Nama reports €222m net profit

Nama has reported a net profit of €222.4m for the first half of this year, an increase of 6.5% on the same period last year.

According to the agency’s latest quarterly report published yesterday, net profit for the second quarter of the year amounted to just under €89.3m, down from €117.7m for the corresponding period last year.

The update also revealed that Nama has approved working capital of €1.34bn up to the end of last June, of which €863m had been drawn down.

The agency, up to the middle of this year, had generated €8.1bn, in cash, from borrowers since its inception.

Pre-tax profits for the second quarter of the year were €163.4m, and €296.5m for the first half. Operating profit, before impairment charges on loans and receivables, amounted to €425m for the six months.

Nama also, yesterday, published its 2013 annual statement; which acts as a blueprint for the agency’s plans for the next calendar year. It is required to submit this plan to the Department of Finance three months prior to the financial year to which it refers.

In this, the agency said it will continue to reduce its indebtedness through a phased and orderly disposal of assets. It added that its vendor finance programme is likely to play a bigger part in commercial property transactions in 2013, saying that €2bn is likely to be made available in the form of vendor finance.

“There is significant investor interest in Nama’s portfolio but the availability and cost of finance are major constraints, both in Ireland and internationally,” the agency said.

“Nama is keen to attract international capital interested in acquiring loans or property assets under its control and under the control of its debtors and receivers,” it added.

The report also said that one of Nama’s key objectives remains to redeem all senior bonds used to buy bad bank loans, by 2020, adding that it remains on course to hit that target.

To that end, the agency’s immediate aim is to repay €7.5bn of the €31.5bn in senior bonds used to acquire loans by the end of 2013. To date, €3.25bn has been repaid.

“Progress towards this target is monitored, on a quarterly basis, by the EU/IMF/ECB troika and the board is confident that it will be met,” Nama said.