assets of the Main section. The Trustee monitors the risk to its investments from changes in the global economy and invests, where return justifies the risk, in sectors that reduce the world’s reliance on fossil fuels, or that may otherwise promote environmental benefits. Further details regarding the Main section Trustee’s approach to managing climate change risk can be found in its Responsible Ownership Policy, its net zero commitment and its climate disclosures produced on an annual basis, as required by The Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021. Compliance and conduct risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 275 Definition Compliance risk is the risk that NatWest Group fails to observe the letter and spirit of all relevant laws, codes, rules, regulations and standards of good market practice. Conduct risk is the risk of inappropriate behaviour towards customers, or in the markets in which NatWest Group operates, which leads to poor or inappropriate customer outcomes. The consequences of failing to meet compliance and/or conduct responsibilities can be significant and could result, for example, in legal action, regulatory enforcement, material financial loss and/or reputational damage. Sources of risk Compliance and conduct risks exist across all stages of NatWest Group’s relationships with its customers and arise from a variety of activities including product design, marketing and sales, complaint handling, staff training, and handling of confidential inside information. As set out in Note 26 to the consolidated financial statements, members of NatWest Group are party to legal proceedings and are subject to investigation and other regulatory action in the UK, the US and other jurisdictions. Key developments in 2023  Further progress was made on the compliance agenda during 2023. Significant enhancements were made to the compliance and conduct framework with the introduction of numerous new tools to manage the risk profile. These include a compliance and conduct risk directory, new risk standards and toolkits which support NatWest Group to measure and manage compliance accurately and efficiently, and a regulatory compliance operational policy framework to ensure key regulatory requirements are captured. These new tools align with the existing enterprise-wide risk management framework.  From a conduct risk perspective, the NatWest Group-wide programme made significant progress on implementation of the Consumer Duty requirements by the first regulatory milestone of 31 July 2023. The focus is now on closed book products and services, which is expected to conclude before the end of July 2024.  The focus on consumer protection and supporting customers with their financial needs continues, especially given the ongoing cost-of-living challenges and their impact on customers in vulnerable situations. For example, NatWest was the first high street bank to offer customers additional support through the Mortgage Charter from July 2023. Vulnerable customer outcomes are also an integral part of our enhanced ‘Good Customer Outcome’ reporting which was introduced through the Consumer Duty programme.  In line with a plea agreement with the US Department of Justice regarding historical spoofing conduct by former employees, an independent monitor was appointed in 2022. Throughout 2023, the monitor had extensive engagement with our teams through a range of interviews and detailed information requests. The first report issued by the Monitor included 29 recommendations, with 120 days from receipt to implement them. The second review period is scheduled to commence in March 2024, with the work expected to last at least three years. Governance NatWest Group defines appropriate standards of compliance and conduct and ensures adherence to those standards through its risk management framework. To support ongoing oversight of the management of the compliance and conduct risk profile, there are a number of committees in place. These include a Consumer Duty Executive Steering Group and conflicts of interest fora across both the first and second line of defence. Relevant compliance and conduct matters are escalated through the Executive Risk Committee and Board Risk Committee and to the Board as applicable. Risk appetite The risk appetite statement and associated measures for compliance and conduct risks are approved at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. Risk appetite statements articulate the levels of risk that legal entities, businesses and functions work within when pursuing their strategic objectives and business plans. A range of controls are operated to ensure the business delivers good customer outcomes and are conducted in accordance with legal and regulatory requirements. A suite of risk policies, risk standards and regulatory compliance operational policies addressing compliance and conduct risks set appropriate standards across NatWest Group. Examples of these include those relating to product mis-selling, customers in vulnerable situations, complaints management, cross-border activities and market abuse. Continuous monitoring and targeted assurance are carried out as appropriate. Monitoring and measurement Compliance and conduct risks are measured and managed through continuous assessment and regular reporting to NatWest Group’s senior risk committees and at Board level. The compliance and conduct risk framework facilitates the consistent monitoring and measurement of compliance with laws and regulations and the delivery of consistently good customer outcomes. The first line of defence is responsible for effective risk identification, reporting and monitoring, with oversight, challenge and review by the second line. Compliance and conduct risk management is also integrated into NatWest Group’s strategic planning cycle. Mitigation Activity to mitigate the most material compliance and conduct risks is carried out across NatWest Group with specific areas of focus in the customer-facing businesses and legal entities. Examples of mitigation include consideration of customer needs in business and product planning, targeted training, conflicts of interest management, market conduct surveillance, complaints management, mapping of priority regulatory requirements and independent monitoring activity. Internal policies help support a strong customer focus across NatWest Group. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION Chaired by the Chief Financial Officer, the Group Asset & Liability Management Committee is a key component of NatWest Group’s approach to managing pension risk. It considers the pension impact of the capital plan for NatWest Group and reviews the performance of NatWest Group’s material pension funds and other issues material to NatWest Group’s pension strategy. It also considers investment strategy proposals from the Trustee of the Main section. The Board reviews and as appropriate approves any material pension strategy proposals. For further information on governance, refer to page 158. NatWest Group 2023 Annual Report on Form 20-F 259

Compliance and conduct risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 275 Definition Compliance risk is the risk that NatWest Group fails to observe the letter and spirit of all relevant laws, codes, rules, regulations and standards of good market practice. Conduct risk is the risk of inappropriate behaviour towards customers, or in the markets in which NatWest Group operates, which leads to poor or inappropriate customer outcomes. The consequences of failing to meet compliance and/or conduct responsibilities can be significant and could result, for example, in legal action, regulatory enforcement, material financial loss and/or reputational damage. Sources of risk Compliance and conduct risks exist across all stages of NatWest Group’s relationships with its customers and arise from a variety of activities including product design, marketing and sales, complaint handling, staff training, and handling of confidential inside information. As set out in Note 26 to the consolidated financial statements, members of NatWest Group are party to legal proceedings and are subject to investigation and other regulatory action in the UK, the US and other jurisdictions. Key developments in 2023  Further progress was made on the compliance agenda during 2023. Significant enhancements were made to the compliance and conduct framework with the introduction of numerous new tools to manage the risk profile. These include a compliance and conduct risk directory, new risk standards and toolkits which support NatWest Group to measure and manage compliance accurately and efficiently, and a regulatory compliance operational policy framework to ensure key regulatory requirements are captured. These new tools align with the existing enterprise-wide risk management framework.  From a conduct risk perspective, the NatWest Group-wide programme made significant progress on implementation of the Consumer Duty requirements by the first regulatory milestone of 31 July 2023. The focus is now on closed book products and services, which is expected to conclude before the end of July 2024.  The focus on consumer protection and supporting customers with their financial needs continues, especially given the ongoing cost-of-living challenges and their impact on customers in vulnerable situations. For example, NatWest was the first high street bank to offer customers additional support through the Mortgage Charter from July 2023. Vulnerable customer outcomes are also an integral part of our enhanced ‘Good Customer Outcome’ reporting which was introduced through the Consumer Duty programme.  In line with a plea agreement with the US Department of Justice regarding historical spoofing conduct by former employees, an independent monitor was appointed in 2022. Throughout 2023, the monitor had extensive engagement with our teams through a range of interviews and detailed information requests. The first report issued by the Monitor included 29 recommendations, with 120 days from receipt to implement them. The second review period is scheduled to commence in March 2024, with the work expected to last at least three years. Governance NatWest Group defines appropriate standards of compliance and conduct and ensures adherence to those standards through its risk management framework. To support ongoing oversight of the management of the compliance and conduct risk profile, there are a number of committees in place. These include a Consumer Duty Executive Steering Group and conflicts of interest fora across both the first and second line of defence. Relevant compliance and conduct matters are escalated through the Executive Risk Committee and Board Risk Committee and to the Board as applicable. Risk appetite The risk appetite statement and associated measures for compliance and conduct risks are approved at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. Risk appetite statements articulate the levels of risk that legal entities, businesses and functions work within when pursuing their strategic objectives and business plans. A range of controls are operated to ensure the business delivers good customer outcomes and are conducted in accordance with legal and regulatory requirements. A suite of risk policies, risk standards and regulatory compliance operational policies addressing compliance and conduct risks set appropriate standards across NatWest Group. Examples of these include those relating to product mis-selling, customers in vulnerable situations, complaints management, cross-border activities and market abuse. Continuous monitoring and targeted assurance are carried out as appropriate. Monitoring and measurement Compliance and conduct risks are measured and managed through continuous assessment and regular reporting to NatWest Group’s senior risk committees and at Board level. The compliance and conduct risk framework facilitates the consistent monitoring and measurement of compliance with laws and regulations and the delivery of consistently good customer outcomes. The first line of defence is responsible for effective risk identification, reporting and monitoring, with oversight, challenge and review by the second line. Compliance and conduct risk management is also integrated into NatWest Group’s strategic planning cycle. Mitigation Activity to mitigate the most material compliance and conduct risks is carried out across NatWest Group with specific areas of focus in the customer-facing businesses and legal entities. Examples of mitigation include consideration of customer needs in business and product planning, targeted training, conflicts of interest management, market conduct surveillance, complaints management, mapping of priority regulatory requirements and independent monitoring activity. Internal policies help support a strong customer focus across NatWest Group. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 260

