ROCK COULD EARN US £11BILLION

BAILED out bank Northern Rock’s period of public ownership should generate a profit of up to £11billion for the taxpayer over the next 10 to 15 years, the body responsible for the Government’s bank investments has said.

Just under £37billion was used in saving the two companies that now comprise the former Northern Rock, but over time UKFI expects the return of cash will be between £46 billion and £48 billion.

This includes the recent sale of Northern Rock to Virgin Money in a deal that could potentially value the business at £1billion, as well as repayments and the winding down of Northern Rock Asset Management, which houses a portfolio of debts and remains under Government ownership.