Northern Rock to be profitable in 2012

Nationalised lender Northern Rock has seen losses narrow in the first six months of the year ahead of an expected return to profit in 2012.

Its pre-tax loss of £68.5m in the six months to 30 June was an improvement on the same period last year, when the Rock lost £142.6m. Ron Sandler, executive chairman of Northern Rock, said the bank was generating momentum and expected to return to profitability next year. "The company continued to be loss-making, as expected, but losses are significantly reduced and we are generating momentum," he said. "The company expects to begin trading profitably during the second half of 2012." However Sandler added that the trading environment remains challenging for a small, predominantly...