ROCK COULD EARN US £11BIL­LION

Midweek Sport - - NEWS -

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.

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