The National Asset Management Agency has posted a profit of €118m in its account for the second quarter, published today.
Ireland’s bad bank has now made a cumulative profit for the first six months of 2011 of €209m. However, this excludes impairments to property loans Nama has spent €31.7bn purchasing from Ireland’s banks.
Nama CEO Brendan McDonagh has previously indicated that he expects the agency to suffer an impairment charge for 2011, but this is only calculated once a year so will be included in account for the final quarter.
The percentage of performing loans in the portfolio at the end of June was unchanged at 23%.
The agency generated €828m net cash from its operating activities in the second quarter, primarily due to receipts from debtors totalling €874m and derivative inflows of €51m.
It paid out €75m to debtors to enable them to complete projects and to fund working capital during the period.
Nama chairman Frank Daly said that the accounts “reflected the solid progress being made by the agency”.
He added that after the end of the quarter there had been two notable developments, including the acquisition of the last remaining loans by the agency in October.
The nominal value of the last tranche of loans was €1.9bn. As a result, Nama has now completed its acquisition of loans from the five participating institutions.
Loan balances totalling €74.2bn have been acquired since the first tranche of loan transfers in March 2010 for €31.7bn.
It also said that as at the end of October, Nama had reviewed 170 business plans of the 188 debtors whose loans it manages directly – these represent 94% (by acquisition cost) of debtor loans under direct NAMA management.
In addition, significant progress has been made on the review of business plans of more than 600 debtors whose loans are being managed by participating institutions under delegated authority from Nama.
Overall, Nama expects that it will have reviewed 90% (by acquisition value) of debtor business plans by the end of 2011.
bridget.oconnell@estatesgazette.com
