NS&I 2010-2011 Annual Report and Accounts
Other highlights:
- NS&I delivered £827 million of savings to the taxpayer – using the Value Indicator measure to calculate how much more cost-effective it is to raise funds via NS&I than via government gilts.
- NS&I’s efficiency ratio – a measure of the cost of administering money invested with NS&I – fell to 17.0 basis points in 2010-11.
- Modernisation programme delivered real benefits for customers: over 250,000 customers signed up for new service to manage their Premium Bond holdings online or by phone. This includes the ability to choose to receive prizes paid directly into their bank account with notification of prize wins by email.
- NS&I placed in top 2% of businesses for good management of complaint handling in latest Financial Ombudsman Service league table (July-December 2010)
- NS&I continues to focus on balancing the interests of its savers, taxpayers, and supporting stability in the wider financial services market.
Jane Platt, Chief Executive, NS&I, said:
“2010-11 was a very solid year for NS&I: we met our Net Financing target of balancing funds coming into NS&I with the funds leaving us and in the process delivered £827 million of debt interest savings to the taxpayer.
“We passed a key milestone in our modernisation programme – introducing new services for our many millions of Premium Bond holders. This was a huge task with over 2.3 billion records moved onto new infrastructure over Christmas to minimise customer disruption, and I’m delighted that over 250,000 people are now signed up to use these new services.
"I’m also particularly proud of our performance in the Financial Ombudsman league tables. For an organisation of NS&I’s size to be placed in the top 2% of businesses for good management of complaint handling is an outstanding achievement.”
NS&I's 2010-2011 Annual Results
| Year | Gross inflows | C&AIP* | Gross outflows | Net Financing | Total stock | Value Add (VA) / Value Indicator (VI) |
|---|---|---|---|---|---|---|
| 2010-11 | 15.3 | 2.7 | 17.9 | 0.1 | 98.9 | 0.8 (VI) |
| 2009-10 | 18.9 | 1.9 | 18.4 | 1.6 | 98.8 | 1.4 (VI) |
| 2008-09 | 26.0 | 2.6 | 16.1 | 12.5 | 97.2 | 0.2 (VA to end of Q3, when VA was suspended) |
| 2007-08 | 15.5 | 3.3 | 13.0 | 5.9 | 84.8 | 0.4 (VA) |
| 2006-07 | 14.2 | 2.9 | 11.5 | 5.6 | 78.9 | 0.3 (VA) |
| 2005-06 | 12.0 | 2.5 | 9.6 | 4.9 | 73.4 | 0.3 (VA) |
| 2004-05 | 11.1 | 2.4 | 11.5 | 2.0 | 68.5 | 0.3 (VA) |
All figures are in £ billion (rounded to one decimal place).
*Capitalised and accrued interest and prizes earned.
Notes to Editors
- NS&I’s Annual Report and Accounts 2010-11 is available at www.nsandi.com/about-nsi-our-performance-our-annual-report-and-accounts (http://www.nsandi.com/about-nsi-our-performance-our-annual-report-and-accounts)
- NS&I’s Annual Report and Accounts 2010-11 were presented to the House of Commons on 06 July 2011, pursuant to section 7 of the Government Resources and Accounts Act 2000.
- NS&I was formed in 1861 as the Post Office Savings Bank, and is now a government department and an Executive Agency of the Chancellor of the Exchequer. All NS&I products offer 100% capital security, because NS&I is backed by HM Treasury.
- Glossary:
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 Bond prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.
Value Indicator – a measure of NS&I’s cost-effectiveness in raising finance for the Government which 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 and Treasury Bills.