Financial crime risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 276 Definition Financial crime risk is the risk that NatWest Group's products, services, employees and/or third parties are intentionally or unintentionally used to facilitate financial crime in the form of money laundering, terrorist financing, bribery and corruption, sanctions and tax evasion, as well as external or internal fraud. Sources of risk Financial crime risk may be present if NatWest Group’s customers, employees or third parties undertake or facilitate financial crime, or if NatWest Group’s products or services are used intentionally or unintentionally to facilitate such crime. Financial crime risk is an inherent risk across all lines of business. Key developments in 2023  Significant investment continued to be made to support delivery of the multi-year transformation plan across financial crime risk management.  Enhancements were made to technology, data quality, and data analytics to improve the effectiveness of systems used to monitor customers and transactions.  Financial crime roadshows and events were held throughout the year to further embed financial crime risk management culture and behaviours.  A centralised hub model and One Bank approach to financial crime risk management was embedded, with hub capabilities further deployed across NatWest Group. This has led to better outcomes, including a consistent understanding of controls and oversight across NatWest Group.  Active participation in public-private partnerships, including the Joint Money Laundering Intelligence Taskforce. Governance The Financial Crime Executive Steering Group, which is jointly chaired by the Chief Risk Officer and the Group Chief Information Officer is the core governance committee for financial crime risk (excluding fraud). It oversees financial crime risk management, operational performance, and transformation matters including decision-making and escalations to the Executive Risk Committee, Board Risk Committee and NatWest Group Executive Committee. The Fraud Executive Steering Group, which is chaired by the Chief Information Officer, is the core governance committee for fraud. It oversees fraud risk management, operational performance, and investment matters including decision-making and escalations to relevant senior committees. Risk appetite There is no appetite to operate in an environment where systems and controls do not enable the effective identification, assessment, monitoring, management and mitigation of financial crime risk. NatWest Group’s systems and controls must be comprehensive and proportionate to the nature, scale and complexity of its businesses. NatWest Group operates a framework with preventative and detective controls designed to mitigate the risk that it could facilitate financial crime. These controls are supported by a suite of policies, procedures and guidance to ensure they operate effectively. Monitoring and measurement Financial crime risks are identified and reported through continuous risk management and regular reporting to senior risk committees and the NatWest Group Board. Quantitative and qualitative data is reviewed and assessed to measure whether financial crime risk is within risk appetite. Mitigation Through the financial crime framework, relevant policies, systems, processes and controls are used to mitigate and manage financial crime risk. This includes the use of dedicated screening and monitoring systems and controls to identify people, organisations, transactions and behaviours that may require further investigation or other actions. Centralised expertise is available to detect and disrupt threats to NatWest Group and its customers. Intelligence is shared with law enforcement, regulators and government bodies to strengthen national and international defences against those who would misuse the financial system for criminal motives. Climate risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 277 Definition Climate risk is the threat of financial loss or adverse non-financial impacts associated with climate change and the political, economic and environmental responses to it. Sources of risk Physical risks may arise from climate and weather-related events such as heatwaves, droughts, floods, storms and sea level rises. They can potentially result in financial losses, impairing asset values and the creditworthiness of borrowers. NatWest Group could be exposed to physical risks directly by the effects on its property portfolio and, indirectly, by the impacts on the wider economy as well as on the property and business interests of its customers. Transition risks may arise from the process of adjustment towards a low-carbon economy. Changes in policy, technology and sentiment could prompt reassessment of customers’ financial risk and may lead to falls in the value of a large range of assets. NatWest Group could be exposed to transition risks directly through the costs of adaptation within economic sectors and markets as well as supply chain disruption leading to financial impacts on it and its customers. Potential indirect effects include the erosion of NatWest Group’s competitiveness, profitability, reputational damage and liability risk. Key developments in 2023  NatWest Group continued to enhance its in-house climate risk modelling capabilities, supporting the integration of climate risk within its capital adequacy (ICAAP); impairment (IFRS 9); and risk management processes.  An end-to-end test of NatWest Group’s in-house first-generation corporate transition risk model was completed.  In parallel with the full roll-out of first-generation qualitative climate risk scorecards for the Commercial & Institutional segment, NatWest Group began development of the second-generation of climate risk scorecards. This involved the expansion of the scorecard methodology to capture quantitative considerations, with initial roll-out scheduled for 2024 on a test-and-learn basis. These scorecards do not drive credit risk decision making as yet.  NatWest Group improved the oversight of climate-related risk through regular reporting and review of climate risk appetite and associated operational measures, and improved calibration of existing limits to inform monthly risk committee updates.  An assessment of potential greenwashing risks was undertaken, driven by a hypothetical risk scenario where increased competition in the green finance market led to less efficient product designs and diminished robustness of governance.  Recognising the inextricable link between climate risk and nature degradation, NatWest Group added nature risk to its climate risk considerations within the risk directory and policy, for consideration from 2024. Governance The Board is responsible for monitoring and overseeing climate-related risk within NatWest Group’s overall business strategy and risk appetite. The potential impact, likelihood and preparedness of climate-related risk are reported regularly to the Board Risk Committee and the Board. The Chief Risk Officer shares accountability with the Chief Executive Officer under the Senior Managers and Certification Regime for identifying and managing the financial risks arising from climate change. This includes ensuring that the financial risks from climate change are adequately reflected in risk management frameworks, and that NatWest Group can identify, measure, monitor, manage and report on its exposure to these risks. The Climate Change Executive Steering Group is responsible for overseeing the direction of and progress against NatWest Group’s climate-related commitments. During 2023, the Executive Steering Group provided oversight of the second iteration of NatWest Group’s Climate transition plan, progression in establishing partnerships and opportunities including oversight of progress against the NatWest Group climate and sustainable funding and financing target and ensuring the effective management of climate-related risks. The Executive Steering Group will continue to supervise strategic implementation and delivery, supported by the Climate Centre of Excellence. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 261

Climate risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 277 Definition Climate risk is the threat of financial loss or adverse non-financial impacts associated with climate change and the political, economic and environmental responses to it. Sources of risk Physical risks may arise from climate and weather-related events such as heatwaves, droughts, floods, storms and sea level rises. They can potentially result in financial losses, impairing asset values and the creditworthiness of borrowers. NatWest Group could be exposed to physical risks directly by the effects on its property portfolio and, indirectly, by the impacts on the wider economy as well as on the property and business interests of its customers. Transition risks may arise from the process of adjustment towards a low-carbon economy. Changes in policy, technology and sentiment could prompt reassessment of customers’ financial risk and may lead to falls in the value of a large range of assets. NatWest Group could be exposed to transition risks directly through the costs of adaptation within economic sectors and markets as well as supply chain disruption leading to financial impacts on it and its customers. Potential indirect effects include the erosion of NatWest Group’s competitiveness, profitability, reputational damage and liability risk. Key developments in 2023  NatWest Group continued to enhance its in-house climate risk modelling capabilities, supporting the integration of climate risk within its capital adequacy (ICAAP); impairment (IFRS 9); and risk management processes.  An end-to-end test of NatWest Group’s in-house first-generation corporate transition risk model was completed.  In parallel with the full roll-out of first-generation qualitative climate risk scorecards for the Commercial & Institutional segment, NatWest Group began development of the second-generation of climate risk scorecards. This involved the expansion of the scorecard methodology to capture quantitative considerations, with initial roll-out scheduled for 2024 on a test-and-learn basis. These scorecards do not drive credit risk decision making as yet.  NatWest Group improved the oversight of climate-related risk through regular reporting and review of climate risk appetite and associated operational measures, and improved calibration of existing limits to inform monthly risk committee updates.  An assessment of potential greenwashing risks was undertaken, driven by a hypothetical risk scenario where increased competition in the green finance market led to less efficient product designs and diminished robustness of governance.  Recognising the inextricable link between climate risk and nature degradation, NatWest Group added nature risk to its climate risk considerations within the risk directory and policy, for consideration from 2024. Governance The Board is responsible for monitoring and overseeing climate-related risk within NatWest Group’s overall business strategy and risk appetite. The potential impact, likelihood and preparedness of climate-related risk are reported regularly to the Board Risk Committee and the Board. The Chief Risk Officer shares accountability with the Chief Executive Officer under the Senior Managers and Certification Regime for identifying and managing the financial risks arising from climate change. This includes ensuring that the financial risks from climate change are adequately reflected in risk management frameworks, and that NatWest Group can identify, measure, monitor, manage and report on its exposure to these risks. The Climate Change Executive Steering Group is responsible for overseeing the direction of and progress against NatWest Group’s climate-related commitments. During 2023, the Executive Steering Group provided oversight of the second iteration of NatWest Group’s Climate transition plan, progression in establishing partnerships and opportunities including oversight of progress against the NatWest Group climate and sustainable funding and financing target and ensuring the effective management of climate-related risks. The Executive Steering Group will continue to supervise strategic implementation and delivery, supported by the Climate Centre of Excellence. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 262

