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2025-12-31-accounts

Company no. 03901460 Charity no. 1079626

NatWest Social and Community Capital Report and Audited Financial Statements 31 December 2025

NatWest Social and Community Capital

Reference and administrative details

For the year ended 31 December 2025

Company number 03901460
Charity number 1079626
Registered office 250 Bishopsgate
London
EC2M 4AA
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
Kirsty Anderson appointed 3 April 2025
John Dixon
Parita Doshi resigned 17 September 2025
Andrew Harrison
Anshu Mandal
Joshua Meek resigned 17 September 2025
Ash Mohammed
Gabriel Ng appointed 17 September 2025
Ben Smith
Sara Turnbull appointed 17 September 2025
Company secretary Shameela Jabeen appointed 4 March 2026
Joseph Suffield resigned 4 March 2026
Chief executive officer Victoria Papworth
Bankers NatWest
246-250 Regent Street
London
W1B 3PB
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
2nd Floor - South
One Castle Park
Tower Hill
Bristol
BS2 0JA

1

NatWest Social and Community Capital

Chair and CEO's report

For the year ended 31 December 2025

Access to finance is often described as a catalyst. In our experience at S&CC, it behaves more like infrastructure. When capital is patient, appropriately structured and delivered through trusted partners, it allows communities to make decisions on their own terms. That requires discipline from lenders as well as ambition. It also requires accepting that social outcomes and financial rigour are not opposing forces.

As we reflect on 2025, Social & Community Capital continued to play a crucial role in supporting social enterprises and community organisations working in some of the most disadvantaged parts of the UK. The year reinforced the importance of flexible, patient finance as a tool for sustaining essential services at a time when demand continues to rise and funding remains constrained.

Organisations across our portfolio have faced increasing pressure, including rising costs, ongoing uncertainty in public sector commissioning and limited ability to absorb economic shocks. These challenges are felt most acutely in underserved communities, where social enterprises are often delivering services that would otherwise fall away. In this context, our focus remained firmly on our charitable mission: providing relationship-led capital to organisations unable to access appropriate mainstream finance.

Throughout the year, our lending supported investees to protect jobs, manage cashflow, bridge grant and statutory funding gaps and plan beyond short-term survival. As in previous years, our experience has reinforced that funding alone is rarely enough. Social purpose organisations also need partners who understand the realities of growth, increasing demand and complex funding ecosystems, and who can adapt products and support as circumstances change.

As at 31 December 2025, our total loan portfolio stood at £4.33m, including funds committed but not yet drawn, with an average loan size of £116k. During the year we committed £2.04m of new lending, supporting a diverse range of organisations addressing pressing social needs, including work in prisons, support for vulnerable families, and the provision of VAT and grant bridging finance. These commitments reflect our confidence in the capacity of our investees to deliver lasting community impact when supported with the right kind of capital.

The Trustees continued to play an active role in setting direction, overseeing performance and stewarding the charity’s resources. During the year, we welcomed three new Trustees, strengthening the breadth of skills and experience on the Board. We also extend our sincere thanks to Josh, Parita and Debbie, who stepped down after many years of committed service and whose contribution has helped shape S&CC into the organisation it is today.

As S&CC’s lending ambitions continue to grow, the Board commissioned an external governance review to ensure our structures and practices remain proportionate, effective and fit for purpose. Trustees considered the findings carefully and agreed a number of actions to support strong governance as the organisation evolves. Alongside a full Trustee skills audit, this has helped to build reflective practice and better governance.

Trustees are mindful of their responsibility to manage the charity’s finances prudently. As at the end of the year, cash reserves total £4.67m, providing stability and resilience in an uncertain environment. Repayments from investees remained strong during 2025, with over £1.21m in capital and interest repaid. This enables us to recycle capital into new lending and underpins the sustainability of our model.

