NAMA posts €26m after-tax profit as agency prepares to wind down operations
The agency also reported a transfer of €3.9bn in cash to the State, €3.5bn of which was from its lifetime surplus and over €400m in corporation tax payments. Photo: Sam Boal/Rollingnews.ie
The National Asset Management Agency (NAMA) posted an after-tax profit of €26m in the first six months of 2023, falling by more than 53% as the agency prepares to wind down operations by 2025.
Down from €56m in the same period in 2022, the agency recorded €121m in total cash generated for the first six months of this year, made through disposals of assets and loans as well as the receipt of non-disposal income, however, the figure was down significantly from €492m generated in the same period last year.
Broken down, NAMA said it generated €67m in cash by the end of the second quarter, recording an additional €47m in cash in the third quarter ending on the 22nd of September, bringing its total cash generation since its inception to €47.6bn.
The agency also reported a transfer of €3.9bn in cash to the State, €3.5bn of which was from its lifetime surplus and over €400m in corporation tax payments.
Its lifetime contribution to the Exchequer, between the projected surplus of €4.5bn and projected total tax payments is expected to be in the region of €4.9bn, with the agency intending to make surplus transfer payments totalling €350m to the Exchequer over the remainder of 2023, bringing the total paid to €4.25bn.
Since its founding in 2009, NAMA has funded just under 32,700 new homes, 30,545 of which it says were delivered since 2015.
Of these, 14,090 were directly funded by NAMA, while a further 18,601 were delivered on former NAMA-secured sites. So far this year, 294 residential units have been directly delivered.
Currently, 445 units are under construction and 155 units have conditional funding committed. However, as commercial viability continues to be a challenge, the agency has warned that funding may not be advanced for all these units.
NAMA’s remaining secured landbank is estimated to have the potential to deliver circa 14,710 new homes in the medium to long term.
In June last year, NAMA announced that it was planning to wind down its work by December 2025, and would transfer the NARPS social housing portfolio to the Land Development Agency (LDA).
Up to June 2023, NAMA had identified 7,653 residential units as potentially suitable for social housing from its secured portfolio and offered these to local authorities/approved housing bodies. However, the agency said many "were not required at the time, deemed unsuitable or unviable, subsequently became unavailable or are still under consideration."
