Partner Article

Rock rolls back into profit

NORTHERN Rock has reported a return to the black for the first half of this year, it was announced this morning.

Pre-tax profit for Northern Rock Asset Management came in at £349.7m, compared with a loss of £724.2m in the same period last year.

However, Northern Rock plc, the so-called “good bank” which holds savers’ deposits, made a pre-tax loss of £142.6m.

Meanwhile, the company said the number of mortgage accounts more than three months in arrears at 30 June 2010 were minimal, representing only 0.07% of the book and reflecting the good quality of the book and the Company’s prudent lending policy.

Gary Hoffman, chief executive of Northern Rock plc, said: “The Company is well positioned to capitalise on future growth opportunities and is now able to compete on the same terms as other banks and building societies.

“Northern Rock is focused on providing excellent service to its customers and meeting their needs. The Company continues to operate from a position of capital strength and remains committed to returning to private ownership when the time is right.”

This is the first set of results since Northern Rock was split into two at the beginning of this year.

This was posted in Bdaily's Members' News section by Ruth Mitchell .