NS&I PROVISIONAL Q1 2021-22 RESULTS

• Q1 2021-22 Net Financing of -£0.2 billion (minus £0.2 billion)
• NS&I delivered £38 million of savings to the taxpayer in Q1 2021-22, as measured by the Value Indicator

NS&I today published its latest unaudited quarterly figures, for the first quarter (April-June 2021) of the financial year 2021-22. Net Financing for the quarter was -£0.2 billion. The impact of the interest rate reductions made by NS&I towards the end of 2020 has continued to be reflected in the volume of outflows NS&I experienced in Q1 2021-22, while the opening up of the economy has also had an effect on savers’ behaviour.

NS&I delivered £38 million of savings to the taxpayer in Q1 2021-22, as measured by the Value Indicator.

The March 2021 Budget set NS&I’s Net Financing target for 2021-22 at £6 billion (+/- £3 billion) and a Value Indicator target for 2021-22 has been agreed with HM Treasury to be more positive than -£900 million.

Unaudited Q1 2021-22 results (1 April – 30 June 2021)

NS&I financial results 2016-17 to 2020-21

All figures are in £ billion and are subject to rounding. Q1 2021-22 figures are provisional, unaudited and subject to change due to transaction processing (evidence of identity) adjustments, cancellation and any accounting adjustments.

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

**Excluding 65+ Bonds.

***Excluding 65+ Bonds and Investment Guaranteed Growth Bonds.

****Excluding Investment Guaranteed Growth Bonds.

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.

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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. In general, 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 gilts. Some adjustments and assumptions are made to the calculation, including in identifying and applying an equivalent gilt, in response to specific NS&I product features. Index-linked Savings Certificates are included in the calculation of the Value Indicator and use the same approach as for other products, with one exception to the formula. As the real yield gilt comparators for RPI linked products are currently negative, NS&I applies a floor to the comparative yield set at zero, which means the calculation does not fully reflect the Value Indicator profile of this product. The Value Indicator methodology is agreed with HM Treasury and is reviewed and revised periodically, with its agreement, to support a long-term approach to product strategy. The Value Indicator target was suspended in 2020-21 in response to exceptional market conditions.

4. NS&I’s 2020-21 Annual Report and Accounts was published on 24 June 2021 and can be downloaded here .

5. For further information, please contact the NS&I media team.

NS&I media team

Chris Dowsett 020 7932 6799 chris.dowsett@nsandi.com

Sara Brown 020 7932 6874 sara.brown@nsandi.com

Sam Faulkner 020 7932 6801 sam.faulkner@nsandi.com

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