NEW NS&I NET FINANCING TARGET FOR 2016-17 AND PROVISIONAL Q2 2016-17 RESULTS
In today’s Autumn Statement, the Chancellor announced that NS&I’s Net Financing target for 2016-17 is to be revised. NS&I’s original target for 2016-17 was £6 billion (in a range of £2 billion either side of this, from £4 billion to £8 billion).
The new target of £9 billion (in a range of £2 billion either side of this, from £7 billion to £11 billion) reflects changes to the Government’s financing requirement. NS&I is forecast to meet the revised Net Financing target for 2016-17.
Provisional Q2 2016-17 results
NS&I today published its un-audited quarterly results for the second quarter (July-September 2016) of the financial year 2016-17. NS&I’s latest quarterly Value Indicator figure was -£88 million, giving a half year total of -£18 million.
NS&I’s Value Indicator target for 2016-17 is to deliver positive value for the taxpayer with a lower limit of -£200 million. 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.
|Qtr / year||Gross inflows||C&AIP*||Gross outflows||Net Financing||Total stock||Value Indicator
*C&AIP is capitalised and accrued interest and prizes earned
All figures are in £ billion (rounded). 2016-17 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.
The Chancellor also announced a new market leading 3-year savings bond, called Investment Guaranteed Growth Bonds. The new Bonds will go on sale in the coming financial year, 2017-18.
They will be available at nsandi.com for 12 months from spring 2017 and the indicative interest rate will be 2.2%. The precise rate will be confirmed nearer to launch. The bonds will be open to people aged 16 and over and will have a minimum investment of £100 and a maximum investment of £3,000.