Rising arrears lead to £585m loss at NRock

The nationalised bank will also raise £3bn from the Government to bolster its finances. However, the bank has already made significant progress in repaying its loans from the Bank of England, with over a third of the balance now paid. The bank says it expect to make a significant loss throughout 2008 as part of its business plan, which involved paying down taxpayer loans and making many staff redundant. Northern Rock has succeeded in strengthening its retail deposits following the bank run it experienced in summer 2007, which damaged the banks funding base. At the end of June 2007...