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Summarised,unaudited interim results and cash dividend declaration for the six months ended 31 December 2014
RMB HOLDINGS LIMITED
("RMH")
(Incorporated in the Republic of South Africa)
Registration number: 1987/005115/06
JSE Ordinary share code: RMH
ISIN code: ZAE000024501
SUMMARISED, UNAUDITED INTERIM RESULTS ANNOUNCEMENT AND cash dividend declaration for the six months ended 31 December 2013
Normalised earnings +22% to 205.8 cents per share
Dividend +52% to 100 cents per share
Intrinsic value +16% or 4 775 cents per share
RMH at a glance
RMH's sole interest is its 33.9% investment in separately listed FirstRand Limited (FirstRand), generally regarded as Southern Africa's pre-eminent financial services
group.
FirstRand comprises a portfolio of leading financial services franchises, including:
- First National Bank (FNB), the retail and commercial bank;
- Rand Merchant Bank (RMB), the corporate and investment bank;
- WesBank, the instalment finance business; and
- Ashburton Investments, the newly-established investment management business.
Basis of preparation
This report covers the unaudited financial results of RMH for the six months ended 31 December 2013. It is based on International Financial Reporting Standards
(IFRS).
The primary results and accompanying commentary are presented on a normalised basis. RMH believes this most accurately reflects underlying economic
performance. The normalised earnings have been derived from unaudited, restated IFRS financial results. A reconciliation of the adjustments made to derive
normalised earnings is presented in the accompanying schedules. IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and amendments to IAS
19 Employee Benefits became effective for financial year ends commencing on or after 1 January 2013. Although these amendments did not impact the
company's financial results it did impact those of FirstRand. These amendments are applied retrospectively and consequently, it has led to the restatement of the
30 June 2013 and 31 December 2012 results. Details of these restatements can be found in the accompanying schedules.
Ellen Marais, CA(SA), prepared these financial results under the supervision of Peter Cooper, CA(SA).
Operating environment
The South Africa macroeconomic environment for the first six months of the financial year continued to be challenging. From a local economic perspective we
had to contend with a far less benign global financial environment. South Africa with its current account deficit and large financing requirement, was particularly
vulnerable to slowing capital flows and the rand weakened rapidly. This placed upward pressure on inflation and led to the South African Reserve Bank's decision
to increase the repo rate by 50 basis points in January 2014.
These external headwinds, combined with a slowdown in real income growth, resulted in continued pressure on South African households. GDP growth in South
Africa remained subdued. Capacity constraints and labour market unrest negatively impacted the supply side of the economy.
In the rest of the sub-Saharan region, growth has generally continued on a robust trend, led by strong domestic demand and commodity exports.
Overview of results
RMH produced satisfying results for the six months ended 31 December 2013, achieving an increase of 22% in normalised earnings per share to 205.8 cents
(R2.9 billion), over the previous period.
This outcome was driven by the steady performance of FirstRand which continued to benefit from good operational performances from all three of its main
operating franchises despite the deteriorating macroeconomic environment.
The interim dividend increased by 52% to 100 cents per share.
Sources of income
FirstRand's well-diversified income stream is drawn from the full spectrum of banking services and is predominantly sourced from Southern Africa. RMH's interest
therein may be extrapolated as follows:
SEGMENTAL INFORMATION
For the
For the six months ended year ended
31 December 30 June
R million 2013 2012 % change 2013
FNB 4 769 4 016 19 8 124
RMB 2 268 1 943 17 4 471
WesBank 1 406 1 389 1 2 834
Other 248 (105) >100 (9)
FirstRand normalised earnings 8 691 7 243 20 15 420
Attributable to RMH 2 945 2 455 20 5 226
Corporate Center (39) (66) - (119)
RMH normalised earnings 2 906 2 389 22 5 107
Underlying intrinsic value
RMH's intrinsic value reflected the strong growth experienced over the period in financial sector equity values:
as at 31 December 30 June
R million 2013 2012 % change 2013
Market value of listed interest (FirstRand) 68 565 59 223 16 55 269
Net funding (1 141) (1 320) (14) (1 172)
Total intrinsic value 67 424 57 903 16 54 097
Intrinsic value per share (cents) 4 775 4 101 16 3 831
Over the year to 31 December 2013 RMH's market capitalisation increased by 19% and at that date amounted to R68.3 billion or 4 835 cents per share
(December 2012: R57.5 billion). This represented a 1.2% premium (December 2012: 0.7% discount) to RMH's underlying intrinsic value.
