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Nama reveals €63m in profits but warns market ‘disruption’ could impact home building

Nama has a 20pc stake in the Poolbeg strategic development zone in Dublin Expand

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Nama has a 20pc stake in the Poolbeg strategic development zone in Dublin

Nama has a 20pc stake in the Poolbeg strategic development zone in Dublin

Nama has a 20pc stake in the Poolbeg strategic development zone in Dublin

Sarah Collins

Ireland’s bad bank made €63m in profit after tax in the first nine months of last year, but warned of a possible construction slowdown this year.

In its latest quarterly accounts, the National Asset Management Agency (Nama) said rising interest rates, infrastructure and planning challenges could impact home building.

“The board continues to monitor economic and financial developments and to keep their impact on Nama’s financial position under review,” the agency said in a cover note to its quarterly report and accounts for the three months to September 2022.

“From Nama’s perspective, there is potential for some disruption to market and construction activity in Ireland and this may impact the pace at which Nama’s portfolio reduces in 2023.”

Nama delivered 532 residential units in the first nine months of last year, with a further 487 units under construction. 

But it said some of the further 1,214 units that have been approved for funding could be at risk.

“Commercial viability is a significant challenge in the current market, and it is possible that Nama will not advance funding for all 1,214 units.”

Nama has funded and facilitated the delivery of over 28,000 new homes since it was set up in 2009, just under half of which were directly funded by the agency. 

It estimates it can deliver around 18,200 further homes in the medium to longer term, most of them after it is wound up in 2025. But it warned that some may turn out not to be viable.

“The development of some of the sites secured to Nama may be currently inhibited by one or more constraints relating to commercial viability, eg due to interest rates, infrastructure (roads, water, utilities, waste, etc) or suitable planning permission,” Nama said in its report.

Nama has “continued to make significant progress” on an office development in Dublin’s Docklands, and retains a 20pc stake in a 37.2 acre site in Poolbeg West, which it says has the potential for thousands of new homes, and substantial commercial and retail space, alongside a school, cultural, community and public spaces.

It has delivered or “committed” 2,693 social homes and identified 7,577 as potentially suitable for social housing from its secured portfolio.

In the nine months to September 2022, Nama generated total cash of €387m, with a further €100m in the final quarter of the year. It brings total cash generated since 2009 to €47.4bn.

As of September 2022, Nama had total assets worth €1.6bn. It received rental income of just under €10.7m in the nine-month period. It spent €1.1m on legal fees and €13.5m on staff costs.

Since it was set up in 2009, Nama has transferred €3.5bn to the State (€3.9bn including tax).

In 2022, Nama increased its lifetime surplus projection to €4.5bn.

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