Tamweel profit soars fivefold in second quarter

Islamic mortgage provider Tamweel saw its second-quarter profit surge to Dh27.7 million from Dh5.4 million in the corresponding period last year, the company said Tuesday. Tamweel also said it made a net profit of Dh54.9 million in the first half of 2011, up from Dh10.5 million in the first six months of 2010, the company said in a statement to the Dubai Financial Market (DFM). "The improvement in Tamweel's fortunes, both quarter-on-quarter and year-on-year, is huge," said Chahir Hosni, Sales Manager at EFG Hermes. "I expect shares in Tamweel will come into a lot more focus over the next few days as investors were already starting to take a closer look at the company," he added. Article continues below Tamweel has recently introduced a number of new products to the UAE home finance sector including a non-residents programme, which makes home finance available to select investors looking to purchase residential property in the UAE, and a home refinance programme for people looking to unlock equity in their own homes. "The company's announcement that it will start to provide mortgages for overseas buyers is a very interesting development. General [stock] market conditions are not very encouraging at the moment but Tamweel is gaining attention," Hosni said. Tamweel resumed trading on the DFM after a two and a half year absence in May. The company's shares were suspended in late 2008 when talks over a planned merger with its largest competitor, Amlak Finance, failed to materialise and Dubai Islamic Bank took full control of the firm. Tamweel stock climbed 0.92 per cent to Dh0.876 on the DFM. "Having returned to profit in 2010, Tamweel has maintained momentum by reporting strong profits for the first two quarters of 2011. As the UAE real estate sector continues to strengthen, Tamweel remains well positioned to meet the increased demand for home finance solutions in the country," said Abdullah Ali Al Hamli, Tamweel's chairman.