Climate risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 278 Risk appetite NatWest Group’s ambition is to be a leading bank in the UK, helping to address the climate challenge. This ambition is underpinned by activity to at least halve the climate impact of NatWest Group’s financing activity by 2030 (against a 2019 baseline) and to achieve net zero by 2050. Work continued in 2023 to mature NatWest Group’s climate-related risk capabilities. Throughout 2023, the Board Risk Committee monitored Board approved quantitative climate risk appetite measures in line with the enterprise-wide risk management framework. These measures provided a heightened focus on balance sheet exposure to financed emissions. These risk appetite measures were further supplemented during 2023 with additional segment-specific risk measures. The overall suite of metrics is used to inform climate risk reporting to senior risk management forums, linking risk management to NatWest Group’s strategic priorities. Climate risks are identified and reported through continuous risk management and regular reporting to senior risk committees and the Board. Quantitative and qualitative data is reviewed and assessed to measure whether climate risk is within risk appetite. Risk appetite statements and associated measures are reviewed at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. Mitigation NatWest Group focused on continuing to develop the capabilities to use scenario analysis to identify the most material climate risks and opportunities for its customers, seeking to harness insights to inform risk management practices, maximise the opportunities arising from a transition to a low-carbon economy and support decision making. Scenario analysis allows NatWest Group to test a range of possible future climate pathways and understand the nature and magnitude of the risks they present. The purpose of scenario analysis is not to forecast the future but to understand and prepare to manage risks that could arise. NatWest Group recognises a number of potential key use cases for climate scenario analysis, including, but not restricted to, the following:  Regulatory stress testing requirements.  Heightened climate risk sector classifications.  Sector/sub-sector risk appetite.  Portfolio management.  Strategic decision-making, capital adequacy and provisioning. There are a number of challenges with climate scenario analysis, for example, in relation to the immaturity of modelling techniques and data on climate-related risks, as well as the significant uncertainty as to how the climate will evolve over time, how and when governments, regulators, businesses, investors and customers respond and how those responses impact the economy, asset valuations, economic systems, policy and wider society. These risks and uncertainties, coupled with significantly long timeframes, make the outputs of climate-related risk modelling with respect to the potential use cases identified inherently more uncertain than outputs modelled for traditional financial planning cycles based on historical financial information. NatWest Group continued to develop its specialist climate data capabilities, including bringing in new datasets to increase the granularity for which climate risks are assessed, such as enhanced UK flood risk data and a more comprehensive set of EPC data for residential properties. NatWest Group continues to participate in a number of industry forums to help shape the financial service industry’s response to the challenges posed by climate risk, including scenario analysis. An example is the Climate Financial Risk Forum, established by the PRA and FCA. NatWest Group also continues to engage actively with academia to ensure best practice and the latest thinking on climate risks is considered within NatWest Group’s work. For example, around the appropriate assessment of physical risks, both short and longer term, are a particular focus for 2024. Operational risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 279 Definition Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or external events. It arises from day-to-day operations and is relevant to every aspect of the business. Sources of risk Operational risk may arise from a failure to manage operations, systems, processes, transactions and assets appropriately. This can take the form of human error, an inability to deliver change adequately or on time, the non-availability of technology services, or the loss of customer data. Systems failure, theft of NatWest Group property, information loss and the impact of natural, or man-made, disasters – as well as the threat of cyberattacks – are sources of operational risk. Operational risk can also arise from a failure to account for changes in law or regulations or to take appropriate measures to protect assets. Key developments in 2023  A review of the NatWest Group Risk Directory was completed and benchmarked against industry standard, to ensure comprehensive coverage of all operational risks.  The operational risk policy was reviewed and refreshed and supported by the development of a suite of new risk standards, operational guidance and risk toolkits to enable effective policy application.  The enhanced risk and control self-assessment approach continued to be rolled out and embedded with a focus on material operational risks across key end-to-end processes.  Given the risk associated with the processing of payments, a NatWest Group-wide programme on the movement of funds was mobilised, which focused on enhancing payment related controls. Governance The governance arrangements in place for operational risk are aligned to the requirements set out in the Board approved enterprise-wide risk management framework and are consistent with achieving safety, soundness and sustainable risk outcomes. Aligned to this, a strong operational risk management oversight function is vital to support NatWest Group’s ambitions to serve its customers better. Improved management of operational risk against defined risk appetite is vital for stability and reputational integrity. To support ongoing oversight of the management of the operational risk profile an Operational Risk Executive Steering Committee is in place. This forum ensures all material operational risks are monitored and managed within appetite. The Board Risk Committee and Board receives regular updates on the outputs of the Operational Risk Executive Steering Committee. Risk appetite Operational risk appetite supports effective management of all operational risks. It expresses the level and types of operational risk NatWest Group is willing to accept to achieve its strategic objectives and business plans. NatWest Group’s operational risk appetite quantitative and qualitative statements encompass the full range of operational risks faced by its legal entities, businesses, and functions. The risk appetite statement and associated measures for operational risk are approved at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. Mitigation Risks are mitigated by applying key preventative and detective controls. This is an integral step in the risk self-assessment methodology which determines residual risk exposure. Control owners are accountable for the design, execution, performance, and maintenance of key controls. Key controls are regularly assessed for adequacy and tested for effectiveness. The results are monitored and, where a material change in performance is identified, the associated risk is re-evaluated. All residual risks that exceed the target appetite position are subject to action plans to bring them within appetite. The Control Environment Certification (CEC) process is a half-yearly self-assessment by the CEOs of NatWest Group’s customer-facing business areas, as well as the heads of its support functions. NatWest Group uses this process as an effective means to provide a consistent and comparable view on the adequacy and effectiveness of the internal control environment. CEC covers material risks and the underlying key controls, including financial, operational and compliance controls, as well as their supporting risk management frameworks. The CEC outcomes, including forward-looking assessments for the next two half-yearly cycles and progress on control environment improvements, are reported to the Group Audit Committee and Board Risk Committee. They are also shared with external auditors. The CEC process helps to ensure compliance with the NatWest Group Policy Framework, Sarbanes-Oxley 404 requirements concerning internal control over financial reporting and certain requirements of the UK Corporate Governance Code. Monitoring and measurement Operational risk is measured and managed through continuous assessment and regular reporting to NatWest Group’s senior risk committees and at Board-level. Risk and control self-assessments are used across business areas and support functions to identify and assess material non-financial risks (including operational risks, conduct risks) and key controls. All risks and controls are mapped to NatWest Group’s Risk Directory. Risk assessments are refreshed at least annually and in response to internal and external events to ensure they remain relevant and that they capture any emerging risks. The process is designed to confirm that risks are effectively managed in line with risk appetite. Key controls are tested at the appropriate frequency to verify that they remain fit-for-purpose and operate effectively to reduce the identified risks. NatWest Group uses the standardised approach to calculate its Pillar 1 operational risk capital requirement. This is based on multiplying three years’ average historical gross income by coefficients set by the regulator based on business line. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 263

Operational risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 279 Definition Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or external events. It arises from day-to-day operations and is relevant to every aspect of the business. Sources of risk Operational risk may arise from a failure to manage operations, systems, processes, transactions and assets appropriately. This can take the form of human error, an inability to deliver change adequately or on time, the non-availability of technology services, or the loss of customer data. Systems failure, theft of NatWest Group property, information loss and the impact of natural, or man-made, disasters – as well as the threat of cyberattacks – are sources of operational risk. Operational risk can also arise from a failure to account for changes in law or regulations or to take appropriate measures to protect assets. Key developments in 2023  A review of the NatWest Group Risk Directory was completed and benchmarked against industry standard, to ensure comprehensive coverage of all operational risks.  The operational risk policy was reviewed and refreshed and supported by the development of a suite of new risk standards, operational guidance and risk toolkits to enable effective policy application.  The enhanced risk and control self-assessment approach continued to be rolled out and embedded with a focus on material operational risks across key end-to-end processes.  Given the risk associated with the processing of payments, a NatWest Group-wide programme on the movement of funds was mobilised, which focused on enhancing payment related controls. Governance The governance arrangements in place for operational risk are aligned to the requirements set out in the Board approved enterprise-wide risk management framework and are consistent with achieving safety, soundness and sustainable risk outcomes. Aligned to this, a strong operational risk management oversight function is vital to support NatWest Group’s ambitions to serve its customers better. Improved management of operational risk against defined risk appetite is vital for stability and reputational integrity. To support ongoing oversight of the management of the operational risk profile an Operational Risk Executive Steering Committee is in place. This forum ensures all material operational risks are monitored and managed within appetite. The Board Risk Committee and Board receives regular updates on the outputs of the Operational Risk Executive Steering Committee. Risk appetite Operational risk appetite supports effective management of all operational risks. It expresses the level and types of operational risk NatWest Group is willing to accept to achieve its strategic objectives and business plans. NatWest Group’s operational risk appetite quantitative and qualitative statements encompass the full range of operational risks faced by its legal entities, businesses, and functions. The risk appetite statement and associated measures for operational risk are approved at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. Mitigation Risks are mitigated by applying key preventative and detective controls. This is an integral step in the risk self-assessment methodology which determines residual risk exposure. Control owners are accountable for the design, execution, performance, and maintenance of key controls. Key controls are regularly assessed for adequacy and tested for effectiveness. The results are monitored and, where a material change in performance is identified, the associated risk is re-evaluated. All residual risks that exceed the target appetite position are subject to action plans to bring them within appetite. The Control Environment Certification (CEC) process is a half-yearly self-assessment by the CEOs of NatWest Group’s customer-facing business areas, as well as the heads of its support functions. NatWest Group uses this process as an effective means to provide a consistent and comparable view on the adequacy and effectiveness of the internal control environment. CEC covers material risks and the underlying key controls, including financial, operational and compliance controls, as well as their supporting risk management frameworks. The CEC outcomes, including forward-looking assessments for the next two half-yearly cycles and progress on control environment improvements, are reported to the Group Audit Committee and Board Risk Committee. They are also shared with external auditors. The CEC process helps to ensure compliance with the NatWest Group Policy Framework, Sarbanes-Oxley 404 requirements concerning internal control over financial reporting and certain requirements of the UK Corporate Governance Code. Monitoring and measurement Operational risk is measured and managed through continuous assessment and regular reporting to NatWest Group’s senior risk committees and at Board-level. Risk and control self-assessments are used across business areas and support functions to identify and assess material non-financial risks (including operational risks, conduct risks) and key controls. All risks and controls are mapped to NatWest Group’s Risk Directory. Risk assessments are refreshed at least annually and in response to internal and external events to ensure they remain relevant and that they capture any emerging risks. The process is designed to confirm that risks are effectively managed in line with risk appetite. Key controls are tested at the appropriate frequency to verify that they remain fit-for-purpose and operate effectively to reduce the identified risks. NatWest Group uses the standardised approach to calculate its Pillar 1 operational risk capital requirement. This is based on multiplying three years’ average historical gross income by coefficients set by the regulator based on business line. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 264

