THE state-owned ‘bad’ part of Northern Rock is back in the black, according to the first set of results published since it split from the ‘good’ part of the nationalised Newcastle lender.
Northern Rock Asset Management (NRAM), which took on the bank’s ‘toxic’ loans and mortgages, reported an underlying pre-tax profit of £277.4m for the year to December 31, compared to a loss of £313.4m loss in 2009.
The bank is permanently shut to new lending but has 400,000 mortgage customers and 200,000 unsecured loan customers.
NRAM has been managed alongside the Government-owned Bradford & Bingley by a specially-created company called UK Asset Resolution (UKAR) since last October.
Today’s figures show that Bradford & Bingley also moved firmly into the black, with underlying profit before tax of £200.1m, up from a £166.5m loss the year before.