NS&I’s original target for 2017-18 was £13 billion (in a range of £3 billion either side of this, from £10 billion to £16 billion).
The revised Net Financing target is £8 billion (in a range of £3 billion either side of this, from £5 billion to £11 billion). The change to the target reflects lower than expected Net Financing being delivered in the first half of 2017-18, as a result of changes in the savings market.
Provisional Q2 2017-18 results
NS&I today also published its unaudited quarterly results for the second quarter (July-September 2017) of the financial year 2017-18. In Q2 2017-18, NS&I delivered £1.8 billion of Net Financing, giving a half-year total of £3.4 billion. NS&I’s latest quarterly Value Indicator figure is £80 million, giving a half-year total of £109 million.
NS&I’s Value Indicator target for 2017-18 is to deliver £250 million of value, with a lower limit of -£100 million (excluding Investment Guaranteed Growth Bonds and 65+ Bonds). 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.
Provisional Q2 2017-18 results (1 July – 30 September 2017)
|Quarter / Year||Gross inflows||C&AIP*||Gross outflows||Net Financing||Total stock||Value Indicator|
|Q2 2017-18 (unaudited)||7.3||0.6||6.1||1.8||150.3||0.08***|
|Q1 2017-18 (unaudited)||7.5||0.7||6.6||1.6||148.5||0.03***|
All figures are in £ billion and are subject to rounding. Q2 2017-18 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.
**Excluding 65+ Bonds.
***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. It is an indication of the total cost of delivering Net Financing and servicing existing customers’ deposits compared with how much it would cost the Government to raise funds through the wholesale market via equivalent maturity gilts. 65+ Bonds are not included in the Value Indicator. As they were a specific Budget measure, the cost for delivering them was set out in the 2014 and 2015 Budget scorecards. Investment Guaranteed Growth Bonds were a specific measure announced at the 2016 Autumn Statement and are not included in the Value Indicator.
- For further information, please contact the NS&I media team.