Statements & Blogs

8 Jun - ​NAMA reports profit of €1.8 billion for 2015

NAMA CEO Brendan McDonagh, Minister for Finance, Michael Noonan and NAMA Chair, Frank Daly

The National Asset Management Agency (NAMA) has today published its Annual Report and Financial Statements for 2015.

NAMA reported an after-tax profit of €1.8 billion for 2015 – an increase of almost 300% on 2014 (2014: €458m). NAMA made its first full-year profit in 2011 and has made a profit every year since then.

The Annual Report shows NAMA generated €9.1bn in cash during 2015, with €8.5bn coming from asset disposals.

NAMA’s exceptionally strong cash generation allowed it to redeem Senior Debt totalling €5.5bn during 2015. This, coupled with further debt redemptions in early 2016, means that NAMA has redeemed Senior Debt totalling €24.6bn. NAMA’s outstanding Senior Debt has fallen from €30.2bn to €5.6bn – 19% of its peak level.

NAMA achieved its target of delivering 2,000 homes for social housing by the end of 2015 and is continuing to work with all stakeholders to deliver additional homes for which demand has been confirmed by the relevant housing body or local authority.

NAMA Chief Executive Brendan McDonagh said:

“This was an outstanding performance that delivered a very substantial profit.

We continue to make excellent progress in achieving what the Oireachtas asked us to achieve – eliminating a €30.2bn contingent liability for the taxpayer and maximising the financial return from our assets.

We are also on course to deliver a significant surplus for the taxpayer over NAMA’s lifetime, in addition to fulfilling our more recent mandates of delivering 20,000 new homes where they are most needed and world-class offices and commercial space in the Dublin Docklands”.

NAMA Chairman Frank Daly said:

“NAMA has come a long way since it was set up. The debate has changed dramatically from how much NAMA will lose over its lifetime to how big its surplus will be. We are currently projecting that NAMA may, if current market conditions prevail, deliver a lifetime surplus of €2.3bn.

NAMA’s successful delivery of its mandate is good news for the taxpayer. We plan on being just as successful in delivering major development projects in the Docklands and thousands of homes for people who need them.”

Residential Delivery Programme

The report shows:

• -NAMA has funded the construction of 2,800 new homes since 2014;

• -A further NAMA-funded 3,000 units are under construction;

• -Planning permission has been obtained for an additional 5,100 units;

• -Planning applications have been submitted for a further 5,000 units;

• -Further applications for 6,600 units due to be submitted over the next 12 months

Docklands SDZ Programme

The report also shows:

• -Construction has started on sites that will deliver 1.2m sq ft of commercial accommodation and 345 new homes

• -Planning permission has been obtained for a further 1.3m sq ft of commercial accommodation, 226 apartments and a hotel

• -Planning applications have been lodged for an additional 430,000 sq ft of commercial accommodation and 446 apartments

• -Pre-planning work is being advanced for a further 900,00 sq ft of commercial accommodation and 965 apartments

Key points in the Annual Report and Financial Statements include:

• Total income for the year increased 127% to €1.9bn

• NAMA generated €9.1bn in cash during 2015 – exceeding the €8.6bn generated in 2014.

• Total cash generated rose to €32.7bn by end-2015, including €27.1bn from asset disposals.

• NAMA reported its first full-year impairment write-back, which generated a credit of €86m (2014: charge of €170m).

• Administrative expenses fell 17% to €112 million.

Annual Report – other key points:

• 88% of the 12,781 homes sold from the NAMA portfolio since inception have been sold in individual transactions to individual buyers.

• Social housing – target of 2,000 homes successfully delivered for social housing by end-2015, with €260m invested to complete homes and making finished houses and apartments available.

• NAMA approved rent reductions with an annual cost of €24.5m to help struggling Irish businesses and support jobs.

• NAMA has facilitated property transactions to enable major employers including Facebook, LinkedIn, Kerry Group, AirBnB, Amazon, Yahoo and Google to expand their operations in Ireland.

Issued on behalf of NAMA by

Gordon MRM

nama@gordonmrm.ie

Notes to editors

• NAMA acquired loans worth €26.2bn at the time of acquisition.

• It paid €31.8bn for these loans – €26.2bn being their market value at the time plus €5.6bn in State Aid to participating institutions.

• NAMA expects to fully repay the €31.8bn it borrowed to acquire these loans.

Financial summary

Numbers may not sum due to rounding

END