Northern Rock reports reduced losses

British nationalised lender Northern Rock said it expects to make a profit during next year after reporting reduced half-year losses today.

The bank also confirmed it had received indicative offers from interested parties since Chancellor George Osborne announced in June his decision to put Northern Rock up for sale.

The lender reported underlying losses of £78.8 million in the six months to June, compared with losses of £140 million the previous year.

Northern Rock was nationalised in February 2008 after it collapsed amid the credit crisis, sparking the first run on a UK bank for 150 years.