14th Nov 2013 14:40
LONDON (Alliance News) - UK Asset Resolution Ltd, the state-run institution running down the loans of bailed out lenders Bradford & Bingley PLC and Northern Rock (Asset Management) PLC, Thursday said it returned GBP1.7 billion to the government in the third quarter.
The GBP1.7 billion payment in the quarter ending September 30 means that UK Asset Resolution has repaid GBP3.8 billion over the first nine months of the year, and GBP8.3 billion since its formation in October 2010.
UK Asset Resolution also said that Investment Director Ian Hares will become finance & investment director, as Finance Director Phillip McLelland is stepping down at the end of November to take on a new role with Provident Financial PLC.
UK Asset Resolution, which doesn't take on new business and focuses on returning government loans, said it made a GBP327.4 million underlying pretax profit for the third quarter, taking the total amount for the first nine months of the year to GBP856.2 million.
Since its formation in October 2012, UK Asset Resolution's balance sheet has reduced to GBP79.3 billion on September 30 from GBP113.7 billion.
Northern Rock was nationalised by the UK Government and taken into public ownership in February 2008, but the organisation was then restructured in January 2010 into two separate legal entities ? Northern Rock PLC and Northern Rock (Asset Management) PLC. While Northern Rock PLC was sold to Virgin Money in 2012, Northern Rock Asset Management is still publicly owned and managed on behalf of the UK Government.
Bradford & Bingley, along with its subsidiary business Mortgage Express, was nationalised in September 2008, while its savings and retail branch business was sold and transferred to Abbey, now Santander.
By Samuel Agini; [email protected]; @samuelagini
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