The Scottish National Investment Bank (SNIB) experienced a significant pre-tax loss of $58.43 million for the year ending March, a sharp increase from $14.6 million the previous year. This was primarily driven by $77 million in unrealized, or paper, losses on investments, up from $9.8 million in 2024, as assets held by the bank were revalued. Excluding these unrealized losses, the bank recorded an operating profit of $18.3 million, compared to $3.2 million the prior year, with operating income rising by 78.8% to $34.5 million, exceeding its operating costs of $16.2 million. The bank's portfolio grew to 42 businesses and projects.
Despite the challenging economic environment, the SNIB committed $145 million and attracted an additional $324 million in co-investment during the period, surpassing its target of $181 million. Since its inception in November 2020, the bank has committed over $785 million and crowded in $1.4 billion. However, the surge in unrealized losses and the collapse of two SNIB-backed companies, M Squared Lasers and Krucial, have raised concerns about the bank's investment strategy and the inherent risks of supporting early-stage, high-growth potential companies. M Squared Lasers, the first company backed by SNIB, collapsed owing millions, with SNIB facing a potential loss of its $34 million investment, which includes $15.2 million in loans and $22.3 million in equity.
The SNIB's outgoing chief executive, Al Denholm, received a total remuneration package of $343,800, including over $100,000 in bonuses and pension payments. Chief financial officer Michael Robertson's total remuneration reached $239,612 with $63,474 in add-ons. Audit Scotland, in a May 2025 report, concluded that the bank has been well-run and has a rigorous investment process, making a good start on its economic and societal objectives. The bank acknowledged that significant variations in the fair value of its portfolio are "not uncommon or unexpected" for a young development bank investing in higher-risk, early-stage companies.
