11.35 PM Thursday, 28 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:57 06:11 12:27 15:53 18:37 19:51
28 March 2024

DIB bought 339.3m of its shares: Tamweel

DIB aims to increase the number of branches in the UAE to 74 from 66 by the end of this year. (FILE)

Published
By Reuters

Islamic mortgage lender Tamweel said on Sunday Dubai Islamic Bank (DIB) had bought 339.3 million shares of Tamweel, from Dubai Capital Group, Istithmar World and Dubai Financial Market.

DIB said in September it raised its stake in the Islamic firm to 57.33 per cent, becoming the majority shareholder of the company, in a move that is expected to help revive lending in Dubai's battered property market.

Dubai Islamic bought on November 4 around 88 million shares from Dubai Capital Group, 208.8 million from Istithmar and around 42 million from Dubai Financial Market, Tamweel said in a statement on the bourse website.

A long-planned merger between Tamweel and rival Islamic lender Amlak has likely been scrapped, Tamweel's chairman said in a television interview in October.

Dubai Islamic Bank (DIB) reported on Saturday a 10 per cent drop in third-quarter net profit from a year earlier, as conditions remained tough for the financial sector.

It also said it aimed to expand its retail branch network by the end of the year.

The bank, Dubai's third-largest bank by market value, reported a net profit of Dh270 million ($73.53m) for the three months ending September 30, it said in a statement, compared to a Dh300.4m profit for the third quarter of 2009.

The bank also said it took provisions of Dh124m in the third quarter of 2010, bringing its total provisioning for the first nine months of the year to Dh444m.

The bank's total assets as of September 30 stood at Dh81.8 billion, down from Dh84.3bn at December 31, 2009.

"Dubai Islamic Bank continues to adopt a conservative approach to financing and provisioning," said Chairman Mohammed Al Shaibani in the statement.

DIB in September raised its stake in Islamic mortgage firm Tamweel to 57.33 per cent, becoming the majority shareholder of the company. The move is expected to help revive lending in Dubai's battered property market.

"Upon the successful completion of the contractual arrangements with major shareholders, the bank will have a controlling interest in the company," the statement said.

"The move is expected to provide much-needed impetus to Dubai's real estate financing sector," it added.

The bank said it aims to increase the number of branches in the UAE to 74 from 66 by the end of this year.