NATIONALISED lender Northern Rock is to be sold off by the end of the year as the government seeks to retrieve money pumped into the banking sector, it has been reported.

The government is reportedly preparing to split the bank in two in the second quarter to smooth the path for a sale, which could be fast-tracked. Advisers are already understood to be drawing up a sale plan and the Treasury has reportedly sounded out potential buyers including Virgin Money, Clydesdale Bank and Yorkshire Bank owner National Australia Bank and Abbey's Spanish parent Santander.