Wednesday, Jun 23, 2010
Gulf News
Dubai Islamic mortgage fin-ance companies Tamweel and Amlak Finance yesterday reported improved financial results for the first quarter of 2010.
Tamweel reported a net profit of Dh5.1 million in the first quarter of 2010 compared to a net loss of Dh40.8 million in the same quarter last year, and Amlak posted a modest loss of Dh3.1 million in the first quarter from a Dh68.3 million loss in the same period last year.
Following an announcement in October 2008 that Tamweel and Amlak would be merged, both stocks have been suspended from trading.
Finance behemoths
Prior to the financial crisis that dried up their liquidity, both firms together controlled more than 60 per cent of the mortgage market in the UAE. With the decline in real estate prices and lack of wholesale funding available to these companies from the Islamic banking market, financing by these firms has stagnated.
Improvement in Amlak's first quarter results is largely attributable to a fall in provisions from Dh54 million in the first quarter of last year to Dh31.4 million this year.
In Tamweel's case, the improvement in performance is reflected in a 28 per cent decline in operating costs from Dh39 million and a 29 per cent increase in income from fees and commissions to Dh15.2 million.
By Babu Das Augustine
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