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UK Asset Resolution

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UK Asset Resolution Limited
Company typeState-owned limited company
IndustryFinance
FoundedOctober 2010 (2010-10)
Headquarters
Bingley, West Yorkshire
,
United Kingdom
Key people
Richard Pym, Chairman
ProductsFinancial Services
Total assets£49.6bn (2015)[1]
OwnerHM Government
Number of employees
1,900 (2015)
ParentUK Financial Investments
SubsidiariesBradford & Bingley
NRAM plc
Websitewww.ukar.co.uk

UK Asset Resolution (UKAR) is a British financial services holding company with headquarters in the West Yorkshire town of Crossflatts (near Bradford & Bingley's former headquarters in Bingley).[2] It was established in October 2010 to hold the two run-off elements, Bradford & Bingley (including the Mortgage Express brand) and NRAM plc (previously known as Northern Rock Asset Management), of the two nationalised banks in the wake of the financial crisis of 2007 and 2008.

UKAR manages an asset book in run-off, with the combined entity having a total mortgage book of £49.6bn (as at 29 October 2015[1]), although not selling any new business. In 2011 UKAR repaid £2.15 billion to taxpayers and in 2012 paid a further £4 billion.[3][4]

In 2014 £2.7 billion of the mortgage book was agreed to be sold to Commercial First, a consortium led by JP Morgan.[5] This was followed by the sale of mortgages and loans held by NRAM to Cerberus Capital Management for £13 billion in November 2015.

History

The 'Northern Rock' buildings in Gosforth, Newcastle upon Tyne which housed some of UKAR's staff.

On 22 June 2012 Virgin Money, owners of the Northern Rock bank, acquired the remainder of the NRAM Gosforth site, and the following month UKAR sold £465 million of mortgages from the NRAM portfolio to Virgin.[6] UKAR left their Gosforth, Newcastle upon Tyne (Northern Rock / Regent Centre) offices in 2013, and moved those remaining staff to Doxford and Bingley.[7]

In August 2013, the bank said it has now returned £6.6 billion to the government. It owed £48.7 billion when it was created in October 2010.[8]

In 2015 UKFI announced that it would seek expressions of interest for the divestment of mortgage servicing capabilities of the NRAM business as well as the Granite securitisation vehicle. UKFI appointed Moelis & Company as advisers for the divestments.[9] On 13 November 2015, UKAR confirmed the sale of NRAM's Granite mortgage portfolio to Cerberus Capital Management for £13 billion.[10]

See also

References

  1. ^ a b "Fact Sheet" (PDF). UKAR. 29 October 2015. Retrieved 13 November 2015.
  2. ^ "UK Asset Resolution Company no. 07301961". Companies House. Retrieved 14 November 2013.
  3. ^ "UKAR Preliminary Results Announcement 2011". UK Asset Resolution Ltd. 2012-03-02. Retrieved 2012-05-07.
  4. ^ "Bradford & Bingley owner repays £4bn to taxpayers". BBC News. 2013-03-25. Retrieved 2013-04-06.
  5. ^ "UK 'zombie' bank sells 2.7 billion pounds of loans to JP Morgan group". Reuters. 14 October 2014. Retrieved 14 October 2014.
  6. ^ "Northern Rock sell-off nets extra £538m for taxpayers". BBC News. 2012-07-23. Retrieved 2012-07-23.
  7. ^ "UK Asset Resolution to close Newcastle office". BBC News. 2011-12-06. Retrieved 2011-12-06.
  8. ^ Clare Hutchison (6 August 2013). "UK 'bad bank' repays $2.9 billion to taxpayers in first half". Reuters.
  9. ^ "Osborne Says U.K. Plans Faster Sale of Lloyds Shares in 2015". Bloomberg. 18 March 2015. Retrieved 4 April 2015.
  10. ^ Ping Chan, Szu; Wallace, Tim (13 November 2015). "Government sells £13bn of former Northern Rock mortgages to US private equity firm". The Telegraph. Retrieved 13 November 2015.
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