Amlak Q1 loss soars on higher provisions
Dubai, May 12, 2011
Dubai-based lender Amlak said on Thursday net loss for the first-quarter soared hurt by higher provisions and a sharp drop in revenues.
The Islamic mortgage lender made a net loss of Dh53.9 million ($14.67 million) for the quarter, compared with a loss of Dh3.1 million during the same period in 2010, it said in a statement to the Dubai bourse.
Revenue from financing and investing activity fell by 17 per cent during the quarter, the company said, due to no new business over the past two years, continuing into 2011.
The company took impairments on Islamic financing and investment assets of Dh58.4 million in the quarter.
Amlak's total assets in the quarter stood at Dh13 billion, falling from Dh13.9 billion in the year-before period, due to overall effect of decreasing mortgage portfolio.
The United Arab Emirates government suspended trading of Amlak along with rival Tamweel in November 2008 amid a liquidity crunch and announced intentions to merge the two Islamic lenders.
Tamweel resumed trading earlier this week. – Reuters