Tamweel nine-month net profit rises to Dhs57m, up 135%

Sheikh Khaled bin Zayed bin Saqer Al-Nehayan, Chairman of Tamweel, announced that the company's net profits for the first nine months of 2008 reached Dhs573m, an increase of 135% compared to Dhs244m for the first nine months of 2007.

Net profits for the third quarter of 2008 stood at Dhs185.7m, an increase of 37% compared to Dhs136m in the third quarter of 2007.

Income from Islamic financing and investing assets in the third quarter 2008 rose to Dhs565m, an increase of 139% from Dhs236m in the third quarter of 2007.

Islamic financing and investing assets in the third quarter of 2008 rose to Dhs9.86bn, an increase of 136% compared to Dhs4.17bn in the same period of 2007. Mortgage assets under Tamweel's service have crossed the Dhs14.2bn mark.

Sheikh Khaled bin Zayed bin Saqer Al-Nehayan said:

"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. Tamweel's consistent results are driven by its focus on its core mortgage business, significant market expertise and diverse product portfolio. 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% of property sales value by 2011 as opposed to the current share of approximately 25%. Consequently, the growth opportunities for mortgages are expected to remain buoyant in the next three years.

Wasim Saifi, Group Chief Executive Officer of Tamweel, said: "These strong results make clear Tamweel's ability to consistently maximise the return on assets and shareholder funds. The property market in the UAE remains strong and demand for real estate financing continues to be steady. Among the other highlights in this quarter was the successful closing of an Dhs1.1bn non-convertible sukuk. As well, Moody's has reaffirmed its A3/P2 rating of Tamweel based on the company's growing franchise and dominant position in the UAE's rapidly growing Islamic finance market. Earlier this month, Fitch reaffirmed its A rating for Tamweel."

He continued: "The third quarter witnessed the commencement of tight liquidity conditions and increased funding costs influenced by deteriorating conditions across global financial markets. The continuation of these conditions is likely to impact the performance of the real estate and financial services sector over the next few months. With the timely intervention of the Central Bank of the UAE and the Ministry of Finance, however, we are optimistic that adverse local market conditions will generally improve."

He added:

"With Tamweel's strong focus on end-user financing and salaried customer base, we have maintained delinquency numbers to very negligible levels, and remain very confident of the continuing health of our portfolio."