The British Business Bank (BBB), the Government’s economic development agency, reported a loss of £135 million in the year to March.
The bank, which supports investments in SMEs, was affected by a drop in valuations across its portfolio. Despite this, the bank’s performance remained ahead of expectations.
Louis Taylor, CEO, British Business Bank, said: “The British Business Bank has continued to build momentum in 2022/23, making a total of £1.6bn of commitments despite the challenging economic environment.
“As reported in our 2022/23 Annual Report and Accounts, there has been an expected drop in valuations across our portfolio, producing a £135.3m loss this year. Given the longer-term 10-year horizon for most of our investments we would expect an overall upward trajectory despite these in-year fluctuations.
“After the pandemic, we have re-focused on the UK’s future economic growth as we deliver against our new strategic objectives from 2023/24. These are: driving sustainable growth, backing innovation, unlocking potential, and building the modern, green economy. We will continue to put our customers at the heart of everything we do, investing through the cycle to support the UK’s smaller businesses as they start up and grow.
Lord Smith of Kelvin, Chair of the British Business Bank, said: “There can be no doubt that the prevailing market conditions during 2022/23 have been both demanding and extraordinary. Our role, as the UK’s economic development bank, is especially important at the more difficult points of the economic cycle and this is why we have continued to invest during the last year. In doing so, we have built further our support for our ultimate end-customers – the UK’s smaller businesses.”