Operational risk continued NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 280 As part of the wider Internal Capital Adequacy Assessment Process an operational risk economic capital model is used to assess Pillar 2A, which is a risk-sensitive add-on to Pillar 1. The model uses historical loss data (internal and external) and forward-looking scenario analysis to provide a risk-sensitive view of NatWest Group’s Pillar 2A capital requirement. Scenario analysis is used to assess how severe but plausible operational risks will affect NatWest Group. It provides a forward-looking basis for evaluating and managing operational risk exposures. Refer to the Capital, liquidity and funding risk section for the operational risk capital requirement figures. Operational resilience and security NatWest Group manages and monitors operational resilience through its enhanced risk and control self-assessment methodology. This is underpinned by setting and monitoring of forward-looking risk indicators and performance metrics for the operational resilience of important business services. Progress continues on meeting regulatory expectations for operational resilience, with involvement in a number of industry-wide operational resilience forums. This enables a cross-sector view of the operational resilience risk profile and the pace of ongoing innovation and change, both internally and externally. NatWest Group operates layered security controls and its network architecture is designed to provide inherent protection against threats. This approach avoids reliance on any one type or method of security control. Minimum security control requirements are set out in Key Risk Policies(1), standards, processes and procedures. Through 2024 NatWest Group will monitor and manage the threat landscape focusing on:  Attack surface vulnerabilities – such as the rising number of zero-days and code vulnerabilities impacting organisations.  Initial access brokers and nation states – increasingly sophisticated attacks from ransomware gangs and ongoing challenges following Russia’s invasion of Ukraine which has raised international tensions increasing the likelihood of disruptive cyberattacks.  Developments in innovation and technology, assessing the inherent risk and developing appropriate response to mitigate associated risks, for example large language models, artificial intelligence and cloud adoption. As cyberattacks evolve and become more sophisticated, NatWest Group continues to invest in additional capability designed to defend against emerging threats. Event and loss data management The operational risk event and loss data management process ensures NatWest Group captures and records operational risk financial and non-financial events that meet defined criteria. Loss data is used for regulatory and industry reporting and is included in capital modelling when calculating economic capital for operational risk. The most serious events are escalated in a simple, standardised process to all senior management, by way of an early event escalation process. NatWest Group has not experienced a cybersecurity breach or associated material loss in the last three years. All financial impacts and recoveries associated with an operational risk event are reported against the date they were recorded in NatWest Group’s financial accounts. A single event can result in multiple losses (or recoveries) that may take time to crystallise. Losses and recoveries with a financial accounting date in 2023 may relate to events that occurred, or were identified in, prior years. NatWest Group purchases insurance, against specific losses, including cyberattacks, and to comply with statutory or contractual requirements. (1) Risk policies are in place for each principal risk and define, at a high level, the cascade of qualitative expectations, guidance and standards that stipulate the nature and extent of permissible risk taking. They are consistently applied across NatWest Group and subsidiary legal entities and form part of the qualitative expression of risk appetite for each principal risk. Percentage and value of events At 31 December 2023, events aligned to the clients, products and business practices event category accounted for 73% of NatWest Group’s operational risk losses (compared to 76% in 2022). The decrease reflects that lower conduct-related provisions were recorded during 2023 compared to prior years. Value of events Volume of events (1) £m Proportion Proportion 2023 2022 2023 2022 2023 2022 Fraud - External 48 34 18% 16% 89% 85% Clients, products and business practices 195 166 73% 76% 2% 5% Execution, delivery and process management 21 17 8% 8% 7% 8% Employment practices and workplace safety 1 1 - - 1% 1% Technology and infrastructure failures 1 1 1% - 1% 1% 266 218 100% 100% 100% 100% (1) The calculation in the table is based on the volume and value of events (the proportion and cost of operational risk events to NatWest Group) where the associated loss is more than or equal to £10,000. Model risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 281 Definition Model risk is the potential for adverse consequences from model errors or the inappropriate use of modelled outputs to inform business decisions. NatWest Group defines a model as a quantitative method, system, or approach that applies statistical, economic, financial, accounting, mathematical or data science theories, techniques and assumptions to process input data into estimates. Sources of risk NatWest Group uses a variety of models in the course of its business activities. Examples include the use of model outputs to support customer decisioning, measuring and assessing risk exposures (including credit, market, and climate risk), calculating regulatory capital and liquidity requirements and automation of operational processes. Model applications may give rise to different risks depending on the business segment in which they are used. Model risk is therefore assessed separately for each business segment in addition to the overall assessment made for NatWest Group. Key developments in 2023  Following extensive model remediation work, NatWest Group returned to model risk appetite in April 2023. Ongoing remediation work continues to be a key focus to further strengthen the model risk appetite position and is closely monitored.  NatWest Group’s model risk management practices continued to evolve, supported by a dedicated model risk management enhancement programme, set up in response to the PRA’s Supervisory Statement 1/23. An updated model risk policy was approved by the Board Risk Committee.  Implementation of model risk procedures, aligned to the delivery and embedding of the enterprise-wide risk management framework, continued. This was supported by significant model inventory design enhancements and a bank-wide model risk data remediation exercise. This activity improved the quality and completeness of model risk data held within the model inventory system and enabled enhanced insights and reporting capabilities. Governance A governance framework is in place to ensure policies and processes relating to models are appropriate and effective. Two roles are key to this – model risk owners and model validation leads. Model risk owners are responsible for model approval and ongoing performance monitoring. Model validation leads, in the second line, are responsible for oversight, including ensuring that models are independently validated prior to use and on an ongoing basis aligned to the model’s risk rating. Business and function model management committees are used to escalate model risk matters to senior management where required. The NatWest Group Model Risk Oversight Committee further enhances model risk governance by providing a platform for executive level discussion on emerging model risks, identification of systemic risks and the evolution of model risk management practices. Risk appetite Model risk appetite is set in order to limit the level of model risk that NatWest Group is willing to accept in the course of its business activities. The model risk appetite statement and associated measures are approved by the Board on the Board Risk Committee’s recommendation at least annually to ensure they remain appropriate and aligned to strategy. Business areas are responsible for monitoring performance against appetite and remediating models outside appetite. Monitoring and measurement Model risk is measured and managed through continuous assessment and regular reporting to NatWest Group’s senior risk committees and at Board level. Policies, toolkits and model standards related to the development, validation, approval, implementation, use and ongoing monitoring of models are in place to ensure adequate control across the lifecycle of an individual model. Validation of material models is conducted by an independent risk function comprising of skilled, well-informed subject matter experts. This is completed for new models or material amendments to existing models and as part of an ongoing periodic programme to assess model performance. The frequency of periodic validation is aligned to the risk rating of the model. The independent validation focuses on a variety of model features, including modelling approach, the nature of the assumptions used, the model’s predictive ability and complexity, the data used in the model, its implementation and its compliance with regulation. The level of risk relating to an individual model is assessed through a model risk rating. A quantitative approach is used to determine the risk rating of each model, based on the model’s materiality and validation rating. This approach provides the basis for model risk appetite measures and enables model risk to be robustly monitored and managed across NatWest Group. Ongoing performance monitoring is conducted by model owners and overseen by the model validators to ensure parameter estimates and model constructs remain fit for purpose, model assumptions remain valid and that models are being used consistently with their intended purpose. This allows timely action to be taken to remediate poor model performance and/or any control gaps or weaknesses. Mitigation By their nature – as approximations of reality – model risk is inherent in the use of models. It is managed by refining or redeveloping models where appropriate – due to changes in market conditions, business assumptions or processes – and by applying adjustments to model outputs (either quantitative or based on expert opinion). Enhancements may also be made to the process within which the model output is used in order to further limit risk levels. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 265

Model risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 281 Definition Model risk is the potential for adverse consequences from model errors or the inappropriate use of modelled outputs to inform business decisions. NatWest Group defines a model as a quantitative method, system, or approach that applies statistical, economic, financial, accounting, mathematical or data science theories, techniques and assumptions to process input data into estimates. Sources of risk NatWest Group uses a variety of models in the course of its business activities. Examples include the use of model outputs to support customer decisioning, measuring and assessing risk exposures (including credit, market, and climate risk), calculating regulatory capital and liquidity requirements and automation of operational processes. Model applications may give rise to different risks depending on the business segment in which they are used. Model risk is therefore assessed separately for each business segment in addition to the overall assessment made for NatWest Group. Key developments in 2023  Following extensive model remediation work, NatWest Group returned to model risk appetite in April 2023. Ongoing remediation work continues to be a key focus to further strengthen the model risk appetite position and is closely monitored.  NatWest Group’s model risk management practices continued to evolve, supported by a dedicated model risk management enhancement programme, set up in response to the PRA’s Supervisory Statement 1/23. An updated model risk policy was approved by the Board Risk Committee.  Implementation of model risk procedures, aligned to the delivery and embedding of the enterprise-wide risk management framework, continued. This was supported by significant model inventory design enhancements and a bank-wide model risk data remediation exercise. This activity improved the quality and completeness of model risk data held within the model inventory system and enabled enhanced insights and reporting capabilities. Governance A governance framework is in place to ensure policies and processes relating to models are appropriate and effective. Two roles are key to this – model risk owners and model validation leads. Model risk owners are responsible for model approval and ongoing performance monitoring. Model validation leads, in the second line, are responsible for oversight, including ensuring that models are independently validated prior to use and on an ongoing basis aligned to the model’s risk rating. Business and function model management committees are used to escalate model risk matters to senior management where required. The NatWest Group Model Risk Oversight Committee further enhances model risk governance by providing a platform for executive level discussion on emerging model risks, identification of systemic risks and the evolution of model risk management practices. Risk appetite Model risk appetite is set in order to limit the level of model risk that NatWest Group is willing to accept in the course of its business activities. The model risk appetite statement and associated measures are approved by the Board on the Board Risk Committee’s recommendation at least annually to ensure they remain appropriate and aligned to strategy. Business areas are responsible for monitoring performance against appetite and remediating models outside appetite. Monitoring and measurement Model risk is measured and managed through continuous assessment and regular reporting to NatWest Group’s senior risk committees and at Board level. Policies, toolkits and model standards related to the development, validation, approval, implementation, use and ongoing monitoring of models are in place to ensure adequate control across the lifecycle of an individual model. Validation of material models is conducted by an independent risk function comprising of skilled, well-informed subject matter experts. This is completed for new models or material amendments to existing models and as part of an ongoing periodic programme to assess model performance. The frequency of periodic validation is aligned to the risk rating of the model. The independent validation focuses on a variety of model features, including modelling approach, the nature of the assumptions used, the model’s predictive ability and complexity, the data used in the model, its implementation and its compliance with regulation. The level of risk relating to an individual model is assessed through a model risk rating. A quantitative approach is used to determine the risk rating of each model, based on the model’s materiality and validation rating. This approach provides the basis for model risk appetite measures and enables model risk to be robustly monitored and managed across NatWest Group. Ongoing performance monitoring is conducted by model owners and overseen by the model validators to ensure parameter estimates and model constructs remain fit for purpose, model assumptions remain valid and that models are being used consistently with their intended purpose. This allows timely action to be taken to remediate poor model performance and/or any control gaps or weaknesses. Mitigation By their nature – as approximations of reality – model risk is inherent in the use of models. It is managed by refining or redeveloping models where appropriate – due to changes in market conditions, business assumptions or processes – and by applying adjustments to model outputs (either quantitative or based on expert opinion). Enhancements may also be made to the process within which the model output is used in order to further limit risk levels. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 266

Reputational risk NatWest Group 2023 Annual Report and Accounts STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION 282 Definition Reputational risk is defined as the risk of damage to stakeholder trust due to negative consequences arising from internal actions or external events. Sources of risk The three primary drivers of reputational risk are: failure in internal risk management systems, processes or culture; NatWest Group’s actions materially conflicting with stakeholder expectations; and contagion (when NatWest Group’s reputation is damaged by failures in key sectors including NatWest Group’s supply chain or other partnerships). Key developments in 2023  Reputational risks were elevated in relation to the departure of Alison Rose as NatWest Group Chief Executive Officer and issues that had arisen in connection with account closure decisions that attracted significant public and media attention. Relevant updates to the Reputational Risk Framework are being implemented following an independent legal review of customer account closures and internal reviews.  Reputational risk registers are in place across all relevant business areas.  New environmental, social and ethical (ESE) risk acceptance criteria were created to support the management of human rights risk and will be implemented in 2024.  All climate focused ESE risk acceptance criteria (mining and metals, power generation and oil and gas) underwent a review to ensure they reflect the current risk landscape. Governance A reputational risk policy supports reputational risk management across NatWest Group. Reputational risk registers are used to manage reputational risks identified within relevant business areas. These are reported to the relevant business executive risk committee. Material reputational risks to NatWest Group are escalated via the NatWest Group reputational risk register which is reported at every meeting of the NatWest Group Reputational Risk Committee. The NatWest Group Reputational Risk Committee also opines on matters that represent material reputational risks. The Executive and Board Risk Committees oversee the identification and reporting of reputational risk via the NatWest Group risk report. Risk appetite NatWest Group manages and articulates its appetite for reputational risk through a qualitative reputational risk appetite statement and associated quantitative measures which are approved at least annually by the Board on the Board Risk Committee’s recommendation to ensure they remain appropriate and aligned to strategy. NatWest Group seeks to identify, measure and manage risk aligned to stakeholder trust. However, reputational risk is inherent in NatWest Group’s operating environment and public trust is a specific factor in setting reputational risk appetite. Monitoring and measurement Relevant internal and external factors are monitored through regular reporting via reputational risk registers at business or legal entity level. They are escalated, where appropriate, to the relevant business risk committee and where material, to the NatWest Group Reputational Risk Committee. Additional principal risk indicators for material risks being monitored are also reported to Group Reputational Risk Committee and to the Executive and Board Risk Committees via the NatWest Group risk report. Mitigation Standards of conduct are in place across NatWest Group requiring strict adherence to policies, procedures and ways of working to ensure business is transacted in a way that meets – or exceeds – stakeholder expectations. External events that could cause reputational damage are identified and mitigated through NatWest Group’s top and emerging threats process (where sufficiently material) as well as through the NatWest Group and business level reputational risk registers. NatWest Group has in recent years been the subject of investigations and reviews by a number of regulators and governmental authorities, some of which have resulted in past fines, settlements and public censure. Refer to the Litigation and regulatory matters section of Note 26 to the consolidated financial statements for details of material matters currently affecting NatWest Group. STRATEGIC REPORT FINANCIAL REVIEW GOVERNANCE RISK AND CAPITAL MANAGEMENT FINANCIAL STATEMENTS ADDITIONAL INFORMATION NatWest Group 2023 Annual Report on Form 20-F 267


