Emer Higgins (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

164. To ask the Minister for Finance the estimated level of profits NAMA is expected to generate. [47608/21]

Emer Higgins (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

165. To ask the Minister for Finance if the projected profits of NAMA will exceed its subordinated debt. [47609/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 164 and 165 together.

NAMA originally issued €1.593 billion in subordinated debt in consideration for 5% of the loans it acquired from the participating institutions. Payment of interest and ultimate redemption of this debt was subject to NAMA’s financial performance. NAMA’s profits have substantially exceeded the subordinated debt issued, with NAMA reporting retained earnings of €4.4 billion at end-2019. This enabled NAMA to fully redeem all outstanding subordinated debt by the first call date of March 2020, noting NAMA repurchased €529 million of the debt during 2018.

NAMA has consistently generated an annual profit since 2011. In 2020, NAMA’s profit, after tax, was €192 million. In terms of its overall contribution to the Exchequer on the completion of the Agency’s work, it is projected that NAMA will generate a lifetime surplus of €4.25 billion. Coupled with corporation tax paid of €400m, NAMA’s total dividend to the State from its operations will be of the order of €4.65bn of which €3.4 billion will be paid by end 2021.