Northern Rock to post profit in 2012
NORTHERN Rock PLC, a unit of the nationalised UK bank that is up for sale, said it expects to post a profit in the second half of 2012 as the company seeks to expand its loan book.
The taxpayer-owned lender reported a smaller loss of £68.5m (e78.7m) for the six months to June 30 from a £142.6m loss for the same period a year earlier.
"The company continued to be loss-making, as expected, but losses are significantly reduced and we are generating momentum," chairman Ron Sandler said in the statement. "The company expects to begin trading profitably during the second half of 2012."
Northern Rock, the first UK bank to be nationalised during the credit crisis, was divided into two parts last year: Northern Rock PLC, which is now up for sale; and Northern Rock Asset Management (NRAM), which holds most of the bank's existing mortgages.
British taxpayers made a net profit of £339.8m in the first half of 2011 from the assets they still hold in Bradford & Bingley PLC and NRAM.