Accumulated losses in Clearstorm Ltd, a subsidiary of London-based Ballymore Properties, were reduced in its financial year to March 31st last to £106 million (€126 million) from £113 million for the same period the previous year.

The accounts show the company, once a joint venture between Ballymore and Irish Nationwide, had assets of £144 million. However, the company said that as its net liabilities were £106 million, it was "dependent on funds provided to it by the National Asset Management Agency and its parent company Ballymore Properties".

Profit for the year after tax for Clearstorm was £7.1 million – a turnaround from a loss of £74.1 million the previous year. During its financial year, Clearstorm, along with its parent company Ballymore Properties, “finalised the reorganisation of its borrowing arrangements with Nama”.

Irish Nationwide’s exposure to Clearstorm is seen as an early warning sign it was out of control. In March 2005, the Financial Regulator demanded 100 per cent of the exposure to Clearstorm be included in its exposure limits.