The chief executive of Northern Rock today stepped down two-and-a-half months early, in the latest twist in the saga unfolding at the UK lender, which also revealed it will take a £281m (€391m) impairment charge against its structured debt portfolio.

Adam Applegarth, who has faced criticism from parties including the powerful Treasury Select Committee for the problems that have engulfed Northern Rock and seen the lender turn to the Bank of England for billions of pounds in emergency funding since summer, was due to leave once Northern Rock completes its strategic review by February.