2

NatWest Social and Community Capital

Chair and CEO's report

For the year ended 31 December 2025

None of our work would be possible without the commitment and expertise of our colleagues and partners, and the support from NatWest. Trustees would like to recognise in particular the contribution of Tracy and Brendan, members of the Funding Panel, NatWest Group volunteers, On Purpose Associates and other partners who contribute time, insight and challenge, and who support careful and well-informed decision making.

Looking ahead to 2026, demand for social investment is expected to remain high. We will continue to balance the opportunity to deploy more capital with the need for prudent risk management and strong impact discipline. While the external environment remains challenging, we remain confident in S&CC’s direction, its governance and its ability to continue supporting organisations delivering longterm benefit to communities across the UK.

Victoria Papworth - CEO

Andrew Harrison - Chair

3

NatWest Social and Community Capital

Report of the trustees

For the year ended 31 December 2025

The trustees, who are also directors of the charity for the purposes of the Companies Act, submit their annual report and the audited financial statements for the year ended 31 December 2025.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

The liability of each of the trustees in the event of a winding up is limited to £1. This liability applies to all trustees whilst they are trustees and for one year after they cease to be trustees. Under its governing document, the charity has the power to make any investment which the trustees see fit.

The charitable status of the organisation has been confirmed by the Charity Commission.

The major risks to which the charity is exposed, as identified by the trustees, have been reviewed and a system has been established to mitigate those risks.

Structure, governance and management

The charity was incorporated on 23 December 1999 as a company limited by guarantee and commenced its activities immediately. It is a non-profitmaking organisation. The Governing Document is the Articles of Association, last updated on 26 July 2024.

The Board of Trustees, which can have up to eight members, administers the charity. The Board normally meets quarterly and there are sub committees covering investment, finance and risk, and Board development, marketing and communications, which meet regularly.

A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance, employment and lending related activity.

Investment decisions are taken by a voluntary Funding Panel that meets fortnightly and has representatives from the bank and external bodies with extensive social and financial sector experience and investment and credit skills.

Method of recruiting and appointing new trustees

Trustees are appointed in accordance with the charity’s governing document. New Trustees are recruited based on their experience, skills and commitment to the charity’s objectives. The recruitment process includes interviews, due diligence and approval by the existing Trustees.

The Trustees have established a Nomination & Governance Committee to promote good governance and best practice and to ensure the Board is working as effectively as possible to promote the mission and core values of the charity. The Committee meets at least twice annually and maintains and reviews a schedule of Trustee appointments and retirements, including details of existing Board skills set.

4

NatWest Social and Community Capital

Report of the trustees

For the year ended 31 December 2025

New Trustees undergo an induction covering their legal obligations under charity and company law, Charity Commission guidance on public benefit, the Articles of Association, governance processes, business planning and financial performance. During the induction they meet key employees and other Trustees and are encouraged to attend appropriate external training where this supports their role.

Related parties

The Trustees consider NatWest Group plc to be a related party because of its continued close financial and operational support, which has been provided throughout the year ended 31 December 2025 and in prior years.

The charity remains grateful to NatWest Group plc for the continued donation of staff and professional support, enabling S&CC to focus its resources on the provision of flexible loan finance.

Pay policy for staff

The Trustees consider the Board of directors, who are also the charity’s Trustees, and the Chief Executive and operational team to comprise the key management personnel of the charity.

All Trustees give their time freely and no Trustee received remuneration in the year ended 31 December 2025.

The full-time staff working for the charity are paid by NatWest Group plc. The pay is benchmarked annually against pay levels for other roles with similar responsibilities elsewhere within the bank.

Objectives and activities

The charity’s primary purposes, as set out in its governing document, are to provide flexible funding to social enterprises and charities, with the aim of facilitating community-based impact and fostering social change.

The charity was established in 1999 to fund and support local community businesses through patient and flexible loan finance and, on occasion, makes grants to address specific needs and opportunities. It retains flexibility to consider other financing mechanisms in response to market gaps or emerging opportunities.

