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, with