Tamweel Q3 profit falls 29%

Islamic mortgage lender Tamweel, in which Dubai Islamic Bank took a majority stake in September, said its third-quarter net profit fell 29 per cent as income fell from Islamic financing and investing assets.

Tamweel had a net profit of Dh7.34m ($2m) in the third quarter, it said in a statement on Tuesday, compared with Dh10.3m a year earlier.

Income from Islamic financing and investing assets fell by nearly a third to Dh128.97m from Dh178m during the same time last year.

Net profit for the first nine months of the year was Dh18m compared with a loss of Dh65m in the same period last year.

Dubai Islamic Bank raised its stake in Tamweel in September to 57.33 per cent, effectively rendering Tamweel a subsidiary of DIB, in a move that was expected to help revive lending in Dubai's property market.

Tamweel said on Sunday that DIB had bought 339.3m shares of Tamweel, from Dubai Capital Group, Istithmar World and Dubai Financial Market.

The firm said that it would start issuing fresh mortgages once DIB lays out plan for the company in detail.
The UAE government said in November 2008 it intended to merge Tamweel and rival Islamic mortgage lender Amlak.
 
Shares in the two have not traded since. The company on Sunday that its shares should resume trading soon

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