Nationalised lender Northern Rock has announced a £167.6m statutory before tax loss for 2007, a massive decline on the £626.7m profit recorded the previous year.
The beleaguered bank says it expects to be “significantly loss-making” this year, with a before tax profit unlikely before 2011.
Northern Rock says as a result of its business restructuring, it aims to repay the current £24bn Bank of England loan by the end of 2010.
Excluding treasury impairments and non-recurring costs, the lender recorded an £421.9m underlying before tax profit last year, down on the £587.2m in 2006.
“Looking ahead, we have developed a business plan that we believe will help drive the bank back towards profitability, and ensure it has a sustainable future and remains an important employer in the North East,” new Northern Rock executive chairman Ron Sandler says.
“In doing so, we have worked hard to strike a sensible balance between our requirement not to use Government support to compete unfairly, and our commitment to meet the Government’s objectives by creating a business that is sufficiently secure financially for taxpayer support to be progressively withdrawn.
“To this end, we have today launched a 'competitive framework' comprising a set of principles and specific restraints that will be carefully monitored. Without distorting competition, we are determined to create a viable business to be returned to the private sector.”
To comment on this story, contact:
0207 484 9793
18 new entrants featured
Recommended cash offer
Latest news and analysis
Second London acquisition in three years
Partner Insight: Continuing the Architas education series for clients.