Northern Rock Asset Management (NRAM), the so-called “bad bank” is part of the old Northern Rock business, has reported a return to profitability.

NRAM holds most of the rescued old bank mortgages and unsecured loans. The profit before tax amounted to £ 349.7m for the first six months of the year, compared with a loss of £ 724.2m in the same period last year.

However, making Northern Rock PLC, the “good bank” holding the deposits and new loans, a loss before tax of £ 142.6m. This is the first set of results, since Northern Rock was divided into two parts. Since 1 January savers have money and some existing mortgages from Northern Rock PLC, which was spun off from the old bank, has since been renamed NRAM instead.