Tamweel Q3 net profit doubles

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 ($4.2m) compared with Dh7.3m 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 Dh13.5m compared with Dh46.6m for the year-ago period.

Tamweel's income from Islamic financing and investing assets grew to Dh136.6m compared with Dh129m in the same period in 2010.

Tamweel, which is majority-owned by Islamic lender Dubai Islamic Bank , resumed mortgage lending earlier this year.

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.

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

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