Times Business
Right offer could lead to Rock sale
1:26pm Friday 6th August 2010
NORTHERN Rock’s “good”
bank could be sold almost immediately if the right offer came along, despite not officially being for sale, its chief executive admitted.
As the company released its first results since its split in two on January 1, chief executive Gary Hoffman said Northern Rock plc was moving in the right direction for a sale to the private sector, although it was stressed this would happen “only when conditions are right to do so, in the best interests of taxpayers”.
When pressed on the subject, Mr Hoffman admitted that if someone made a realistic offer, the bank would have to take it seriously.
He said: “What I am clear about is I have not been set a deadline and no sale process or timetable. Of course, if someone wanted to make an offer, like they can for any company, then people would have to listen to that.”
Half-year figures showed the bank’s other half, Northern Rock Asset Management (NRAM) reported underlying pre-tax profits of £167.3m in the six months to June 30, compared with a loss of £243.9m a year earlier.
Mr Hoffman said the results reflected a “significant turnaround”
from the past two years and also defended NRAM, to which the bank’s more toxic loans were transferred in January, from the perception it is a “bad bank”.
NRAM, which is soon to be merged with the nationalised arm of Bradford & Bingley, also repaid £300m of its Government loan during the six months and despite still owing £22.5bn, Mr Hoffman was confident the full amount would be paid back.
Northern Rock plc reported an underlying interim loss of £140m owing to rising costs, although Mr Hoffman said it was in line with expectations.