S&CC operates across the UK, including Northern Ireland, with a strategic focus on Scotland and the North West of England and the Midlands. The charity supports ventures operating for the benefit of UK communities. The charity’s mission is to enable social enterprises to make a positive impact in UK communities. This is achieved through:

Core sectors of focus remain:

5

NatWest Social and Community Capital

Report of the trustees

For the year ended 31 December 2025

The charity relies on volunteers from within NatWest Group plc and the wider social enterprise ecosystem to support Board and Funding Panel activity and provide skills-based input.

The Trustees have had due regard to the Charity Commission guidance on public benefit and are satisfied that the charity’s activities deliver clear public benefit by supporting underserved communities and organisations.

Achievements and performance

The year ended 31 December 2025 continued to present a challenging operating environment for charities and social enterprises. Many organisations faced ongoing financial and operational pressure, alongside increasing demand for frontline services, often with limited capacity to absorb economic shocks or respond to changes in funding or trading conditions. Social enterprises delivering services experienced continued pressure as demand increased against constrained funding and commissioning arrangements.

During the year, ongoing policy discussions and announcements from government and public bodies highlighted the role of social value, place-based growth and mission-driven organisations. In this context, S&CC continued to provide flexible and patient loan finance to organisations delivering essential services in their communities.

During the year, S&CC approved 21 new loans, of which 11 were made to organisations new to the portfolio and 10 to existing investees. New lending maintained a clear focus on the charity’s target geographies of Scotland and the North West of England and the Midlands, while remaining committed to supporting existing portfolio organisations where additional finance was required.

Trustees recognise that access to flexible finance remains an important enabler for social enterprises navigating difficult conditions. S&CC’s relationship-based approach continues to support organisations to sustain service delivery and strengthen longer term resilience during periods of constraint and change.

Investments

The S&CC Investment Policy Statement, approved by the Trustees, governs the management of the charity’s investment portfolio and is intended to support both the long-term sustainability of the organisation and the delivery of its charitable objectives. The portfolio is managed on a total return basis with a dual objective: to achieve a long-term financial return of CPI +2% (net of fees) over rolling seven-year periods, and to deliver positive social and environmental impact in line with S&CC’s mission.

In setting and overseeing the investment strategy, the Trustees seek to maintain an appropriate balance between return, risk, liquidity and impact. The portfolio is diversified across a range of asset classes. A significant proportion of the charity’s resources is allocated to the Social Purpose Organisation (SPO) lending portfolio, which represents the primary mechanism for delivering missionaligned investment. Liquidity is managed to ensure that the charity is able to meet its operational commitments and continue to deploy capital in support of its activities.

Investment performance is monitored on a regular basis by the Investment Committee and reported to the Board. The Trustees assess performance over the long term against the stated financial objective and in the context of the portfolio’s role in supporting the charity’s expenditure and lending activity.

6

NatWest Social and Community Capital

Report of the trustees

For the year ended 31 December 2025

The Trustees distinguish between the SPO lending activity and the wider investment portfolio, including the Tribe allocation. SPO lending comprises direct social investment in UK charities and social enterprises that are unable to access mainstream finance, with the primary objective of delivering social impact, alongside the expectation of capital preservation over time. The wider investment portfolio is managed as a diversified portfolio designed to preserve and grow capital, generate income, and provide liquidity, while remaining consistent with the charity’s broader impact objectives.

Environmental, Social & Governance (ESG) considerations are integral to the charity’s investment approach. The Trustees apply a Total Impact framework, incorporating ESG factors into investment decision-making, alongside negative screening to exclude certain sectors and positive screening to prioritise investments that contribute to solutions for people and the planet. Stewardship and engagement are also undertaken, where appropriate, to support positive outcomes.

Through this approach, the Trustees aim to ensure that the charity’s investments are managed prudently and in a manner that supports both its financial resilience and its charitable mission.

