Newly-nationalised UK bank Northern Rock made a £168.7m loss last year as a result of the global credit crisis.

The firm endured a torrid 2007 following the worldwide credit crunch caused by the problems in the US sub-prime market.

Northern Rock, which made a profit of £626.7m in 2006, was nationalised on February 21 after it was forced to seek a £24bn Bank of England loan.

The Newcastle-based bank says it will repay the state loan in full by the end of 2010.

Prime Minister Gordon Brown's decision to nationalise the bank was heavily criticised by the Conservatives and many in the financial sector.

The company also announced that it will pay Adam Applegarth, former chief executive, £785,000 as part of his severance agreement, a move which is likely to anger many UK taxpayers.

Looking ahead, Northern Rock said it would remain a loss-making organisation in 2008.

Ron Sandler, Northern Rock executive chairman, said: "The 2007 results reflect the impact of deteriorating market conditions and the liquidity and funding constraints experienced in the second half of the year by the company.

"We have developed a business plan that we believe will help drive the bank back towards profitability, and ensure it has a sustainable future and remains an important employer in the North East."

Earlier this month, the firm announced it will cut around 2,000 jobs by 2011.

The article Troubled Northern Rock posts £168.7m loss originally appeared on 999 Today