British Business Bank supported £6.8bn of finance for smaller businesses in 2024/25 and made a statutory profit before tax of £144m.
The bank’s annual report showed it exceeded most of its targets last year.
£385.8m of debt commitments were made, beating the £382.5m target.
Guarantee commitments reached £2,015.5m, above the £1,825.7m goal.
Equity commitments came in at £881.8m, just under the £895.7m target, while gross deployment outside London was £707.1m, ahead of the £649.8m target.
In 2024/25, the bank’s support enabled £1.2bn of public funding, £2.6bn of lending guaranteed and £3.0bn of private capital attracted.
24,000 businesses received bank-backed funding for the first time, along with 4,000 businesses previously funded by the bank.
84% of businesses supported were outside London.
The funding is expected to create 38,000 additional jobs and boost business turnover by £18.0bn, which is expected to add £8.0bn to UK economic output.
Each UK nation and region is set for a boost of more than £100m to gross value added.
Additionally, the bank reported realised gains of £83.6m in 2024/25 and a lifetime multiple on invested capital of 2.3x.
Operating costs as a proportion of assets under management dropped to 1.22%.
The investment portfolio grew by 19% to £4.7bn, with £3.2bn in equity and £1.5bn in debt.
Stephen Welton, chair at British Business Bank, said: “With a proven track record on a nationwide basis in driving economic growth, innovation and jobs, over the next ten years we expect the British Business Bank to become a far more visible and recognisable institution, firmly embedded in the national narrative of smaller business growth and success.
“A rise in our total financial capacity to £25.6bn will enable us to increase annual investments to around £2.5bn a year and to crowd in even more third party capital.”
Louis Taylor, CEO at British Business Bank, said: “In a busy and productive 2024/25, the British Business Bank amplified its role, delivering significant impact in driving economic growth and innovation and playing its part in the economic transformation of the UK’s Nations and regions.
“The Bank returned a pre-tax profit of £144m this year. Our activities in 2024/25 are expected to produce an impact of 38,000 additional jobs and £8.0bn of gross value added over the life of the finance.
“At the same time, we have undertaken a significant reshaping of our organisation to prepare for an expanded mandate and long-term ambitions.”
Taylor added: “Having an economic development bank with permanent capital and a consistent risk appetite, underpinning the UK venture and growth market through its cycles, is a powerful and very positive development.”
