The National Asset Management Agency (NAMA) has today published its Annual Report and Financial Statements for 2012, its third year of operation. 

Key points include:

• For 2012, NAMA reports a profit after impairment, tax and dividends of €228m, which is broadly in line with the profit of €241m reported for 2011.
• Operating profit before impairment in 2012 was €826m.
• The impairment charge for 2012 was €518m, a reduction of 60% on the impairment provision taken in 2011.
• Cash generated in 2012 was €4.5 billion, which includes the proceeds of asset disposals by debtors and receivers and also non-disposal receipts, mainly rental income.
• From inception to date NAMA has generated €12 billion in cash, including €7.9 billion from asset disposals. €1.4 billion of this has been generated in the first five months of 2013.
• Administration costs fell by 7% in 2012.  NAMA’s cost/income ratio is 3% which compares very favourably with the international average for comparable entities which is of the order of 6%.

NAMA also announced today that it will shortly redeem a further €1.5 billion of NAMA Senior Bonds.  This brings the total redeemed to date to €6.25 billion. The forthcoming bond redemption means that NAMA will have repaid 21% of its total Senior Debt liability on behalf of the taxpayer and it remains well on course to achieve its target of repaying 25% of this debt (€7.5 billion) by end-2013.

Speaking today, Brendan McDonagh, Chief Executive, said:

“2012 was a year of further substantial progress for NAMA. We reported a profit for the taxpayer for the second year in a row and we intend to continue on this path. We have generated more than €12 billion in cash from April 2010 to end May 2013 and I wish to pay particular tribute to our staff, Board and Committees for all their hard work in difficult circumstances in recovering that huge amount to date for the taxpayer. 

We are using this cash to pay down NAMA’s debt on schedule and, where appropriate, to provide funding to protect and enhance the value of our assets, so we can maximise the amount that we ultimately recover for the taxpayer.”

Frank Daly, Chairman, said:

“NAMA is now seen by international investors as part of the broadly positive Irish narrative that has emerged over recent years. It’s a story of taking responsibility, resilience and, increasingly, of reinvigoration. Our announcement today that we are redeeming a further €1.5 billion in Senior Bonds will further reinforce that positive view of Ireland..

 

So also will the estimated €4 billion in capital advances and vendor financing that NAMA will provide over the coming years as a direct contribution to reinvigorating our economy. With these investments, and through our work with the IDA and other agencies, we are doing something very important right now for our country – facilitating transactions, generating activity and supporting jobs. There are many examples – funding a road link in north Dublin, facilitating the recent €100 million investment by the Kerry Group at Millennium Park in Naas and an aggregate €100 million that we have invested in the past few months in other developments in Drogheda, Galway, Cork and various parts of Dublin, north and south.

 

In addition to our direct investments, we are also helping to deliver social housing, funding the remediation of unfinished housing estates and agreeing rent abatements to support small industry and jobs.  While financial results are very important and the results announced today are very strong, we remain acutely conscious of the scope we have to make a broader contribution where we can.”

Annual Report – other key points:

• Asset sales completed to date of €7.9 billion and non-disposal receipts of €4.1 billion;
• Cash balances and liquid assets of €4.4 billion;
• €1.8 billion advances approved to date, including over €800 million for projects in Ireland;
• 26,000 credit decisions processed to date; average turnaround time now 5 days;
• Extension of vendor finance and 80:20 Deferred Payment Initiative to support recovery in the Irish property market;
• Over 4,000 residential properties identified to local authorities for potential social housing use;
• Significant progress in remediating unfinished housing developments – €4m approved to date;
• Approval of rent reductions with an annual value in excess of €14 million to help struggling Irish businesses and support jobs;
• Total Senior debt bond redemption is €6.25 billion, with a final €1.25 billion to be redeemed to meet our end 2013 target;
• Significant preparatory work underway in NAMA to deal with potential acquisition of IBRC Loan book of par debt €26 billion.
• NAMA supports debtors which directly employ 10,000 people.

 

NOTES:

2012 and 2011 – Profit and loss summary:

2012 profit and loss table

Income Statement	2012 €m	2011 €m
Net interest income	894	771
Operating profit before impairment	826	1,278
Impairment charges	(518)	(1,267)
Profit before tax and dividends	308	11
Tax (charge)/credit and dividends	(80)	230
Profit for the year	228	241

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