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Tamweel posts Q2 loss of $9.5m

Tamweel, the UAE mortgage lender, on Thursday posted a second quarter net loss of AED35m ($9.5m), compared to a profit of AED210m in the same period last year.

The company, whose shares were suspended in November last year, made an operational profit of AED54m in the period before impairment provisions. It was the third successive loss posted by the lender.
The Islamic lender said it has taken additional provisions of AED89m for potential delinquencies on its asset book and to offset the decline in value of its property investments.

“The additional impairment provision on the home financing portfolio has been taken purely on a prudential basis, and the company has so far not faced any significant specific provision requirement,” it said.

As of June 30, total provisions against the home finance portfolio stood at AED168m versus AED6.25m last year. Prudential provisions accounted for AED140m of that.

The company said it is still awaiting the federal government’s decision on the recommendations submitted earlier this year by a special committee that looked at a possible merger of Tamweel and Amlak, which also had its shares suspended in November last year.

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