Dubai: Tamweel PJSC, the UAE Islamic home finance provider, on Monday reported an operating income of Dh452 million in the first nine months of 2012, compared with Dh446 million in the corresponding period for 2011. Operating income was higher than recorded in the corresponding period despite competition on profit rates.
Net profit stood at Dh45 million, compared with Dh71 million in the same period last year. Net profit was lower in the current reporting period mainly due to provisions and higher funding costs.
“During the third quarter of 2012, Tamweel continued to implement its prudent approach to provisioning, ensuring the long-term profitability of the company and its ability to capitalise on the upturn in the UAE property market,” Abdullah Ali Al Hamli, chairman of Tamweel, said. “As the company moves forward, we are uniquely positioned to play a full and active role in supporting the home finance needs of people looking to purchase property in the UAE.”
Varun Sood, acting chief executive officer of Tamweel, said: “Tamweel’s proven business model and focus on service excellence continues to serve the company well. As the recovery of the UAE property sector gathers pace — with average home prices increasing between 10 per cent to 15 per cent over an 18 month period — Tamweel’s innovative, customer-centric solutions will keep us at the forefront of the country’s home finance market.”
During 2012, the company successfully secured funding of $300 million (Dh1.1 billion) by placing USD denominated sukuk, while Fitch Ratings has upgraded Tamweel’s Long Term IDR by two notches to ‘BBB+’ from ‘BBB-‘ with a stable outlook.