Northern Rock still in red for third year running with £400m losses

By Philip Aldrick Published: 9:10PM GMT 06 March 2010

The bank will inform pre-tax waste of about �400m, analysts believe, a noted impovement on the �1.36bn of waste in 2008. Since the Government bailed it out in Sep 2007, it has lost a sum of �2bn.

Northern Rock waste grow by some-more than �500m Creditors fright new waste on Northern Rock holds Northern Rock repossessions burst Rock halts down payment payments to progress increase and transparent state assist RAB Capital swings to loss as resources underneath supervision tumble $600m

Bad debts will strike a jot down of some-more than �1bn, reflecting the actuality that a entertain of the bank"s borrowers are in disastrous equity and complaint loans comment for roughly 5pc of the book.

At the begin of the year, Northern Rock was restructured in to a "good" bank with �19.4bn of deposits, �10bn of peculiarity mortgages, �10bn of income and 76 branches and as a "bad" bank with poisonous 125pc mortgages. The restructuring was written to capacitate the Government to sell the "good" bank to in isolation zone buyers.

About �1.4bn of taxpayer income has been put in to the "good" bank and an additional �1.6bn set in reserve for the "bad" bank. The Government would design to lift some-more than �2bn in a sale.

Northern Rock"s numbers will be flattered by a one-off �445m supervision rebate.