NS&I 2011-12 un-audited Q4 2011-12 and Q1 2012-13
This was caused by a small number of savers depositing large amounts with NS&I during the market uncertainty of Q3 and Q4 (December 2011-January 2012). In response, NS&I reduced the rate on its Direct Saver account in January 2012 and this, combined with a return to more normal deposit levels in the savings market, saw NS&I finish the year only narrowly above its Net Financing target range.
NS&I’s 2012-13 Net Financing target is £0, in a range of -£2 billion to £2 billion. In line with this target the Net Financing outturn for quarter 1 was -£100 million.
NS&I delivered £0.02 billion of savings to the taxpayer in Q4 2011-12, and in total £0.42 billion in 2011-12 – using the Value Indicator measure to calculate how much more cost-effective it is to raise funds via NS&I than via government gilts. In Q1 2012-13 the indicator was -£0.02 billion. Since 2009-10, NS&I has delivered £2.6 billion of value for the taxpayer. As a consequence of exceptional gilt market conditions, the outcome of the Value Indicator measure is more volatile. NS&I is tasked with managing its range of products to ensure that it balances the interests of its savers, taxpayers and the stability of the wider financial services sector.
NS&I is releasing these figures ahead of the publication of its Annual Report and Accounts because this year additional time is needed to prepare and audit its Resource Accounts. This is following the acquisition of its outsource provider, Siemens IT Solutions and Services (SIS), by Atos in July last year. The Product Accounts have been prepared and audited to schedule but NS&I cannot present them in isolation to the House of Commons as they form part of one Report and Accounts for the agency. However, NS&I have a commitment to act transparently within the financial services sector and is therefore publishing un-audited Q4 2011-12 and Q1 2012-13 data – these numbers will not change when the Annual Report and Accounts and Product Accounts is published.
Un-audited Q4 2011-12 results:
| Quarter | Gross inflows | C&AIP* | Gross outflows | Net Financing | Total stock | Value Indicator |
|---|---|---|---|---|---|---|
| Q4 2011-2012 | 3.3 | 0.3 | 4.5 | -0.9 | 102.9 | 0.02 |
| Q4 2010-2011 | 2.9 | 0.7 | 4.6 | -1.0 | 98.9 | 0.2 |
Un-audited 2011-12 annual results:
| Year | Gross inflows | C&AIP* | Gross outflows | Net Financing | Total stock | Value Indicator (VI) / Value Add (VA) |
|---|---|---|---|---|---|---|
| 2011-12 | 18.3 | 2.4 | 16.7 | 4.0 | 102.9 | 0.4 (VI) |
| 2010-11 | 15.3 | 2.7 | 17.9 | 0.1 | 98.9 | 0.8 (VI) |
| 2009-10 | 18.1 | 1.9 | 18.4 | 1.6 | 98.8 | 1.4 (VI) |
| 2008-09 | 26.0 | 2.6 | 16.2 | 12.4 | 97.2 | 0.2 (VA to end of Q3 when the VA target was suspended) |
| 2007-08 | 15.5 | 3.3 | 13.0 | 5.8 | 84.8 | 0.4 (VA) |
Un-audited Q1 2012-13 results:
| Quarter | Gross inflows | C&AIP* | Gross outflows | Net Financing | Total stock | Value Indicator |
|---|---|---|---|---|---|---|
| Q1 2012-13 | 3.0 | 0.9 | 4.0 | -0.1 | 102.8 | -0.02 |
| Q1 2011-12 | 6.6 | 0.9 | 3.7 | 3.8 | 102.7 | 0.3 |
All figures are in £ billion (rounded to one decimal place). Q1 2012-13 figures are subject to change due to late transaction processing (evidence of identity), cancellation and any accounting adjustments.
*Capitalised and accrued interest and prizes earned.
Notes to Editor
1. NS&I’s Annual Report and Accounts 2011-12 will be laid before Parliament in September 2012.
2. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to over 26 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
3. 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.
4. 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.