Taxpayer-owned Northern Rock shows profit at half year mark

The section of Northern Rock that deals with the toxic mortgages and loans that led to its nationalisation in 2008 has shown a profit. The so-called "bad bank" department, known as Northern Rock Asset Management, reported a pre-tax profit of £349.7 million, according to its half year results. Low interest rates have meant that 90 per cent of borrowers have been able to meet their mortgage repayments, benefiting the financially marred institution. The "good bank" section, which controls the deposits of savers made a loss of £142.6 million.