UK's failed banks make £1bn profit

The UK's failed lenders, Northern Rock and Bradford & Bingley, today reported total profit for 2011 had surged 145% to almost £1.1bn.

UK Asset Resolution (UKAR), the amalgamation of both tax-payer owned banks, reported profits had climbed from £444.1m in 2010 to £1.089bn in its first full-year since the formation of the entity. UKAR's aim is to maximise value for the taxpayer by combining business infrastructure across the two banks in an effort to cut costs and boost returns. As well as making a profit of more than £1bn - compared to losses at the two semi-state-owned banks Lloyds and RBS - UKAR also repaid £2bn of Northern Rock Asset Management's loan from the government. A total of £3.1bn has now been repaid by t...