DUBAI — Islamic mortgage provider Tamweel said on Sunday its third-quarter profit soared 114 per cent as income earned from Islamic financing and investing assets grew while impairment provisions dropped.
Net income for the period surged to Dh15.7 million from Dh7.3 million a year earlier, the mortgage company said in a statement. Impairment provisions narrowed to Dh13.5 million from Dh46.6 million, while income from Islamic financing rose to Dh136.6 million from Dh128.9 million.
However, for the nine months ending September 30, 2011, Tamweel reported a net profit of Dh0.7 million, an increase of 295 per cent compared to Dh17.9 million in the same period last year, “demonstrating continued profitability during a period of increasing stability in the domestic property market,” the company said in a statement.
“These positive results highlight our ability to achieve consistent profitability by providing products and services tailored to meet the evolving needs of homeowners,” acting chief executive officer Varun Sood said.
Tamweel resumed lending in November last year after Dubai Islamic Bank raised its stake in the company to 57 per cent from 21 per cent to help boost the mortgage market. The company has hired three banks to raise at least $300 million to $500 million from the sale of Islamic bonds this quarter, Sood said on September 27.
“The sukuk could be priced in dollars or Malaysian ringgit. We are keeping multiple options open with conditions in the market being what they are. There is demand for Islamic paper so that is basically what we are banking on,” Sood said.
“Despite volatile conditions globally, the UAE continues to experience strong growth, which is reflected in the increasing stability of the country’s property sector. As this important sector continues its sustained recovery, Tamweel will remain at the forefront of home finance by providing innovative home finance solutions,” said Abdulla Ali Al Hamli, Chairman of Tamweel.
Tamweel’s shares dropped 0.9 per cent to close at 69.1 fils in Dubai on Sunday before the results were announced, giving the company a market value of Dh691 million.
Tamweel resumed trading on the Dubai Financial Market after a two and a half year absence in May. The company’s share trading was suspended in late 2008 when talks over a planned merger with its largest competitor, Amlak Finance, failed to materialise and Dubai Islamic Bank took full control of the firm.