At 31 December 2013 net borrowings carried at the corporate center amounted to R1.14 billion of which the core element comprised R1.18 billion fixed rate
preference shares due for redemption on 6 December 2017, paying dividends at 7.08% per annum, six monthly in arrears.
Interim Dividend Payment
RMH follows a stated practice of returning net dividends (after providing for funding and operational costs incurred at the center) received by it in the ordinary
course of business to shareholders. RMH's sole source of dividend income is its investment in FirstRand.
FirstRand re-evaluates the appropriateness of the level of its dividend payout to its shareholders on an annual basis. When assessing the level of payout, FirstRand
has regard to inter alia the following:
- Its long-term targeted range for Return on Equity (ROE) (18% to 22%).
- The anticipated growth in risk weighted assets.
- The need to protect the R10 billion of capital currently allocated to its expansion strategy.
At the June 2013 year end, following a comprehensive analysis of the above factors, FirstRand reduced its dividend cover to 2.0 times (2012: 2.2 times). It
continues to regard this to be both appropriate and prudent as all of its buffers remain intact, even under severe risk scenarios. As a consequence of this process,
FirstRand increased its interim dividend payment by 40%.
Having due regard to the interim dividend receivable from FirstRand and applying the dividend practice outlined above, the board of RMH has resolved to declare
a gross interim dividend of 100 cents per share (2012: 66 cents). Such dividend is covered 2.1 times by normalised earnings per share and represents a year-on-
year increase of 52%. This dividend increased reflects both the reported growth in earnings as well as the change in dividend cover. Shareholders should bear in
mind that the rate of growth in the dividend payout for the full financial year will be from the higher base recorded in 2013 as a result of the change in dividend
cover for that year. Consequently, the dividend growth rate for the full year will in all likelihood track the growth in normalised earnings for the year.
The board is of the opinion that RMH is adequately capitalised at this stage and that the company will be able to meet its obligations in the foreseeable future
after payment of the interim dividend.
Dividend Withholding Tax ("DWT") at a rate of 15% is levied on dividends paid to shareholders who are not exempt from DWT. RMH did not accumulate any
Secondary Tax Credits ("STC") which could be used to reduce the DWT liability arising from the dividend.
Outlook
South Africa's dependence on foreign capital flows to fund the wide current account deficit continues to introduce uncertainty and vulnerability to the
macroeconomic outlook.
The recent increase in the repo rate is likely to be the first in an interest rate hiking cycle. This will place further pressure on the South African consumer. RMH
believes that FirstRand's strategy to grow customers, drive non-interest revenue and exercise discipline in its credit origination strategies in the retail market,
particularly over the past 18 months will place it in a strong position to weather what is expected to be a difficult domestic credit cycle. Good operational
performances are expected from all three the major franchises for the second half of the year.
From a shareholder perspective, we believe that all the strategic imperatives required to enable RMH to continue to deliver real growth in earnings are in place.
The information provided above is not an earnings forecast and has not been reviewed and reported on by the company's external auditors.
For and on behalf of the board
GT Ferreira P Cooper
Chairman Chief executive officer
Sandton
5 March 2014
INTERIM CASH DIVIDEND DECLARATION
Notice is hereby given that a gross interim dividend of 100 cents per share payable out of income reserves was declared on 5 March 2014 in respect of the six
months ended 31 December 2013.
The company did not have any Secondary Tax on Companies credits to reduce the Dividend Withholding Tax liability. The gross dividend will therefore be subject
to Dividend Withholding Tax at a rate of 15%, which will result in a net dividend of 85 cents per share for those shareholders who are not exempt. The
company's tax reference number is 9950/098/71/6. Its issued share capital at the declaration date is 1 411 703 218 ordinary shares and 11 800 redeemable
preference shares.
Shareholders' attention is drawn to the following important dates:
- Last day to trade in order to participate in this dividend Thursday, 20 March 2014
- Shares commence trading "ex dividend" on Monday, 24 March 2014
- The record date for the dividend payment will be Friday, 28 March 2014
- Dividend payment date Monday, 31 March 2014
No de-materialisation or re-materialisation of share certificates may be done between Monday, 24 March 2014 and Friday, 28 March 2014 (both days inclusive).
