NS&I 2016-17 Annual Results

NS&I today announced its 2016-17 annual results for the year to 31 March 2017.

  • NS&I delivered £11.8 billion of Net Financing and £74 million of savings to the taxpayer
  • NS&I’s efficiency ratio improves again, moving from 12 basis points to less than 10 basis points – meaning that it costs NS&I less than 10p a year to manage each £100 of stock held
  • 3.7 million customers now registered to use online services and 92% of sales now via digital channels (online and telephone)

NS&I today announced its 2016-17 annual results for the year to 31 March 2017. Key points include:

Net Financing

NS&I delivered £11.8 billion of Net Financing in 2016-17, compared to the forecast at Budget 2017 of £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 Net Financing outturn of £11.8 billion in 2016-17 reflects high levels of inflows attracted in the period following the Bank of England base rate reduction in August 2016 and subsequent changes across the rest of the savings market. The Government judged that the risk of exceeding the Net Financing target was acceptable in order to strike the right balance between the interests of savers, taxpayers and the stability of the broader financial services sector.

NS&I reduced interest rates on four of its variable rate products on 1 May 2017, announced in February 2017. These changes reflected market conditions, but as they took effect outside the reporting year they had a limited impact on Net Financing in 2016-17.

Value and efficiency

NS&I delivered £74 million of savings to the taxpayer in 2016-17 – using the Value Indicator measure to calculate how much more cost-effective it is to raise funds through NS&I than through gilts. 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.

NS&I’s efficiency ratio – how cost effectively NS&I manages the funds it holds – improved once again in 2016-17, moving to 9.4 basis points (against 12 basis points in 2015-16). This means that that it costs NS&I less than 10p a year to manage each £100 of stock we hold.

Digital channels

NS&I is committed to providing services as efficiently as possible and our customers are increasingly choosing to do business with us through simple and straightforward digital channels (online and telephone). In total, 92% of new NS&I sales were through digital channels in 2016-17 – up from 65% last year – and more than half of all Premium Bonds prizes are now paid electronically. Some 3.7 million customers have registered for online services with close to 2.2 million customers choosing to go ‘paperless’. We also prepared to launch our first online only product – Investment Guaranteed Growth Bonds, which went on sale on 11 April 2017.

Service Delivery Measures

Overall customer satisfaction this year was 82.1%, up from last year’s 81.3% but still below our aspirational target of 87%. Two years ago, we switched from a monthly retrospective survey to a new method of asking customers how satisfied they are immediately after transacting with NS&I. The question, and the target of 87% satisfaction, remained unchanged despite the change in methodology, resulting in lower overall scores. NS&I has agreed with HM Treasury that this year’s score of 82% will become a benchmark and our subsequent target (for 2017-18) will be to achieve customer satisfaction of at least one percentage point higher, i.e. 83%. NS&I met its other customer service targets for timeliness and accuracy in 2016-17.

Ian Ackerley, Chief Executive, NS&I, said:

“2016-17 has seen NS&I deliver £11.8 billion of debt financing to the Government – one of the largest contributions in our history. We have done so cost effectively, delivering £74 million of Value Indicator savings for the taxpayer; and at the same time we have again improved our efficiency.

“Since taking over in March 2017, I have found a vibrant and thriving business in a year that also marks the 60thanniversary of the first prize draw for Premium Bonds – which is still our most popular product. I aim to build on NS&I’s strong record of serving customers across the retail savings market and for other parts of government.”


The 2017 Budget confirmed that NS&I’s 2017-18 Net Financing target is £13 billion, within a range of £10 billion to £16 billion. This includes deposits into Investment Guaranteed Growth Bonds. The Bonds went on sale for 12 months from 11 April 2017 and allow customers to invest up to £3,000, receiving an interest rate of 2.20% gross/AER. The Bonds are open to everyone aged 16 and over and have a minimum investment of £100 and a maximum investment of £3,000.

2016-17 annual results

Year  Gross inflows £bn C&AIP* £bn Gross outflows £bn Net Financing £bn Total stock £bn Value Indicator £bn
2016-17 (including Q4) 35.0 2.3 25.5 11.8 146.9 0.1**
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 3.5 105.7 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

All figures are in £ billion and are subject to rounding.

*C&AIP is capitalised and accrued interest and prizes earned. All figures are in £ billion and subject to rounding.

**Excluding 65+ Bonds.

NS&I reports quarterly on gross inflows and outflows, Net Financing and total stock. Each quarter, NS&I releases unaudited figures and publishes its audited Annual Report and audited accounts each financial year. NS&I’s full Annual Report and Accounts and Product Accounts 2016-17 can be found here.

Notes to Editors

  1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 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. 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. 65+ Bonds are not included in the Value Indicator. As they were a specific Budget measure, the cost for delivering them was set out in the 2014 and 2015 Budget scorecards. Investment Guaranteed Growth Bonds are a specific measure announced at the 2016 Autumn Statement and will not be included in the Value Indicator.