The Rock reports gross mortgage lending down 25pc
Northern Rock PLC, the so called “good bank”, reported an underlying loss of £78.8m – an improvement from the £140m loss from the first half of 2010.
Mortgage accounts over three months in arrears represented 0.26% of the book while the average loan to value of new lending completed in the first half was 69%, up from 60% from the same period last year.
Mortgage balances as of June 30 2011 were £12.5bn compared with £12.2bn at the end of 2010.
Ron Sandler, executive chairman at Northern Rock, said: “Northern Rock has made good progress in the first half of 2011. The company continued to be loss-making, as expected, but losses are significantly reduced and we are generating momentum. The company expects to begin trading profitably during the second half of 2012.
“The trading environment remains challenging and there is strong competition in the savings and mortgage markets. We are carefully managing the product mix to sustain margins and improve income, and we continue to take steps to align the cost base with the income generating capacity of the company.
“We are working closely with UK Financial Investments and our advisers to explore the options for a sale of Northern Rock, at the right time and in the best interests of taxpayers.
“We are pleased with the level of interest we have received, and will continue to explore the sale option over the coming months. In the meantime, it is business as usual. We remain focused on serving our customers, providing them with attractive products and a safe home for their savings and mortgages.”