[PERSON_NAME] in [ADDRESS] Published August 23 2026 Jump to comments section Print this page Unlock the Editor's Digest for free [PERSON_NAME], Editor of the FT, selects her favourite stories in this weekly newsletter. [ADDRESS]'s state-backed development bank recorded a "challenging" net loss of £138mn, the fifth consecutive full-year loss since it was set up, driven by portfolio writedowns and the failure of five companies it had backed. [PERSON_NAME], chief executive of the Scottish National Investment Bank (SNIB), said he expected "commentary" about the results covering the 12 months to the end of March but that the lender had to pursue its remit as a "patient" investor.

The latest loss, confirmed in accounts published on Monday, exposes the tension in the mandate of the bank, which was created in 2020 during the Covid-19 pandemic by the Scottish National Party-led government. It is required to serve as a higher-risk investor for sectors struggling to attract commercial interest while minimising taxpayer exposure to financial losses. As an "impact investor", the bank aims to deliver both commercial returns and investment into net zero technologies, innovation and nationwide growth across [ADDRESS]. [PERSON_NAME], who has been in post since January, said 90 per cent of the losses recorded in 2025-26 related to investments made during the bank's first three years after its launch, before tighter conditions were introduced in 2023.

SNIB realised losses of £65mn connected to the failures of space-tech start-up [ADDRESS], laser manufacturer M Squared and Trojan, an EV infrastructure firm. The bank also recorded unrealised losses of £85mn from writedowns, including anticipated losses from the failure of medical technology developer Pneumo Wave and rocket company Orbex. Its collapse in February was a blow to the [ADDRESS]'s ambitions to see a British rocket launch from a domestic spaceport. The Scottish government, which has committed to capitalise the bank with £2bn in its first 10 years, said the results reflected SNIB's role as [ADDRESS]'s mission-led development bank.