Nama interest payouts to boost banks

AIB’s capital position could be boosted by roughly €160m following Nama’s decision to pay interest on its subordinated bonds.

Moreover, the Nama move will increase AIB’s full-year revenue by roughly €25m and Bank of Ireland by €15m, according to Merrion Stockbroker analyst, Ciaran Callaghan.

When Nama was set up in 2009 it issued roughly €30bn in senior bonds and €1.593bn in subordinated bonds for €74bn of development loans.