Nama records after-tax profit of €99m for second quarter of 2021

The National Asset Management Agency (Nama) made an after-tax profit of €99 million for the second quarter of 2021, the Cabinet was told on Wednesday.

Minister for Finance Paschal Donohoe briefed colleagues on the agency's quarterly report as well as its annual statement for 2022.

By the halfway point in the year, €2.5 billion of Nama’s surplus had been transferred to the State with a further €500 million to go to the exchequer by the end of 2021.

A further €1.25 billion will be transferred in subsequent years, subject to market conditions.

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In relation to housing provided through Nama funding, 12,951 units were delivered between the start of 2014 and end of June this year.

Another 5,925 units are either under construction or have secured planning permission.

Nama’s annual statement for 2022 sets out how the agency will be focused “primarily on the intensive management of its remaining loans and secured assets and on maximising their disposal proceeds”.

The Nama board is said to be “conscious of its obligations to wind down the organisation in an orderly manner by end-2025, subject to market conditions and resolving all outstanding litigation”.

A report is to be delivered to Mr Donohoe before the end of 2021 on how Nama “intends to successfully and transparently complete its mandate” and achieve its dissolution by the end of 2025.

The agency expects direct costs of €47 million for 2022, a €19 million decrease from the final budget for 2021.

Its budget provides for a staff headcount of 146 at the start of next year but numbers will reduce through scheduled redundancies over the course of 2022.

State spending

Separately, Minister for Public Expenditure and Reform Michael McGrath updated colleagues on State spending by the end of September.

Government departments’ gross expenditure was €60.7 billion, almost €2 billion less than expected but still €2.3 billion higher than the same period in 2020.

Current expenditure accounted for €56.3 billion and capital spending was almost €4.4 billion – €1.05 billion or 19.3 per cent below profiled capital spend for the period.

The overall Exchequer balance at end-September 2021 was a deficit of over €6.2 billion.

That compares to a deficit of almost €9.4 billion at the end of September 2020.

The gross outturn for 2021 is now projected to be €89.3 billion.

This is lower than the €90.7 billion that had been anticipated at the time of the Summer Economic Statement, mainly reflecting a number of underspends across departments.

It is still above the €86.6 billion gross expenditure in estimates that have been voted by the Dáil to date.

As a result, supplementary estimates are expected to be required across a number of areas to provide for the 2021 measures announced as part of Budget 2022 and Covid-19 measures, including those in the Economic Recovery Plan.

Mr Donohoe secured Cabinet approval to seek a Dáil authorisation not to pay the prescribed €500 million into the so-called ‘Rainy Day’ fund this year.

The fund that was in existence has been emptied due to spending requirements caused by the pandemic.