Profits have risen at UK Asset Resolution, the company set up by the Treasury to take on the unwanted mortgage book from Northern Rock and Bradford & Bingley.
ITV News Business Editor Joel Hills is following developments.
Bad bank doing rather well. UKAR (N Rock + B&B's unwanted mortgage book) posts profit of £1,259m for year to 31 March 2014, up £186m.
The total number of NR and B&B mortgage accounts three or more months in arrears fell 39% to 15,483 in last 12 months.
93% of UKAR's 529,000 mortgage accounts up-to-date with payments. Thanks to "more positive housing market and improving economic outlook".
More top news
Islamic State militants have released a video which shows British hostage John Cantlie talking to camera, appearing to read from a script.
Nine women have been found guilty of promoting a £21 million get-rich-quick pyramid scheme. But how do you spot a pyramid scam?
Hollywood heartthrob George Clooney will be seen planting a kiss on Dame Maggie Smith during his guest appearance on Downton Abbey.