Press Release

NS&I SEEKS NEW CHIEF EXECUTIVE

10 February 2006

'The most desirable job in UK financial services'

National Savings and Investments (NS&I), the government-backed savings provider, is in the process of seeking a new chief executive following the decision by Alan Cook CBE, the present CEO, to leave NS&I and take up the post of managing director at the Post Office Limited from March 2006.

Since September 2002, after three years of declining performance, the total value of deposits has increased from £61.7 billion to £71.9 billion, with sales averaging £10 billion a year.

NS&I's mission is to be recognised as the UK's leading and most trusted savings and investments organisation, and is three years into a five-year plan to raise £15 billion net financing for government by the end of the financial year 2006-07.  To date, £9.6 billion has been raised.  The infrastructure is now in place for NS&I to build on this success.

New chief executive

The new chief executive is likely to come from a financial services background and have experience of transforming the performance of a large, complex organisation.  NS&I has appointed Russell Reynolds Associates to carry out an executive search and the post has been advertised in national broadsheet newspapers.  Closing date for applications is 24 February.

Sandra Postles, NS&I human resources director, said: "Alan Cook has made an important contribution to the development of NS&I.  Under excellent leadership, NS&I has continued to grow and modernise and there remains considerable scope for further development of the business in the years ahead.  These are exciting times at NS&I."

Luke Meynell, head of Board Practice at Russell Reynolds Associates, said: "This is a rare and excellent opportunity and possibly one of the most desirable roles in UK financial services.  The CEO role is a huge opportunity for the right person to take the organisation forward to the next stage by bringing in top-level financial services and business transformation experience."

Key developments

• Since September 2002 NS&I has undergone significant change, with many product and service developments.
• May 2003: Premium Bonds maximum holding limit increased from £20,000 to £30,000 per person
• January 2004: Easy Access Savings Account launched, replacing Ordinary Account launched in 1861
• April 2004: Index-linked Savings Certificates/Fixed Interest Savings Certificates: maximum holding limit raised from £10,000 to £15,000 per Issue
• October 2004: Premium Bonds regular purchase standing order scheme introduced
• October 2004: Children's Bonus Bonds maximum investment limit raised from £1,000 to £3,000 per Issue
• January 2005: New website launched providing online sales facility
• June 2005: Premium Bonds 'double jackpot' introduced (two £1m top prizes every month).
• November 2005: Partnership deal with Tesco is signed
• 2002-2005: Guaranteed Equity Bonds - six tranches issued

NS&I's role

NS&I exists to provide cost-effective financing for the government and in the financial year 2002-03, NS&I contributed £784 million.  During this current financial year 2005-06 (to December 2005), NS&I has contributed £3.4 billion.  By the end of the current financial year (31 March 2006), this figure will be even higher.

The business has an exciting and challenging future ahead, with two major new product launches scheduled within the next 12 months and a roll-out of the Tesco partnership to some 700 stores across the country.