Risk.net

Northern Rock counts £1.36bn cost of loan impairments

Northern Rock made a loss of £1.36 billion in 2008, but said repayment of its loan from the UK government was ahead of schedule.The UK mortgage lender's losses jumped from £168 million in 2007 to £1.36 billion in 2008, mainly due to impairment losses on its loans, which grew from £240 million in 2007 to £894 million in 2008."While this was always envisaged in the (business) plan, the reported loss for 2008 has been exacerbated further by the rapid deterioration in the external environment, w