Financial review

In 2025, S&CC approved £2.04m in loan commitments and advanced £930k during the year. As in prior years, timing of drawdown reflected the operational and financial pressures faced by investee organisations, with some delays arising due to shifting delivery plans, funding dependencies and broader sector uncertainty. These conditions have affected the timing and structure of loan finance, requiring greater flexibility and close engagement with investee organisations.

The charity’s first drawn loan of the year was a working capital facility for an organisation in Scotland supporting adults with learning disabilities and autism. The final drawn loan was advanced to a Midlands-based organisation using therapeutic approaches to support individuals in understanding themselves and making positive change in their lives.

Trustees continue to recognise the financial and organisational challenges facing charities and social enterprises, and the importance of flexible, patient finance in enabling resilience and long-term sustainability. S&CC remains positioned to support investees as conditions evolve, working closely with organisations to ensure appropriate funding is accessed at relevant times.

Financial position at year end

At the end of the financial year, S&CC held £13.53m in assets, with total income of £522k and total expenditure of £152k.

7

NatWest Social and Community Capital

Report of the trustees

For the year ended 31 December 2025

The charity remains in a strong financial position, enabling it to continue to make loans to organisations that are not well served by mainstream finance.

Policy for holding reserves

The Board of Trustees acknowledges that, in order to provide loan finance, the charity must ensure that sufficient unrestricted reserves are available to support both operational requirements and the ongoing deployment of capital into the loan portfolio. The reserves policy, (approved by Trustees in September 2025), is designed to maintain appropriate liquidity while enabling funds to be used effectively in furtherance of the charity’s mission.

The policy sets a contingency reserve of £45,000, equivalent to approximately three months of non salary operating costs, reflecting that core staff costs are met by NatWest Group plc under a Memorandum of Understanding. This provides an appropriate buffer against unforeseen expenditure or temporary income shortfalls, while recognising the relatively low risk associated with core funding arrangements.

As at 31 December 2025, the charity’s unrestricted free reserves totalled £4.65m. At this date, the value of funds committed to investments and the loan portfolio totalled £8.88m and available cash reserves totalled £4.67m. The Trustees are satisfied that the level of accessible cash reserves exceeds the minimum requirement set out in the reserves policy.

The Trustees are committed to achieving the charity’s aims and objectives by ensuring the ongoing availability of loan finance through sustainable lending policies and the continual review of products and services. They anticipate that the loan book will continue to grow over time and, as it does so, unrestricted reserves will increasingly convert from cash into loan portfolio assets.

The Trustees will continue to monitor the balance between invested funds and available liquidity to ensure that the charity remains financially resilient, able to meet its obligations, and positioned to respond to future risks and opportunities.

Trustees' indemnity insurance

The Trustees are the directors of the company. During the year and up to the date of approval of the financial statements, a qualifying third-party indemnity provision was in place as permitted by Section 234 of the Companies Act 2006.

Going concern

Our cash flow projections are regularly scrutinised to manage any short-term financial pressures. At the year-end, there were no deficits that have affected the charity’s overall operations.

The Trustees are confident that S&CC will continue to operate as a going concern for the foreseeable future.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

8

NatWest Social and Community Capital

Report of the trustees

For the year ended 31 December 2025

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditors

Godfrey Wilson Limited were appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 15 July 2026 and signed on their behalf by

Andrew Harrison - Chair of Trustees

9

Independent auditors' report

To the members of

NatWest Social and Community Capital

Opinion

We have audited the financial statements of NatWest Social and Community Capital (the 'charity') for the year ended 31 December 2025 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 6 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

10

Independent auditors' report

To the members of

NatWest Social and Community Capital

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

11

Independent auditors' report

To the members of

NatWest Social and Community Capital

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

12

Independent auditors' report

To the members of

NatWest Social and Community Capital

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

William Guy Blake

Date: 15 July 2026

William Guy Blake ACA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 2nd Floor - South One Castle Park Tower Hill Bristol BS2 0JA

