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NAMA posts €305m operating profit for 2010 - but loses €1.18bn overall

The bad bank’s annual report gives some insight into how the country’s indebted developers are performing.

Treasury Buildings, where NAMA's headquarters are located.
Treasury Buildings, where NAMA's headquarters are located.
Image: James Horan/Photocall ireland

THE NATIONAL ASSET MANAGEMENT AGENCY has posted an operating profit of €305 million for 2010 – but has recorded an overall loss of almost €1.2 billion for the same year.

Publishing its 2010 annual report this morning, the State’s bad bank indicated that it had incurred significant losses after having to write down the value of its loans by just under €1.5bn for the calendar year of 2010.

The bank warned, however, that its impairment provisions did not necessarily mean that it would ever incur those losses or that they would ever materialise.

It had earned revenues of €525m in interest on its loans to debtors, leading to a net interest income of €346m. So far NAMA has acquired €72.3bn worth of loans, paying €30.5bn to take them off the books of Ireland’s banks.

Of its 850 individual debtors, three owed NAMA over €2bn, while a further nine had outstanding debts of over €1bn. 135 debtors in total had outstanding debts of over €100m.

So far, the bad bank said it had overseen the sale of €3.9bn worth of property assets.

41 per cent of the loans that NAMA has on its books relate to property or land that is currently under development, it said.

Chief executive Brendan McDonagh said NAMA had made “enormous progress on a wide range of fronts over the last 15 months, and we’re ahead of schedule in respect of many areas.

“Our expectation now is that the pace of activity will step up again in the months ahead as we move through the implementation phase of our work.”

Read NAMA’s 2010 annual report in full (PDF) >

About the author:

Gavan Reilly

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