NAMA reports profit of €211 million for 2013

The National Asset Management Agency (NAMA) has today published its Annual Report and Financial Statements for 2013, its fourth year of operation.

Key points include:

  • For 2013, NAMA reports a profit after impairment, tax and dividends of €211m.
  • Operating profit before impairment in 2013 was €1.2bn, a 45% increase on 2012.
  • The impairment charge for 2013 was €914m, up from €518m in 2012 following a comprehensive review of impairment provisioning, specifically that relating to Irish landbank assets and the smaller debtor connections.
  • Cash generated in 2013 was €4.5bn, which includes the proceeds of asset disposals by debtors and receivers and also non-disposal receipts, mainly rental income.
  • Total Senior debt bond redemption of €10.5bn – 35pc of the total – with plans to redeem another €2.5bn by end-June and a further €2bn by end-2014. By the end of 2014, NAMA’s target is to have redeemed a total of €15bn of its Senior Debt, 50% of the amount it originally issued to acquire loans (note 2)
  • From inception to date NAMA has generated €18.6bn in cash, including €14.1bn from asset disposals. €3.5bn of this has been generated in the first five months of 2014. NAMA has already exceeded its full-year target for 2014 for paying down its debt; its original target for paying down debt in 2014 was €2.5bn but it now expects to pay down €7.5bn.
  • Like-for-like administration costs (excluding costs relating to the liquidation of IBRC) fell by 3% in 2013. NAMA’s cost/income ratio is less than 3% which compares very favourably with the international average for comparable entities which is of the order of 6%.

The accounts also reveal that NAMA has built up equity and reserves of €810m, up from €412m at the end of 2012. NAMA’s cash balances increased to €4.4bn at the end of 2013.

Speaking today, Brendan McDonagh, Chief Executive, said:

“NAMA’s very strong performance and excellent cash generation means we are now well ahead of schedule in getting our job done successfully.

We reported a profit for taxpayers for the third year in a row and successfully met our first major milestone of repaying €7.5 billion of NAMA’s debt in full and on time.

We have benefited from very strong demand for the assets in our portfolio and from the exceptional dedication of our staff who work diligently and professionally on taxpayers’ behalf.

I thank our staff, Board and Committees for their efforts. NAMA’s successes are down to them.”

Frank Daly, Chairman, said: “2013 saw a remarkable turnaround in investor sentiment towards Ireland and NAMA took full advantage of the opportunities this presented.

We are beating our targets and it is becoming increasingly likely that NAMA will achieve its objectives sooner than anyone would have expected when it was set up in late December 2009.

This is very important for taxpayers. If our current strong momentum continues and conditions remain favourable over the next number of years, NAMA can deliver on a number of fronts for the Irish economy.

We are playing our part in building confidence – at home and abroad – in Ireland’s strong recovery story, doing all we can to channel investment in the Irish economy and cementing Ireland as an excellent location for investment, enterprise and employment.

NAMA’s future is one of funding viable projects, identifying attractive opportunities and delivering the best returns we can get for taxpayers.

We have a lot of work to do but this work will become increasingly visible – whether in the sight of cranes returning to Dublin’s Docklands or in renewed activity involving our assets throughout Ireland.”

Annual Report – other key points:

  • Asset sales completed to date of €14.1bn
  • €1.4bn advances approved to date for projects in Ireland; €770m of this has been drawn down and total funding of €2.5bn will be made available for investment in Ireland in the period to end 2016
  • 46,700 credit decisions processed to date; average turnaround time now less than 5 days;
  • €373m provided in vendor finance
  • 684 residential properties delivered for social housing; 400 more expected in 2014 and a further 900 could be delivered in 2015/2016
  • Approval of rent reductions with an annual value in excess of €20m to help struggling Irish businesses and support jobs; €40m in long-term rent reliefs have been approved
  • NAMA supports debtors which directly employ 15,000 people


Note 1

2013 and 2012 – Profit and loss summary:

2013 profit report

Income Statement

2013 €m

2012 €m

Net interest income



Operating profit before impairment



Impairment charges



Profit before tax and dividends



Tax charge and dividends paid



Profit for the year



 Note 2

NAMA originally issued Senior Debt of €30.2bn and Subordinated Debt of €1.6bn to acquire its loans.

Following the Government’s decision to appoint a Special Liquidator to Irish Bank Resolution Corporation (IBRC) in February 2013, a NAMA subsidiary company (National Asset Resolution Limited) subsequently issued Senior Debt of €12.9bn to fund the acquisition of the IBRC loan facility deed and floating charge. Current indications are that the cash proceeds of the IBRC sales process will be sufficient to enable NAMA to redeem all of the €12.9bn in Senior Bonds that it issued to the Central Bank in 2013.