It reported a pre-tax loss for the 12 months to the top of March of £147.3 million, in comparison with a revenue of £604.8 million the earlier 12 months.
The financial institution, which lends cash to and buys stakes in smaller UK companies to assist them begin and develop, made £1.6 billion value of funding agreements through the newest 12 months.
It brings the whole funding to £12.4 billion to greater than 90,000 companies for the reason that financial institution’s launch in 2014. The complete determine doesn’t embrace the Covid-19 loans which had been administered by the British Business Bank (BBB).
UK taxpayers, who again the financial institution, have “not lost any money”, chief govt Louis Taylor made clear.
Mr Taylor advised the PA news company: “I think we generate a good return for the taxpayer.
“These are long-term investments and we are confident that over time, when we actually realise these investments, they will yield profitable growth for us but also real social benefit for the economy.”
The financial institution mentioned it had been affected by falls out there valuations of corporations, particularly within the know-how sector which noticed valuations minimize after the pandemic.
But it mentioned the drop in valuations and a consequent loss was anticipated after investing extra lately.
“I think our portfolio has been performing very well,” Mr Taylor advised PA.
“It is not without its issues, and it is not without any defaults at all, but we are a risk-taking organisation.”
The financial institution’s Start Up Loans programme not too long ago reached a milestone of £1 billion in lending, with greater than half the funding going to small companies run by ladies and ethnic minorities.
The scheme targets underrepresented teams who’re excluded from mainstream finance to assist them begin enterprise, and areas exterior of London and the South East.
There are a variety of corporations we see which have funding plans however are ready for the correct time the place they really feel extra assured to launch them
Nearly all of its funding is given by suppliers exterior of the “big five” British banks.
“The bank is more than self-sufficient in terms of operating itself from the income it generates from the portfolio,” Mr Taylor mentioned.
“If you add in the social value of what we do, [the return] is very high indeed.”
The financial institution boss mentioned UK smaller companies are feeling extra cautious now than in current months amid larger rates of interest and uncertainty over the way forward for the economic system.
He added: “There are a lot of companies we see that have investment plans, but are waiting for the right time where they feel more confident to launch them.”
But there may be “dynamism” amid the warning, he mentioned, with companies being launched in all corners of the UK.
