The Newcastle-based lender will still be loss-making this year, but said the recent trend - helped by record low interest rates and improved debt management - had been "encouraging".
Nationalised Northern Rock has said it expects a "significant improvement" in second-half trading thanks to a slow down in mortgage arrears growth.
The Newcastle-based lender will still be loss-making this year, but said the recent trend - helped by record low interest rates and improved debt management - had been "encouraging".