13

NatWest Social and Community Capital

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2025

2025
Total
Note
£
Income from:
Donations and legacies
2
168,510
Charitable activities
3
149,360
Investments
4
203,832
Total income
521,702
Expenditure on:
Raising funds
45,961
Charitable activities
105,666
Total expenditure
5
151,627
Net gains on investments
9
185,296
Net income and net movement in funds
6
555,371
Reconciliation of funds:
Total funds brought forward
12,977,114
Total funds carried forward
13,532,485		 2024
Total
£
170,770
148,487
169,528
488,785
11,879
385,305
397,184
180,712
272,313
12,704,801
12,977,114

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. All income and expenditure pertains to unrestricted funds.

14

NatWest Social and Community Capital

Balance sheet

As at 31 December 2025

Note
Fixed assets
Listed investments
9
Social investments
10
Current assets
Debtors falling due within one year
11
Debtors falling due after one year
11
Current asset investments
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
12
Net current assets
Net assets
Funds
Unrestricted funds
13
Total charity funds		 £
576,512
1,676,429
3,488,704
1,177,624
6,919,269
(13,800)		 2025
£
6,406,866
220,150
6,627,016
6,905,469
13,532,485
13,532,485
13,532,485		 2024
£
6,191,524
220,150
6,411,674
553,941
1,612,655
2,921,613
1,487,481
6,575,690
(10,250)
6,565,440
12,977,114
12,977,114
12,977,114

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 15 July 2026 and signed on their behalf by

Andrew Harrison - Chair of Trustees

15

NatWest Social and Community Capital

Statement of cash flows

For the year ended 31 December 2025

Cash used in operating activities:
Net movement in funds
Adjustments for:
(Gains) / losses on investments
Dividends and interest from investments
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends and interest from investments
Purchase of investments
Proceeds from the sale of investments
Net cash provided by / (used in) investing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Analysis of cash and cash equivalents:
Cash held in current accounts
Cash held in current asset investments
Cash held in investment portfolio		 2025
£
555,371
(185,296)
(203,832)
(86,345)
3,550
83,448
203,832
(1,316,146)
1,334,219
221,905
305,353
4,472,102
4,777,455
1,177,624
3,488,704
111,127
4,777,455		 2024
£
272,313
(180,712)
(169,528)
(107,490)
2,250
(183,167)
169,528
(7,006,593)
4,153,661
(2,683,404)
(2,866,571)
7,338,673
4,472,102
1,487,481
2,921,613
63,008
4,472,102

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

16

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

1. Accounting policies a) General information and basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

NatWest Social and Community Capital meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

17

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

1. Accounting policies (continued)

e) Interest receivable

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. 100% of these costs have been allocated to charitable activities.

h) Listed investments

Listed investments traded on a recognised stock exchange are stated at fair value at the reporting date, which is deemed to be their market value. Any gain or loss, whether realised or unrealised, is taken to the Statement of Financial Activities.

i) Programme related investments

Programme related investments are made in pursuance of the charity's objects and are not held primarily for financial return. Such investments are stated at amortised cost using the effective interest method. They are reviewed annually for impairment. Any losses or impairment arising from such investments is charged as part of charitable activities within the Statement of Financial Activities.

j) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Loans are initially stated at amounts advanced and are subsequently carried at amortised cost using the effective interest method. Loans are assessed for indicators of impairment at each reporting end date, which is classified as a latent provision and is charged as part of charitable activities within the statement of financial activities.

18

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

1. Accounting policies (continued) k) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

l) Current asset investments

Current asset investments consist of cash held on deposit in interest bearing accounts. Such investments are measured at their fair value.

m) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments, and has opted to apply IFRS 9 to all financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at either fair value through profit or at amortised cost using the effective interest method, as indicated in the individual accounting policies.

o) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

19

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

1. Accounting policies (continued)

o) Accounting estimates and key judgements (continued) Donated services

The trustees have exercised judgement in relation to the recognition of donated services and facilities in the year ended 31 December 2025. The trustees note that donated services received in the year largely relate to staff time provided by NatWest Group PLC, which may command higher rates than the charity would have paid in the open market. The value of donated goods and services is therefore included at the value that the trustees consider the charity would have paid on the open market.

