Profit for Bradford & Bingley

BRADFORD & Bingley, the nationalised lender, has posted an annual profit after the number of its accounts in arrears fell by almost a third.

The operation left behind by nationalisation and the sale of its branches and savings arm reported pre-tax profits of £1.08bn for the year to December 31 compared to a £196m loss in 2009.

Bradford & Bingley said the figure also reflected gains on purchases of subordinated debt of £786m.
Underlying profit before tax was £200.1m, compared with a £166.5m loss in 2009.

Total costs were reduced by 8% to £126.4m, down from £137.1m the previous year and the number of accounts more than three months in arrears including possessions at the end of 2010 had fallen by 32% to 13,096.

Both Bradford & Bingley, which services mainly mortgage and insurance policy customers, and Northern Rock, which also posted an annual profit today, sit under the UK Asset Resolution (UKAR) holding company.

They are operated as separate companies.

Richard Banks, UKAR’s chief executive, said: “We achieved all our business objectives in 2010.  B&B and NRAM moved from loss to profit and we continue to focus on managing customer arrears. 

“We will continue to help customers alleviate short term issues and also work with customers with more fundamental problems to enable them to exit the housing market in an orderly way.

“The combined business is now better placed to move forward in 2011. However, the uncertain economic environment, increases in taxes, inflation and unemployment will, inevitably, impact our customers and our financial results.”

Bradford & Bingley, which was nationalised in 2008, is in the process of being wound up .

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