NS&I provisional Q3 2014-15 results and 2015-16 Net Financing target

NS&I today published its un-audited quarterly results for the third quarter (October to December 2014) of the financial year 2014-15. NS&I delivered £1.6 billion of Net Financing in Q3 2014-15, giving a year-to-date total of £6.0 billion.

  • Q3 2014-15 Net Financing of £1.6 billion
  • 2014-15 Net Financing full year forecast: £18.3 billion against a target of £13 billion (+/-£2 billion)

Today’s Budget confirms that the NS&I Net Financing forecast for 2014-15 is £18.3 billion – above the range of £11 billion to £15 billion set at Budget 2014. This is due to a number of factors, most notably the unprecedented demand for 65+ Bonds when they went on sale in January 2015 and the removal of the £10 billion ceiling on sales. The increase in the Premium Bonds investment limit to £40,000 in June 2014 followed by the introduction of a second £1 million prize each month from August also proved very popular with customers.

NS&I delivered £57 million of value to the taxpayer in Q3 2014-15, as measured by the Value Indicator. NS&I forecast a Value Indicator return of £299 million in 2014-15. This is in line with the target set at Budget 2014 to deliver positive value. The 65+ Bonds are 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.

The 2015 Budget has confirmed that NS&I’s Net Financing target for 2015-16 is £10 billion, within a range of £8 billion to £12 billion.

Quarterly figures

Quarter / year Gross inflows C&AIP* Gross outflows Net Financing Total stock Value indicator
Q3 2014-15 (un-audited) 5.0 0.4 3.8 1.6 111.6 0.1
Q2 2014-15 (un-audited) 5.6 0.4 3.8 2.2 110.0 0.1
Q1 2014-15 (un-audited) 5.2 0.6 3.6 2.2 107.8 0.2
2013-14 16.4 2.1 15.1 3.4 105.6 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
2010-11 15.3 2.6 17.8 0.1 98.9 0.8
2009-10 18.1 1.9 18.4 1.6 98.8 1.4

*C&AIP is capitalised and accrued interest and prizes earned.

All figures are in £ billion (rounded). 2014-15 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.

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.