View more on these topics

Good Rock loses £232m but pays out £13m bonuses

Northern Rock’s “good bank”, Northern Rock plc, made a loss of £232.4m in its first year of trading since the business was split in two in January 2010.

Despite the loss, the bank paid a total bonus pot of £13.1m to its staff in 2010, which it says reflects the fact its objectives have been achieved for the year.

These include the completion of the legal and capital restructure, early release from Government guarantees and separation from Northern Rock Asset Management.

The biggest bonus, totalling £185,000, went to chief financial officer Jim McConville. Chairman Ron Sandler was ineligible for a bonus. The £13.1m bonus pot was shared between 4,000 staff, averaging £3,250 per staff member.

The bank says the loss was in line with expectations and includes significant costs associated with separating from NRAM. The loss for the second half was £92.4m, compared with a loss of £140m in the first half.

Gross residential lending was £4.2bn in 2010 and net residential lending £1.9bn.

Chairman Ron Sandler says: “It remains a difficult trading environment for a small bank dependent on retail funding, with a combination of low interest rates, subdued mortgage market demand and high competition for retail savings.”

Mortgage broker Emba group sales and marketing dir- ector Mike Fitzgerald says: “The people at the coalface were not responsible for the original problem, so they should be rewarded. I feel the guys getting the bigger amounts should probably say we are not taking the bonus but our staff deserve it. It is a shame that did not happen.”



Forecast tool uses smiley face icons to explain risk

Financial forecasting tool provider eValue FE is testing a visual tool that aims to help advisers explain investment risk to clients. The tool shows a fund’s volatility based on the likely level of return if an investor measured performance 100 times. Using smiley face icons, the tool will show the number of likely instances the […]


‘Passporting will knock holes in RDR’

Labour MP George Mudie has questioned whether the FSA will be able to impose RDR rules on certain adviser passporting into the UK. Responding to questioning from Mudie during the TSC’s evidence session on the RDR last week, FSA director of conduct policy Sheila Nicoll said the regulator will apply the RDR rules to anyone […]

UBS investigated over alleged Libor manipulation

Swiss bank UBS is being investigated by US regulators for allegedly manipulating the interbank lending rate Libor, the BBC reports. UBS says is has received subpoenas from the Securities Exchange Commission, Commodity Futures Trading Commission and Departments of Justice. These refer to submissions the bank made to the British Bankers’ Association, which sets the Libor […]

0.25% Annual charge for first four Caerus funds

Caerus has launched its first four low-cost retail investment funds under its portfolio management arm. The passive portfolio dynamically rebalanced portfolio funds will have a 0.25 per cent annual charge and will look to access asset classes primarily through ETFs. The four funds will be managed by Evercore Pan Asset. Caerus chief executive Keith Carby […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm