Tuesday 24 October 2017

A lot more than property ... How AIB's NAMA assets break down

Joe Brennan

A breakdown of AIB's NAMA-bound loans highlights an interesting list of sectors, other than the €21.6bn of assets linked to property and construction.

Non-property loans or associated loans linked to some of the biggest developers range from agriculture to energy and manufacturing.

The list also includes some €19m of loans under transport -- perhaps covering some of the helicopters, private jets and yachts beloved by some formerly high-flying builders.

Then there are €144m of home mortgages going into NAMA. These relate to homes of developers that have been used as collateral for other loans.

Almost €300m of loans are categorised as 'other'. It is not known if AIB is exposed to assets such as art collections, racehorses and other personal assets that were provided by developers as guarantees to some of the country's banks during the boom days.

AIB confirmed yesterday that the amount of loans it is transferring to NAMA has dropped to just over €23bn.

This is down from an original estimate of €24.1bn that was outlined by Finance Minister Brian Lenihan last September.

AIB managing director Colm Doherty said it was possible the bank's NAMA-bound portfolio could fall even further.

The group has taken a total writedown of €4.1bn against the loans it is transferring to the State's bad bank. This is equivalent to about 60pc of the estimated €6.9bn -- or 30pc -- discount the industry faces on its NAMA loans.

He defended the bank for not taking more of the expected haircut in its 2009 accounts, saying the charge represented the level of impairment on the portfolio at the end of the accounting period.

Irish Independent

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