The National Asset Management Agency (Nama), under the leadership of CEO Brendan McDonagh, announced on Thursday that it had generated a profit of €81m in the previous year. Nama remains on track to contribute nearly €5bn to the Exchequer by its scheduled wind-down in 2025. However, only €350m of this amount is expected to be paid this year due to the decline in the agency’s asset base and the resulting decrease in transaction-generated cash flow. As of now, Nama holds less than €500m in assets, having realized cash returns of €47.4bn to date.
CEO Brendan McDonagh emphasized the focus of Nama’s final phase, which entails maximizing value from the remaining portfolio and resolving outstanding workstreams in an orderly manner. Despite the loan portfolio now representing less than 2% of its original size, McDonagh acknowledged the significant amount of work required to extract the maximum value from the remaining assets and collect as much as possible within the next two years.
According to Nama’s annual report, its deleveraging program was 98% complete by the end of 2022. Debtor loans on the agency’s books have decreased from €32bn at the beginning of its operations to a mere €500m today. As of March 2023, Nama manages the loans of 126 debtors, down from its initial 800 in 2009. Out of this current number, 55 debtors are actively engaged with the agency, with over half of them subject to enforcement where receivers have been appointed to manage their assets. The remaining 71 debtors are being monitored under forbearance strategies or exit agreements.
While Nama continues to prioritize loan management and asset disposal, it has also directed its attention to housing provision in recent years. The agency has invested €350m in social housing, either through renovations or acquisitions, which has then been leased or sold to approved housing bodies and local authorities. By the end of last year, Nama had delivered 2,800 social housing units, surpassing its original target of 2,000 by 40%. Additionally, Nama holds a 20% shareholding in the Poolbeg West SDZ, alongside a Johnny Ronan investment vehicle. Unfortunately, recent development plans for a portion of the site have faced setbacks due to planning refusals.
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