Mr Denholm will remain in his post for at least a further six months until a successor is appointed to ensure a smooth leadership transition. Following this, he will serve in an advisory capacity to the board until the end of 2026.

Mr Denholm joined the bank in May 2023 and has led the institution through a key phase of its growth and development. Important milestones include securing phase 1 authorisation from the Financial Conduct Authority (FCA) and overseeing the growth of the bank’s portfolio to comprise of 43 businesses and projects, supported by £785m of committed bank investment and £1.4bn of crowded-in capital. 

The bank’s chairman, Willie Watt, said: “On behalf of the board, I thank Al for the energy and passion he has brought to the role.

“His expertise has been instrumental in helping us secure our initial FCA approval and his commitment to staff development has seen us secure employee engagement scores that sit way above industry norms.

“We are grateful for the work he’s done, and he leaves the Bank in a strong position, with solid foundations for future growth. We wish Al well in his retirement when it comes.”

The bank exists to invest patient capital in businesses and projects that support the development of a fairer, more sustainable Scottish economy. It is an impact investor, meaning it is focused on delivering both commercial returns and tangible benefits that help address the climate crisis, transform places and communities, and help scale innovation and technology.

Mr Denholm said: “Working with the bank has been a highly rewarding way to draw my full-time finance career to a close. I took on the role with big ambitions for the organisation, which I’m pleased we have delivered on. Now is the right time for me to plan my retirement as the bank enters its next chapter, supported by its highly skilled team.

“During my tenure, the bank has invested in some exciting businesses that I’ll be proud to watch grow and scale as they create jobs, drive growth in the Scottish economy and deliver against the bank’s impact missions.”