Dubai's Tamweel posts 33% drop in Q2 profit
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Islamic mortgage lender Tamweel posted a 33 percent drop in second-quarter profit on Wednesday as revenue fell and costs rose, the Dubai-based firm's second straight quarterly profit fall.
Tamweel, majority owned by Dubai Islamic Bank, made a net profit of AED18.6m ($5.1m) in the three months to June 30, down from AED27.7m in the prior-year period. The firm's first-quarter profit also fell.
Quarterly revenue dropped slightly to AED136.9m, from AED141.6m a year earlier, while "depositors' share of profit" - sales costs - rose 8.7 percent to AED88.9m.
The company postponed a $235m asset-backed securitisation last week following a tepid response from potential investors.
Tamweel and rival mortgage provider Amlak, an affiliate of Emaar Properties, ran into difficulties following a Dubai property crash that started in 2008.
Trading in both companies' shares was halted in November 2008, with Tamweel resuming trading in May 2011, while Amlak remains suspended.
DIB, Dubai's third-largest bank by market value, raised its stake in Tamweel to 58.25 percent in September 2010. Shares in Tamweel, a favourite of retail investors, have more than doubled year-to-date on the Dubai bourse.
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