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British Business Bank Investments Ltd – Annual Results and publication of 2015 Annual Report and Accounts

Press release 19 January 2016

British Business Bank Investments reports strong maiden results with £11.8m net profit and 7.6% gross return on capital

British Business Bank Investments, the commercial arm of the British Business Bank, today announces its maiden results for the period to 31 March 2015 and the publication of its 2015 Annual Report and Accounts.

Highlights for the five-month period to 31 March 2015:

  • Net profit of £11.8 million
  • 7.6% gross return on average capital (6.5% net return on average capital)
  • Income of £13.9 million
  • Declared dividend of £10 million, payable to its shareholder
  • Low net costs of £2.1 million, including direct staff costs of £0.6 million.
  • £500 million invested, alongside £3.3bn of private sector funding across 24 individual investments
  • Supported 7,194 businesses across the UK
  • Awarded ‘Alternative Lender of the Year’ in the 2015 FinTech Innovation Awards

Highlights post period-end:

  • Commitments at 30 September 2015 grown to £1.24 billion, representing 83% of £1.5 billion currently allotted to the Company
  • Completed first investment in a challenger bank in October 2015 with £30 million invested in a tier 2 note issued by Shawbrook Bank

In our first period operating as an independent company we have been profitable, productive and innovative. The positive results for the period have supported the payment of a £10 million dividend, and I am particularly pleased that our gross return on average capital for the period of 7.6%, and our net return of 6.5% were both comfortably ahead of the benchmark return targets set for the company during the EU State aid process. We have seen a similarly strong performance post the period end and we look forward to building on our successful start, continuing to positively impact the smaller and mid cap business landscape in the UK.

Peter Wilson CEO of British Business Bank Investments

British Business Bank Investments Ltd has established itself as a strong supporter of new and diverse finance markets, and has contributed significantly to the wider group. Its impressive maiden results demonstrate tangible early successes and lay the foundations for further achievement. We look forward to playing a continuing role in improving and developing smaller business finance markets in the future.

Keith Morgan Chairman of British Business Bank Investments

Further Information

Notes to editors

About British Business Investments

British Business Bank Investments Limited is the commercial arm of the British Business Bank. It aims to earn a commercial return by investing through providers of finance to smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any advantage from the government.

British Business Bank Investments Limited is a wholly owned subsidiary of British Business Bank plc, the UK government’s economic development bank.

It is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.