IRELAND’S SO-CALLED BAD bank has today reported its first yearly profit.
The National Asset Management Agency recorded a profit of €247 million after tax and impairment charges in 2011, compared to a €1.18 billion loss the year previous.
The agency also said it made a €1.28 billion operating profit before loan impairment charges were accounted for. In 2010, the corresponding figure was significantly lower at €305 million.
Chief executive Brendan McDonagh said the year was one of “great progress” for NAMA as it made a profit for the taxpayer.
He said the focus has now shifted to generating the best possible return from loans acquired from participating banks. “The task before us is significant but I am optimistic that NAMA will succeed in doing the job set out for it by the Oireachtas.”
NAMA said it maintains a prudent and conservative approach to impairments and income recognition. The total impairment charge has been about 9 per cent of its overall loan book.
The impairment charge followed a rigorous review of expected cashflows from loans held by NAMA-managed debtors, which was also subject to independent scrutiny by external advisors and the Comptroller & Auditor General. Loans that are managed by participating institutions on the Agency’s behalf were subjected to a collective assessment based on evidence of impairment emerging from the largest cashflows in this part of the portfolio.
Key figures from today’s financial statements:
Commenting on the results, chairman Frank Daly said NAMA is committed to supporting initiatives “for the common good”, such as social housing, making properties available for sports and community groups and unfinished estates and rent abatements.
He added that NAMA’s main objective to get the best possible outcome for taxpayers “permeates every single decision we make”.
The annual report has also provided a breakdown of where NAMA’s assets are situated:
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