Islamic home finance provider Tamweel net profit in the first quarter of 2012 dropped 33 per cent to Dh18 million as compared to Dh27 million for the same period last year due to higher provisions.
The company said profit fell lower on account of additional one time provision of Dh21.6 million for litigation losses. Operating profit before provisions increased to Dh48.5 million compared to Dh43 million in the same period last year.
“I am pleased to share our financial results for the first quarter of this year,” said Abdulla Ali Al Hamli, Chairman of Tamweel.
“Tamweel is committed to the UAE property sector and will continue to provide innovative property finance solutions to support the long-term recovery of this strategic sector.”
Varun Sood, Acting Chief Executive Officer of Tamweel, said: “Despite the one off litigation provision in this quarter, the operating profitability of the Company improved and the successful funding transaction in this quarter strengthened the sustainability of the Company and bolstered its business model.”
In the first quarter, Tamweel secured funding of $300 million by placing USD denominated sukuk and Fitch Ratings recently upgraded Tamweel’s Long Term IDR by two notches to ‘BBB+’ from ‘BBB-‘ with a Stable Outlook.