Scottish National Investment Bank: review of performance 2026

Losses and learnings

77. It is in the nature of things that not all investments will succeed - particularly since the Bank is seeking to invest in propositions that might not otherwise take flight. And it is a fact that failed investments generally materialise more quickly than major successes, especially when the Bank is investing for the longer term. It is also worth noting that there have been serious economic headwinds since the Bank was established.

78. Up to the end of 2025-26, losses of £73 million had been crystallised across four investees. Further losses of up to £37 million are expected to arise from two investees who have entered administration or liquidation; and since the last year-end accounts, there is an additional sum of as yet unrealised losses, although these have yet to crystallise. The Bank will provide updated figures and explanation in its annual report and accounts due to be published in August.

79. Each investment failed for a particular combination of specific reasons. And it is difficult to express a general view with any confidence as to whether the overall level of losses, while considerable, is higher than might have been expected from an institution in its start-up phase. I heard views from external investment professionals that it was not.

80. Given that Bank investments are funded by the taxpayer, it is nevertheless entirely understandable that there has been some public and political concern about the losses; and it is right that the Bank should stand ready to defend its record. It is also valuable that the Bank has had consistent support from Scottish Ministers on this front.

81. The most important thing is that the leadership of the Bank learns the right lessons from the experience of each individual unsuccessful investment; and that where necessary, it puts measures in place to address any points on which the Bank’s policies, processes or actions were considered to have had any bearing on the outcome.

82. So I was reassured to see evidence of formal “lessons learned” exercises, involving all relevant members of the Bank’s investment team, being presented both to the executive leadership and to the board for discussion.