☐	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2023

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☐	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Title of each class	Trading Symbol (s)	Name of each exchange on which registered
American Depositary Shares, each representing 2 ordinary shares, nominal value £1.0769 per share	NWG	New York Stock Exchange
Ordinary shares, nominal value £1.0769 per share*		New York Stock Exchange
5.125% Subordinated Tier 2 Notes due 2024	NWG24	New York Stock Exchange
3.754% Fixed-to-fixed Reset Rate Subordinated Tier 2 Notes due 2029	NWG29A	New York Stock Exchange
3.032% Fixed-to-fixed Reset Rate Subordinated Tier 2 Notes due 2035	NWG35	New York Stock Exchange
4.269% Fixed Rate / Floating Rate Senior Notes due 2025	NWG25	New York Stock Exchange
1.642% Senior Callable Fixed-to-fixed Reset Rate Notes due 2027	NWG27	New York Stock Exchange
5.847% Senior Callable Fixed-to-fixed Reset Rate Notes due 2027	NWG27A	New York Stock Exchange
5.516% Senior Callable Fixed-to-fixed Reset Rate Notes due 2028	NWG/28A	New York Stock Exchange
5.808% Senior Callable Fixed-to-fixed Reset Rate Notes due 2029	NWG29B	New York Stock Exchange
6.016% Senior Callable Fixed-to-fixed Reset Rate Notes due 2034	NWG34	New York Stock Exchange
7.472% Callable Fixed-to-fixed Reset Rate Senior Notes due 2026	NWG26A	New York Stock Exchange
3.073% Callable Fixed-to-fixed Reset Rate Senior Notes due 2028	NWG28	New York Stock Exchange
4.892% Fixed Rate / Floating Rate Senior Notes due 2029	NWG29	New York Stock Exchange
5.076% Fixed Rate / Floating Rate Senior Notes due 2030	NWG30	New York Stock Exchange
4.445% Fixed Rate / Floating Rate Senior Notes due 2030	NWG30A	New York Stock Exchange

Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes callable 2025	Irish Stock Exchange
Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes callable 2025	London Stock Exchange
Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes callable 2027	London Stock Exchange
Reset Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes callable 2028	London Stock Exchange
Perpetual Subordinated Contingent Convertible Additional Tier 1 Capital Notes callable 2031	London Stock Exchange

(Title of each class)		(Number of outstanding shares)
Ordinary shares of £1.0769* each		8,991,736,976
11% cumulative preference shares		240,686
5½% cumulative preference shares		242,454

* nominal value of Ordinary shares without rounding is £1.076923076923077


Large accelerated filer ☒	Accelerated filer ☐	Non-Accelerated filer ☐	Emerging growth company ☐

Item	Item Caption	Pages
PART I		Annual Report on Form 20-F	Exhibit 15.2: Annual Report and Form 20-F Information
1	Identity of Directors, Senior Management and Advisers	Not applicable	Not applicable
2	Offer Statistics and Expected Timetable	Not applicable	Not applicable
3	Key Information A. [Reserved] B. Capitalisation and indebtedness C. Reasons for the offer and use of proceeds D. Risk factors	Not applicable Not applicable 4-5, 160-184	Not applicable Not applicable 60-66
4	Information on the Company A. History and development of the Company B. Business overview C. Organisational structure D. Property, plants and equipment	9-10, 59-64, 194-206 1-28, 63-64, 147-156, 185-193 3, Exhibit 8.1 54, 114, 185	4-5, 6-7, 8, 18-19, 150-153 1-24, 48-59, 150-153 130 58-59
4a	Unresolved Staff Comments	Not applicable	Not applicable
5	Operating and Financial Review and Prospects A. Operating results B. Liquidity and capital resources C. Research and development, patents and licences etc. D. Trend information E. Critical Accounting Estimates	1-26 7, 25, 38, 42, 98-110, 115-117 Not applicable 4-27 Not applicable	1-24, 48-67, 247-258 8, 228-246 Not applicable 1-24, 48-59 Not applicable
6	Directors, Senior Management and Employees A. Directors and senior management B. Compensation C. Board practices D. Employees E. Share ownership F. Disclosure of a registrant’s action to recover erroneously awarded compensation	Not applicable 55-72, 134 Not applicable 56 57-59, 134-135, 185, 196-197 Not applicable	69-72, 150-154 112-147 69-72, 74-89, 90-112, 150-153 36-37 112-147 Not applicable
7	Major Shareholders and Related Party Transactions A. Major shareholders B. Related party transactions C. Interests of experts and counsel	185-186, 189-191 135, 189-191 Not applicable	150-153 Not applicable Not applicable
8	Financial Information A. Consolidated statements and other financial information B. Significant changes	28-137 3, 137	Not applicable Not applicable
9	The Offer and Listing A. Offer and listing details B. Plan of distribution C. Markets D. Selling shareholders E. Dilution F. Expenses of the issue	118, 196-197 Not applicable 196-197 Not applicable Not applicable Not applicable	149 Not applicable 149 Not applicable Not applicable Not applicable
10	Additional Information A. Share capital B. Memorandum and articles of association C. Material contracts D. Exchange controls E. Taxation F. Dividends and paying agents G. Statement of experts H. Documents on display I. Subsidiary information J. Annual Report to Security Holders	Not applicable 200-205 189-193 199 197-199 Not applicable Not applicable 204 Not applicable Not applicable	Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
11	Quantitative & Qualitative Disclosure about Market Risk	101-112	160-258
12	Description of Securities Other than Equity Securities A. Debt Securities B. Warrants and Rights C. Other Securities D. American Depositary Shares	Exhibit 2.4 Not applicable Not applicable 159	Not applicable Not applicable Not applicable Not applicable Not applicable


	Year ended
	31-Dec		31-Dec		31-Dec
	2023		2022		2021
Summary consolidated income statement	£m		£m		£m
Net interest income	11,049		9,842		7,535
Non-interest income	3,703		3,314		2,894
Total income	14,752		13,156		10,429
Litigation and conduct costs	(355)		(385)		(466)
Other operating expenses	(7,641)		(7,302)		(7,292)
Operating expenses	(7,996)		(7,687)		(7,758)
Profit before impairment losses	6,756		5,469		2,671
Impairment losses	(578)		(337)		1,173
Operating profit before tax	6,178		5,132		3,844
Tax (charge)/credit	(1,434)		(1,275)		(996)
Profit from continuing operations	4,744		3,857		2,848
(Loss)/profit from discontinued operations, net of tax	(112)		(262)		464
Profit for the period	4,632		3,595		3,312
Performance key metrics and ratios
Notable items within total income (1)	£413m		£95m		£245m
Total income excluding notable items (1)	£14,339m		£13,061m		£10,184m
Bank net interest margin (1)	3.04	%	2.85	%	2.30	%
Bank average interest earning assets (1)	£363bn		£345bn		£327bn
Cost:income ratio (excl. litigation and conduct) (1)	51.8	%	55.50	%	69.90	%
Loan impairment rate (1)	15bps		9bps		(32bps)
Profit attributable to ordinary shareholders	£4,394m		£3,340m		£2,950m
Total earnings per share attributable to ordinary
shareholders - basic	47.9p		33.8p		27.3p
Return on tangible equity (RoTE) (1)	17.8	%	12.30	%	9.40	%
Climate and sustainable funding and financing (2)	£29.3bn		£24.5bn		£8.1bn


	As at
	31-Dec		31-Dec		31-Dec
	2023		2022		2021
	£bn		£bn		£bn
Balance sheet
Total assets	692.7		720.1		782.0
Loans to customers - amortised cost	381.4		366.3		359.0
Loans to customers excluding central items (1,3)	355.6		346.7		324.8
Loans to customers and banks - amortised cost and FVOCI	392		377.1		369.8
Total impairment provisions (4)	3.5		3.4		3.8
Expected credit loss (ECL) coverage ratio	0.93	%	0.91	%	1.03	%
Assets under management and administration (AUMA) (1)	40.8		33.4		35.6
Customer deposits	431.4		450.3		479.8
Customer deposits excluding central items (1,3)	419.1		432.9		445.7
Liquidity and funding
Liquidity coverage ratio (LCR)	144	%	145	%	172	%
Liquidity portfolio (5)	223		233		286
Net stable funding ratio (NSFR)	133	%	145	%	157	%
Loan:deposit ratio (excl. repos and reverse repos) (1)	84	%	79	%	72	%
Total wholesale funding	80		74		77
Short-term wholesale funding	28		21		23
Capital and leverage
Common Equity Tier 1 (CET1) ratio (6)	13.4	%	14.2	%	18.2	%
Total capital ratio (6)	18.4	%	19.3	%	24.7	%
Pro forma CET1 ratio (excl. foreseeable items) (7)	14.2	%	15.4	%	19.5	%
Risk-weighted assets (RWAs)	183.0		176.1		157.0
UK leverage ratio	5.0	%	5.4	%	5.9	%
Tangible net asset value (TNAV) per ordinary share (1,8)	292p		264p		272p
Number of ordinary shares in issues (millions) (8)	8,792		9,659		11,272


