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Northern Rock returns to profit |
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Northern Rock was nationalised in February 2008. Northern Rock Asset Management (NRAM), the so-called "bad bank" part of the old Northern Rock business, has reported a return to profit. NRAM holds most of the bank's old mortgages and unsecured loans. Pre-tax profit came in at £349.7m for the first six months of the year, compared with a loss of £724.2m in the same period last year.
However, Northern Rock PLC, the "good bank" holding savers' deposits and new loans, made a pre-tax loss of £142.6m. This is the first set of results since Northern Rock was split into two. Since 1 January, savers' money has been held by Northern Rock PLC, which was spun off from the old bank, now renamed NRAM.
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