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Northern Rock posts profits

Northern Rock Asset Management made a £277.4m profit last year, new figures have revealed.

UK Asset Resolution which runs Northern Rock Asset management - spun-off from the so-called “good” part of nationalised Northern Rock last year - said it made underlying profits of £277.4m in 2010, compared to a £313.4m loss the year before.

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.

Northern Rock plc said it remained in the red earlier this month, reporting a £232.4m pre-tax loss for 2010.

The company has returned to profit having seen a marked reduction in losses on loans turned sour.

Meanwhile, Coventry Building Society has said it believes Northern Rock customers will benefit if it were to take over the nationalised lender.

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