By order of the board
(Ms) EJ Marais
Company secretary
5 March 2014
CONDENSED CONSOLIDATED INCOME STATEMENT
For the
For the six months ended year ended
31 December 30 June
R million 2013 2012* % change 2013*
Share of after-tax profit of associate company 3 079 2 476 24 5 154
Investment income 13 17 23
Net income 3 092 2 493 24 5 177
Administration expenses (9) (27) (41)
Income from operations 3 083 2 466 25 5 136
Finance costs (43) (56) (100)
Profit before tax 3 040 2 410 26 5 036
Income tax expense (1) - (1)
Profit for the period 3 039 2 410 26 5 035
Attributable to:
Equity holders of the company 3 039 2 410 26 5 035
Profit for the period 3 039 2 410 26 5 035
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the
For the six months ended year ended
31 December 30 June
R million 2013 2012* % change 2013*
Profit for the period 3 039 2 410 26 5 035
Other comprehensive income, after tax:
Items that may subsequently be reclassified to profit or loss
Share of other comprehensive income of associate after tax and non-controlling
interests 141 232 633
Items that will not be reclassified to profit or loss
Share of other comprehensive income of associate after tax and non-controlling
interests (7) (8) 8
Other comprehensive income for the period 134 224 (40) 641
Total comprehensive income for the period 3 173 2 634 20 5 676
Total comprehensive income attributable to:
Equity holders of the company 3 173 2 634 20 5 676
Total comprehensive income for the period 3 173 2 634 20 5 676
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 30 June
R million 2013 2012* 2013*
Assets
Cash and cash equivalents 29 11 12
Loans and receivables 6 6 53
Investment securities 57 37 52
Derivative financial instruments 17 - 11
Property and equipment - 1 1
Investment in associate 31 328 28 191 30 243
Receiver of Revenue 1 2 -
Total assets 31 438 28 248 30 372
Equity
Share capital and premium 8 819 8 790 8 822
Reserves 21 369 18 081 20 249
Total Equity 30 188 26 871 29 071
Liabilities
Financial liabilities 1 180 1 330 1 234
Derivative financial instruments 11 - 9
Long-term liabilities 6 4 2
Provisions 8 2 2
Trade and other payables 45 41 54
Total liabilities 1 250 1 377 1 301
Total equity and liabilities 31 438 28 248 30 372
* Refer to restatements of prior period numbers on accompanying schedules.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the
For the six months year ended
ended 31 December 30 June
R million 2013 2012* 2013*
Net cash generated from operating activities 1 588 1 005 2 120
Dividends paid (1 475) (1 037) (1 967)
Net cash outflow in investment activities - - (16)
Net cash (outflow)/inflow in financing activities (96) 26 (142)
Net increase/(decrease) in cash and cash equivalents 17 (6) (5)
Cash and cash equivalents at the beginning of the period 12 17 17
Cash and cash equivalents at the end of the period 29 11 12
* Refer to restatements of prior period numbers on accompanying schedules.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Share Total
capital equity Non-
and Total holders' controlling Total
R million premium reserves funds interest equity
Balance at 30 June 2012
As previously reported 8 771 17 051 25 822 - 25 822
Restatement - (287) (287) - (287)
Balance at 1 July 2012 8 771 16 764 25 535 - 25 535
Total comprehensive income for the period - 2 634 2 634 - 2 634
Dividend paid - (1 037) (1 037) - (1 037)
Change in carrying value of associate due to elimination of treasury shares - 43 43 - 43
Reserve movements relating to associate - (323) (323) - (323)
Movement in treasury shares 19 - 19 - 19
Balance at 31 December 2012 8 790 18 081 26 871 - 26 871
Balance at 30 June 2012
As previously reported 8 771 17 051 25 822 - 25 822
Restatement - (287) (287) - (287)
Balance at 1 July 2012 8 771 16 764 25 535 - 25 535
Total comprehensive income for the period - 5 676 5 676 - 5 676
Dividends paid - (1 967) (1 967) - (1 967)
Change in carrying value of associate
