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Key Financial Figures

Summary of loan acquisitions

By the end of 2011, a total of €74 billion in loans had been transferred to NAMA by the five participating institutions and €31.8 billion has been paid as consideration to the institutions, an overall discount of 57%. Table 1 summarises the position by institution:

Table 1: Loan acquisitions from participating institutions at end 2011
AIBAngloBOIEBSINBSTotal
Loan balances transferred20.434.19.90.98.774
Consideration paid9.013.45.60.43.431.8
Discount56%61%43%57%61%57%

Distribution of largest debtors

Table 2 provides a breakdown of all debtor connections by size of nominal debt exposure. It should be noted that many of the debtors are also indebted to financial institutions which are not part of the NAMA scheme.

Table 2: Distribution of NAMA debtor connections by size of nominal debt
Nominal DebtNumber
of debtor
connections
Average nominal
debt per connection
€m
Total nominal debt
in this category
€m
Total7729674,015
In excess of €2,000m32,7588,275
Between €1,000m and €2,000m91,54913,945
Between €500m and €999m1767411,454
Between €250m and €499m3434711,796
Between €100m and €249m8215212,496
Between €50m and €99m99686,752
Between €20m and €49m226327,180
Less than €20m30272,117

Valuation of assets

Bank assets (loans and derivative transactions) were acquired at an acquisition value which was determined in line with Part 5 of the NAMA Act and the Valuation Regulations which were made by the Minister and published on 5th March 2010. The reference valuation date for the valuation of all property assets was 30 November 2009.

The acquisition value of each bank asset is the long-term economic value of the loan (LEVL). Various factors are taken into account in the calculation of the LEVL, including the current market value of the security (typically real estate but also including non real estate assets, such as shares), the LEV of property and the market value of the bank asset.

The Valuation Regulations require that NAMA applies an uplift adjustment factor ranging from 0% to 25% to the current market value of property to reflect its long-term economic value (LEV). This is defined in the Act as the value that (a) a property can reasonably be expected to attain in a stable financial system when the crisis conditions prevailing at the passing of the Act are ameliorated and (b) in which a future price or yield of the property is consistent with reasonable expectations having regard to its long-term historical average.

The weighted average Property LEV (LEVP) uplift factor applied to acquired loans was 8.2%.

Discounts

The discounts applied to nominal loan balances to derive an acquisition price are determined for the most part by the current market value of property securing the loans and, to a lesser extent, by further discounts made to reflect legal difficulties such as the extent to which security can be enforced or deficiencies in title. Table 3 summarises aggregate data for all acquired loans for which the overall discount was 57%.

Table 3: Aggregate Loan Valuation Data
€bn
A. Aggregate loan balances74.2
B. Current market value of property securing the loans (CMVP)32.4
C. Long-term economic value of property
(incorporating 8.3% uplift)

35.1

D. Current market value of loans26.2
E. Long-term economic value of loans
(LEVL – acquisition price)
31.8
F. Loan uplift (E minus D)5.6
G. Discount (A minus E)42.4
H. Percentage discount (G/A)57%
I. CMVP/LEVL (B/E)102%

Breakdown of property portfolio securing NAMA loans – by location and asset type

Geographical breakdown

In terms of geographical location, the breakdown of property securing NAMA loans as at 30 June 2013 is set out in Figure A. 57% of property assets are located in Ireland, 29% are located in Britain and 4% in Northern Ireland. The rest are located outside of these jurisdictions, principally in Germany, USA, Portugal and France.

Figure A: Portfolio concentration by location

PropertyPortfolioByLocation

Sectoral breakdown

66% of property assets securing NAMA loans can be classified as investment assets and 34% are land and development assets. A more detailed breakdown of property by asset class is provided in Figure B.

Figure B: Portfolio concentration by sector

PropertyPortfolioByType