2017-18 Annual Report and Accounts: Chairman’s Statement
By Ed Anderson, Chairman, NS&I
2017–18 has been a very successful year for NS&I. The organisation met all of its performance targets and raised £9.8 billion in Net Financing for the Government (against a final target of £8 billion in a range of £5 billion to £11 billion). We have delivered for savers by offering new products and competitive interest rates; and for taxpayers by raising debt financing more cheaply than via gilts, as measured by the Value Indicator.
We have also reaffirmed and renewed our purpose, mission and values; and designed a new strategy: Inspire & Invest, which builds on the successes of our Think Ahead strategy.
Read more about our Inspire & Invest Strategy
In the four years since Think Ahead was launched in 2014–15, NS&I has grown its business by 50% while reducing costs by 20%.
During 2017–18, we were proud to be recognised by the National Audit Office as an effective and efficient source of debt financing for the Government, in its report on government borrowing. Since the start of 2014–15, we have delivered over £780 million in value to taxpayers as measured by the Value Indicator, whilst attracting over £50 billion in Net Financing.
We have surpassed £150 billion of stock and created more choice for customers – as demonstrated by the launch this year of a Junior ISA and the return to sale of our popular Guaranteed Growth Bonds and Guaranteed Income Bonds.
At the same time, we have grown our business-to-business operation and established ourselves as a trusted provider of payment processing services to other government departments.
Other sections of our Annual Report and Accounts 2017-18 describe the objectives of NS&I’s new Inspire & Invest strategy, which will start to be implemented in 2018–19. For me, the crucial fact is that it builds on such solid foundations: a highly efficient and effective business, with a clear sense of purpose and a proven ability to deliver its objectives.
As the financial services sector evolves with new financial technology and the arrival of open banking, these foundations will help to ensure that we not only continue to provide cost-effective financing to the Government, but that we are also ready to do more to innovate, to inspire a stronger savings culture and to help to develop and deliver public policy.
As ever, the ability to achieve all this is a result of the dedication and expertise shown by NS&I’s people and those of our partner Atos. I thank them all for their commitment and the service they provide to our customers.
I would also like to thank the two directors who retired from the organisation – Risk Director, Peter Cornish and Finance Director, Rodney Norman – for their service. I welcome Paul Habershon to NS&I in a new Executive Director role for IT and Change; and thank my board colleagues for their contribution to NS&I during the year.