due to elimination of treasury shares - 19 19 - 19
Reserve movements relating to associate - (243) (243) - (243)
Movement in treasury shares 51 - 51 - 51
Balance at 30 June 2013 8 822 20 249 29 071 - 29 071
Balance at 30 June 2013
As previously reported 8 822 20 496 29 318 - 29 318
Restatement - (247) (247) - (247)
Balance at 1 July 2013 8 822 20 249 29 071 - 29 071
Total comprehensive income for the period - 3 173 3 173 - 3 173
Dividend paid - (1 475) (1 475) - (1 475)
Change in carrying value of associate
due to elimination of treasury shares - (14) (14) - (14)
Reserve movements relating to associate - (564) (564) - (564)
Movement in treasury shares (3) - (3) - (3)
Balance at 31 December 2013 8 819 21 369 30 188 - 30 188
COMPUTATION OF HEADLINE AND NORMALISED EARNINGS
For the
For the six months ended year ended
31 December 30 June
R million 2013 2012* % change 2013*
Earnings attributable to equity holders 3 039 2 410 26 5 035
Adjustment for:
RMH's share of adjustment made by associate:
Loss on disposal of investment securities and other investments of a capital nature 3 - 5
Gain on disposal of available-for-sale assets (23) - (11)
Gains on disposal of investments in associates or joint ventures (3) - -
Gain on disposal of investment in subsidiaries (4) (3) (22)
Loss on the disposal of property and equipment 4 - 27
Fair value of investment properties - - (2)
Impairment of goodwill - 1 153
Impairment of assets in terms of IAS 36 4 88 99
Gain from a bargain purchase - - (5)
Other - - (48)
Tax effects of adjustments 7 (24) (12)
Non-controlling interests adjustment 1 1 7
Headline earnings attributable to equity holders 3 028 2 473 22 5 226
RMH's share of adjustments made by associates:
IFRS 2 Share-based payment expenses 4 8 15
Treasury shares 22 15 11
Total Return Swap adjustment (51) (18) 30
IAS 19 adjustment (18) (20) (38)
Private equity subsidiary realisations 3 2 15
Adjustment for:
RMH shares held by associate1 (1) (2) (6)
Group treasury shares2 (81) (69) (146)
Normalised earnings attributable to equity holders 2 906 2 389 22 5 107
* Refer to restatements of prior period numbers on accompanying schedules.
1. RMH shares held for client trading activities by FirstRand.
2. Adjustment to reflect earnings impact based on actual RMH shareholding in FirstRand i.e. reflecting treasury shares as if they are non-controlling interests.
COMPUTATION OF EARNINGS PER SHARE
For the
For the six months ended year ended
31 December 30 June
R million 2013 2012* % change 2013*
Earnings attributable to equity holders 3 039 2 410 26 5 035
Headline earnings attributable to equity holders 3 028 2 473 22 5 226
Normalised earnings for the period 2 906 2 389 22 5 107
Net asset value 30 188 26 871 12 29 071
Number of shares in issue (millions) 1 412 1 412 1 412
Weighted average number of shares in issue (millions) 1 412 1 410 1 410
Diluted weighted average number of shares in issue (millions) 1 412 1 410 1 410
Weighted average number of shares in issue (millions) for normalised earnings 1 412 1 412 1 412
Earnings per share (cents) 215.2 170.9 26 357.1
Diluted earnings per share (cents)1 213.2 168.9 26 355.1
Headline earnings per share (cents) 214.4 175.4 22 370.6
Diluted headline earnings per share (cents)1 212.5 173.3 23 368.7
Normalised earnings per share (cents) 205.8 169.2 22 361.7
Diluted normalised earnings per share (cents) 205.8 169.2 22 361.7
Net asset value per share (cents) 2 138.0 1 903.0 12 2 058.8
Dividend per share (cents)
Interim 100 66 52 66.0
Final - - - 104.5
Total 100 66 52 170.5
Dividend cover (relative to headline earnings) 2.1 2.7 2.2
Dividend cover (relative to normalised earnings) 2.1 2.6 2.1
1. The diluted calculations give cognisance to the impact of the similar calculation within FirstRand. This has no impact on RMH's weighted average number of
shares.
* Refer to restatements of prior period number on accompanying schedules.
