The National Asset Management Agency (NAMA) is to repay €1.5 billion of its debt, bringing the total debt redeemed by the agency to €6.25 billion.
NAMA says that leaves it on-course to achieve its target of repaying 25% of its debt - or €7.5 billion - by the end of this year.
Its annual report for 2012 shows that after impairment, tax and dividend, it recorded a profit of €228 million. That figure is down slightly on €241 million profit on the previous year.
Speaking today Chief Executive Brendan McDonagh said "2012 was a year of further substantial progress for NAMA. We reported a profit for the taxpayer for the second year in a row and we intend to continue on this path".
"We have generated more than €12 billion in cash from April 2010 to end May 2013 and I wish to pay particular tribute to our staff, Board and Committees for all their hard work in difficult circumstances in recovering that huge amount to date for the taxpayer. We are using this cash to pay down NAMA's debt on schedule and, where appropriate, to provide funding to protect and enhance the value of our assets, so we can maximise the amount that we ultimately recover for the taxpayer" he added.
While Chairman Frank Daly added "It's a story of taking responsibility, resilience and, increasingly, of reinvigoration. Our announcement today that we are redeeming a further €1.5 billion in Senior Bonds will further reinforce that positive view of Ireland."
Other key points from the annual report include:
- Asset sales completed to date of €7.9 billion and non-disposal receipts of €4.1 billion
- Cash balances and liquid assets of €4.4 billion
- €1.8 billion advances approved to date, including over €800 million for projects in Ireland
- 26,000 credit decisions processed to date; average turnaround time now 5 days
- Extension of vendor finance and 80:20 Deferred Payment Initiative to support recovery in the Irish property market
- Over 4,000 residential properties identified to local authorities for potential social housing use
- Significant progress in remediating unfinished housing developments - €4m approved to date
- Approval of rent reductions with an annual value in excess of €14 million to help struggling Irish businesses and support jobs
- Total Senior debt bond redemption is €6.25 billion, with a final €1.25 billion to be redeemed to meet our end 2013 target
- Significant preparatory work underway in NAMA to deal with potential acquisition of IBRC Loan book of par debt €26 billion
- NAMA supports debtors which directly employ 10,000 people
The document also shows that from inception to date, NAMA has generated €12 billion in cash, including €7.9 billion from asset disposals. While €1.4 billion of this has been generated in the first 5 months of 2013.
It says administration costs fell by 7% in 2012 and also that the cost/income ratio of NAMA is 3% which compares "very favourably" with the international average which is of the order of 6%.
