NAMA increases projected surplus from €1bn to €1.75bn

NAMA increases projected surplus from €1bn to €1.75bn, CEO tells Public Accounts Committee


    • Previous estimate was for lifetime surplus of €1bn
    • Profit for first half of 2015 will be more than the €458m recorded for the whole of 2014
    • Agency will fund 5,000 new homes by end 2016, beating 4,500 target, and deliver 2,000 social housing units by end 2015

          The National Asset Management Agency (NAMA) will make a lifetime surplus of €1.75bn, well in excess of its previous estimate of €1bn, Chief Executive Brendan McDonagh said today.

Speaking at the Oireachtas Public Accounts Committee, Mr McDonagh said NAMA is increasing its projected surplus following a detailed review of its loan portfolio in recent weeks. NAMA also generated a bigger profit in the first six months of 2015 than the €458m it had made in the whole of 2014, he said.

"I am pleased to say that the profit for the first six months exceeded the full-year profit figure for 2014," he said. "We expect that the half-year 30 June results will be published by the Minister for Finance over the coming weeks".


Mr McDonagh also said:

  • Total cash generated by NAMA now stands at €29bn.
  • Following yesterday’s €1.75bn redemption of Senior Bonds, NAMA has redeemed a total of €4.5bn this year and €21.1bn since inception – which represents 70pc of the €30.2bn originally issued.
  • NAMA is well placed to meet its target of redeeming 80pc of Senior Debt (€24bn) by the end of 2016 and 100pc by 2018 – two years ahead of its original schedule.
  • NAMA will fund the delivery of 5,000 new homes by the end of 2016.
  • NAMA will deliver 2,000 social housing units by the end of 2015.

Update on Dublin Docklands Strategic Development Zone (SDZ)

Mr McDonagh provided the Committee with an update on the 14 sites in the Docklands SDZ in which NAMA has an interest (representing 75pc of all undeveloped land in the SDZ).


  • NAMA has been involved, working with its Joint Venture partners and Receivers, in obtaining and submitting planning applications for over 2m of the 3.8m sq feet of commercial office space in the SDZ in the last 15 months.
  • Construction has started on one site – 8 Hanover Quay. This development has already been pre-let, providing certainty over the cashflow it will generate.
  • Planning permission has been granted for 3 sites (including Boland’s Mill, which will deliver 400,000 sq ft of office, retail, residential and cultural accommodation).

  • Planning applications have been submitted for a further 5 sites (including a site in Point Village and one on 72-80 North wall Quay, which is being developed by Oxley Holdings of Singapore).

  • Of the remaining 5 sites, applications for planning permission will be lodged in late 2015 and early 2016.


Debtor engagement

Mr McDonagh also addressed recent comments made by certain NAMA debtors to the Banking Inquiry.


He said that, while the Banking Inquiry has advised NAMA it may not make any public comment on evidence given to the Inquiry by specific witnesses, NAMA has written to the Inquiry and provided a "detailed and comprehensive rebuttal" of claims made by certain witnesses to the Inquiry.


"It is possible the Joint Committee may approve publication of our detailed rebuttal and indeed we would be keen that they put the facts on the public record," he said.


Mr McDonagh added:

"It should be clear to everyone at his stage that NAMA debtors do not consider NAMA to be a cosy bailout. We make no apology for being rigorous, professional and fair.

We do not expect to receive eulogies from our debtors but more objective commentators, such as the IMF, EU, ECB, World Bank, the credit rating agencies, the Construction Industry Federation and indeed many of the witnesses before the Joint Committee have all stated that they consider that NAMA is carrying out its mandate successfully ."