NAMA reports 2022 profit of €81m – on target to deliver c€5bn back to Exchequer

• Agency remains on course to deliver €4.9bn total contribution to the Exchequer over its lifetime (€4.5bn surplus plus €0.4bn corporation tax)

• €3.5bn cash dividends paid to Exchequer by end 2022, with an additional €0.35bn scheduled for 2023.

• 2022 is the 12^th year in a row in which NAMA reported a profit.

• €0.5bn cash generated during 2022, bringing total cash generation since inception to €47.4bn

• NAMA has now delivered close to 30,000 new homes, of which almost 14,000 were NAMA-funded; pipeline contains a further 850 units under construction or approved for funding.

• 99% of NAMA’s original interests in the Docklands SDZ, representing almost 4m square feet of commercial space and over 2,000 homes, have been completed or sold.

• NAMA’s €32bn deleveraging programme is over 98% complete, with the carrying value of remaining debtor loans standing at €0.5bn at end 2022.

Thursday 22 June 2023

The National Asset Management Agency (NAMA) has today published its Annual Report and Financial Statements for 2022.

NAMA is reporting an after-tax profit of €81 million for 2022 – its 12th consecutive year of profitability. The profit reflects the ongoing reduction in the size of the NAMA loan portfolio, which stood at €0.5bn at end 2022, less than 2% of the value of €32 billion paid by NAMA to acquire the loans on establishment.

The Agency remains on course to deliver its projected lifetime surplus of €4.5bn, subject to market conditions, in addition to NAMA’s corporation tax payments to the State totalling €422 million to date bringing the overall total to c€5 billion.

Subject to market conditions, NAMA will make surplus transfer payments totalling €350 million to the Exchequer over the remainder of 2023, which will bring the total paid to the Exchequer to €4.25bn (€3.85bn surplus transfers plus €422 million corporation tax).

Annual Report – key points

• During 2022, NAMA generated €492m in cash, including €404m realised from the sale of loans and property.
• Total cash generation since inception stood at €47.4bn at end 2022.
• €500m transferred to the Exchequer in surplus payments during 2022.
• 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 2023:

• Between the start of 2014 and the end of March 2023, NAMA funded or facilitated the delivery of close to 30,000 new homes.
• Of these 30,000 homes, close to 14,000 were directly funded by NAMA and close to 16,000 were 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 850 units are under construction or have funding approved in active developments.
• NAMA has identified scope to deliver approximately 17,000 additional new homes, chiefly post 2025 – but these homes can only be delivered if they are commercially viable, with the necessary supporting infrastructure put in place by other parties and planning permission obtained.

Dublin Docklands SDZ

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

• The last two major NAMA-linked projects – Bolands Quay and Exo – reached practical completion during 2022.
• 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.

Plans to wind down NAMA by 2025

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).

Key financial information:

• Total cash generated from 2010 to end-2022 was €47bn, including €40.4bn from asset disposals and €6.5bn from non-disposal income.
• The Agency’s €32bn deleveraging programme was over 98% complete at end-2022, with the carrying value of debtor loans reducing to €0.5bn.
• NAMA’s holdings of cash, cash equivalents and liquid assets stood at €0.5bn at end-2022.
• NAMA’s expected lifetime contribution to the Exchequer, between the projected surplus of €4.5bn and corporation tax payments to date of €422m, is €4.9bn.
• As at end March 2023, the loans of 126 debtors remained under NAMA management, down from an original 800 debtors; 55 debtors are actively engaging with NAMA, including 24 in support strategies and 31 subject to enforcement with receivers appointed. The remaining 71 debtors are being monitored under forbearance strategies or exit agreements.

Annual Report – other key points include:

• Social housing: NAMA has invested in the region of €350 million 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 2022, the Agency had delivered over 2,800 homes for social housing, exceeding the original target of 2,000 units by 40%.
• It is estimated that over 8,000 people have been housed in social housing delivered by NAMA.
• Poolbeg West: The Poolbeg West SDZ project, in which NAMA has a 20% shareholding, has obtained planning permission for 894 homes (including 223 social and affordable homes).
• Unfinished Housing Estates: all of the more than 300 unfinished estates to which NAMA had an exposure in 2010 have been resolved.

The Minister for Finance, Michael McGrath TD, said:

"I am pleased to welcome the publication of NAMA’s Annual Report 2022, which records a positive set of results for the agency once again. This report highlights the important contribution NAMA continues to make in challenging and uncertain market conditions.

During 2022, NAMA transferred €500m from its surplus to the Exchequer bringing the total surplus of cash transfers to date to €3.5 billion, with a further €1 billion surplus projected, subject to market conditions.

I would like to thank NAMA’s staff and its Board for their efforts in delivering this surplus and for their commitment and focus on delivering the best value from its remaining assets.”

NAMA Chief Executive Brendan McDonagh said:

“As we enter our final phase, we are focused on two overarching aims – maximising value and delivery from our remaining portfolio, and resolving our outstanding workstreams in an orderly and well-managed fashion.

Our 2022 profit shows our continued success in value maximisation against a backdrop of a loan portfolio that is now less than 2% of what we originally acquired.

After 12 years in a row of profitability, there is still a lot of work to do to get the most out of our remaining assets - but we will be as rigorous as ever in pursuing and collecting every available cent.

I thank the NAMA Chairman, the Board and the people working throughout the Agency for their unrelenting efforts in making NAMA’s success possible.”

NAMA Chairman Aidan Williams said:

“This was an excellent performance in a year when higher interest rates and economic uncertainty made for challenging conditions.

Despite these challenges, NAMA continued to generate profits, maximise value, deliver more new homes and complete what we started in our landmark Dublin Docklands project.

Our people deserve great credit for their perseverance, their resilience, their commercial judgement and their commitment to serving the State. 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.”

Issued on behalf of NAMA by

Gordon MRM

nama@gordonmrm.ie

David Clerkin Ray Gordon

Ph: 087 8301779 Ph: 087 2417373

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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