Partner Article

Heavy losses predicted at the Rock

Northen Rock is expected to reveal heavy annual losses for a third year running this week.

According to analyst reports the nationalised lender will announce pre-tax losses of around £400m for 2009 - a significant impovement on the £1.36bn of losses in 2008.

Since the Government bailed it out in September 2007, it has lost a total of £2bn.

Bad debts will reportedly hit a record of more than £1bn, reflecting the fact that a quarter of the bank’s borrowers are in negative equity and problem loans account for almost 5pc of the book.

This was posted in Bdaily's Members' News section by Ruth Mitchell .