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Strong returns for the British Business Bank as financing tops £9.2bn

The British Business Bank is celebrating a third consecutive year of steady returns after the UK’s economic development bank saw financing to smaller businesses jump by almost a quarter in the last 12 months.

The figures, revealed as part of the bank’s annual reports and accounts for 2016-17, highlight the continued success of the bank formed back in 2013 by the coalition government, which focuses the lion’s share of its financing through smaller and alternative finance providers.

According to its financials for the past 12 months, total finance volumes rose by 24% to £9.2bn in a significant ramping up of activity through its lineup of over 100 providers and partners.

The likes of OakNorth Bank, Funding Circle and MarketInvoice, as well as big banks such as Barclays and Santander amongst others have all worked with the bank to channel loans and investments to over 59,000 small and medium sized UK businesses.

The Sheffield-headquartered bank has also managed to deliver a steady 4% adjusted return on the capital it has deployed which it claims marks the third consecutive year it has delivered returns above the Government’s targets and is an increase on the 2% return it managed last year.

Keith Morgan, who is Chief Executive Officer of the British Business Bank, said the bank had met its targets on all fronts in the past year and that expansion, which included the establishment of the £400m Northern Powerhouse Investment Fund, let it well placed to rise to the economic challenges ahead.

He commented: “Over the past year, we have delivered strongly against our four key performance indicators, broadening our support to provide more finance and extra choice for smaller businesses, at all stages of their growth.

“It has been a year of significant expansion for the Bank and, as our market impact continues to grow, we are well placed to respond flexibly to challenges ahead, helping to increase the amount and range of finance available to smaller UK businesses.”

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