During the year, the hourly rate of staff time recharged to the charity was reviewed and rates were increased across most roles. This resulted in a gift in kind value of approximately £6,700 higher than if it were based on the same estimated rates as in the prior year.

Latent provisions

Loans are assessed for indicators of impairment at each reporting end date, which is classified as a latent provision and is charged as part of charitable activities within the Statement of Financial Activities. Such indicators may include significant financial difficulty of the obligor, or observable data indicating that there has been a measurable decrease in the estimated future cash flows from a group of loans since the initial recognition of those assets, even though the decrease cannot yet be identified with the individual financial assets in the group. Latent provisions are calculated and applied to loans grouped on the basis of similar credit charactistics.

The balance of latent provisions at the year end is disclosed in note 11 of the accounts, with total amounts charged to the SoFA during the year shown in note 5. Actual results may differ from these estimates.

During the year, the percentages applied for provision calculations were revised downwards for loans with risk ratings of 5 or 6. This resulted in a provision of approximately £49,850 lower than if it were based on the same estimated rates as in the prior year.

Loan balances falling due in less than and more than one year

In determining the split of capital expected to be repaid in the next 12 months, the trustees have had to make an assumption about the number of loan recipients who will make capital repayments in 2026, based on historical experience and current levels of repayments being made. However, actual results may differ.

20

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

2. Income from donations

Income from donations
Gifts in kind (note 15)
Total income from donations		 2025
Total
£
168,510
168,510		 2024
Total
£
170,770
170,770

During the year the charity received gifts in kind from NatWest Group PLC estimated at £168,510 (2024: £170,770). This relates to staff time and administrative expenses which were not recharged to the charity.

3. Income from charitable activities

Loan interest receivable
Loan administration fees
Partner payments
Total income from charitable activities
Income from investments
Income from listed investments
Bank interest income
Total income from investments		 2025
Total
£
144,373
4,237
750
149,360
2025
Total
£
77,558
126,274
203,832		 2024
Total
£
137,487
9,500
1,500
148,487
2024
Total
£
28,972
140,556
169,528

4. Income from investments

21

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

5. Total expenditure

Raising
funds
£
Project costs
-
Insurance
-
Legal and professional fees
-
Investment management fees
41,336
Audit and accountancy
-
Client management
-
Loan provisions
-
Administration
4,625
Sub-total
45,961
-
Total expenditure
45,961
Total governance costs were £9,600 (2024: £9,000).
Allocation of support and governance
costs		 Charitable
activities
£
42,360
-
-
-
-
130,865
(170,238)
-
2,987
102,679
105,666		 Support
and
governance
£
-
1,988
17,439
-
17,475
-
-
65,777
102,679
(102,679)
-		 2025 Total
£
42,360
1,988
17,439
41,336
17,475
130,865
(170,238)
70,402
151,627
-
151,627

Prior period comparative

Prior period comparative
Insurance
Legal and professional fees
Investment management fees
Auditors' remuneration
Client management
Loan provisions
Administration
Sub-total
Total expenditure
Allocation of support and governance
costs		 Raising
funds
£
-
-
11,322
-
-
-
557
11,879
-
11,879		 Charitable
activities
£
-
-
-
-
149,278
60,280
-
209,558
175,747
385,305		 Support
and
governance
£
1,420
125,954
-
9,000
-
-
39,373
175,747
(175,747)
-		 2024 Total
£
1,420
125,954
11,322
9,000
149,278
60,280
39,930
397,184
-
397,184

22

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

6. Net movement in funds

This is stated after charging:

Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit (including VAT)		 2025
£
Nil
417
9,600		 2024
£
Nil
Nil
9,000

In common with other charities of our size and nature we use our auditors to assist with the preparation of the financial statements.

