• Total payments from NAMA to Exchequer now projected to be €5.2bn, inclusive of a €4.8bn lifetime surplus and €400m corporation tax paid to date

• NAMA reports 2023 profit of €68m, its 13^th year in a row of profitability

• €4.25bn has already been paid to the Exchequer, including €350m during 2023, with the remaining c€1bn to be paid in 2024 and 2025

• €319m cash generated during 2023, bringing total cash generation from inception to end 2023 to €47.7bn

• NAMA taking over final remaining IBRC assets from IBRC Special Liquidators during 2025 and on schedule to complete its wind-down by December 2025

Wednesday 19 June 2024

The National Asset Management Agency (NAMA) has today published its Annual Report and Financial Statements for 2023.

The Agency is increasing its projected lifetime contribution to the Exchequer by €300m to €5.2bn, subject to market conditions, compromising a surplus of €4.8bn (up from previous projection of €4.5bn) and NAMA’s corporation tax payments to the State totalling more than €400m to date.

NAMA is also reporting an after-tax profit of €68m for 2023 – its 13th consecutive year of profitability. The profit reflects the ongoing reduction in the size of the NAMA loan portfolio, which stood at €449m at end 2023, approximately 1% of the €32bn paid by NAMA to acquire the loans on establishment.

Subject to market conditions, NAMA will make surplus transfer payments totalling c€1bn to the Exchequer over the remainder of 2024 and 2025.

Annual Report – key points

• During 2023, NAMA generated €319m in cash, including €271m realised from the sale of loans and property.
• Total cash generation since inception stood at €47.7bn at end 2023.
• €350m transferred to the Exchequer in surplus payments during 2023.
• After-tax profit of €68m for 2023
• NAMA has been debt free since redeeming the last of its €31.8bn debt in March 2020.

Residential Delivery

The report sets out NAMA’s new homes output to end-March 2024. Figures to end-May are outlined below:

• Between the start of 2014 and the end of May 2024, NAMA funded or facilitated the delivery of over 37,700 new homes.
• Of these 37,700 homes, over 14,000 were directly funded by NAMA, with the remainder delivered indirectly on sites for which NAMA had funded planning permission, enabling works, legal costs or holding costs before they were disposed of. NAMA’s residential delivery programme aims to strike an appropriate balance between direct and indirect delivery, de-risking a portion of the programme and delivering significant numbers of new units without putting taxpayer capital at risk.
• An additional 369 units are under construction.
• A further 6,800 units have been granted planning permission or are the subject of planning applications, for delivery after NAMA’s wind-down has taken place.

Dublin Docklands SDZ and social housing

The report also sets out information on NAMA’s work programme of regenerating the Dublin Docklands SDZ (Strategic Development Zone), which is materially complete:

NAMA-linked sites in the Docklands with 4.2 million sq. ft. of commercial space and 2,033 homes are now construction complete or sold. This regeneration will accommodate 20,000 office workers and homes for 5,000 people.

NAMA has invested in the region of €350m in the repair and purchase of homes for social housing which have been leased or sold to approved housing bodies and local authorities. By March 2024, the Agency had delivered 3,000 homes for social housing, exceeding the original target of 2,000 units by 50%.

It is estimated that over 8,000 people have been housed in social housing delivered by NAMA.

Plans to wind down NAMA by 2025 and arrangements to manage residual IBRC assets

NAMA is implementing its plan to wind down and conclude its work no later than end-December 2025. This plan includes the following measures:

• Continue deleveraging activities, including the intensive management of remaining loans and secured assets, in order to maximise disposal proceeds.
• Complete the delivery of the remaining NAMA-funded homes that are commercially viable on prevailing market terms.
• Asset manage key strategic residential development sites in preparation for their sale.
• Maximise the number of residential sites that are ready for future development through achievement of suitable planning permissions.
• Resolve remaining litigation cases insofar as possible.
• Complete the transfer the NARPS social housing portfolio to the Minister for Finance for onward transfer to the Land Development Agency (LDA).

The Minister for Finance recently announced that any remaining NAMA assets or activities will be transferred to a newly-established Resolution Unit within the National Treasury Management Agency (NTMA) at the end of 2025.

The Minister has also announced that NAMA will take over responsibility for any residual IBRC assets and liabilities from IBRC’s Special Liquidators during 2025, following the conclusion of the Special Liquidation process.

Key financial information:

• Total cash generated from 2010 to end-2023 was €47.7bn, including €41.1bn from asset disposals and €6.5bn from non-disposal income.
• The Agency’s €32bn deleveraging programme was 99% complete at end-2023, with the carrying value of debtor loans reducing to €449m.
• As at end March 2024, the loans of 98 debtors remained under NAMA management, down from an original 800 debtor connections comprising approximately 5,000 borrowers.

The Minister for Finance, Michael McGrath TD, said:

“The publication of the NAMA 2023 Annual Report records a thirteenth successive year of profit for NAMA and I welcome news announced today that NAMA’s overall projected lifetime surplus has increased, with €5.2 billion now expected to be returned to the Exchequer by the time NAMA concludes its work. This positive development is a clear reflection of the strong performance and success of NAMA over recent years, underpinned by the commitment, dedication and expertise of the Board and staff working at the Agency.

I am confident that NAMA will continue to deliver the best value from its remaining assets, working to maximise the return for the State whilst also implementing a phased and orderly wind-down of the Agency as it enters its final phase of work before ultimate conclusion by end-2025. I would like to take this opportunity to thank the CEO, the Chairperson, the Board and staff at NAMA for the hard work throughout 2023 and for continuing to successfully deliver on NAMA’s objectives, making an important contribution to the social and economic development of the State.”

NAMA Chief Executive Brendan McDonagh said:

“Despite a challenging property market globally and a much smaller portfolio, the strength of NAMA’s performance in 2023 has allowed us to increase our projected lifetime surplus by €300 million and we are now on course to deliver €5.2bn for the Exchequer.

Our key priority from here is to reduce our portfolio as much as possible through asset disposals, debtor exits and debt resolution, all the time remaining focused on maximising value for the State.

I thank the NAMA Chairman, the Board and the people throughout the Agency for the work they do in making the Agency a success.”

NAMA Chairman Aidan Williams said:

“The increased surplus we are announcing today says so much about the exceptional quality of the work carried out by my colleagues throughout the Agency and the Board, both past and present, over the past 15 years - and so much about their professionalism, their dedication and their public service.

As the Agency enters its final 18 months, we intend to keep delivering for the people of Ireland whom we serve, for our economy and for our society. We will maintain the same rigour and focus on resolving our remaining assets as we have displayed throughout NAMA’s lifetime.

I thank our Board, our management team under the Chief Executive, and everyone in NAMA for working so hard and so effectively to deliver this performance.”

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Notes to editors

• NAMA acquired loans for €31.8bn which were 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 an extra €5.6bn in State Aid to Participating Institutions.
• NAMA has completed the full repayment of the €31.8bn it borrowed to acquire these loans. It repaid the last of the €30.2bn Senior Debt included in this figure in October 2017, three years ahead of schedule, and repaid the last of the €1.6bn Subordinated Debt on the first call date for the Subordinated Debt in March 2020.

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