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Northern Rock bad bank repays £2.1bn to taxpayer

Profits double at Britain’s sixth biggest mortgage provider, the ‘bad bank’ running down the loans of Northern Rock

Britain’s sixth biggest mortgage provider, the “bad bank” running down the loans of collapsed UK lender Northern Rock, said it repaid £2.1bn to the government last year after its annual profits more than doubled.

UK Asset Resolution (UKAR), which is running down the bad loans that were held by Northern Rock and Bradford & Bingley, said on Friday its underlying 2011 profit was £1.09bn, up from £444m in 2010, after a fall in losses on bad debts.

Britain should make a profit of £9-11bn on its bailout of Northern Rock, but may have to wait another 15 years to get all the cash, the body that oversees Britain’s bank stakes said earlier this week.

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