British bank Northern Rock's losses deepenNationalised British bank Northern Rock said on Tuesday that losses deepened in the first six months of the year, as more customers struggled to pay off their mortgages and bad debts tripled. Pre-tax losses surged by 24 percent to 724.2 million pounds (853 million euros, 1.227 billion dollars) in the six months to June 30, compared with a loss of 585.4 million pounds in the same part of last year. Bad debts, or loans which are written off, rocketed to 602.2 million pounds in the reporting period, from just 191.6 million pounds last time around. The bank added that the share of home loans with more than three months in arrears Adv. 1. in arrears - in debt; "he fell behind with his mortgage payments"; "a month behind in the rent"; "a company that has been run behindhand for years"; "in arrears with their utility bills" behindhand, behind increased to 3.92 percent by the end of June, compared with 3.67 percent in March. "The current environment continues to be challenging," the bank's chief executive Gary Hoffman said on Tuesday. "However, against this backdrop Backdrop may refer to:
He added: "Northern Rock expects the loan loss impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge in the second half of 2009 to be broadly similar to the first half of the year and then to start reducing in 2010. "The impairment charge going forward will be influenced by changes in house prices and the levels of unemployment." Northern Rock, based in the northeastern English city of Newcastle For the council of the English city, see . Newcastle City Council is a Local Government Area in the Hunter Region of New South Wales, Australia. Demographics According to the Australian Bureau Statistics [2], there: , was taken into public ownership in February 2008 after it ran into severe funding problems because of the global credit crunch Credit Crunch An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. . The bank had vowed earlier this year to boost lending to struggling homebuyers over the next two years in recession-hit Britain. In February, the company said it would lend an extra 5.0 billion pounds in home loans this year and a further 9.0 billion pounds in 2010. But the group said Tuesday that it was awaiting additional government funding and a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). which has yet to win European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. approval. As a result, new mortgage lending this year was expected to be closer to 4.0 billion pounds, it added. 
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