Sunday 18 August 2019

Nama collected €44.5bn since being set up in 2009

The Nama/NTMA offices in Dublin, Since it was established a decade ago, Nama has acquired loans and assets worth more than €31.8bn.
The Nama/NTMA offices in Dublin, Since it was established a decade ago, Nama has acquired loans and assets worth more than €31.8bn.
Donal O'Donovan

Donal O'Donovan

Nama has collected €44.5bn since the agency was set up in 2009, including €500m so far this year, according to the agency’s latest financial results.

Nama bosses said in May they expect to return €4bn to taxpayers at the end of its 10 year lifespan – with dividends expected to be paid in 2020 and 2021.

The latest results show Nama recorded a trading profit of €41m in the first three months of this year, a sharp drop compared to the same period in 2018 reflecting its shrinking asset base.

From the high of €32bn when it was set up, the value of debtor loans managed by Nama was down to €1.78bn at the end of March. The loans left are made up of mostly smaller and, in many cases, tougher to recover developer loans.

Total cash generated in the first three months of 2019, mainly from asset sales, was €300m with a further €200m generated from the end of March to June 21.

That takes total cash generated by Nama to €44.5bn. It is enough to comfortably repay the €32bn of debt originally used to fund the agency’s acquisition of loans from the main banks during the financial crisis.

Those loans had a face value of €72bn, but were bought at a heavy discount, with Nama originally targeting a recovery close to the debt owed, which changed to a target to fully recover its costs, with any surplus to be returned to the State.

In May, Nama chief executive Brendan McDonagh said the agency projected a lifetime surplus of €4bn, subject to market conditions.

The latest results show Nama had €5bn of assets at the end of March, and debts of around €1bn.

PL12567211Brian Lenihan1 T.jpg
Former Finance Minister Brian Lenihan. Pic credit; Damien Eagers

The agency was set up in 2009 by then Minister for Finance, the late Brian Lenihan to strip bad property loans out of bailed out banks in a bid to get the financial system working again.

READ MORE: Nama to deliver €4bn payout to Government

Online Editors

Also in Business