Taxpayers Get 4 Billion-Pound Repayment From Nationalized Banks

U.K. Asset Resolution Ltd., the government-owned bank, repaid 4 billion pounds ($6.1 billion) to taxpayers in 2012 and posted a full-year profit.

Pretax profit at the firm, which manages the assets of nationalized banks Bradford & Bingley Plc and Northern Rock (Asset Management) Plc, fell to 690.5 million pounds in 2012 from 1.38 billion pounds a year earlier, the firm said in statement today. The number of customers with mortgages more than three months in arrears fell 23 percent to 25,581 last year.

“We still have a long way to go, but it remains our expectation and determination to repay that debt in full,” Chairman Richard Pym said in the statement.

U.K. Asset Resolution was formed in October 2010, taking mortgages from Bradford & Bingley, which is closed to new customers, and some from nationalized lender Northern Rock Plc. The banks were taken over by the taxpayer in 2008 and now operate separately, under a single board and management structure. Northern Rock Plc operates as a separate company.