Edinburgh’s green bank makes loss of £6 million

Vince Cable said the bank had made a positive start. Picture: Robert Perry

Vince Cable said the bank had made a positive start. Picture: Robert Perry

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THE UK Government’s Green Investment Bank made a net loss of more than £6 million in its first ten-and-a-half months of business.

The flagship bank, which is based in the Capital, revealed the £6.2m loss after tax in its first annual report.

It was also revealed that the firm’s part-time chairman, Lord Smith of Kelvin, was paid £102,258 in the same period.

The bank’s chief executive, Shaun Kingbury, was handed pay including pension and benefits of £153,370 for five months’ work.

He will also receive a bonus of £52,000 in 2015 if shareholders approve.

The report, which covers May 15, 2012, to March 31, 2013, said: “As would be expected, in this stage of our operations, the first period of financial results shows a loss as our capital has not yet been fully invested and is, therefore, not generating sufficient returns to cover our investment and operational costs.”

The bank is tasked with investing up to £3 billion of public money in offshore wind, energy efficiency, waste recycling and waste-to-energy projects.

Despite the loss, Westminster business secretary Vince Cable said the bank had made a “positive start” with every £1 it had invested leading to £3 of private investment.

It was announced in March 2012 that the headquarters of the Green Investment Bank would be in Edinburgh. It is based at Semple Street.