The National Asset Management Agency (Nama) saw pre-tax profits fall by 8 per cent to €283 million in 2013, as impairment charges rose to €914m.
The State’s bad bank says it is now likely to “achieve its objectives sooner than anyone would have expected” and the agency also pledged funding for viable projects which might see “the sight of cranes returning to Dublin’s Docklands”.
According to the agency’s annual report released this morning, Nama took an impairment charge of €914m in 2013, up from € 518m in 2012, “following a comprehensive review of impairment provisioning, specifically that relating to Irish landbank assets and the smaller debtor connections.”
Operating profit before this impairment charge was € 1.2bn, a 45 per cent increase on 2012.
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. Since its inception, Nama has generated € 18.6bn in cash, including €14.1bn from asset disposals.
Chief executive Brendan McDonagh said Nama has benefited from “very strong demand” for the assets in its portfolio and from the “exceptional dedication” of its staff.
“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,” he said.
Nama chairman Frank Daly said it is now becoming "increasingly likely that Nama will achieve its objectives sooner than anyone would have expected when it was set up in late December 2009."
He added: “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.”
Nama also announced an additional €2.5bn senior debt redemption next month, bringing total redemptions to € 13bn. By the end of 2014, its target is to have redeemed a total of € 15bn of its senior debt, 50 per cent of the amount it originally issued to acquire loans.
The accounts also reveal 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.
Nama has so far provided € 373m in vendor finance, and Mr Daly said its 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.”
Nama said it has delivered 684 residential properties for social housing thus far, with 400 more expected in 2014 and a further 900 could be delivered in 2015/2016.
