NAMA Raises Lifetime Profit Forecast to at Least $2.2 Billion

Aidan Crawley/Bloomberg

Ireland’s National Asset Management Agency, the country’s bad bank, raised its lifetime profit forecast for the second time in less than three months as commercial real estate loans accelerate as the economy recovers.

NAMA is now set to deliver at least a 2 billion-euro ($2.2 billion) profit before it is wound down, Chairman Frank Daly told a parliamentary committee meeting in Dublin on Wednesday. The agency in October raised its target to 1.75 billion euros from 1 billion euros.

Commentators that predicted an 8 billion-euro lifetime loss when NAMA was set up in 2009 “thankfully were well wide of the mark,” Daly said.

NAMA, which intends to wind up most of its business by the end of 2018, is benefiting from a surge in demand for Irish real estate as it sells loans tied to hotels, office blocks and golf courses. Investors from Blackstone Group LP to Cerberus Capital Management LP are buying billions of euros of debt from the agency as they wager on a recovery in property markets around Europe.

Daly forecast 2015 profit “well in excess of 1 billion euros,” more than double the 458 million euros NAMA reported for last year.

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