Big losses, but the company says it is making progress. Northern Rock’s loss is due to “teething” problems and some analysts beleive that next year it will turn this loss into a profit of around £230 million.
- £60m loss from administration charges from the restructure
- Large losses from interest payments
Northern Rock has started to lend again and is considering re-entering the mortgage sector again.
It has reduced its mortgage lending from £100m to around £12m so is now managing its lending much better.