UKAR pays back £1.9bn to taxpayers

6 August 2013

UK Asset Resolution (UKAR) has repaid £1.9 billion ($2.9 billion) to taxpayers in the first half of 2013.

The state-owned company which is winding down the loans of building societies Northern Rock's asset management and Bradford & Bingley, said the amount included £1.3 billion of loan repayments

However, the firm did not make any further provision for PPI mis-selling.

Earnings also saw a rise as the number of customers who had fallen behind on their mortgage payments dropped.

Underlying pre-tax profit for the first half of 2013 increased from £481.4 million in June 2012 to £528.8 million this year.

UKAR noted the main driver for this was lower arrears and a reduced loan impairment charge.

Chief executive Richard Banks said it was "pleasing to see the continued reduction in arrears due to the dedication and professionalism of colleagues proactively working with our customers to help them achieve the right outcomes".

By Claire Archer

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