UKAR loan repayments hit £12bn mark after strong six months

The business appointed to look after Northern Rock's bad bank assets continues to perform well as economic conditions improve

Richard Banks, chief executive of UK Asset Resolution
Richard Banks, chief executive of UK Asset Resolution

UK Asset Resolution - the group that manages the so-called “bad bank” assets of the state-owned Northern Rock and Bradford & Bingley - repaid a further £1.6bn to the tax payer during the six months ended September 30, 2014.

Total Government loan repayments made by the company, which was formed in 2010, now add to £12bm, equating to nearly 25% of what is owed.

Interim results for the six month period also show underlying profit before tax of £693m, up 17% from the comparable period in 2013.

During the half-year, costs also dropped 12%, while mortgage accounts three or more months in arrears reduced by 11% to 13,476.

UKAR chief executive, Richard Banks said: “UKAR has continued to make good progress over the past six months, with a further £4.4bn reduction in our balance sheet during this period.

“It is pleasing that arrears continue to fall and we remain committed to working with out customers to help them plan for the future.”

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