Dubai's Tamweel posts $11m Q1 net loss

by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 28 May 2009

NET LOSS: Tamweel and rival Amlak are being restructured by the government and could be merged. (Google Images)

Dubai Islamic mortgage provider Tamweel said on Thursday it made a AED40.76m ($11.10m) net loss in the first quarter as income from properties held for sale slumped and it took provisions.

Tamweel booked an impairment provision against financing and investing assets of AED52m in the three-month period, up from 6.3 million dirhams a year earlier, it said in a statement on the Dubai bourse website.

Tamweel and rival Amlak are being restructured by the government and could be merged as they suffer from a sharp downturn in residential real estate prices in their home market, Dubai.

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Shares of both firms have been suspended since late last year.

Tamweel, which made a loss of AED112m in the fourth quarter, said income from the sale of properties was AED220,000 in the quarter compared with AED155.87m a year earlier.

Its fee income also dropped to AED11.86m from AED29.6m while income from its mortgage business rose 31.4 percent to AED183.34m.

Loss per share of AED0.041 compared with earnings per share of AED0.169 last year. (AED1 = $0.27) (Reuters)