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Friday 1 December 2023 Dublin: 1°C
Laura Hutton/Photocall Ireland Chairman of the National Asset Management Agency (NAMA), Frank Daly and CEO Brendan McDonagh
Annual Report

NAMA makes €228 million profit in 2012

The company published the reports for its third year in operation today.

THE PROFIT MADE by the National Management Assets Agency (NAMA) amounted to €228 million in 2012 – slightly down from the €241 reported in 2011.

It announced today that it will redeem a further €1.5 billion of NAMA Senior Bonds soon, which will bring the total redeemed to date to €6.25 billion. It will also mean that NAMA will have repaid 21 per cent of its total senior debt liability on behalf of the taxpayer and remains well on course to achieving its target of repaying a quarter of the debt (€7.5 billion) by the end of 2013.

Annual report

According to today’s annual report and financial statements for 2012, which was NAMA’s third year of operation:

  • Operating profit before impairment in 2012 was €826m
  • The impairment charge for 2012 was €518m, a reduction of 60 per cent on the impairment provision taken in 2011.
  • Cash generated in 2012 was €4.5 billion, which includes the proceeds of asset disposals by debtors and receivers and also non-disposal receipts, mainly rental income.
  • NAMA has generated €12 billion in cash to date, including €7.9 billion from asset disposals. €1.4 billion of this has been generated in the first five months of 2013.
  • Administration costs fell by 7 per cent in 2012. NAMA’s cost/income ratio is 3 per cent

Brendan McDonagh, chief executive of NAMA, said that 2012 was “a year of further substantial progress”.

We have generated more than €12 billion in cash from April 2010 to end May 2013 and I wish to pay particular tribute to our staff, board and committees for all their hard work in difficult circumstances in recovering that huge amount to date for the taxpayer.
We are using this cash to pay down NAMA’s debt on schedule and, where appropriate, to provide funding to protect and enhance the value of our assets, so we can maximise the amount that we ultimately recover for the taxpayer.

Frank Daly, chairman, said that NAMA is “a story of taking responsibility, resilience and, increasingly, of reinvigoration”.

He said the announcement that it is redeeming a further €1.5 billion in Senior Bonds “will further reinforce that positive view of Ireland”.

So also will the estimated €4 billion in capital advances and vendor financing that NAMA will provide over the coming years as a direct contribution to reinvigorating our economy. With these investments, and through our work with the IDA and other agencies, we are doing something very important right now for our country – facilitating transactions, generating activity and supporting jobs.

He added that while financial results are very important and the results announced today are very strong, “we remain acutely conscious of the scope we have to make a broader contribution where we can”.

Significant preparatory work is underway in NAMA to deal with potential acquisition of IBRC loan book of par debt €26 billion.

Read: NAMA funding University of Ulster study>

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