Bradford & Bingley, the nationalized lender announced its annual financial results reporting a loss of £196 million. The major portion of loss is attributed to provisions for bad debt and fraud.

However, the lender performed comparatively well as compared to the year 2008 when it posted a loss of £278 million. Provisions for fraud and professional negligence accounted for £388.4 million. A huge amount was spent on hiring property professionals at a time when property market was booming.

B&B Managing Director Richard Banks said that the company is moving in the right direction for achieving its business plans despite having arrears of 5.54 per cent in the loan book.

B&B expressed satisfaction over better than expected performance of declining trend in arrears. There is a bonus tax liability of £37,000 after eight employees at B&B according to the annual report. Its eight employees and one director made a total of £274,000 bonus for the year 2009.

The lender had tried to be a full-fledged bank in 2009 but the breakout of global financial crisis ended its dreams. The company is a result of merger of Bradford Equitable Building Society and the Bingley Building Society.