NS&I provisional Q3 2016-17 results and 2017-18 Net Financing target

  • Q3 2016-17 Net Financing of £6.1 billion
  • 2016-17 Net Financing full year forecast: £12.2 billion

NS&I has today published its un-audited quarterly results for the third quarter (October to December 2016) of the financial year 2016-17. NS&I delivered £6.1 billion of Net Financing in Q3 2016-17, giving a year-to-date total of just under £7.9 billion.

Today’s Budget confirms that NS&I’s Net Financing forecast for 2016-17 is £12.2 billion. This is above the revised Net Financing target of £9 billion (within a range of £7 billion to £11 billion) that was set out in the Autumn Statement in November 2016.

The forecast reflects high levels of Net Financing attracted in the period following the Bank of England base rate reduction and subsequent changes across the rest of the savings market. NS&I has announced reductions in interest rates on four of its variable rate products, taking effect by 1 May. These reflect current market conditions and allow NS&I to continue to strike a balance between the needs of savers, taxpayers and the stability of the broader financial services sector.

NS&I delivered £39 million of value to the taxpayer in Q3 2016-17, as measured by the Value Indicator, delivering a year-to-date total of £21 million. NS&I forecast a Value Indicator return of circa £88 million in 2016-17. This is in line with the target set at the Budget in March 2016 to deliver positive value for the taxpayer with a lower limit of -£200 million.

2017-18

In the 2017 Budget it has also been confirmed that NS&I will have a 2017-18 Net Financing target of £13 billion, within a range of £10 billion to £16 billion. This will include deposits into the new Investment Guaranteed Growth Bonds. The Chancellor of the Exchequer confirmed today that that the new Bonds, which launch in April, will be available at nsandi.com for 12 months with an interest rate of 2.20% gross/AER. The Bonds will be open to everyone aged 16 and over and will have a minimum investment of £100 and a maximum investment of £3,000.

 

Quarterly figures

Qtr / year Gross inflows C&AIP* Gross outflows Net Financing Total stock Value Indicator
Q3 2016-17 (un-audited) 10.4 0.5 4.8 6.1 143.0 0.04
Q2 2016-17

(un-audited)

7.0 0.6 5.6 2.0 136.9 -0.09
Q1 2016-17

(un-audited)

7.8 0.6 8.7 -0.2 134.9 0.07
2015-16 31.5 2.1 22.3 11.3 135.1 0.1
2014-15 32.3 1.6 15.7 18.2 123.9 0.3
2013-14 16.4 2.0 14.9 3.4 105.7 0.3
2012-13 11.7 2.3 14.7 -0.7 102.2 -0.2
2011-12 18.3 2.4 16.7 4.0 102.9 0.4

*C&AIP is capitalised and accrued interest and prizes earned

All figures are in £ billion (rounded). 2016-17 figures are unaudited and subject to change due to late transaction processing (evidence of identity), cancellation and any accounting adjustments.

NS&I reports quarterly on gross inflows and outflows, Net Financing and total stock. Each quarter, NS&I release these unaudited figures and publishes the Annual Report and audited accounts each financial year.

NS&I Annual Report and Accounts

 

Notes to Editors

  1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to around 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
  2. Net Financing – the measure of the net change of NS&I funds, meaning total inflows from deposits, retention of maturing monies and capitalised and accrued interest, less the total outflows from withdrawals and interest or Premium Bonds prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.
  3. NS&I’s original Net Financing target for 2016-17 – set at the Budget in March 2016 – was £6 billion, in a range of £4 billion to £8 billion.
  4. Value Indicator – an indication of NS&I’s cost-effectiveness in raising finance for the Government. It compares the total cost of delivering Net Financing and servicing existing customers’ deposits with how much it would cost the Government to raise funds through the wholesale market via equivalent maturity gilts.
  5. The Value Indicator from Q4 2014-15 (January-March 2015) through to Q1 2018-19 (April-June 2018) excludes 65+ Bonds, which were a specific Budget measure distinct from NS&I’s normal activity. The cost of raising finance through this product over gilts is therefore not reflected in the Value Indicator calculation during this period.
  6. Investment Guaranteed Growth Bonds are a specific policy measure, announced in the 2016 Autumn Statement, distinct from NS&I’s normal activity and the cost of raising finance through this product over gilts will not be reflected in the Value Indicator calculation.
  7. For further information, please contact the NS&I media team.