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Tamweel Q3 net profit more than doubles

Dubai, October 23, 2011

Mortgage lender Tamweel's third-quarter net profit more than doubled, as income earned from Islamic financing and investing assets grew while impairment provisions dropped.

The Islamic lender, whose shares resumed trading in May after being suspended since 2008, posted a net profit of Dh15.7 million ($4.2million) compared with Dh7.3 million during the same period in 2010, the company said in a statement to the Dubai bourse on Sunday.

Impairment provisions for the quarter fell to Dh13.5 million compared with Dh46.6 million for the year-ago period.

Tamweel's income from Islamic financing and investing assets grew to Dh136.6 million compared with Dh129 million in the same period in 2010.

Tamweel, which is majority-owned by Islamic lender Dubai Islamic Bank , resumed mortgage lending earlier this year after discontinuing all lending following a property market collapse in Dubai.

Dubai Islamic Bank raised its stake in Tamweel to 57.33 per cent last September, effectively rendering the mortgage lender a subsidiary of the bank.

The United Arab Emirates government said in November 2008 it aimed to merge Tamweel and rival Amlak after the collapse of Dubai's real estate sector pushed both Islamic lenders deep into the red. 

That plan was effectively scrapped after the DIB deal with Tamweel and resolution for Amlak has yet to be announced.

Tamweel shares closed 0.9 per cent higher on the Dubai bourse prior to the release of the results. – Reuters

Tags: Dubai | Tamweel | Net Profit | Third quarter |

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