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03/08/2010
Northern Rock Steadfast In Recovery
The boss of a once beleaguered UK bank is "encouraged" by news that nationalised Northern Rock's - a so-called 'bad bank' - has returned to profit following heavy losses last year in the wake of a bail-out by the taxpayer in 2008.
Chief Executive Gary Hoffman said the Northern Rock 'AM' results were 'encouraging'.
He was commenting as Northern Rock Asset Management, which houses the bank's toxic loans, reported pre-tax profits of £349.7million for the first six months of the year, compared with a loss of £724.2million in the same period last year.
However the 'good' side of the bank, Northern Rock PLC, which controls savers' deposits, made a loss of £142.6million.
The results are the first for the bank since it was split in two last year after its collapse, caused by a run on its deposits when it was disclosed that it had asked the Bank of England for emergency help.
The return to profit is due to 90% of borrowers being able to meet their mortgage repayments, thanks to record low interest rates.
But the group still owes a mammoth £22.5billion to the taxpayer after Northern Rock's 2008 bail-out, having repaid only £300million in the half-year.
The run on the bank forced the Bank of England to step and provide emergency loans after customers feared losing their savings.
The loans could not stop the crisis, which then hit the banking sector in Britain and across the world.
Northern Rock was subsequently bought by the taxpayer and, as part of the plan to return the bank to private ownership, Northern Rock was split in two.
The so-called 'bad bank', Northern Rock Asset Management (AM), houses the bank's toxic loans. It has returned a £349.7million profit.
The 'good bank', Northern Rock PLC, which controls savers' deposits, returned a £142.6million loss.
In further encouraging signs, bad debts fell to £277.6million, which is significantly lower than both the first and second halves of 2009.
The arm now has £47.2billion of residential mortgages on its books.
Repossessions fell 10%, but the bank said this was because its mortgage book was shrinking, leaving more risky debts on its balance sheet.
(BMcC/GK)
Chief Executive Gary Hoffman said the Northern Rock 'AM' results were 'encouraging'.
He was commenting as Northern Rock Asset Management, which houses the bank's toxic loans, reported pre-tax profits of £349.7million for the first six months of the year, compared with a loss of £724.2million in the same period last year.
However the 'good' side of the bank, Northern Rock PLC, which controls savers' deposits, made a loss of £142.6million.
The results are the first for the bank since it was split in two last year after its collapse, caused by a run on its deposits when it was disclosed that it had asked the Bank of England for emergency help.
The return to profit is due to 90% of borrowers being able to meet their mortgage repayments, thanks to record low interest rates.
But the group still owes a mammoth £22.5billion to the taxpayer after Northern Rock's 2008 bail-out, having repaid only £300million in the half-year.
The run on the bank forced the Bank of England to step and provide emergency loans after customers feared losing their savings.
The loans could not stop the crisis, which then hit the banking sector in Britain and across the world.
Northern Rock was subsequently bought by the taxpayer and, as part of the plan to return the bank to private ownership, Northern Rock was split in two.
The so-called 'bad bank', Northern Rock Asset Management (AM), houses the bank's toxic loans. It has returned a £349.7million profit.
The 'good bank', Northern Rock PLC, which controls savers' deposits, returned a £142.6million loss.
In further encouraging signs, bad debts fell to £277.6million, which is significantly lower than both the first and second halves of 2009.
The arm now has £47.2billion of residential mortgages on its books.
Repossessions fell 10%, but the bank said this was because its mortgage book was shrinking, leaving more risky debts on its balance sheet.
(BMcC/GK)
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06 February 2008
Jobs Threat At Troubled Northern Rock
Virgin has reversed its promise not to cut jobs at Northern Rock if it successful in its takeover bid of the troubled lender. The move has alarmed unions who had originally vowed to fight compulsory redundancies. Virgin boss, Sir Richard Branson had previously said that he was confident there would be no redundancies under a Virgin-backed rescue.
Jobs Threat At Troubled Northern Rock
Virgin has reversed its promise not to cut jobs at Northern Rock if it successful in its takeover bid of the troubled lender. The move has alarmed unions who had originally vowed to fight compulsory redundancies. Virgin boss, Sir Richard Branson had previously said that he was confident there would be no redundancies under a Virgin-backed rescue.
18 May 2012
Northern Rock Rescue "Could Cost Taxpayer £2bn"
The National Audit Office (NAO) has estimated that taxpayers could lose almost £2bn once the assets of collapsed bank Northern Rock are wound down. The public spending watchdog also said that taxpayers lost about £480m on the sale of Northern Rock PLC last year.
Northern Rock Rescue "Could Cost Taxpayer £2bn"
The National Audit Office (NAO) has estimated that taxpayers could lose almost £2bn once the assets of collapsed bank Northern Rock are wound down. The public spending watchdog also said that taxpayers lost about £480m on the sale of Northern Rock PLC last year.
05 May 2011
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
18 November 2011
Northern Rock Sale 'Poor Judgement' – Labour
Labour's Shadow Minister for the Treasury has said the sale of Northern Rock on Thursday by the Government was a 'poor judgement'. Richard Branson's Virgin investment company announced it was to purchase the almost disastrous Northern Rock bank on Thursday, while it has since emerged the sale will be at a loss for the taxpayer.
Northern Rock Sale 'Poor Judgement' – Labour
Labour's Shadow Minister for the Treasury has said the sale of Northern Rock on Thursday by the Government was a 'poor judgement'. Richard Branson's Virgin investment company announced it was to purchase the almost disastrous Northern Rock bank on Thursday, while it has since emerged the sale will be at a loss for the taxpayer.
24 February 2010
Northern Rock Closer To Independence
Northern Rock has reached an "important milestone" in its return to independence, the UK Treasury said today. According to the government, the bank has stepped closer to "commercial strength" with notice given for the end of the special guarantee on retail deposits. The deposits will be lifted three months from today on close of business 24 May.
Northern Rock Closer To Independence
Northern Rock has reached an "important milestone" in its return to independence, the UK Treasury said today. According to the government, the bank has stepped closer to "commercial strength" with notice given for the end of the special guarantee on retail deposits. The deposits will be lifted three months from today on close of business 24 May.
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Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
