Bradford & Bingley back in profit

Bradford & Bingley returned to profit in 2010 according to the state-owned firm which manages the bank.

UK Asset Resolution said Bradford & Bingley made a statutory pre-tax profit of £1.08bn in 2010, compared with a loss of £196m in 2009.

Northern Rock Asset Management – the so-called “bad bank” part of Northern Rock – also made a profit.

NRAM reported a profit of £400.5m in 2010, compared with a loss of £257.5m in 2009.

UKAR’s role is to run Northern Rock and Bradford & Bingley for the benefit of taxpayers.

Northern Rock was the first institution to be bailed out because of the financial crisis. In 2010 it was split into so-called “good” and “bad” banks.

The “good” bank, Northern Rock PLC, holds savers’ deposits and new mortgages, while the “bad” bank, Northern Rock Asset Management, holds the rescued bank’s old mortgages and unsecured loans.

“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,” said UKAR chief executive Richard Banks in a statement.

“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.”