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THE NATIONAL ASSET Management Agency has announced its second successively quarterly profit for 2011, having made €118m in the three months between April and June.
The agency, which bought development loans from banks at an average discount of almost 60 per cent, took in €828m in cash through the repayment of loans and sale of assets secured on them.
It also took in €51m in what it called “derivative inflows” associated with those loans.
The €118m profit compared to a profit of €91m for the first quarter of the year – and came despite its repayment of €500m in bonds which had fallen due over the quarter.
NAMA said the proportion of its loans which were still ‘performing’ – that is, loans which were being repaid – was unchanged from the first quarter, at 23 per cent.
Despite repaying the bonds, the agency still had a cash balance of over €1bn, and had invested a further €182m, by the end of June.
In a statement this afternoon, chairman Frank Daly said the agency had last month completed the acquisition of the last two outstanding eligible, completing the purchase of two loans worth €1.9bn.
That meant that the agency had taken over a grand total of €74.2bn in loans, paying €31.7bn for the privilege – a 57 per cent ‘haircut’ on the original value of those loans.
The agency has also received 170 business plans submitted by its 188 debtors – and was making inroads in processing the business plans of 600 debtors whose loans are being managed by other institutions on NAMA’s behalf.
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Bonuses all round!
Brilliant, some good news today!
Yes…brilliant. A company which paid 43% of the total loan values managed to make a profit on the loans acquired from the banks…which in turn received the 57% (which Nama refused to pay) from the tax payer so that they could keep functioning…great.
Brilliant indeed only 31billion euro still to be recovered….
So Oisin, Kerry, does that mean this ‘profit ‘ really is spin and more happy news for us fools to swallow from the technocrats and their media? Sorry to be negative but….
Yup … so Nama’s barely breaking even in the grand scheme of things.
Yes it is spin…it is making a profit on something which you originally only agreed to pay 43% of the original cost price…therefore if you made a 1% profit it would mean the asset was still only worth 44% of the total price the taxpayer paid for it…(by funding Namaste to buy the asset and then paying the banks rhetorically remaining amount which Nama refused to pay)
Excuse the errors above…damn autotext. Read Nama for Namaste and read the banks for rhetorically…
Well done Frank!!
€118M!!
Just enough to pay yer wages!!
Did Cardiff do these figures?
I smell a big fat bonus
Journal, The article doesn’t tell us what’s happening to this profit – does it go back to the Exchequer / the state / the gov/ the taxpayer / the banks; where does it go?
NAMA is too opaque in its operations, decisions and commercial dealings for a modern democracy. Suits Irish political culture well.
@Peter – do you really think these guys understand accounts? They only know how to cook the books. Frank will be on Master Chef next episode.
Well, let’s see how it goes now that all the loans have been acquired and it’s time to insure the underlying assets, for which I believe there is no budget in NAMA’s business plan.
Is that a profit or an operating surplus. I don’t understand how repaying a Bond is an expense rather than a cashflow item.
Please don’t laugh but can anyone explain to me in a single tweet what NAMA actually does?
Win-Win situation for Nama, if they made a loss the taxpayer will pick up the tab
Nama is managing an asset portfolio which is security on a loan book which it now owns from all state funded/supported banks ie Anglo , AIB , boi ,nib etc .
This profit statement is a fallacy the right down on the loans initially to the tax payer was of the order of 50%, until these assets return to at least 80% of the Nama value will I take any interest in this possibly 2015 .
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