Fact Service March 2011

Issue 13

Two nationalised banks back in profit

There was a return to the black in 2010 for Bradford & Bingley and Northern Rock Asset Management, according to the state-owned firm UK Asset Resolution which manages the banks.

Bradford & Bingley made a pre-tax profit of £1.08 billion last year, compared with a loss of £196 million in 2009.

Northern Rock Asset Management (NRAM) — the part of Northern Rock taken over by the state made a profit of £400.5 million in 2010, compared with a loss of £257.5 million in the previous year 2009.

UK Asset Resolution’s role is to run Northern Rock and Bradford & Bingley for the benefit of the taxpayer.

NRAM repaid £1.1 billion of its loan to reduce the balance to £21.7 billion during the year. Meanwhile, B&B's government funding of £27.0 billion has remained stable, and no further drawings were made in 2010.

www.n-ram.co.uk/company-information/corporate-communications/newsroom/newsroom-2011/2011-03-31.aspx