Northern Rock reveals £167 million loss and Applegarth's pay

Northern Rock has been forced to reveal details of its finances during the nationalisation crisis. It has shown that it made a loss of some £167.6 million in 2007 compared with a profit of £626.7 million in the previous year.

The recently nationalised bank said its provisional business plan had been approved by the Treasury, subject to state aid approval from the European Union.

Under the four-point plan, the group said it would aim to repay its debt to the Bank of England by 2010 and establish a funding strategy with retail deposits representing 50% of total funding by 2012.

The bank also confirmed former chief executive Adam Applegarth had received £760,000 on leaving the bank.