Nama made €89m profit in second quarter

Wed, Oct 17, 2012, 01:00

THE NATIONAL Asset Management Agency, the State loans agency, made a profit of €89 million in the second quarter of the year after taking a further impairment charge of €129 million during the three-month period.

This brought Nama’s net profit for the first half of the year to €222 million, according to its report for the second quarter.

Total impairment charges taken by the agency totalled €2.9 billion on loans of €74 billion acquired for €32 billion from five lenders. The charges were taken to cover property market declines since the loans were valued in late 2009.

Nama generated €8.1 billion in cash receipts from borrowers between December 2009, when it was set up, and June 2012. Of this, €5.2 billion was generated from asset disposals and €2.9 billion related to “non-disposal activity”.

The agency had approved working and development capital of €1.34 billion by the end of June 2012, of which €863 million had been drawn down at the half-year.

Loan balances, based on the value at which Nama acquired the loans from the banks, stood at €24.8 million at the end of June, after taking account of impairment charges and the disposal of assets.

The agency received cash of €909 million in the second quarter, down from €1.1 billion received in the first three months of the year. It had cash of €3 billion at the end of June, down from €4.6 billion three months earlier.

Nama had placed €850 million of cash as collateral with the National Treasury Management Agency at the end of June. No cash was placed as collateral with the NTMA three months earlier.

Nama said it had completed the final two debtor business plans.

The agency has reduced its liabilities by almost €3.6 billion, including €3.25 billion of the €7.5 billion of debt to be repaid by the end of next year, as directed under the EU-IMF bailout programme.

The quarterly report said 22 per cent of Nama’s loans were performing by number in June, up from 21 per cent in March, and 29 per cent by value, which is unchanged over the three months.