NAMA Annual Report Launch
13 Jun 2018)
The National Asset Management Agency (NAMA) has today published its Annual Report and Financial Statements for 2017.
NAMA reported an after-tax profit of €481 million for 2017 – its seventh consecutive year of profitability – and has increased its projected lifetime surplus, subject to market conditions prevailing, to €3.5 billion (previous forecast €3.0 billion).
Annual Report – key points:
- During 2017, NAMA generated €2.56 billion in cash, including €2.43 billion realised from the sale of loans and property.
- NAMA’s strong cash generation allowed it to redeem the final €2.6 billion tranche of its total senior debt of €30.2 billion during 2017 – eliminating this contingent liability for the State three years ahead of schedule. NAMA has also redeemed close to €500 million of its subordinated debt over recent months.
Residential Delivery
The report sets out the progress that has been made:
- Between the start of 2014 and end-May 2018, NAMA had funded the construction of 7,300 new homes;
- Another 3,800 units are under construction or have had funding approved.
- Planning permission has been obtained for another 7,500 new homes;
- Planning applications have been lodged or will be lodged over the next twelve months for an additional 8,500 new homes.
Dublin Docklands SDZ
The report sets out the progress that has been made:
- Construction has started on sites that will deliver 2.56 million sq. ft. of commercial accommodation and some 600 apartments; 1 million sq. ft. and 190 apartments will complete by the end of 2018;
- By June 2018, planning permission has been obtained for an additional 878,000 sq. ft. of commercial accommodation and some 780 new homes;
- By June 2018, 100% of NAMA’s original interests in the Docklands SDZ were under construction, had received planning permission or had been sold with the benefit of planning permission. Construction is underway in 75% of Dublin Docklands sites in which NAMA retains an interest and planning permission is in place for the remaining 25%.
Key financial information:
- Total cash generated from 2010 to end-2017 was €40.7 billion, including €34.6 billion from asset disposals.
- NAMA reported its third full-year impairment write-back - a credit of €13 million (2016: €282 million).
- Interest income and profit from disposals reduced in line with the ongoing reduction in NAMA’s loan book and its disposal activity, as the Agency’s deleveraging programme nears completion.
Annual Report – other key points include:
- Social housing – Over 8,000 people have been housed in social housing delivered by NAMA by the end of March 2018. NAMA has invested over €350 million in the repair and purchase of homes which have been leased or sold to approved housing bodies and local authorities.
- Unfinished Housing Estates – reduced from 335 in 2010 to 6 as at end-March 2018.
The Minister for Finance and Public Expenditure & Reform, Paschal Donohoe TD, said:
“I welcome NAMA increasing its estimated lifetime surplus to €3.5 billion and reporting a profit for 2017. I want to thank the NAMA Board and staff – in particular its Chairman, Frank Daly, and its Chief Executive, Brendan McDonagh - for their efforts in achieving this.
NAMA has played a significant role in Ireland’s economic recovery and, through its work in delivering new homes and developing Dublin’s Docklands, I look forward to it continuing to contribute strongly to Ireland’s ongoing economic development.”
NAMA Chief Executive Brendan McDonagh said:
“2017 was a landmark year for NAMA. We achieved our primary objective of eliminating our €30.2 billion Senior Debt three years ahead of schedule and we made a strong profit for the seventh year in a row.
We are now on track to deliver a lifetime surplus of €3.5 billion, assuming conditions remain favourable. This would be an outstanding achievement and a major economic and social contribution to the State by NAMA.
I thank the NAMA Board, our executive team and the wider NAMA staff for their exceptional efforts over the past decade to deliver such a favourable outcome.”
NAMA Chairman Frank Daly said:
“Our excellent financial performance was complemented by very strong progress in our supplementary mandates of delivering new homes on a commercial basis and bringing much-needed commercial and residential development to the Dublin Docklands.
We look forward to contributing further to alleviating Ireland’s residential supply shortfall and are well placed now to do this. There are assets remaining in the NAMA portfolio, such as the former Irish Glass Bottle site and properties close to the proposed Metro line, which offer compelling opportunities to provide housing. These must be managed in a structured manner over the medium term to ensure that the best financial and social return is achieved for taxpayers. It would be a mistake to dispose of these assets in the short term before the necessary Local Area Plans and infrastructure are in place.
NAMA still has a lot of work to do but we remain resolute in our commitment to maximising our contribution to the State.”
Issued on behalf of NAMA by
Gordon MRM
Notes to editors
NAMA acquired loans worth €26.2bn at the time of acquisition.
It paid €31.8bn for these loans – €26.2bn being their market value at the time plus €5.6bn in State Aid to Participating Institutions.
NAMA expects to fully repay the €31.8bn it borrowed to acquire these loans. It has already repaid in full the €30.2bn Senior Debt included in this figure and expects to repay the €1.6bn subordinated debt in full by its first call date in 2020.