Trustee reimbursed expenses related to costs incurred attending board meetings.

7. Staff costs and numbers

The key management personnel of the charitable company comprise the Trustees and Chief Executive Officer. The costs associated with key management personnel have been donated to the charity and therefore have been included as part of gifts in kind (see notes 2 and 15).

8. Taxation The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9. Listed investments

Market value at 1 January 2025
Additions
Disposals proceeds
Gains / (losses)
Market value at 31 December 2025
Cash
held
pending
reinvestme
nt
Total investments		 2025
£
6,128,516
1,316,146
(1,334,219)
185,296
6,295,739
111,127
6,406,866		 2024
£
3,094,872
7,006,593
(4,153,661)
180,712
6,128,516
63,008
6,191,524

23

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

10. Social investments

Cost or valuation
At 1 January 2025
Loans written off in the year
At 31 December 2025
Impairment
At 1 January 2025
Loans written off in the year
At 31 December 2025
Carrying amount
At 31 December 2025
At 31 December 2024
Social investments comprise:
Investments
The Charity Bank Limited
Black Country Reinvestment Society Limited
East Lancashire Moneyline (IPS) Limited
Wessex Reinvestment Society Limited
The Ethical Property Company Limited
Portsmouth Area Regeneration Trust Limited
ICOF Community Capital Limited
Derby Loans (IPS) Limited
London Rebuilding Society Limited
East End Fair Finance Limited
Total investments
Provisions for impairment
Net book value at 31 December
Art Share (Social Help Association for
Reinvesting in Enterprise) Limited		 2025
£
40,000
20,000
40,000
20,000
15,750
-
10,000
20,000
20,000
20,000
20,000
225,750
(5,600)
220,150		 Total
£
245,750
(20,000)
225,750
(25,600)
20,000
(5,600)
220,150
220,150
2024
£
40,000
20,000
40,000
20,000
15,750
20,000
10,000
20,000
20,000
20,000
20,000
245,750
(25,600)
220,150

24

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

11. Debtors

Loan portfolio
Latent provisioning
Accrued loan interest and fees receivable
Loan portfolio sub total
Prepayments
Loan portfolio analysis
Amounts due < 1 year
Amounts due > 1 year		 2025
£
2,493,521
(243,696)
3,116
2,252,941
-
2,252,941
2025
£
576,512
1,676,429
2,252,941		 2024
£
2,628,030
(475,725)
14,007
2,166,312
284
2,166,596
2024
£
553,941
1,612,655
2,166,596

Portfolio loans have been made in accordance with charity's objective to help local community groups and charities.

12. Creditors: amounts falling due within 1 year

Accruals
13. Movements in funds
At 1 January 2025
Net income before gains
Net gains on investments
At 31 December 2025		 2025
£
13,800
2025
£
12,977,114
370,075
185,296
13,532,485		 2024
£
10,250
2024
£
12,704,801
91,601
180,712
12,977,114

25

NatWest Social and Community Capital

Notes to the financial statements

For the year ended 31 December 2025

14. Financial instruments at fair value

Financial instruments at fair value
2025 2024
£ £
Financial assets measured at fair value 6,406,866 6,191,524

Financial assets measured at fair value comprise listed investments.

15. Related party transactions

Half of the Board of Trustees are also employees of the NatWest Group PLC, which provided donated services for the charity during the year.

Income and expenditure, including donated services, relating to NatWest Group PLC during the year ended 31 December 2025 were as follows:

Income
Gifts in kind
Expenditure
Gifts in kind - client management
Gifts in kind - administration		 2025
£
168,510
168,510
130,865
37,644
168,510		 2024
£
170,770
170,770
149,278
21,492
170,770

26