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
Which? put in a 'super-complaint' after finding firms exaggerate discounts with dodgy multi-buys, shrinking products and baffling offers.
The Queen celebrates her 89th birthday today - but will she get to share it with her new great-grandchild?
Phil Rudd also pleaded guilty to possessing crystal meth and marijuana in a New Zealand court.