£2.1 billion of Net Financing delivered
- Higher demand for Premium Bonds met by strong operational performance
In Q1 2014-15, NS&I delivered £2.1 billion of Net Financing and £179 million of savings to the taxpayer – as measured by the Value Indicator.
Net Financing has been driven by strong customer demand for Premium Bonds since the maximum holding limit was raised from £30,000 to £40,000 on 1 June. NS&I met this demand with key performance indicators consistently maintained at more than 95%.
The 2014 Budget confirmed that NS&I’s 2014-15 Net Financing target is to deliver £13 billion, in a range of £2 billion either side of this.
NS&I’s Value Indicator target for 2014-15 is again to produce positive value. The savings bonds for people aged 65 and over announced in the 2014 Budget are a specific measure distinct from NS&I’s normal activities and therefore NS&I’s Value Indicator target for 2014-15 excludes the cost of this product.
Jane Platt, Chief Executive, NS&I, said
“A strong financial performance in the first quarter of the year has been matched by an excellent operational response to increased customer demand for Premium Bonds since the investment limit was raised to £40,000 on 1 June.
“The first quarter also saw us prepare for the introduction of the new £15,000 investment limit for ISAs, which we also expect to be popular with our customers.”
Provisional Q1 2014-15 results
All figures are in £ billion (rounded to one decimal place). Q1 2014-15 figures are provisional, unaudited and subject to change due to late transaction processing (evidence of identity), cancellation and any accounting adjustments.
*Capitalised and accrued interest and prizes earned
NS&I reports quarterly on gross inflows and outflows, Net Financing and total stock. Each quarter, NS&I issues these unaudited figures and publishes its Annual Report and audited accounts each financial year.
Notes to Editors
- NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to over 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
- Net Financing is 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.
- Value Indicator – an indication 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.