Northern Rock’s results for the past six months have painted a mixed picture.

Northern Rock Asset Management (NRAM), the part of the old Northern Rock business which holds most of the mortgages and loans, has posted a pre-tax profit of £349.7 million, compared with a loss of £724.2 million in the same period last year.

However, Northern Rock PLC, which consists of savers’ deposits, made a pre-tax loss of £142.6 million. It is this business which the government is looking to sell in the short to medium term.

Residential mortgage accounts held by NRAM which were more than three months in arrears at 30 June 2010 were 5.64% compared with 5.32% at the start of January 2010.

Gary Hoffman, Northern Rock (Asset Management) plc chief executive, said: “The company is continuing to show improving underlying profitability and 90% of the mortgage book remains fully performing.””