Friday 26 December 2014

NAMA reports profit of €211m for 2013, generated €4.5bn in cash

Ailish O'Hora and Thomas Molloy

Published 27/05/2014 | 09:03

Brendan  McDonagh, Chief Executive of NAMA
Brendan McDonagh, Chief Executive of NAMA

THE National Asset Management Agency (NAMA) has reported a profit after impairment, tax and dividends of €211m for 2013, its fourth year in operation.

THE National Asset Management Agency (NAMA) has reported a profit after impairment, tax and dividends of €211m for 2013, its fourth year in operation.

The impairment charge for the year was €914m, up from €518 the previous year, following a review of impairment provisioning.

NAMA chief executive Brendan McDonagh said the agency may yet make a profit when it winds down. It must first repay senior and junior bond holders but could also end up paying the government a surplus as well. He declined to speculate on how much would be paid.

The Government has commissioned a report on the future of NAMA and this is due to be completed next month, Finance Minister Michael Noonan said. That may well call for the agency to speed up asset sales. Nama is currently two years ahead of schedule and “is not a long-term project, Mr McDonagh said.

Cash generated was €4.5bn including asset disposals by debtors and receivers and rental income.

It also said that by the end of 2014, it plans to have redeemed a total of €15bn in senior debt, 50pc of the amount it issued to acquire loans.

From inception to date, NAMA has generated €18.6bn in cash, including €14.1bn from asset disposals, it said today in its annual report.

"We reported a profit for taxpayers for the third year in a row and successfully met our first major milestone of repaying €7.5bn of NAMA’s debt in full and on time," said chief executive Brendan McDonagh.

The agency expects to hand over more than 1,000 appartments to homeless charities by the end of the year, Mr McDonagh added.

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