Nama generated €319m in cash from operations in 2023

The agency said it would post a profit for 2023. Picture: Sasko Lazarov/RollingNews.ie

The National Asset Management Agency (Nama) generated €319m in cash from its operations over the course of 2023 and will report a profit for the 13th year in a row as it edges closer to winding down.

In December, the agency transferred €350m from its lifetime surplus to the exchequer, with the value of all transfers now reaching €3.85bn. A further €400m has been so far paid through corporation tax.

Nama is due to wind down operations at the end of 2025, at which point its contributions to the exchequer are expected to total €4.9bn. Further surplus transfers totalling €650m are expected between this year and next.

According to its year-end review for 2023, Nama operations generated €319m in cash, bringing its total cash generation since inception in 2009 to €47.7bn.

The review did not say how much profit it made throughout the entire year but said it would report a profit. The agency reported profit of €26m for the first six months of last year.

Nama chief executive Brendan McDonagh said despite the challenging market conditions the agency continues to generate cash “from a much reduced portfolio”.

“During 2023, Nama took steps to prepare for the wind-down of its operations, yet we continue to add value for the State and generate profits from our work,” he said.

New homes

In addition to its strong cash generation in 2023, the agency’s residential delivery programme delivered 420 new homes on Nama-secured sites during the year. A further 440 homes are currently under construction or with funding approved, which are expected to be delivered over the next two years.

So far, about 34,000 homes have been funded and facilitated by Nama between 2014 and end-2023. This was done through either direct Nama funding, or sites sold by Nama which benefited from agency investment.

Nama has also to date provided 2,985 homes for social housing to local authorities and approved housing bodies.

There is also capacity for 15,000 additional residential units on Nama sites as of the end of 2023, but the majority of these can only be delivered if appropriate zoning and planning permission is secured, and necessary infrastructure put in place over the coming years.

Nama chairman Aidan Williams said the agency’s objective for the remainder of its lifetime was to deliver the “largest return possible to the taxpayer”, which includes focused asset management of residential sites in order to “maximise the potential for housing delivery post-2025”.