Tamweel posts loss on costs of impairment

Tamweel, the UAE's largest provider of real estate finance, posted loss after Dh408 million of impairment provisions in 2009, said a statement yesterday.

It posted net loss of Dh54m in 2009 against Dh461m profit for the previous year with earnings per share of Dh0.06. The equity at year-end was Dh2.2 billion.

Islamic financing and investing assets in 2009 reduced marginally to Dh10.4bn. This excludes the securitised asset book of Dh266m that has been taken off balance sheet.

The mortgage finance firm said that it posted net profit of Dh11m in the fourth quarter on account of reduction in funding costs and efficiency achieved, leading to reduced general and administrative expenses. In Q4 2008, the company had posted loss of Dh112.3m.

Sheikh Khaled bin Zayed bin Saqer Al Nehayan, Chairman of Tamweel, said: "Tamweel's operating results continue to be profitable in the fourth quarter of 2009, with a net profit recorded despite sizeable amounts set aside for prudential provisioning.

He said the company continues to operate in an admittedly difficult environment at present. Steps have been taken to control costs and maintain operational efficiency.

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