UK Asset Resolution Limited (UKAR) which incorporates Bradford & Bingley (‘B&B’) and NRAM has issued its results for the year ended 31 March 2017 (‘2016/17′). UKAR’s mission is to maximise value for the taxpayer, whilst serving our customers well and treating all our stakeholders fairly.
Highlights from the results:
- Balance Sheet reduced by a further £9.0bn bringing the total reduction to £81.5bn (70%) since the formation of UKAR in 2010.
- Reflecting the 31% reduction in the year’s average Balance Sheet size, underlying profit before tax reduced by 33% to £706.0m.
- Agreed the sale of two separate asset portfolios comprising performing buy to let loans for a total of £11.8bn. Overall, lending balances reduced by 45% in the year to £19.5bn.
- Whilst financial settlement took place in April 2017, after the Balance Sheet date, the sale has been recognised in the 2016/17 accounts. Reflecting the low margin of the loans, an accounting loss of £384.7m was incurred.
- Statutory profit before tax of £346.9m including the loss on loans sold.
- Net government loan repayments of £3.3bn, bringing total repayments to £23.7bn since UKAR was formed. 49% of the government loans have now been repaid.
- Successfully outsourced the servicing of our customer loans ensuring continuity of service for our customers.
- Mortgage accounts three or more months in arrears, including possessions, have reduced by 28% bringing the total reduction to 88% since formation.
Ian Hares, Chief Executive, said “I am pleased with the progress made during the year. In the first half, we completed the transfer of our mortgage servicing operations to Computershare, ensuring continuity of service for customers. We also repaid all outstanding secured funding on the B&B and NRAM Balance Sheets, enabling further asset sales, and in March we agreed the first phase of a programme to repay the FSCS loan extended to B&B. These actions are major steps towards realising our objective of reducing the Balance Sheet while continuing to maximise value for the taxpayer.”
