THE new boss of UK Asset Resolution, the state-owned bank behind failed lenders Bradford & Bingley and Northern Rock, reckons its job will be done by the early 2020s.

Ian Hares, who succeeded Richard Banks as chief executive, made the prediction as Crossflatts-based UKAR issued its half year results to September 30.

During the period UKAR outsourced the servicing of customer loans to Computershare, involving the transfer of around 1,700 staff who remain at Crossflatts alongside a core UKAR team of about 200.

Borrowers continue to deal with the Bradford & Bingley or Northern Rock brands.

UKAR also completed the final stage of the sale of around £13 billion of assets which saw 113,000 customer loans move to the Landmark Mortgages or Whistletree brands.

It also repaid the outstanding liabilities under the Aire Valley securitisation programme, a major step in the simplification of its balance sheet and launched the first stage of asset sales that could ultimately enable the phased repayment of the Financial Services Compensation Scheme loan.

UKAR’s balance sheet reduced by a further £6.4 billion, bringing the total reduction to £78.9 billion or 68 per cent, since its formation in 2010.

It repaid the Government £1.1 billion, bringing total repayments to £21.4 billion since 2010, meaning 44 per cent of government loans have been repaid.

Underlying pre-tax profits fell by 34 per cent to £401.5 million, reflecting reducing mortgage balances,

Mortgage arrears or three or more months fell by 12 per cent, bringing the total reduction to 86 per cent since 2010.

Ian Hares said: “We are now working on an asset sales programme that could ultimately lead to the phased repayment of the FSCS loan extended to Bradford & Bingley. This will be a significant step in the successful delivery of our strategic objectives.”

He estimated UKAR’s operations would continue until the mid -2020s at the current rate of progress.