NAMA makes profit of €6 million during Q2 of 2010

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The NAMA Quarterly report for the second quarter of 2010, published today, reports that the NAMA Group made a profit of €6 million. However for the first half of 2010, Nama made a loss of €1m due to a cost of €7m associated with costs of setting up NAMA.

The reports are available now from http://www.nama.ie/

By the 30th of June, NAMA had issued €8.1 billion in NAMA Government Guaranteed Floating Rate Notes and €425 million in NAMA Callable Perpetual Subordinated Bonds as consideration for eligible assets acquired from the five participating institutions. This represents an injection of €8.5 billion of liquidity into the Irish banking syste
- Part of NAMA Report.

Brian Lenihan has welcomed the results, saying that NAMA is "functioning well".

“I welcome the €6 million profit earned by NAMA in the second quarter of 2010. I am pleased to say that NAMA is functioning well, with transparency and sound governance. The reports published today illustrate how far the Agency has come in a relatively short time.”

NAMA will manage the loans of the largest 150 debtors directly and will delegate the management of another 700 debtors to the participating institutions, within tight NAMA oversight conditions.
- Brian Lenihan TD, Minister for Finance

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Isnt the profit just down to property sold in the UK?

I doubt they have made any profits from the bulk of their portfolio which is Irish property.
 

LgCastell

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even if it is off the english properties doesnt such profits mean that if NAMA are making such profits it means that they have discounted too much off the banks which means that the banks will need more capital anyway so then the money made from NAMA is just goin in their anyway?

that was the argument made by the indo about the 90m profit made on one sale of land
 

Libero

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:shock2:

How can profits from land sales, plus interest income, come close to outweighing the costs of finance that have been racking up since the date of loan acquisitions?

If the claim in that headline and press release is not supported by proper, honest cash accounting, Ireland's credibility will sink further.
 

Congalltee

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Will this transparent organisiation reveal its gross profit and tell us it's administrative and professional fees, as well costs to banks which tbd State own or control?
 

MattM

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:shock2:

How can any profits from land sales come close to outweighing the costs of finance that have been racking up since the date of loan acquisitions?

If the claim in that headline and press release is not supported by proper, honest cash accounting, Ireland's credibility will sink further.
It can't go much lower, can it?
 
D

Deleted member 17573

even if it is off the english properties doesnt such profits mean that if NAMA are making such profits it means that they have discounted too much off the banks which means that the banks will need more capital anyway so then the money made from NAMA is just goin in their anyway? that was the argument made by the indo about the 90m profit made on one sale of land
Yes - but it means that the taxpayer gets a bigger chunk of the banks for the same overall contribution.
 

blacbloc

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Quite frankly, I don't believe a word of it. Some positive spin in advance of the budget - cue Lenihan endlessly claiming, yet again, 'we are turning the corner'.
 

Holy Cow

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Gross profit or net profit?
 

HarshBuzz

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Yes - but it means that the taxpayer gets a bigger chunk of the banks for the same overall contribution.
100% of nothing is still nothing
 

Holy Cow

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Considering the amount of time and cash invested into this project this is an awful return.

Then again, this is coming to a man who is forever turning corners so he is more than likely to be so dizzy he has no idea what he is reading.

Really, its time for him to exit stage left.
 
M

MrFunkyBoogaloo

So NAMA makes a loss and the Liar Lenihan spins it as making a profit. :roll: I'm not surprised. The sheeple will probably still like to see that cretin as Taoiseach?!?!?!?
 

Social Conscience

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I wonder how much of taxpayers money is been spent on the goverment's spin merchants because Lenihan's "functioning well" statement is a classic piece of hyperbole.
 

Cassandra Syndrome

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Its just ink on paper. Income from interest minus direct expenses for those lucky pen pushers involved. Easy to derive a profit from that. Check the accounts to see if there are any writeoffs or appropriate mark to real market depreciation. Bet you its just administration expenses they have deducted. All the properties are still in at 2006 prices no doubt.
 

shutuplaura

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The cost of Irish state borrowing has been driven up by Nama so while it may have made a profit, or at least 'only' lost 1mm, the state is almost certainly not benefiting from it financially, nor will it any time soon (unfortunately).

A poster has already made this point but it might be helpful to reiterate it.
 

HarshBuzz

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Are you suggesting that Bank of Ireland will never again be worth anything?
if you accurately mark to market its loan book and discount its cash flows out from right now, yes, BoI is worth less than zero

after the government throws in x billion more in further recapitalisations, then yes, it will undubtedly return to profit some nameless day in the future

still doesn't make it a 'good investment'
 

Holy Cow

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This "good news" story means the October tax numbers due out later must be awful
 
D

Deleted member 17573

Its just ink on paper. Income from interest minus direct expenses for those lucky pen pushers involved. Easy to derive a profit from that. Check the accounts to see if there are any writeoffs or appropriate mark to real market depreciation. Bet you its just administration expenses they have deducted. All the properties are still in at 2006 prices no doubt.
Are you suggesting that the assets are not on the books at the prices agreed after the haircut was applied? That NAMA bought them at discounted prices and then jacked up the prices back to boomtime levels?
 


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