Business Irish

Friday 19 January 2018

Nama tipped to hand back €4bn surplus

Nama building
Nama building
Donal O'Donovan

Donal O'Donovan

Nama will deliver a €4bn surplus over its life, around 25pc more than the bad bank's own latest estimates, according to Investec.

The agency's core equity value is already "just north of €3bn" with the bulk of its debts already repaid, Investec's Philip O'Sullivan said in the specialist bank's Irish Economy Monitor for the second half of the year.

Nama has an unrecognised surplus of €469m which will be recognised as profit and is set to generate additional surpluses from its investment programme, he said. "Given the above, we now believe that Nama will deliver a surplus of €4bn to the Exchequer."

Nama has said it is on course to clear all of its original €32bn of debt this year. The remaining surplus will go to taxpayers. However, Nama's loans had a face value of €70bn, and any shortfall on that translates into losses for the banks.

Meanwhile, Investec said key data showed a strong start to the year, but noted that the public finances had a more mixed start to 2017.

Mr O'Sullivan said CSO data shows that most of the weakness reflects tepid new car sales, down 10pc, due to competition from sterling dealers. Imports of used cars are up 50pc so far this year, he said.

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