Amlak swings to AED177m loss in 2009

Dubai Islamic mortgage lender records fifth successive quarterly loss.
Amlak swings to AED177m loss in 2009
NET LOSS: Lender Amlak posted a net loss of AED177m in 2009.
By Jason Benham
Mon 15 Feb 2010 11:12 AM

Dubai Islamic mortgage lender Amlak, which is merging with Tamweel, recorded its fifth consecutive quarterly loss on Monday, as it plunged into the red for the year.

The Islamic mortgage lender made a loss of AED650,000 ($177,000) in the fourth quarter, according to Reuters calculations. It did not provide a breakdown of the figures.

Amlak posted a net loss of AED177.37 million for the year, compared to a net profit of AED240.25 million previously, it said in a statement on Dubai's bourse website.

Tamweel and Amlak have both been hit hard by the collapse of Dubai's once-booming property sector and shares in the two companies were suspended in 2007 and have not traded since.

The UAE government said in November 2008 it intended to merge the two firms and has been working on a plan to restructure them.

Amlak made a loss of AED206.38 million in the fourth quarter of 2008.

Total operating income for the year fell to AED786.21 million from AED1.17 billion, it said on Monday.

Last month, Tamweel chairman Sheikh Khaled said a planned merger between Tamweel and its peer Amlak was still possible in the first quarter as progress was being made.

Tamweel swung to a net profit of AED11 million in the fourth-quarter, helped by a reduction in funding costs. (Reuters)

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