The Scottish National Investment Bank has made “clear progress” during its inaugural year despite recording a loss.

Accounts published by the publicly funded bank show it posted a £3.4 million loss, which interim chief executive Sarah Roughead attributed to the “early valuation profile of fund investments where losses are entirely expected”.

The bank also revealed that administrative costs increased significantly in the year to 31st March – from £2.9m to £9.7m. This was due to an ongoing recruitment drive and the cost of building the bank’s capabilities.

“This has been a year of continued build and recruitment and as such administrative costs increased,” the report cited.

Scottish National Investment Bank delivering returns

Despite posting a loss, the bank said it is still “well positioned to deliver environmental, social, and financial returns for the people of Scotland”.

More than £129m in investment capital was allocated by the bank in the year to 31st March. Similarly, income generation also rose to £1.9m.

The bank said its focus for 2022 has been to build on the foundations laid since launch. And so far this year it has invested over £140m in 12 businesses and projects across the country.

Similarly, the bank has leveraged an additional £327m in backing from other private and public sector investors, increased net assets and doubled headcount to 61.

Investments made by the bank have ranged from £1m to £50m across a “variety of deal structures” and have included backing for Lothian Broadband Group and Aberdeen Harbour.

Last month, it awarded £9m in funding to electric vehicle charging startup Trojan Energy.

The month prior saw the bank grant £10m to pureLiFi as the Edinburgh-founded firm looks to accelerate the global roll-out of its pioneering tech.

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Interim chief exec Sarah Roughead said: “The Bank has demonstrated its ability to be a catalyst for private investment into businesses and projects aligned to its missions.

“In doing so the Bank has established itself as a credible financial institution within Scotland’s finance community.”

Roughead added: “As our portfolio and networks grow, the Bank aims to offer deeper insights, working as a conduit between both policy makers and business leaders.

“This, together with continuing to increase awareness of the Bank in the wider ecosystem, will be an area of focus for next year.”

Chairman Willie Watt said: “This has been a year in which investment activity has ramped up and tangible impacts are manifesting themselves with our portfolio.

“The Bank is acting as a catalyst to encourage investment in businesses or projects in the private and third sector in which it may otherwise be challenging to obtain funding.

“I am excited about the future; we have a strong team in place and are well placed to continue to deliver impact investment which has a material impact on the Scottish economy.”

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