However, he admitted that the current economic outlook could impact more heavily on customers, such as those who took out unsecured Northern Rock mortgages.
Banks said: “With higher taxes, higher inflation and unemployment particularly increasing in the public sector, all of those are going to impact disposable income. When you have customers, particularly NRAM customers who took unsecured lending, they are going to be vulnerable.
“It’s going to be tougher and potentially that might impact on our profits. Times are more gloomy than they were 12 months ago.”
UKAR, which has a combined staff of 2,400, employs around 1,000 people purely to work on debt management. It recently recruited 50 staff at Doxford Park to advise customers on their finances.
NRAM’s home repossessions fell to 1,984 from 2,061 but at the end of December, but 25,419 customers had been in arrears for more than three months. The business managed to repay £1.1bn of its Government loans during the year.
UKAR directors were paid £1.2m in 2010, compared with a total of £4.8m for NRAM and B&B directors in 2009.
Northern Rock plc, which is operating as a normal bank, made a £232.4m pre-tax loss for 2010 and announced earlier in the week that it is axing 680 more jobs. NRAM currently has £21.7bn in State loans and B&B has £18bn and these will be repaid as customers repay their mortgages.
Banks also praised staff, who he said are dealing with distraught customers every day.
90% of our customers pay their mortgages regularly on a monthly basis with no problems