Dubai’s Tamweel profit jumps, to resume trade on May 10
Dubai-based firm booked impairment provisions for 16 million dirhams compared with 50.75 million dirhams in the year-before period, it said in a bourse statement.
May 5, 2011 3:18 by p.deleon
Islamic mortgage lender Tamweel posted a jump in first-quarter net profit on Thursday, as impairment provisions fell, and said it would resume trading of its shares on May 10.
Tamweel, in which Dubai Islamic Bank (DIB) took a majority stake in September last year, made a profit of 27 million dirhams ($7.35 million) in the first quarter, compared with 5 million dirhams in the same period in 2010.
The Dubai-based firm booked impairment provisions for 16 million dirhams compared with 50.75 million dirhams in the year-before period, it said in a bourse statement.
Tamweel, which stopped trading its shares in November 2008, said DIB’s stake buy provided “significant liquidity and support” for the company to return to trading.
The company made a net profit of 26 million dirhams in 2010, compared with a loss of 54.4 million dirhams in 2009.
The United Arab Emirates government said in November 2008 it intended to merge Tamweel with rival Islamic mortgage lender Amlak. Shares in the two have not traded since. (Reporting by Praveen Menon; Editing by Dinesh Nair)