THE Scottish National Investment Bank has posted a loss of more than £3 million in its maiden accounts.

The state-backed lender launched in November 2020 with a £2 billion war-chest to invest in Scottish companies engaged in three key “missions”: the drive to net zero, tackling “place-based” inequality, and harnessing innovation to help people flourish.

It sparked controversy when its first chief executive, Eilidh Mactaggart, departed abruptly at the end of February this year. Ms Mactaggart, who had been in post for less than two years, cited “personal reasons” for her exit several weeks later.

She received total pay of £348,047 for the year ended March 31, the bank's accounts published today show. That included a base salary of £235,000, five months' pay in lieu of notice totalling £98,250, and £7,709 for eight and half days of unused leave, as well as pension contributions of £25,938.

The search for Ms Mactaggart's successor is understood to be nearing the final stage of the process.

The inaugural accounts for the bank show that it made an unrealised loss of £3.4m. The bank said the reverse could be largely attributed to the “early valuation profile of fund investments where unrealised losses are entirely expected followed by capital appreciation in later years.”

The institution noted that, as a development bank, it is “required to take increased risk with investments to prove the commercial viability of new markets and technologies, or to bridge an investment gap where the risk is perceived to be too high for private sector investors.”

Companies backed by the bank over the period covered by the accounts include Highland Coast Hotels, Lothian Broadband Group and Aberdeen Harbour.

Interim chief executive Sarah Roughead said: “The Bank has demonstrated its ability to be a catalyst for private investment into businesses and projects aligned to its missions. In doing so the Bank has established itself as a credible financial institution within Scotland’s finance community.”

“The Bank’s investments have ranged from £1m to £50m across a variety of deal structures– debt, equity, and fund investments. All opportunities the Bank considers are aligned to its missions and are commercial investment opportunities.”

The bank announced its most recent deal in September, when it provided £9m of debt finance to Trojan Energy, an Aberdeen-based company that designs, manufactures and operates “next generation” electric vehicle charging points. It was the 20th deal to be completed by the bank and took to £258.4m the amount of capital it has deployed since it launched.

Chairman Willie Watt said: “This has been a year in which investment activity has ramped up and tangible impacts are manifesting themselves with our portfolio.

“The Bank is acting as a catalyst to encourage investment in businesses or projects in the private and third sector in which it may otherwise be challenging to obtain funding.

“I am excited about the future; we have a strong team in place and are well placed to continue to deliver impact investment which has a material impact on the Scottish economy.”

Commenting on remuneration at the bank, a spokesperson said: “The bank’s pay and reward framework was developed with the input of independent reward specialists using propriety job evaluation methodology.

“The pay ranges for the executive directors were arrived at by applying this pay methodology, taking into account external market data.

“The bank’s remuneration committee reviews and approves individual salaries for executive directors based on the pay and reward framework which has been agreed.”