Northern Rock in £232m annual loss

Northern Rock, the retail bank formed from the ashes of the lender that almost collapsed in the financial crisis, said it is preparing to return to the private sector after posting a £232m annual loss.

State-owned Northern Rock , which manages new mortgages and savings, said the underlying loss for 2010, its first annual set of results, were in line with its expectations after a year of restructuring.

The UK government, keen to raise cash to cut the country's deficit, wants to return the Northern Rock Plc business to the private sector. It was nationalised three years ago after being hit by the first run on a British bank for over a century.