Business

Nama generates €319m in cash

Agency says it is on track for 13th consecutive year of profitability

The National Asset Management Agency generated €319 million in cash last year, and is on track to report its 13th consecutive year of profitability, it said. Photograph: Alan Betson

Ciara O'Brien
Thu Jan 4 2024 - 13:16

The National Asset Management Agency (Nama) generated €319 million in cash last year, and is on track to report its 13th consecutive year of profitability, it said.

That brings the total generated by the State-owned bad bank’s operations to €47.7 billion since it was established. For the period January to June 2023, it reported a €26 million profit, and will report a profit for the full year.

The figures were published as part of a review of its progress during 2023.

Last month the agency transferred an additional €350 million of its surplus to the exchequer, bringing the total contributed by the State-owned bad bank to date to €4.25 billion.

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Over its lifetime, the agency was expected to transfer €4.5 billion of surplus back to the exchequer, a figure that has now increased to €4.9 billion. It is set to wind up in the next couple of years, with profits declining as its loan portfolio shrinks. Nama paid €32 billion to acquire the loans that led to its existence.

“Despite challenging market conditions, Nama continues to generate cash from a much-reduced portfolio, with over €319 million achieved in 2023. During 2023, Nama took steps to prepare for the wind-down of its operations, yet we continue to add value for the State and generate profits from our work,” said Brendan McDonagh, Nama chief executive.

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“We have just paid a further €350 million cash from our surplus to the exchequer, and we are proud to report a €26 million profit for the first half of 2023. Nama has continued to make profits in H2 2023 and we will report a 13th consecutive full year of profit by mid-2024, post completion of the year-end audit.”

The agency delivered 420 houses throughout 2023, with a further 440 homes under construction or having funding approved on Nama-secured sites for delivery in 2024 and 2025. Between 2014 and the end of 2023, about 34,000 homes have been funded and facilitated by the agency, with 14,000 directly funded.

Almost 3,000 homes for social housing have been provided to local authorities and approved housing bodies, excluding the units provided under Part V arrangements on Nama-funded residential developments.

There is capacity for a further 15,000 residential units on sites in Nama’s secured portfolio, but appropriate zoning and planning permission needs to be awarded, and the necessary infrastructure put in place.

“Nama’s contribution to the State is ongoing with significant progress made in 2023,” said chairman Aidan Williams. “Nama’s objective for 2024-2025 is to complete the final phase of its work, while continuing to deliver the largest return possible to the taxpayer; this includes focused asset management of residential sites in order to maximise the potential for housing delivery post-2025.”

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist

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