							Central	Total
	Retail		Private		Commercial &		items	NatWest
	Banking		Banking		Institutional		& other	Group
2023	£m		£m		£m		£m	£m
Continuing operations
Net interest income	5,496		710		5,044		(201)	11,049
Non-interest income	435		280		2,377		611	3,703
Total income	5,931		990		7,421		410	14,752
Direct expenses	(815)		(255)		(1,510)		(5,061)	(7,641)
Indirect expenses	(1,896)		(421)		(2,357)		4,674	—
Other operating expenses	(2,711)		(676)		(3,867)		(387)	(7,641)
Litigation and conduct costs	(117)		(9)		(224)		(5)	(355)
Operating expenses	(2,828)		(685)		(4,091)		(392)	(7,996)
Operating profit before impairment losses	3,103		305		3,330		18	6,756
Impairment losses	(465)		(14)		(94)		(5)	(578)
Operating profit	2,638		291		3,236		13	6,178
Total income excluding notable items	5,931		990		7,420		(2)	14,339
Return on tangible equity (1)	na		na		na		na	17.8	%
Return on equity (1,2)	23.8	%	14.8	%	15.4	%	nm	na
Cost:income ratio (excl. litigation and conduct) (1)	45.7	%	68.3	%	52.1	%	nm	51.8	%
Customer deposits (£bn)	188.0		37.7		193.4		12.3	431.4
Average interest earning assets (£bn)	205.4		19.0		131.5		nm	362.9
Net interest margin (1)	2.68	%	3.74	%	3.84	%	nm	3.04	%
Third party asset rate (1)	3.23	%	4.54	%	6.15	%	nm	nm
Third party customer funding rate (1)	(1.42)	%	(2.17)	%	(1.40)	%	nm	nm


							Central	Total
	Retail		Private		Commercial &		items	NatWest
	Banking		Banking		Institutional		& other	Group
2022	£m		£m		£m		£m	£m
Continuing operations
Net interest income	5,224		777		4,171		(330)	9,842
Non-interest income	422		279		2,242		371	3,314
Total income	5,646		1,056		6,413		41	13,156
Direct expenses	(709)		(235)		(1,506)		(4,852)	(7,302)
Indirect expenses	(1,775)		(375)		(2,057)		4,207	—
Other operating expenses	(2,484)		(610)		(3,563)		(645)	(7,302)
Litigation and conduct costs	(109)		(12)		(181)		(83)	(385)
Operating expenses	(2,593)		(622)		(3,744)		(728)	(7,687)
Operating profit/(loss) before impairment losses/releases	3,053		434		2,669		(687)	5,469
Impairment (losses)/releases	(229)		2		(122)		12	(337)
Operating profit/(loss)	2,824		436		2,547		(675)	5,132
Total income excluding notable items	5,646		1,056		6,416		(57)	13,061
Return on tangible equity (1)	na		na		na		na	12.3	%
Return on equity (1,2)	28.6	%	24.5	%	12.2	%	nm	na
Cost:income ratio (excl. litigation and conduct) (1)	44.0	%	57.8	%	55.6	%	nm	55.5	%
Customer deposits (£bn)	188.4		41.2		203.3		17.4	450.3
Average interest earning assets (£bn)	190.8		19.1		126.1		nm	345.2
Net interest margin (1)	2.74	%	4.07	%	3.31	%	nm	2.85	%
Third party asset rate (1)	2.64	%	3.01	%	3.53	%	nm	nm
Third party customer funding rate (1)	(0.20)	%	(0.27)	%	(0.21)	%	nm	nm


	Page
Independent auditor’s report (PCAOB number: 1438)	29
Consolidated income statement for the year ended 31 December 2023	36
Consolidated statement of comprehensive income for the year ended 31 December 2023	37
Consolidated balance sheet as at 31 December 2023	38
Consolidated statement of changes in equity for the year ended 31 December 2023	39
Consolidated cash flow statement for the year ended 31 December 2023	42
Accounting policies	43
Notes to the consolidated financial statements
1 Net interest income	53
2 Non-interest income	54
3 Operating expenses	55
4 Segmental analysis	59
5 Pensions	65
6 Auditor’s remuneration	72
7 Tax	73
8 Discontinued operations and assets and liabilities of disposal groups	78
9 Earnings per share	80
10 Financial instruments – classification	80
11 Financial instruments – valuation	85
12 Financial instruments – maturity analysis	98
13 Trading assets and liabilities	101
14 Derivatives	102
15 Loan impairment provisions	110
16 Other financial assets	112
17 Intangible assets	113
18 Other assets	114
19 Other financial liabilities	114
20 Subordinated liabilities	115
21 Other liabilities	116
22 Share capital and other equity	117
23 Structured entities	120
24 Asset transfers	122
25 Capital resources	123
26 Memorandum items	124
27 Non-cash and other items	131
28 Analysis of the net investment in business interests and intangible assets	132
29 Analysis of changes in financing during the year	133
30 Analysis of cash and cash equivalents	133
31 Directors’ and key management remuneration	134
32 Transactions with directors and key management	135
33 Related parties	135
34 Post balance sheet events	137


Description of the Matter	How We Addressed the Matter in Our Audit
Estimate of expected credit loss provisions
At 31 December 2023, the Group reported total gross loans – amortised cost and FVOCI of £392 billion and associated £3.6 billion of expected credit losses (‘ECL’). As explained more fully in the Accounting policies, the credit risk section of the Risk and capital management section and Note 15 to the consolidated financial statements, ECL is recognised for financial instruments classified as amortised cost or fair value through other comprehensive income. Performing assets are measured at either (i) 12-month ECL (stage 1) or (ii) for those assets that are considered to have a significant increase in credit risk (‘SICR’), lifetime ECL (stage 2). Defaulted assets (stage 3) are also measured at lifetime ECL. Auditing the ECL estimate was complex due to the judgemental methods used to estimate the ECL, including: accounting interpretations, modelling assumptions and the selection and use of the data used to build and run modelled estimates of Probability of Default (‘PD’), Loss Given Default (‘LGD’) and Exposure at Default (‘EAD’); how to allocate assets between the stages; multiple economic scenarios incorporated in the models; post-model adjustments applied; and the recovery and timing assumptions for individually provided stage 3 ECLs. The ongoing impact of the uncertain geopolitical and economic outlook led to increased judgements applied in these areas.	We evaluated the design and tested the operating effectiveness of controls over the ECL process, including those over the judgements and estimates noted above. The controls we tested included, amongst others, controls over monitoring of the criteria used to allocate assets into stages, model governance, credit monitoring, individual provisions and the governance over the review of the overall ECL, including the application of model adjustments. To test the ECL provision, amongst other procedures, we performed an overall assessment of the ECL provision levels by stage to assess if they were reasonable by considering the overall credit quality of the Group’s portfolios, risk profile, the current geopolitical and macroeconomic environment, and the industries to which the Group is exposed, as well as performing peer benchmarking, where available, to assess overall staging and provision coverage levels. We evaluated the criteria used to allocate a financial asset to stage 1, 2 or 3 in accordance with IFRS 9, recalculated the staging of the complete population of assets, and performed sensitivity analysis to assess the impact of different criteria on the ECL and the impact of performing collective staging downgrades to industries, geographic regions and high-risk populations particularly impacted by recent economic conditions. We selected a sample of ECL models based on both quantitative and qualitative factors, and involved our modelling specialists to test the assumptions, inputs, methodology and model build. This included a combination of assessing model design and formulae, alternative modelling techniques, recalculating the PD, LGD and EAD, and implementation of new models during the year. We also considered the results of the Group’s internal model monitoring and validation results. To evaluate completeness and accuracy of data used in the ECL calculation, we agreed a sample of data points to source systems, including data used to run the models and historic loss data to monitor the models. We involved our economic specialists to assist us in evaluating the base case and alternative economic scenarios, including evaluating probability weights and considering contrary evidence from external sources. We tested a sample of Post Model Adjustments held at year end. This included challenging the identification of retail customers vulnerable to price and rate increases, commercial sub-sectors susceptible to inflation and liquidity challenges, loss given default assumptions, time to collect and model shortcomings. With our modelling specialists, we assessed the risk of bias and the completeness of these adjustments by considering the data, judgements, methodology, sensitivities, and governance of these adjustments. We evaluated and recalculated the scenarios, assumptions and cash flows for a sample of individual provisions including the alternative scenarios and the probability weights assigned, involving our valuation specialists where appropriate. We also evaluated the adequacy of the related disclosures provided in the consolidated financial statements.


Description of the Matter	How We Addressed the Matter in Our Audit
Impairment of goodwill and recognition of deferred tax assets
At 31 December 2023, the Group had reported goodwill of £5.7 billion and net deferred tax assets of £1.8 billion as explained in Note 17 and Note 7, respectively, to the consolidated financial statements. The assessment of potential impairment of goodwill and recognition of deferred tax assets are based on estimates of future profitability, which require significant management judgement. Auditing the impairment assessment of goodwill was complex because it involved estimates of future profitability, long-term growth rates and discount rates to determine the value in use (VIU). Auditing the recognition of the deferred tax asset was complex because it involved estimates of future profitability and long-term growth rates. The assumptions listed above require significant management judgement, and include the risk of management bias due to the forward-looking nature and inherent uncertainties associated with such assumptions.	We evaluated the design and tested the operating effectiveness of controls over the preparation and review of the forecasts, and the significant assumptions listed above. For example, we tested the controls over management’s review over the long-term growth rate used in the VIU models. To test the valuation of goodwill and recognition of deferred tax assets, amongst other procedures, we involved our economic specialists to evaluate the macroeconomic assumptions used in the Group’s forecasts. We assessed the reasonableness of revenue and cost forecasts by evaluating the underlying business strategies, comparing to expected market trends and historical performance and considering anticipated balance sheet growth. With the assistance of our valuation specialists, we tested the reasonableness of key performance indicators used in the forecasts by comparing against peers. We evaluated how the long-term growth rates used by management compared to our ranges which were developed using peer practice, external market data and calculations performed by our valuation specialists. We evaluated how management considered alternative assumptions and performed our own sensitivity and scenario analyses on certain assumptions, such as revenue and cost forecasts, and long-term growth rates and other key performance indicators on both the detailed forecasts and on an overall basis. In addition to the above to test the valuation of goodwill we evaluated the method of calculating the recoverable amount (VIU) and how the discount rates used by management compared to our ranges which were developed using peer practice, external market data and calculations performed by our valuation specialists. We also evaluated the adequacy of the related dislcosures provided in the consolidated financial statements.


