NS&I PROVISIONAL Q2 2019-20 RESULTS
- Q2 2019-20 Net Financing of £2.9 billion
NS&I today published its un-audited quarterly results for the second quarter (July-September 2019) of the financial year 2019-20. NS&I delivered £2.9 billion of Net Financing in Q2 2019-20, giving a year-to-date total of £4.9 billion.
The 2019 Spring Statement confirmed that NS&I’s 2019-20 Net Financing target is to deliver £11 billion, within a range of £8 billion to £14 billion.
NS&I’s latest quarterly Value Indicator figure was -£230 million, giving a half year total of -£349 million. The Value Indicator is the measure that NS&I uses for raising cost-effective finance for the Government and remains lower than target, due to exceptionally low gilt yields.
NS&I’s Value Indicator target for 2019-20, announced at the Spring Statement, is to deliver £20 million of value, with a lower limit of £0 (zero). Despite the current exceptional circumstances with gilt yields falling to, and remaining at exceptionally low levels, NS&I remains committed to delivering long-term positive value.
Provisional Q2 2019-20 results (1 July – 30 September 2019)
|
Qtr / year |
Gross inflows £bn
|
C&AIP* £bn
|
Gross outflows £bn
|
Net Financing £bn
|
Total stock £bn
|
Value Indicator £bn
|
|
Q2 2019-20 (unaudited) |
8.8 |
0.6 |
6.5 |
2.9 |
172.5 |
-0.2** |
|
Q1 2019-20 (unaudited) |
8.1 |
0.8 |
6.8 |
2.0 |
169.6
|
-0.1** |
|
2018-19 |
37.3 |
2.4 |
28.9 |
10.8 |
167.6 |
0.01** |
|
2017-18 |
42.7 |
2.5 |
35.4 |
9.8 |
156.7 |
0.2** |
|
2016-17 |
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** |
All figures are in £ billion and are subject to rounding. Q2 2019-20 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 and Investment Guaranteed Growth Bonds.
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.
Notes to Editors
- 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.
- 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.
- 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.
- For further information, please contact the NS&I media team.