UK Asset Resolution (UKAR), commonly referred as ‘bad bank’, aims to sell all remaining loans and assets by 2021, subject to ‘supportive market conditions’.
UKAR, which incorporates Bradford & Bingley and NRAM, was constituted in 2010 to manage around £115.8bn of assets from these two lenders which collapsed during the financial crisis of the last decade.
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It is responsible to dispose these investments in NRAM and B&B in an orderly way.
In its annual results, UKAR stated that currently balance sheet has reduced by £96bn, including £41.9bn of customer loan repayments and £27.2bn of asset sales, since 2010.
UKAR chief executive Ian Hares 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.”
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By GlobalDataIn April this year, the company divested the Bradford & Bingley mortgage assets to an investor group led by Barclays Bank.
The transaction was settled in May reducing the balance sheet by an additional £5bn.
The forming of UKAR was part of the UK government’s initiative to stabilise the banking sector of the country during the economic slowdown.
