Partner Article

Bonuses for staff as Rock reduces losses

Northern Rock today said it had reduced its annual losses from £1.3bn to £383m and remains well placed to continue its recovery in 2010.

The company, now known as Northern Rock (Asset Management) plc, said the year ending December 2009 had seen it reduce its costs by 32% to £296m.

Total income for the year improved to £1.1bn, up from £433m the previous year.

Meanwhile residential mortgage arrear stabilised in the final quarter of the year at 4.28% and the number of properties in its possession fell to 2,061, from 3,620 the previous year.

The firm also said its workforce – barring chief executive Gary Hoffman – would share £14.9m in bonuses.

The pay-out is reward to its largely North East-based 4,500-strong workforce for slashing the company’s losses and debts.

Chief executive Gary Hoffman said: “These results today are a credit to the ongoing hard work of my colleagues here at Northern Rock, principally in Newcastle and Sunderland,”

“Northern Rock has turned a corner and it certainly feels a very different place to where we were just a year ago.”

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