Basis of preparation of results
The accompanying condensed results for the six months ended 31 December 2013 reflects:
- the operations of RMH and its proportionate interest in its associate, FirstRand; which has been equity accounted.
The report is prepared in accordance with:
- International Financial Reporting Standards (IFRS), including IAS 34: Interim Financial Reporting;
- The requirements of the South African Companies Act, Act 71 of 2008;
- SAICA Financial Reporting Guide as issued by the Accounting Practices Committee;
- Financial Reporting Pronouncements as issued by Financial Reporting Standards Council; and
- The Listings Requirements of the JSE Limited.
The board takes full responsibility for the preparation of the results announcement.
Accounting policies
These summarised results incorporate accounting policies that are consistent with those used in preparing the financial results for the year ended 30 June 2013.
The new and amended standards that became effective for the first time and had a financial impact on results during the reporting period can be summarised as
follows:
- IFRS 10 Consolidated Financial Statements;
- IFRS 11 Joint arrangements; and
- IAS 19 Employee Benefits.
These requirements were applied retrospectively.
The following standards influence disclosure requirements but had no financial impact on results:
- IFRS 12 Disclosure of Interest in Other Entities; and
- IFRS 13 Fair Value Measurement.
Details of restatements can be found on accompanying schedules.
Normalised results
RMH believes normalised earnings more accurately reflect operational performance. Headline earnings are adjusted to take into account the following non-
operational and accounting anomalies:
1. RMH's portion of normalised adjustment made by its associate FirstRand Limited which have a financial impact:
- Share-based payments and treasury share: consolidation of staff share trust;
- FirstRand shares held for client trading activities;
- the Total Return Swap which is an economic hedge against the share-based payment obligation;
- the consolidation of private equity subsidiaries which is excluded from the Rule 1 exemption of Circular 2/2013, Headline Earnings per Share; and
- IAS 19 measurement of plan asset.
2. RMH shares held for client trading activities by FirstRand.
3. Adjustment to reflect earnings impact based on actual RMH shareholding in FirstRand.
ACCOUNTING CLASSIFICATIONS AND FAIR VALUES OF FINANCIAL ASSET AND LIABILITIES
The table below categorises RMH's assets and liabilities as at 31 December 2013 between which is financial and non-financial. All financial assets and liabilities have
been classified according to their measurement category with disclosure of the fair value being provided for those items required.
As at 31 December 2013
Other
non-
Designated Loans Other financial Total Fair value
at fair and amortised assets/ carrying assets and
R million value receivables cost liabilities amount liabilities
Assets
Cash and cash equivalents - 29 - - 29 29
Loans and receivables - 6 - - 6 6
Investment securities 57 - - - 57 57
Derivative financial instruments 17 - - - 17 17
Investment in associate - - - 31 328 31 328 -
Receiver of Revenue - - - 1 1 -
Total assets 74 35 - 31 329 31 438 109
Liabilities
Financial liabilities - - 1 180 - 1 180 1 180
Derivative financial instruments 11 - - - 11 11
Long-term liabilities - - - 6 6 -
Provisions - - - 8 8 -
Trade and other payables - - 45 - 45 45
Total liabilities 11 - 1 225 14 1 250 1 236
FAIR VALUE MEASUREMENTS
Valuation methodology
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date i.e. an exit price. Fair value is therefore a market based measurement and when measuring fair value RMH uses the assumptions that market
participants would use when pricing an asset or liability under current market conditions, including assumptions about risk. When determining fair value it is
presumed that the entity is a going concern and the fair value is therefore not an amount that represents a forced transaction, involuntary liquidation or a
distressed sale.
Financial instruments
When determining the fair value of a financial instrument, where the financial instrument has a bid or ask price , RMH uses the bid price for financial assets or
the ask/offer price for financial liabilities.
Other fair value measurements
Other fair value measurements include assets and liabilities not measured at fair value but for which fair value disclosures are required under another IFRS e.g.
financial instruments at amortised cost.
The fair value for these items is determined by using observable quoted market prices where these are available, or in accordance with generally acceptable
pricing models such as a discounted cash flow analysis.
