NS&I Net Financing target for 2016-17 and provisional Q2 2016-17 results

In today’s Autumn Statement, the Chancellor announced that NS&I’s Net Financing target for 2016-17 is to be revised.

NS&I’s original target for 2016-17 was £6 billion (in a range of £2 billion either side of this, from £4 billion to £8 billion).

The new target of £9 billion (in a range of £2 billion either side of this, from £7 billion to £11 billion) reflects changes to the Government’s financing requirement. NS&I is forecast to meet the revised Net Financing target for 2016-17.

Provisional Q2 2016-17 results

NS&I today published its un-audited quarterly results for the second quarter (July-September 2016) of the financial year 2016-17. NS&I’s latest quarterly Value Indicator figure was -£88 million, giving a half year total of -£18 million.

NS&I’s Value Indicator target for 2016-17 is to deliver positive value for the taxpayer with a lower limit of -£200 million. The lower limit is important because it allows NS&I to continue to balance the interests of its savers, taxpayers and the stability of the broader financial services sector through a period of exceptionally low gilt yields.

 NS&I Q2 2016-17 figures

Quarter / Year Gross inflows C&AIP* Gross outflows Net Financing Total stock Value Indicator
Q2 2016-17 (unaudited) 7.0 0.6 5.6 2.0 136.9 -0.09
Q1 2016-17 (unaudited) 7.8 0.6 8.6 -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.

Investment Guaranteed Growth Bonds

The Chancellor also announced a new market leading 3-year savings bond, called Investment Guaranteed Growth Bonds. The new Bonds will go on sale in the coming financial year, 2017-18.

They will be available at nsandi.com for 12 months from spring 2017 and the indicative interest rate will be 2.2%. The precise rate will be confirmed nearer to launch. The bonds will be open to people aged 16 and over and will have a minimum investment of £100 and a maximum investment of £3,000.

Notes to Editors

  1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to more than 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.
  4. 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.
  5. For further information, please contact the NS&I media team.