Jury still out on NAMA mission
The after-tax profit of €247m earned by NAMA in 2011 represents a considerable improvement on the previous year's performance. Despite having written down the value of its loan portfolio by €1.26bn, the state "bad bank" still managed to achieve an after-tax profit of €247m.
NAMA, which was established in 2009 by former Finance Minister Brian Lenihan to take bad property loans with an original value of €74bn off the books of the Irish-owned banks, is best thought of as a work-in-progress. After two-and-a-half years of operation it is still far too early to pass definitive judgment on the organisation.
About the best that can be said about NAMA's results is that they represented a considerable improvement on its 2010 performance. While the €1.26bn 2011 write-down was a shocking figure, it was considerably down on the €1.48bn write-down recorded in 2010. NAMA also quadrupled its operating income to €1.34bn in 2011.