Brendan Burgess
Founder
- Messages
- 52,118
[broken link removed] 151 pages
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[broken link removed] The post below is my interpretation of the Key Figures
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NAMA’s Operating Profit for 2010 |€305m
NAMA’s Operating Profit for Q1 2011|€91m
Impairment provisions to end 2010|€1.5 b
Value of loans acquired by NAMA to date |€72 billion
Value of liquid securities made available to the banks|€30.5 billion
Value of asset sales agreed by NAMA to date|€3.9 billion
Number of receivers appointed by NAMA |73
Number of business plans reviewed /under review |151 .
Interest income received (mainly on debtor loans and derivatives) |525
Interest expense (mainly on NAMA bonds and on hedge transactions)|(179)
Net interest income|346
Gains/(losses) on derivatives| (17)
Administration expenses|(46)
Foreign exchange gains|22
Operating profit before impairment|305 Impairment charges|(1,485) Basis for impairment charge
NAMA is required to report its results in accordance with International Financial Reporting Standards (IFRS).
Under IFRS rules, potential losses must be recognised immediately. By contrast, in cases where NAMA’s projections indicate that it will realise more than the carrying value of the loans (i.e. an expectation of profit), it is precluded by accounting rules from recognising such potential gains unless and until they are realised.
The fact that an impairment provision is taken at end-2010 does not necessarily mean that such losses will ever materialise.
More information on the estimation of the impairment provision is provided in the Annual Report.
Acquisition
In 2010, NAMA acquired 11,500 loans of 850 debtors with nominal loan balances of €71.2 billion from the five participating institutions. It paid a consideration of €30.2 billion, a discount of 58%.
It is estimated that 61% of the property assets securing NAMA loans are based in Ireland, 32% in UK and Northern Ireland and 7% in the rest of the world. An estimated 59% of the assets comprise investment property and 41% comprise land or property under development.
12 NAMA debtors have par debt in excess of €1 billion each. This does not include any debt they may have with non-NAMA institutions.
Debtor engagement
To date, a total of 151 draft business plans have been received from the 177 major debtors whose debt will be directly managed by NAMA. The table below summarises the current status of these debtors’ business plans:
Number of Debtors
Decisions made by NAMA and communicated to debtor[FONT="][1][/FONT]|90
Debtor business plans currently under review|61
Debtor business plans awaited[FONT="][2][/FONT]|26
Total|177 [FONT="][1][/FONT] This represents 77% (by acquisition value) of debtors directly managed by NAMA.
[FONT="][2][/FONT] Up to 12 additional debtor business plans may be submitted following completion of loan acquisition.
[broken link removed]
[broken link removed] The post below is my interpretation of the Key Figures
[broken link removed]
Interest expense (mainly on NAMA bonds and on hedge transactions)|(179)
Net interest income|346
Gains/(losses) on derivatives| (17)
Administration expenses|(46)
Foreign exchange gains|22
Operating profit before impairment|305 Impairment charges|(1,485)
NAMA is required to report its results in accordance with International Financial Reporting Standards (IFRS).
Under IFRS rules, potential losses must be recognised immediately. By contrast, in cases where NAMA’s projections indicate that it will realise more than the carrying value of the loans (i.e. an expectation of profit), it is precluded by accounting rules from recognising such potential gains unless and until they are realised.
The fact that an impairment provision is taken at end-2010 does not necessarily mean that such losses will ever materialise.
More information on the estimation of the impairment provision is provided in the Annual Report.
Acquisition
In 2010, NAMA acquired 11,500 loans of 850 debtors with nominal loan balances of €71.2 billion from the five participating institutions. It paid a consideration of €30.2 billion, a discount of 58%.
It is estimated that 61% of the property assets securing NAMA loans are based in Ireland, 32% in UK and Northern Ireland and 7% in the rest of the world. An estimated 59% of the assets comprise investment property and 41% comprise land or property under development.
12 NAMA debtors have par debt in excess of €1 billion each. This does not include any debt they may have with non-NAMA institutions.
Debtor engagement
To date, a total of 151 draft business plans have been received from the 177 major debtors whose debt will be directly managed by NAMA. The table below summarises the current status of these debtors’ business plans:
Number of Debtors
[FONT="][2][/FONT] Up to 12 additional debtor business plans may be submitted following completion of loan acquisition.