NAMA reports profit of €458 million for 2014

  • 2014 profit more than double that of 2013
  • Fourth consecutive year of profits
  • 64% of NAMA’s Senior Debt has now been repaid following a €1.75bn Senior Debt redemption today

Wednesday 27th May 2015 

The National Asset Management Agency (NAMA) has today published its Annual Report and Financial Statements for 2014. 

NAMA reported an after-tax profit of €458m for 2014 – an increase of 115% on 2013 (2013: €214m).

The Agency has also announced it has now redeemed 64% of the €30.2bn Senior Debt it issued to acquire loans from Participating Institutions. A Senior Debt redemption earlier today of €1.75bn brought the cumulative total of redeemed Senior Debt to €19.35bn

NAMA also announced that, as part of its end-2016 delivery target of 4,500 units, 4,000 units have either been delivered or are under construction:  

  • 1,600 residential units have been delivered by mid-May 2015.
  • Planning permission has been secured for another 5,800 units, 2,400 of which are under construction.  
  • Permission has been sought or will be sought in 2015 for another estimated 4,300 units.
  • Another estimated 13,600 units are at the pre-planning assessment stage with planning applications to be submitted after 2015, if commercially viable.

NAMA Chief Executive Brendan McDonagh said:

“This was a very strong performance in 2014. NAMA made tremendous progress in 2014 in reducing its senior debt and we are very hopeful that we can generate a surplus for the taxpayer over our lifetime. 

We took full advantage of a strong recovery in the Irish economy since mid-2013 and of the increased demand for Irish property assets among international investors”.

Key points in the Annual Report and Financial Statements include:

  • NAMA generated €8.6bn in cash during 2014 – almost double the amount generated in 2013.
  • Total cash generated rose to €23.7bn by end-2014, including €18.7bn from asset disposals. Total cash generated to mid-May 2015 stands at €26.6bn, including €21bn from asset disposals. 
  • Loan impairment charges fell 85% to €137m from €914m in 2013. 

NAMA Chairman Frank Daly said:

“This was a year of major achievement for NAMA. It is the fourth year in a row in which we reported a profit.  We are now almost two-thirds of the way towards repaying our Senior Debt and have made excellent progress in removing this contingent liability from the Irish State. 

We are well placed to fulfil the mandate set out for us by the Oireachtas. In doing so, we will also strive to facilitate via funding the delivery of major development projects in Dublin Docklands and thousands of homes for people who need them”. 

Annual Report – other key points:

  • €3.2bn has been approved in capital advances to debtors and receivers to enhance the value of assets securing NAMA loans. 
  • €1bn drawn down in capital advances to commercially viable Irish projects; if required, NAMA will advance a further €3bn. 
  • NAMA funded more than 40% of Dublin’s total new housing supply in 2014.
  • Social housing - 1,068 residential properties delivered for social housing by end-2014 with a target to deliver a total of 2,000 by end-2015.
  • NAMA approved rent reductions with an annual cost of €23m to help struggling Irish businesses and support jobs.
  • NAMA supports debtors which directly employ 15,000 people.