NAMA publishes report and accounts for Q3,2011

Yes these are four months out of date, but today’s publication of the NAMA management accounts for the three months ending 30th September 2011 have actually been published in record time. NAMA handed over the accounts on 9th December, 2011 well before the deadline of 31st December 2011 specified in the NAMA Act, and the accounts have today been approved by the Department of Finance, though why there should be any delay, let alone a seven week delay – is still not clear to me.

The report is here. The accounts are here.There will be summary analysis here later with a detailed review tomorrow.  This is what NAMA wants you to know about the accounts [with comments added at this end]- not meaning to dwell on the negative but as has been frequently commented upon here, NAMA is running out of performing loans as it sells the “low-lying fruit” – see the last point (5) below:

“for the quarter ending 30th September 2011 the main points are:

(1) NAMA generated over €1.4 billion net cash from operating activities during the quarter, driven by cash receipts from debtors of €1.8 billion. [this €1.8bn comprises loan repayments and interest, and disposal of loans/properties – it is suspected that €800m of these receipts will relate to the sale of the Maybourne loans which was announced as a done transaction on 29th September 2011. NAMA is still obstructing any meaningful analysis of the cash receipts between interest, loan repayment and disposal]

(2) Cash outflows included €500 million in net debt repayment (bringing the total amount of debts repaid by NAMA since inception to €1.6 billion). Other outflows included €199 million in interest [€199m], expenses [€41m] and other funding costs and €71 million advanced to debtors to enable them to complete projects and to fund working capital [total of new cash advances to debtors is €477m and some €900m has been approved].

(3) Profit during the third quarter was €317 million. Cumulative profit for the first nine months of 2011 was €526 million. [This is profit before impairment charges. NAMA’s latest forecast is that it makes  a €600m profit before impairment for 2011 and that would indeed seem feasible as it needs only book €74m of profit in Q4,2011 to achieve that. What will the impairment charge be for 2011? I would estimate €600m+, leading to an overall loss again for 2011]

(4) NAMA had total cash balances of €1.9 billion at the end of September. [This had grown to €3.8bn by the end of December 2011]

(5) The percentage of performing loans in the portfolio at the end of September was 21%, down from 23% in the previous quarter. This was largely due to the disposal of a number of income-generating assets.

NAMA also had a very strong final quarter in 2011 and ended the year with €3.8 billion of liquidity.”