‘Bad’ Northern Rock is actually rather good

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THE STATE-owned company that runs the “bad” half of the collapsed Northern Rock has said the company returned to profit last year.

The Government split Northern Rock in two at the start of last year, forming a mortgage and savings bank called Northern Rock plc and Northern Rock Asset Management (NRAM) to house the more toxic loans.

UK Asset Resolution (UKAR), which runs both NRAM and Bradford and Bingley, said Northern Rock Asset Management made underlying profits of £277.4million in 2010, compared with a £313.4 million loss the year before.

It comes just three days after Northern Rock plc, the “good” part of the bank, revealed losses of £232million.

It also announced plans to axe 680 jobs.