Top Stories
Top Stories
Wires

BRIEF-UKAR Completes Repayment Of -ú48.7 Bln Government Loans

June 5 (Reuters) -

* UKAR COMPLETES REPAYMENT OF £48.7BN GOVERNMENT LOANS

* UK ASSET RESOLUTION LIMITED - AT YEAR END THE NUMBER OF CUSTOMERS FELL BY 96,000 TO 35,000

* UKAR - BALANCE SHEET REDUCTION OF £8.4BN TO £11.4BN FOLLOWING THE SALE OF FOUR ASSET PORTFOLIOS

* UKAR- AT YEAR END LENDING BALANCES DOWN TO £5.5BN AND MORE THAN 92% OF THESE ARE LOANS PERFORMING WELL

* UKAR - IN LINE WITH REDUCING MORTGAGE BALANCES, FY UNDERLYING PROFIT BEFORE TAX DECREASED BY 42% TO £340.1M

* UKAR - FY STATUTORY PROFIT WAS £340.3M (2017/18: £583.2M) INCLUDING A £452.0M PROFIT ON THE SALE OF CUSTOMER LOANS

* UKAR SAYS "WORK IS ONGOING TO RESOLVE THE INHERENT COMPLEXITIES WITHIN COMPANIES, WHICH HAVE BUILT UP OVER MANY YEARS, AHEAD OF ANY POTENTIAL SALE"

* UKAR SAYS ADMINISTRATIVE EXPENSES FOR YEAR WERE 12.7% LOWER THAN 2017/18 AT £129.5M (2017/18: £148.4M)

* UKAR - MORTGAGE ACCOUNTS UNDER MANAGEMENT THAT WERE 3 OR MORE MONTHS IN ARREARS REDUCED BY 14% FROM 3,582 AT MARCH 2018 TO 3,085 AT 31 MARCH

* UKAR - REDUCTION IN MORTGAGE ACCOUNTS IS DIRECT CONSEQUENCE OF PROACTIVE ARREARS MANAGEMENT COUPLED WITH CONTINUED LOW INTEREST RATE ENVIRONMENT

* UKAR - IN LIGHT OF PROGRESS MADE OVER LAST FEW YEARS AND IF INTEREST RATES RISE, EXPECT RATE OF DECLINE IN ARREARS MAY SLOW IN THE YEAR AHEAD

* UKAR - FOCUSSED ON THE DISPOSAL OF THE REMAINING GOVERNMENT INVESTMENTS IN NRAM AND B&B

* UKAR - UKAR LENT £0.4BN TO B&B, WHICH WAS USED TO REPAY THE OUTSTANDING B&B STATUTORY DEBT IN FULL ON 2 MAY 2019

* UKAR - FOLLOWING RECEIPT OF £4.5BN OWED IN RESPECT OF LOANS SOLD, ON 24 APRIL 2019, THE OUTSTANDING £1.5BN NRAM GOVERNMENT LOAN WAS REPAID

* UKAR - REFLECTING HEIGHTENED AWARENESS OF THE AUGUST 2019 PPI DEADLINE, PAYMENTS DURING THE PERIOD HAVE BEEN HIGHER THAN PREVIOUSLY ASSUMED

* UKAR - PPI PROVISIONS HAVE BEEN INCREASED BY £64.0M

* UKAR - PROPOSALS TO TRANSFER NRAM, B&B DEFINED BENEFIT PENSION SCHEMES HAVE BEEN AGREED WITH TRUSTEES AND ARE IN THE PROCESS OF BEING IMPLEMENTED Source text for Eikon: Further company coverage: 1/8 3/8