Tamweel reports net loss of Dh35 million for second quarter of 2009

Tamweel PJSC, the major real estate finance provider in the UAE, has declared its financial results for second quarter of fiscal 2009.

During the review quarter, the company has recorded a net loss of Dh35 million. Islamic financing and investing assets amounted to Dh10.5 billion.

Company's operational profit during the quarter under review amounted to Dh54 million.

The sources said that in light of the adverse market conditions, tight liquidity and falling real estate market, Tamweel has taken additional prudential provisions of Dh89 million for potential delinquencies on its asset book and to offset the dip in market value of its property investments.

As of 30 June 2009, total provisions against the home finance portfolio amounted to Dh168 million, of which Dh140 million was prudential provision.
Provision against property investments amounted to Dh120 million.