U.K. Nationalized Banks Paid Taxpayer 6.2 Billion Pounds

UK Asset Resolution Ltd., which owns Britain’s fully nationalized banks, paid the government 6.2 billion pounds ($10.4 billion) in debt repayments, interest, fees and taxes since the start of 2013.

The sum includes 5.1 billion pounds of its government loan, UKAR said in a statement today. Pretax profit, excluding swings in the value of the lender’s own debt, was 1.52 billion pounds for the 15 months to March 31, the company said, without providing a comparable year-earlier figure.

“It’s been a very good performance,” Chief Executive Officer Richard Banks said in a telephone interview today. “Ultimately, it’s a good thing for the taxpayer.”

UKAR, formed out of collapsed lenders Bradford & Bingley Plc and Northern Rock Plc in 2010 after they were taken over by the state, has repaid 10.4 billion pounds of government funding in total, reducing its outstanding taxpayer debt to 38.3 billion pounds. It plans to run off or sell the majority of its customer loans.

“There are much more opportunities to sell good assets at full valuations,” Banks said. “We get a lot of interest from private equity and other financial institutions.”

UKAR sold some unsecured personal loans for 400 million pounds in July to OneSavings Bank Plc, the British lender that announced an initial public offering last month, and Marlin Financial Group Ltd.

UKAR changed its accounting year-end to March 31, resulting in the 15-month “transitional reporting” figure, it said.

Pretax profit rose to 1.26 billion pounds in the 12 months to March 31, up 185.5 million pounds from the year earlier period, as bad loans receded and house prices rose, the company said.

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