Latest figures from UK Asset Resolution (UKAR) has announced it has shrunk its balance sheet by 83%, or £96 billion, so far and repaid 79% of taxpayer cash. UKAR has said it is aiming to complete the wind down of mortgage books within three years.
Highlights from latest figures include:
- Balance Sheet reduced by a further £14.5bn bringing the total reduction to £96.0bn (83%) since the formation of UKAR in 2010.
- Government loan repayments of £14.7bn, including £11.0bn of the Financial Services Compensation Scheme (‘FSCS’) debt, bringing total repayments to £38.4bn since UKAR was formed. 79% of the government loans have now been repaid.
- In April 2018, after the financial year end, announced the sale of B&B mortgage assets to an investor group led by Barclays Bank. Financial settlement occurred in May 2018, enabling the repayment of the remaining FSCS loan and reducing the Balance Sheet by a further £5.0bn.
- Reflecting reducing mortgage balances, underlying profit before tax decreased by 17% to £583.9m. Statutory profit before tax in the period was £583.2m.
- Mortgage accounts three or more months in arrears, including possessions, have reduced by 22% bringing the total reduction to 91% since formation.
A UKAR spokesman said “As always, we will need to satisfy ourselves, UK Government Investments and HM Treasury that whatever option we choose represents value for money for the taxpayer but, subject to the continuation of supportive market conditions, we believe that it is probable that the process can be completed by 2021.”
Ian Hares, Chief Executive of UKAR said “I am pleased that we have continued to make good progress in achieving our objective, with high levels of service delivered for our customers and an 83% reduction in our balance sheet since formation in 2010. Following the financial year end, we agreed the sale of B&B assets which resulted in the repayment of the remaining FSCS loan to B&B and reduced our Balance Sheet by a further £5.0bn.”