Dubai: Tamweel, a Dubai-based Islamic home financing firm, posted Wednesday a 13.5% year-on-year rise in first-quarter net profit as it prepares for a full takeover by Dubai Islamic Bank.
Tamweel’s quarterly net profit reached Dh20.5 million ($5.6 million), up from Dh18 million in the same period last year, according to financial statements posted on the Dubai bourse website.
While income rose, Islamic financing assets fell by Dh244 million compared to the end of last March to Dh9.08 billion, the statements showed.
Dubai Islamic Bank acquired a majority stake in Tamweel in 2011. A merger with rival Amlak Finance was initially contemplated but was scrapped when DIB acquired its 58.2% stake.
DIB’s shareholders last month approved a bid to take over the remainder of Tamweel. Under the terms of the offer, Tamweel shareholders are to get 10 DIB shares for every 18 Tamweel shares they hold. Tamweel is then to be delisted from trading on the Dubai Financial Market.
Tamweel shares last traded up 0.9 per cent at Dh1.19 Wednesday.