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Nama on course to record a surplus of €4.5bn


In charge: Brendan McDonagh, CEO of Nama

In charge: Brendan McDonagh, CEO of Nama

In charge: Brendan McDonagh, CEO of Nama

NAMA is on course to return a surplus of €4.5bn to taxpayers, after announcing retained earnings at the end of September ahead of its "life-time" guidance.

The State agency has reported new figures showing total cash generated in the nine months to the end of last September was €2.1bn.

Nama's so-called profit for the period - the excess of income over costs - was €447m. Even allowing for debt repayments, that lifted Nama's retained earnings to €3.9bn at the end of September.

Investec Ireland chief economist Philip O'Sullivan said it put Nama's retained earnings €400m ahead of the agency's own lifetime guidance.

"We continue to believe that it will deliver a surplus of at least €4.5bn to the Exchequer," he said.

At the start of January, Nama said it expects to generate a surplus "of the order of €3.5bn" by the time it is wound-up in 2020 or 2021.

That cash will be returned to taxpayers as the surplus after the agency repays banks for loans taken over in the wake of the crash.

Nama paid €31.8bn to Anglo Irish Bank, AIB and Bank of Ireland for loans with a face value of €74.1bn - using IOUs later repaid as it generated cash.

To the end of last September Nama had generated €42.8bn in cash through loan and land sales, rent and interest. Nama's senior bonds - which were guaranteed by taxpayers have been repaid - leaving just over €1bn of subordinated debt to repay.

In relation to house-building, which Nama is funding, the agency said it had facilitated delivery of over 12,000 residential units between 2014 and November 2018.

Another 9,000 units were either under construction or had planning permission, Nama said.

Irish Independent