Nama made profit of €228 million in 2012

Agency is on target to pay down €7.5 billion in senior debt by end of 2013

The National Asset Management Agency (Nama) made a profit after impairments, tax and dividends of €228 million in 2012. This compares with a surplus of €241 million last year.

At the launch of its annual report today, Nama said it was on course to pay down €7.5 billion in senior debt by the end of 2013, as per its original target.

This would represent one-quarter of the funding Nama raised to purchase problem loans from five Irish banks three years ago.

The agency has generated €12 billion in cash to date, including €7.9 billion from asset disposals. In the first five months of this year, it has generated €1.4 billion in asset sales.

The impairment charge on its assets amounted to €518 million in 2012, which was 60 per cent lower than the previous year. The total impairment charge on its loan portfolio to date is €3.26 million.

Nama chief executive Brendan McDonagh said it was another year of "substantial progress" for the agency, which operates under the wing of the National Treasury Management Agency.

Nama said it has granted 96 per cent of applications for rent abatements from commercial tenants, foregoing €14 million in the process.

More than 4,000 residential properties have been identified for potential social housing while it has approved €4 million for remediating unfinished housing developments.

It is collecting about €100 million a month in rental payments from debtors. Mr McDonagh said two-thirds of its debtors are co-operating with the agency.

Nama said "significant preparatory" work is underway to deal with the potential transfer of the €26 billion loan book of Irish Bank Resolution Corporation, which is currently in liquidation.

Minister for Finance Michael Noonan said Nama can play a "big part in restoring the development and construction sectors in the country".

The annual report shows that Mr McDonagh was paid €388,164 in salary and benefits in 2012, down from €454,483 in the previous year. The Nama chief executive agreed to a 15 per cent salary cut last year.

Chairman Frank Daly was paid a fee of €150,000 last year, down from €153,778 in 2011.

Mr Daly said Nama pays for all of its own administration costs and was not a drain on the exchequer. “Nama is paying its own way,” he said. “We aim to keep it that way.”