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NAMA set to make €3 billion profit - Bloomberg

In June NAMA said it may beat its €2.3 billion surplus forecast if growth held up, without providing more details
In June NAMA said it may beat its €2.3 billion surplus forecast if growth held up, without providing more details

The National Asset Management Agency, which took over billions of euro of bad bank loans following the financial crisis, will probably make a lifetime profit of about €3 billion, according to Bloomberg – which cites an unnamed source.

In June NAMA said it may beat its €2.3 billion surplus forecast if growth held up, without providing more details.

The agency’s remaining loans are valued at about €6 billion, said the source – who declined to be
identified because the figure is not yet public.

NAMA’s current projection is that it may deliver the €2.3 billion profit subject to market conditions, a spokesman for the agency said.

The Government set up NAMA in 2009 to purge the country’s banks of more than €70 billion of risky
commercial property loans.

Davy said last month NAMA is “highly likely” to raise surplus guidance before the end of year, citing a meeting with executives, with Brexit set to boost the value of Irish property.

“The fact that Irish 10-year bond yields have declined in the aftermath of the Brexit referendum has actually made investment in Irish commercial real estate more attractive,” broker CBRE said in a report this month.

“If anything, it has boosted the volume of enquiries for prime real estate.”

The agency has become embroiled in controversy in recent weeks, with the financial watchdog – the Comptroller and Auditor General - concluding it lost as much as £190m when it sold its
Northern Irish loan portfolio in 2014.

NAMA “categorically rejected the key conclusions reached” in the report.