Fair value hierarchy and measurements
The table below analysis RMH's financial assets and liabilities that are measured at fair value at the end of the reporting period, by level of fair value hierarchy as
required by IFRS. The different levels are based on the extent to which observable market data and inputs are used in the calculation of the fair value of the
financial assets and liabilities. The levels of the hierarchy are defined as follows:
Valuations based on observable inputs include:
- Level 1 - fair value is based on quoted market prices (unadjusted) in active markets for identical instruments as measured on reporting date. An active market is
one in which transactions occur with sufficient volume and frequency to provide pricing information on an on-going basis.
- Level 2 - fair value is determined through valuation techniques based on observable market inputs. These valuation techniques maximise the use of observable
market data where it is available and rely as little as possible on entity specific estimates.
Valuations based on unobservable inputs include:
- Level 3 - fair value is determined through valuation techniques which use significant unobservable inputs.
As at 31 December 2013
Total fair
R million Level 1 Level 2 Level 3 value
Assets
Investment securities 57 - - 57
Derivative financial instruments 17 - 17
Total assets 57 17 - 74
Liabilities
Derivative financial instruments 11 - 11
Total liabilities - 11 - 11
There were no transfers between levels during the reporting period.
The table below sets out the valuation techniques applied by RMH for fair value measurements of financial assets and liabilities categorised as level 2 in the fair
value hierarchy.
Instrument Fair value Valuation Description of valuation Observable
hierarchy technique technique and main inputs
level assumptions
Derivative financial
instruments
Equity derivative Level 2 Industry The models calculate fair Market interest
standard value based on input rates and prices
model parameters such as stock
prices and interest rates.
Financial assets and Level 2 Discounted The future cash flows are Market interest
liabilities not measured at cash flows discounted using a market rates and curves
fair value but for which related interest rate and
fair values is disclosed curves adjusted for credit
inputs.
RESTATEMENT OF 31 DECEMBER 2012 UNAUDITED FINANCIAL RESULTS
CONDENSED CONSOLIDATED INCOME STATEMENT
for the six months ended 31 December 2012
As
previously
R million reported Restated Difference Description
Direct result of restatements
done by FirstRand in terms of
Share of after-tax profit of associate company 2 456 2 476 20 IAS 19, IFRS 10 and IFRS 11.
Investment income 17 17 -
Net income 2 473 2 493 20
Administration expenses (27) (27) -
Income from operations 2 446 2 466 20
Finance costs (56) (56) -
Profit before tax 2 390 2 410 20
Income tax expense - - -
Profit after tax 2 390 2 410 20
Attributable to:
Equity holders of the company 2 390 2 410 20
Direct result of restatements
done by FirstRand in terms of
Profit for the period 2 390 2 410 20 IAS 19, IFRS 10 and IFRS 11.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 December 2012
As
previously
R million reported Restated Difference Description
Direct result of restatements done
by FirstRand in terms of IAS 19,
Profit for the period 2 390 2 410 20 IFRS 10 and IFRS 11.
Other comprehensive income, after tax:
Items that may subsequently be reclassified to profit or loss
Share of other comprehensive income of associate after tax and non-controlling
interests 239 232 (7)
Items that will not be reclassified to profit or loss
Share of other comprehensive income of associate after tax and non-controlling
interests - (8) (8)
Direct result of restatements done
by FirstRand in terms of IAS 19,
Other comprehensive income for the period 239 224 (15) IFRS 10 and IFRS 11.
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total comprehensive income for the period 2 629 2 634 5 IFRS 10 and IFRS 11.
Total comprehensive income attributable to:
Equity holders of the company 2 629 2 634 5
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total comprehensive income for the period 2 629 2 634 5 IFRS 10 and IFRS 11.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2012
As
previously
R million reported Restated Difference Description
Assets
Cash and cash equivalents 11 11 -
Loans and receivables 6 6 -
Investment securities 37 37 -
Property and equipment 1 1 -
Direct result of restatements done
by FirstRand in terms of IAS 19,
Investment in associate 28 468 28 191 (277) IFRS 10 and IFRS 11.
Receiver of Revenue 2 2 -
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total assets 28 525 28 248 (277) IFRS 10 and IFRS 11.
Equity
Share capital and premium 8 790 8 790 -
Reserves 18 358 18 081 (277)
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total Equity 27 148 26 871 (277) IFRS 10 and IFRS 11.
