Dubai's Amlak Posts 3Q Net Loss On Higher Provisions, Lower Revs

Tuesday, Nov 15, 2011

DUBAI (Zawya Dow Jones)--Islamic mortgage provider Amlak Finance PJSC (AMLAK.DFM) posted a net loss of 40 Million U.A.E. dirhams ($11 million) in the third quarter on higher provisioning and lower revenues.

For the nine months ending September 2011, Amlak made a net loss of AED146 million, compared with a profit of AED2.2 million during the same period in 2010, according to a statement on the Dubai stock exchange. The company cited "falling revenues and higher provisioning" as the main reasons behind the loss.

In the third quarter of 2010, Amlak made a modest profit, but the company has been loss making in the previous three quarters. Provisioning on its mortgage book jumped 126% to AED178 million in the first nine months of 2011, Amlak said.

The U.A.E. government last year set up a committee to explore a merger and restructuring for Amlak Finance after its planned merger with its competitor Tamweel fell apart.

Both Amlak and Tamweel were hard hit by the collapse of Dubai's real estate market.

-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com

(END) Dow Jones Newswires

15-11-11 0614GMT