Nama’s re­tained earn­ings up 5% to €3.73bn at end of first half

Agency says it has de­liv­ered 7,881 homes so far, with a fur­ther 2,862 units be­ing built Prof­its boosted by €46.3m from sale of loans and €33.3m from dis­posal of as­sets

The Irish Times - Business - - BUSINESS NEWS - JOE BREN­NAN

Nama’s re­tained earn­ings rose by 5 per cent to €3.73 bil­lion in the three months to June as the so-called bad bank’s prof­its were boosted by on­go­ing as­set and loan sales.

The agency said in its lat­est re­port, pub­lished on Wed­nes­day, that it posted a €222.6 mil­lion profit for the se­cond quar­ter, bring­ing the fig­ure for the first half of the year to €281.3 mil­lion, up 44 per cent on the same pe­riod in 2017. Earn­ings for six months were helped by €46.3 mil­lion of gains from the sale of loans and €33.3 mil­lion of prof­its from the dis­posal of trad­ing prop­erty as­sets.

To­tal cash gen­er­ated by Nama was un­changed at €1.5 bil­lion dur­ing the first six months. Nama, which paid a dis­counted rate of al­most €32 bil­lion for some €74 bil­lion of risky com­mer­cial prop­erty loans from five Ir­ish bailed-out lenders dur­ing the fi­nan­cial cri­sis, has sub­se­quently seen the car­ry­ing value of its loan port­fo­lio fall below €3 bil­lion, net of im­pair­ment pro­vi­sions.

Nama has up­graded its life­time sur­plus fore­cast a num­ber of times in re­cent years, most re­cently rais­ing its pro­jec­tion to €3.5 bil­lion in June from €3 bil­lion.

An­a­lysts at In­vestec Ire­land es­ti­mate it will ul­ti­mately de­liver a €4.5 bil­lion sur­plus.

Life­time loss

The agency, which last year com­pleted the redemp­tion of €30.2 bil­lion of se­nior Govern­ment bonds it used orig­i­nally to buy the loans, has sub­se­quently bought back €529 mil­lion of its to­tal of €1.6 bil­lion of ju­nior bonds.

If Nama made a life­time loss, as many feared when the agency was set up, these ju­nior bonds would have been worth­less. Nama said yes­ter­day that it aims to com­plete the re­pur­chase of the re­main­ing ju­nior bonds by March 2020.

Nama was given the task in 2015 of de­liv­er­ing 20,000 houses and apart­ments by 2020 un­der a plan to help the State deal with a short­age of homes and mount­ing home­less cri­sis.

In a let­ter to the Min­is­ter for Fi­nance Paschal Dono­hoe, also pub­lishedyes­ter­day, Nama chair­man Frank Daly and chief ex­ec­u­tive Brendan McDon­agh said that some 7,881 homes had been de­liv­ered as of the end of Au­gust, with a fur­ther 2,862 units un­der con­struc­tion. An ad­di­tional 8,144 units had plan­ning per­mis­sion but were not yet be­ing built.

Com­mer­cial space

The agency is also in­volved in projects to de­liver mil­lions of square feet of of­fice and other com­mer­cial space in the Dublin dock­lands un­der a fast-track Strate­gic De­vel­op­ment Zone (SDZ) des­ig­na­tion.

Of some 4.2 mil­lion sq ft of com­mer­cial space en­vis­aged in 2014, 760,000 sq ft has been com­pleted or sold, while con­struc­tion has com­mence on a fur­ther 2.56 mil­lion sq ft.

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