Tamweel profit surges 5-fold

Islamic mortgage lender Tamweel , whose shares resumed trading in May after being suspended since 2008, posted a five-fold increase in second-quarter net profit helped by a sharp decline in impairment provisions.

Tamweel, which is majority-owned by Dubai Islamic Bank, reported second-quarter net profit of Dh27.7 million ($7.54 million) compared with Dh5.4 million for the year-ago period.

Impairment provisions for the quarter fell to Dh13.5 million compared with Dh40 million a year earlier, Tamweel said in a statement to the bourse.

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 percent higher on the Dubai bourse prior to the release of the results.

Follow Emirates 24|7 on Google News.