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Tamweel reports jump in profits
Mortgage transactions on the rise
- Staff Report
- Published: 18:31 October 26, 2008
Dubai: Mortgage lender Tamweel yesterday reported a 135 per cent jump in its net profits reaching Dh573 million for the first nine months of 2008, up from Dh244 million for the corresponding period last year.
Net profits for the third quarter of 2008 stood at Dh185.7 million, an increase of 37 per cent compared to Dh136 million in the third quarter of 2007.
Income from Islamic fin-ancing and investing assets in the third quarter rose to Dh565 million, an increase of 139 per cent from Dh236 million in the third quarter of 2007.
Islamic financing and investing assets in the third quarter of 2008 rose to Dh9.86 billion, an increase of 136 per cent, compared to Dh4.17 billion in the same period of 2007. Mortgage assets under Tamweel's service have crossed the Dh14.2 billion mark.
"In the face of the ongoing challenges to the stability of the global economy, we are pleased to announce yet another quarter of strong financial performance," said Shaikh Khalid Bin Zayed Bin Saqer Al Nahyan, chairman of Tamweel. "Tamweel's consistent results are driven by its focus on its core mortgage business, significant market expertise and diverse product portfolio.
Mortgage growth
"Our performance in the first half of 2008 and sustained growth in the third quarter reflects the high level of demand for Tamweel's home finance solutions and the company's strong business fundamentals."
According to Tamweel's latest research, the share of mortgage financed transactions in the UAE is likely to reach 40 per cent of property sales value by 2011 as opposed to the current share of approximately 25 per cent. Consequently, the growth opportunities for mortgages are expected to remain buoyant in the next three years.
"These strong results make clear Tamweel's ability to consistently maximise the return on assets and shareholder funds," Wasim Saifi, Group Chief Executive Officer of Tamweel, said.
"The property market in the UAE remains strong and demand for real estate financing continues to be steady."
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