Description of the Matter	How We Addressed the Matter in Our Audit
Provisions for customer redress, litigation and other regulatory matters
At 31 December 2023, the Group has reported £1.0 billion of provisions for liabilities and charges, including £0.6 billion for customer redress, litigation and other regulatory matters as detailed in Note 21 and 26 to the consolidated financial statements. The Group operates in an industry where it is subject to litigation, including regulatory scrutiny and investigations. The Group recognises provisions for customer redress, litigation and other regulatory matters when it has a present obligation. Management judgement is needed to determine whether a present obligation exists, a provision should be recorded and how to measure any required provision in accordance with the accounting criteria set out under IAS 37. Auditing the adequacy of these provisions was complex due to management’s judgement in the selection and use of assumptions, which included expected claim rates, legal costs, and the timing of settlement, to determine if a present obligation exists, an outflow is probable and can be estimated, and adequately disclosed.	We evaluated the design and tested the operating effectiveness of controls over the identification, completeness, estimation, monitoring and disclosure of provisions related to customer redress, litigation and other regulatory matters. Where appropriate, we involved our conduct risk and forensics specialists to assist us in evaluating the assumptions, including expected claim rates, legal costs, and the timing of settlement, to determine the resulting provisions for specific customer redress, litigation and other regulatory matters. We assessed the risks facing the Group, including the status of any investigations and implications of these on the Group’s provisions for customer redress, litigation and other regulatory matters through our inquiries with internal legal counsel. We tested management’s assessment of the potential outcomes, including the completeness of the data considered in making these assessments. Where no provision was booked by management, we assessed this conclusion with reference to the requirements of IAS 37. Where relevant we undertook this assessment with the input of our specialists, including conduct specialists. We examined relevant regulatory and legal correspondence, and where relevant obtained and reviewed reports from external counsel. We also considered regulatory developments to identify actual or possible non-compliance with laws and regulations that might have a material effect on the financial statements. We also evaluated the adequacy of the related disclosures provided in the consolidated financial statements.


Description of the Matter	How We Addressed the Matter in Our Audit
Valuation of financial instruments with higher risk characteristics
As reported in Note 11 to the financial statements, as at 31 December 2023, the Group held financial instruments with higher risk characteristics. This included (but is not limited to) reported level 3 assets of £2.0 billion and level 3 liabilities of £0.7 billion whose value is dependent on unobservable inputs. Auditing management’s judgements and assumptions used in the estimation of the fair value of these instruments was complex due to the judgemental nature of valuation techniques, modelling assumptions, significant illiquid inputs and certain valuation adjustments. Complex models were used to value exotic features in certain interest rate swaps and options. Judgemental unobservable inputs included discount rates associated with derivatives with complex collateral arrangements and illiquid loans. Judgemental fair value adjustments included Funding Valuation Adjustments (FVA), Credit Valuation Adjustments (CVA), and material product and deal specific adjustments on long-dated derivative portfolios.	We evaluated the design and tested the operating effectiveness of controls relating to financial instrument valuation, which included controls over the bank’s independent price verification process, valuation models governance, collateral management and income statement analysis. Amongst other procedures, we involved our financial instrument valuation and modelling specialists to assist us in testing complex model-dependent valuations by performing independent revaluation to assess the appropriateness of models and the adequacy of both assumptions and inputs. We also independently re-priced a sample of instruments that had been valued using illiquid pricing inputs, using alternative pricing sources, where available, to evaluate management’s valuation. In addition, we compared fair value adjustment methodologies against current market practice. With the assistance of our specialists, we revalued a sample of counterparty level FVAs and CVAs, comparing funding spreads to third party data and independently assessed illiquid CVA inputs. We also tested material product and deal specific adjustments on long-dated derivative portfolios and assessed other information, including trading activity, asset disposals and collateral discrepancies, to evaluate modelling assumptions and inputs.


Description of the Matter	How We Addressed the Matter in Our Audit
Valuation of hard to value pension assets and the defined benefit obligation
At 31 December 2023, the Group reported a net pension asset of £102 million comprising £201 million of schemes in surplus and £99 million of schemes in deficit. As explained in the accounting policies and Note 5 to the consolidated financial statements, the defined benefit obligation is measured on an actuarial basis. The charge to the income statement for pension costs is recognised in operating expenses. Actuarial gains and losses are recognised in other comprehensive income in full in the period in which they arise. Auditing the pension plan was complex due to the judgemental nature of the assumptions used in the estimation of the fair value of the schemes’ illiquid assets and the defined benefit obligation. These assumptions included, the discount rate, inflation, pension payment and longevity used in the valuation of retirement benefit liabilities. The estimation of the fair value of the pension schemes’ assets was complex due to the judgemental nature of the assumptions and calibrations for illiquid or complex model-dependent valuations of certain investments held by the pension schemes.	We evaluated the design and tested the operating effectiveness of controls over the process covering the valuation of the defined benefit obligation and hard to value assets. For example, we tested controls over management’s review of the actuarial assumptions used in developing the defined benefit obligation. To test the defined benefit obligation, we involved our actuarial specialists to assist in evaluating the actuarial assumptions as discussed above by comparing them to ranges independently developed from third party sources and market data. With the assistance of our specialists, we assessed the impact on pension liabilities due to changes in financial and longevity assumptions over the year, by comparing to third-party sources and market data. We tested the fair value of scheme assets by independently calculating the fair value for a sample of the assets held. We involved our valuation specialists to assess the appropriateness of management’s valuation methodology including the judgements made in determining significant assumptions used in the valuation of complex and illiquid pension assets. We independently re-priced illiquid and complex assets that had been valued using unobservable market inputs, using alternative pricing sources where available, to evaluate management’s valuations. We also evaluated the adequacy of the related disclosures provided in the consolidated financial statements.


		2023	2022	2021 (1)
	Note	£m	£m	£m
Interest receivable		21,026	12,637	9,234
Interest payable		(9,977)	(2,795)	(1,699)
Net interest income	1	11,049	9,842	7,535
Fees and commissions receivable		2,983	2,915	2,694
Fees and commissions payable		(653)	(623)	(574)
Trading income		794	1,133	323
Other operating income		579	(111)	451
Non-interest income	2	3,703	3,314	2,894
Total income		14,752	13,156	10,429
Staff costs		(3,901)	(3,716)	(3,676)
Premises and equipment		(1,153)	(1,112)	(1,133)
Other administrative expenses		(2,008)	(2,026)	(2,026)
Depreciation and amortisation		(934)	(833)	(923)
Operating expenses	3	(7,996)	(7,687)	(7,758)
Profit before impairment losses/releases		6,756	5,469	2,671
Impairment (losses)/releases	15	(578)	(337)	1,173
Operating profit before tax		6,178	5,132	3,844
Tax charge	7	(1,434)	(1,275)	(996)
Profit from continuing operations		4,744	3,857	2,848
(Loss)/profit from discontinued operations, net of tax (3)	8	(112)	(262)	464
Profit for the year		4,632	3,595	3,312

Attributable to:
Ordinary shareholders		4,394	3,340	2,950
Preference shareholders		—	—	19
Paid-in equity holders		242	249	299
Non-controlling interests		(4)	6	44
		4,632	3,595	3,312


Earnings per ordinary share - continuing operations	9	49.2p	36.5p	23.0p
Earnings per ordinary share - discontinued operations	9	(1.2p)	(2.7p)	4.3p
Total earnings per share attributable to ordinary shareholders - basic (4)	9	47.9p	33.8p	27.3p
Earnings per ordinary share - fully diluted continuing operations	9	48.9p	36.2p	22.9p
Earnings per ordinary share - fully diluted discontinued operations	9	(1.2p)	(2.6p)	4.3p
Total earnings per share attributable to ordinary shareholders - fully diluted	9	47.7p	33.6p	27.2p

Howard Davies		John-Paul Thwaite		Katie Murray		NatWest Group plc
Chairman		Group Chief Executive Officer		Group Chief Financial Officer		Registered No. SC45551


					Other reserves
	Share		Other						Total	Non
	capital and	Paid-in	statutory	Retained		Cash flow	Foreign		owners'	controlling	Total
	share premium	equity	reserves (9)	earnings	Fair value	hedging (6,7)	exchange	Merger	equity	interests	equity
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2022	12,629	3,890	351	12,966	269	(395)	1,205	10,881	41,796	7	41,803
Profit/(loss) attributable to ordinary shareholders and other equity owners
- continuing operations				3,851					3,851	6	3,857
- discontinued operations				(262)					(262)		(262)

Other comprehensive income
Realised gains in period on FVOCI equity shares				113	(113)				—		—
Remeasurement of retirement benefit schemes				(840)					(840)		(840)
Changes in fair value of credit in financial liabilities designated at FVTPL due to own credit risk				50					50		50
Unrealised losses					(570)				(570)		(570)
Amounts recognised in equity						(2,973)			(2,973)		(2,973)
Retranslation of net assets							512		512		512
Losses on hedges of net assets							(266)		(266)		(266)
Amount transferred from equity to earnings (4)					172	(304)	(5)		(137)		(137)
Tax				181	140	901	32		1,254		1,254
Total comprehensive income				3,093	(371)	(2,376)	273	—	619	6	625

Transactions with owners
Ordinary share dividends paid				(1,205)					(1,205)	(5)	(1,210)
Special dividends paid				(1,746)					(1,746)	—	(1,746)
Paid-in equity dividends paid				(249)					(249)		(249)
Shares repurchased during the period (1,2)	(929)		929	(2,054)					(2,054)		(2,054)
Redemption of preference shares (5)				(750)					(750)		(750)
Enployee share schemes				6					6		6
Shares vested under employee share schemes			113						113		113
Share-based payments				(6)					(6)		(6)
Tax on redemption of paid-in equity		—		(36)					(36)		(36)
At 31 December 2022	11,700	3,890	1,393	10,019	(102)	(2,771)	1,478	10,881	36,488	8	36,496

Policy	Judgement	Estimate	Further information
Deferred tax	Determination of whether sufficient sustainable taxable profits will be generated in future years to recover the deferred tax asset.	Our estimates are based on the five year revenue and cost forecasts (which include inherent uncertainties).	Note 7
Fair value – financial instruments	Classification of a fair value instrument as level 3, where the valuation is driven by unobservable inputs.	Estimation of the fair value, where it is reasonably possible to have alternative assumptions in determining the FV.	Note 11
Loan impairment provisions	Definition of default against which to apply PD, LGD and EAD models. Selection of multiple economic scenarios.Criteria for a significant increase in credit risk. Identification of risks not captured by the models.	ECL estimates contain a number of measurement uncertainties (such as the weighting of multiple economic scenarios) and disclosures include sensitivities to show impact on other reasonably possible scenarios.	Note 15
Provisions for liabilities and charges	Determination of whether a present obligation exists in respect of customer redress, litigation and other regulatory, property and other provisions. Legal proceedings often require a high degree of judgement and these are likely to change as the matter progresses.	Provisions remain sensitive to the assumptions used in the estimate. We consider a wide range of possible outcomes. It is often not practical to meaningfully quantify ranges of possible outcomes, given the uncertainties involved.	Note 21

Computer software	3 to 10 years
Other acquired intangibles	3 to 5 years


Continuing operations	2023	2022 (1)	2021 (1)
Retail Banking	14,300	15,100	16,000
Private Banking	2,400	2,300	2,000
Commercial & Institutional	12,400	12,200	11,700
Central items & other (2)	32,500	31,400	28,100
Total	61,600	61,000	57,800

UK	41,500	41,200	40,600
USA	300	300	300
India	16,900	15,700	13,500
Poland	1,500	1,500	1,400
Republic of Ireland	400	1,400	1,200
Rest of the World	1,000	900	800
Total	61,600	61,000	57,800


