THE NATIONAL ASSET MANAGEMENT AGENCY has recorded an operating profit of €6m in the second quarter of 2010.

In its half-year financial report issued today, NAMA showed an accumulated loss of €1m for the year to date, with the second quarter’s profits almost entirely offsetting the €7m in losses accrued in the first quarter.

These first quarter losses included significant setup costs in the establishment of the agency, which took in its first tranche of loans on March 30.

The report also showed that the agency – set up to acquire loans with values over €5m from Irish banks in return for a significant ‘haircut’ or discount – generated a positive net cashflow of €130m in its operating activities from the second quarter in the repayment of loans it had acquired before that time.

Business and Finance magazine reports that the NAMA board has set itself a target of 2013 to have repaid 25% of its borrower debt.

The figures have been welcomed by finance minister Brian Lenihan, who said the agency was performing well, with “transparency and sound governance”.

“The reports published today illustrate how far the Agency has come in a relatively short time,” the minister said.

The Comptroller and Auditor General, meanwhile, has published his initial report into the agency’s operations, which outlined that the total amount paid by NAMA in acquiring the first tranche – €7.7bn – was a full €1.7bn higher than their market value.

RTÉ News reported that such a value was placed on the loans by NAMA because it had taken a slightly more long-term view of the assets underwriting the loans.

The €6bn value suggested by the C&AG would have translated into a 61% discount on the loans, which had an original value of €15.3bn. The €7.7bn paid was equivalent to an average discount of 50%.