Liabilities
Financial liabilities 1 330 1 330 -
Long-term liabilities 4 4 -
Provisions 2 2 -
Trade and other payables 41 41 -
Total liabilities 1 377 1 377 -
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total equity and liabilities 28 525 28 248 (277) IFRS 10 and IFRS 11.
RESTATEMENT OF 30 JUNE 2013 AUDITED FINANCIAL RESULTS
CONDENSED CONSOLIDATED INCOME STATEMENT
for the year ended 30 June 2013
As
previously
R million reported Restated Difference Description
Direct result of restatements done
by FirstRand in terms of IAS 19,
Share of after-tax profit of associate company 5 088 5 154 66 IFRS 10 and IFRS 11.
Investment income 23 23 -
Net income 5 111 5 177 66
Administration expenses (41) (41) -
Income from operations 5 070 5 136 66
Finance costs (100) (100) -
Profit before tax 4 970 5 036 66
Income tax expense (1) (1) -
Profit after tax 4 969 5 035 66
Attributable to:
Equity holders of the company 4 969 5 035 66
Direct result of restatements done
by FirstRand in terms of IAS 19,
Profit for the period 4 969 5 035 66 IFRS 10 and IFRS 11.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2013
As
previously
R million reported Restated Difference Description
Direct result of restatements done
by FirstRand in terms of IAS 19,
Profit for the period 4 969 5 035 66 FRS 10 and IFRS 11.
Other comprehensive income, after tax:
Items that may subsequently be reclassified to profit or loss
Share of other comprehensive income of associate after tax and non-controlling
interests 636 633 (3)
Items that will not be reclassified to profit or loss
Share of other comprehensive income of associate after tax and non-controlling
interests - 8 8
Direct result of restatements done
by FirstRand in terms of IAS 19,
Other comprehensive income for the period 636 641 5 IFRS 10 and IFRS 11.
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total comprehensive income for the period 5 605 5 676 71 IFRS 10 and IFRS 11.
Total comprehensive income attributable to:
Equity holders of the company 5 605 5 676 71
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total comprehensive income for the period 5 605 5 676 71 IFRS 10 and IFRS 11.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2013
As
previously
R million reported Restated Difference Description
Assets
Cash and cash equivalents 12 12 -
Loans and receivables 53 53 -
Investment securities 52 52 -
Derivative financial instruments 11 11 -
Property and equipment 1 1 -
Direct result of restatements done
by FirstRand in terms of IAS 19,
Investment in associate 30 490 30 243 (247) IFRS 10 and IFRS 11.
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total assets 30 619 30 372 (247) IFRS 10 and IFRS 11.
Equity
Share capital and premium 8 822 8 822 -
Reserves 20 496 20 249 (247)
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total Equity 29 318 29 071 (247) IFRS 10 and IFRS 11.
Liabilities
Financial liabilities 1 234 1 234 -
Derivative financial instruments 9 9 -
Long-term liabilities 2 2 -
Provisions 2 2 -
Trade and other payables 54 54 -
Total liabilities 1 301 1 301 -
Direct result of restatements done
by FirstRand in terms of IAS 19,
Total equity and liabilities 30 619 30 372 (247) IFRS 10 and IFRS 11.
Directors
GT Ferreira (Chairman), P Cooper (CEO), L Crouse, LL Dippenaar, JW Dreyer, JJ Durand, PM Goss, PK Harris, (Ms) A Kekana, KC Shubane, and (Ms) SEN Sebotsa.
Alternate director: O Phetwe.
Secretary and registered office
(Ms) EJ Marais BCom(Hons), CA(SA)
Physical address: 3rd Floor, 2 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196
Postal address: PO Box 786273, Sandton, 2146
Telephone: +27 11 282 8000
Telefax: +27 11 282 4210
Web address: www.rmbh.co.za
Sponsor
(in terms of JSE Limited Listings Requirements) - Rand Merchant Bank (a Division of FirstRand Bank Limited)
Physical address: 1 Merchant Place, corner of Fredman Drive and Rivonia Road, Sandton, 2196
Transfer secretaries
Computershare Investor Services (Pty) Limited
Physical address: Ground Floor, 70 Marshall Street, Johannesburg, 2001
Postal address: PO Box 61051, Marshalltown, 2107
Telephone: +27 11 370 5000
Telefax: +27 11 688 5221
Date: 05/03/2014 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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