Award plan	Eligible employees	Nature of award	Vesting conditions (1)	Settlement
Sharesave	UK, Channel Islands, Gibraltar, Isle of Man, Poland and India.	Option to buy shares under employee savings plan	Continuing employment or leavers in certain circumstances	2024 to 2028
Deferred performance awards	All	Awards of ordinary shares and conditional shares	Continuing employment or leavers in certain circumstances	2024 to 2031
Long-term incentives (2,3)	Senior employees	Awards of ordinary shares and conditional shares	Continuing employment or leavers in certain circumstances and/or satisfaction of the pre-vesting assessment and underpins	2024 to 2030


Sharesave	2023		2022		2021
	Average	Shares	Average	Shares	Average	Shares
	exercise price	under option	exercise price	under option	exercise price	under option
	£	(million)	£	(million)	£	(million)
At 1 January	1.63	99	1.61	95	1.64	96
Granted	1.42	43	1.86	25	1.80	24
Exercised	1.44	(23)	1.88	(15)	1.76	(10)
Cancelled	1.72	(5)	1.60	(6)	2.02	(15)
At 31 December	1.59	114	1.63	99	1.61	95


Deferred performance awards	2023		2022		2021
	Value at	Shares	Value at	Shares	Value at	Shares
	grant	awarded	grant	awarded	grant	awarded
	£m	(million)	£m	(million)	£m	(million)
At 1 January	93	46	132	65	169	77
Granted	52	20	46	20	61	32
Forfeited	(2)	(1)	(4)	(2)	(10)	(5)
Vested	(67)	(30)	(81)	(37)	(88)	(39)
At 31 December	76	35	93	46	132	65


Long-term incentives	2023		2022		2021
	Value at	Shares	Value at	Shares	Value at	Shares
	grant	awarded	grant	awarded	grant	awarded
	£m	(million)	£m	(million)	£m	(million)
At 1 January	49	23	44	21	50	24
Granted	11	5	16	7	6	3
Vested/exercised	(10)	(4)	(10)	(4)	(12)	(6)
Lapsed	(1)	(1)	(1)	(1)	—	—
At 31 December	49	23	49	23	44	21


Bonus awards	2023		2022		Change
	£m		£m		%
Non-deferred cash awards (1)	43		40		8	%
Deferred cash awards	262		270		(3)	%
Deferred share awards	51		60		(15)	%
Total deferred bonus awards	313		330		(5)	%
Total bonus awards (2)	356		370		(4)	%
Bonus awards as a % of operating profit before tax (3)	5	%	7	%
Proportion of bonus awards that are deferred	88	%	89	%
- deferred cash awards	84	%	82	%
- deferred share awards	16	%	18	%


	Actual			Expected
					2025
	2021	2022	2023	2024	and beyond
	£m	£m	£m	£m	£m
Bonus awards deferred from 2021 and earlier	80	94	16	7	5
Bonus awards deferred from 2022	—	—	99	9	9
Less: forfeiture of amounts deferred from prior years	(15)	(3)	(4)	—	—
Bonus awards for 2023 deferred	—	—	—	98	16
	65	91	111	114	30


Total revenue ⁽¹⁾
				Central
	Retail	Private	Commercial &	items &
	Banking	Banking	Institutional	other	Total
2023	£m	£m	£m	£m	£m
Continuing operations
External	7,366	1,157	12,519	4,340	25,382
Inter-segmental (4)	5	1,000	(1,602)	597	—
Total	7,371	2,157	10,917	4,937	25,382

2022
Continuing operations
External	5,773	874	7,258	2,669	16,574
Inter-segmental (4)	—	389	(395)	6	—
Total	5,773	1,263	6,863	2,675	16,574


2021
Continuing operations
External	5,415	792	5,189	1,306	12,702
Inter-segmental (4)	18	127	102	(247)	—
Total	5,433	919	5,291	1,059	12,702


	UK	USA	Europe	RoW	Total
2023	£m	£m	£m	£m	£m
Continuing operations
Total revenue	24,096	167	1,016	103	25,382
Interest receivable	20,192	39	774	21	21,026
Interest payable	(9,500)	(1)	(472)	(4)	(9,977)
Net fees and commissions	2,052	49	172	57	2,330
Trading income	704	66	1	23	794
Other operating income	556	(10)	30	3	579
Total income (3)	14,004	143	505	100	14,752
Operating profit/(loss) before tax	6,196	45	(149)	86	6,178
Total assets	610,831	23,725	56,001	2,116	692,673
Total liabilities	594,250	22,106	37,506	1,623	655,485
Contingent liabilities and commitments	112,199	—	7,411	21	119,631

2022
Continuing operations
Total revenue	15,795	117	558	104	16,574
Interest receivable	12,242	37	344	14	12,637
Interest payable	(2,567)	(2)	(221)	(5)	(2,795)
Net fees and commissions	1,983	44	207	58	2,292
Trading income	1,208	1	(104)	28	1,133
Other operating income	(140)	14	12	3	(111)
Total income (3)	12,726	94	238	98	13,156
Operating profit/(loss) before tax	5,716	(46)	(620)	82	5,132
Total assets	589,758	25,979	101,164	3,152	720,053
Total liabilities	579,476	27,039	75,092	1,950	683,557
Contingent liabilities and commitments	117,915	—	8,649	17	126,581

2021
Continuing operations
Total revenue	12,100	87	482	33	12,702
Interest receivable	8,949	20	257	8	9,234
Interest payable	(1,483)	(2)	(211)	(3)	(1,699)
Net fees and commissions	1,820	27	231	42	2,120
Trading income	247	53	(1)	24	323
Other operating income	387	2	62	—	451
Total income (3)	9,920	100	338	71	10,429
Operating (loss)/profit before tax	4,143	48	(387)	40	3,844
Total assets	693,221	21,776	64,415	2,580	781,992
Total liabilities	676,684	23,286	38,835	1,384	740,189
Contingent liabilities and commitments	117,225	1	8,114	27	125,367


	2023			2022
	Quoted	Unquoted	Total	Quoted	Unquoted	Total
	%	%	%	%	%	%
Equities	0.1	6.7	6.8	0.1	7.7	7.8
Index linked bonds	36.7	—	36.7	37.7	—	37.7
Government bonds	13.3	—	13.3	18.4	—	18.4
Corporate and other bonds	19.2	6.4	25.6	15.3	6.7	22.0
Real estate	—	4.5	4.5	—	6.0	6.0
Derivatives	—	2.7	2.7	—	8.2	8.2
Cash and other assets	—	10.4	10.4	—	(0.1)	(0.1)
	69.3	30.7	100.0	71.5	28.5	100.0


	2023			2022
	Notional	Fair value		Notional	Fair value
	amounts	Assets	Liabilities	amounts	Assets	Liabilities
	£bn	£m	£m	£bn	£m	£m
Inflation rate swaps	29	1,929	940	21	1,873	990
Interest rate swaps	52	3,121	3,394	103	14,317	12,546
Currency forwards	13	235	34	12	310	113
Equity and bond call options	—	—	—	—	—	—
Equity and bond put options	—	—	4	—	2	70
Other	1	8	20	1	14	19


	Main section				All schemes
		Present value	Asset	Net			Asset
	Fair	of defined	ceiling/	pension	Fair	Present value	ceiling/	Net
	value of	benefit	minimum	assets/	value of	of defined	minimum	pension
	plan assets	obligation (1)	funding	liability	plan assets	benefit (2)	funding	assets (2)
Changes in value of net pension assets/(liability)	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2022	52,021	(42,020)	(10,001)	—	57,787	(46,808)	(10,491)	488
Currency translation and other adjustments	—	—	—	—	78	(65)	(11)	2
Income statement - operating expenses	932	(892)	(180)	(140)	1,041	(1,055)	(191)	(205)
Other comprehensive income	(18,180)	16,714	898	(568)	(20,326)	18,570	916	(840)
Contributions by employer	708	—	—	708	775	—	—	775
Contributions by plan participants and other scheme members	7	(7)	—	—	13	(13)	—	—
Assets/liabilities extinguished upon settlement	—	—	—	—	(113)	113	—	—
Benefits paid	(1,472)	1,472	—	—	(1,657)	1,657	—	—
At 1 January 2023	34,016	(24,733)	(9,283)	—	37,598	(27,601)	(9,777)	220
Currency translation and other adjustments	—	—	—	—	(21)	21	4	4
Income statement - operating expenses
Net interest expense	1,677	(1,208)	(464)	5	1,841	(1,341)	(485)	15
Current service cost	—	(76)	—	(76)	—	(105)	—	(105)
Past service cost	—	(2)	—	(2)	—	(8)	—	(8)
Loss on curtailments and settlements	—	—	—	—	—	(24)	—	(24)
	1,677	(1,286)	(464)	(73)	1,841	(1,478)	(485)	(122)
Other comprehensive income
Return on plan assets excluding recognised interest income	(1,042)	—	—	(1,042)	(1,182)	—	—	(1,182)
Experience gains and losses	—	(1,531)	—	(1,531)	—	(1,599)	—	(1,599)
Effect of changes in actuarial financial assumptions	—	(585)	—	(585)	—	(776)	—	(776)
Effect of changes in actuarial demographic assumptions	—	379	—	379	—	436	—	436
Asset ceiling adjustments	—	—	2,643	2,643	—	—	2,841	2,841
	(1,042)	(1,737)	2,643	(136)	(1,182)	(1,939)	2,841	(280)
Contributions by employer (3)	209	—	—	209	278	2	—	280
Contributions by plan participants and other scheme members	7	(7)	—	—	12	(12)	—	—
Assets/liabilities extinguished upon settlement	—	—	—	—	(50)	50	—	—
Benefits paid	(1,229)	1,229	—	—	(1,365)	1,365	—	—
At 31 December 2023 (4)	33,638	(26,534)	(7,104)	—	37,111	(29,592)	(7,417)	102


	2023	2022
Net pension asset/(liability) comprises	£m	£m
Net assets of schemes in surplus (refer to Note 18)	201	318
Net liabilities of schemes in deficit (refer to Note 21)	(99)	(98)
	102	220


	Principal IAS 19 actuarial assumptions ⁽¹⁾
	2023	2022
	%	%
Discount rate	4.8	5.0
Inflation assumption (RPI)	3.1	3.2
Rate of increase in salaries	1.8	1.8
Rate of increase in deferred pensions	3.2	3.2
Rate of increase in pensions in payment	2.4	2.5
Lump sum conversion rate at retirement	18	18
Longevity at age 60:	years	years
Current pensioners
Males	26.8	27.3
Females	28.6	29.1
Future pensioners, currently aged 40
Males	27.7	28.3
Females	29.5	30.1