Britain's sixth biggest mortgage provider, the "bad bank" running down the loans of collapsed lender Northern Rock, said it repaid £2.1 billion to the government last year after its annual profits more than doubled.

UK Asset Resolution (UKAR), which is running down the bad loans that were held by Northern Rock and other failed lender Bradford & Bingley, said today its underlying 2011 profit was £1.09 billion, up from £444 million in 2010, after a fall in losses on bad debts.

Britain should make a profit of between £9 billion and £11 billion on its bailout of Northern Rock, but may have to wait another 15 years to get all the cash, the body that oversees Britain's bank stakes said earlier this week.

Reuters