Northern Rock Plc, a byproduct of the original Northern Rock, posted an initial loss Tuesday and reported deposits have decreased by a tenth. New state owned Northern Rock Plc manages new mortgages and savings. Northern Rock bank was divided into 2 different institutions during the height of the credit crisis. These two independent companies are now Northern Rock Plc and Northern Rock Asset Management.

Northern Rock fell into trouble when executives failed to reveal the number of mortgages that were in arrears and in the process of repossession. They also were accused of unfair practices against those who had mortgage loans with their company.

The loss posted on Tuesday for H1, was 140 million pounds, due partly for associated costs of its spin off from the original Northern Rock.

The new Northern Rock Plc also had retail deposits fall, with savers pulling out almost 2 billion pounds from the bank. This was partly a result of the government’s halt to guaranteeing 100 per cent of Northern Rock deposits.

"I don’t think people question the viability of the bank any more, the drop in deposits just reflects the competition in the UK retail banking sector," said Seymour Pierce analyst Bruce Packard.

Northern Rock, the first major credit crisis casualty lender, was nationalized in February 2008.

The company has been broken up this year into two separate entities, the "good" asset division and the "bad" asset division.

The British government has plans to return the new Northern Rock Plc to the private sector, when the possibility of another recession is far behind them.

"We’ve got a good platform for growth. We’ve got a brand that’s resilient," said Gary Hoffman, chief executive of both Northern Rock Plc and Northern Rock Asset Management.

Northern Rock supplies home loans, savings options, and insurance to consumers.