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FIRSTRAND LIMITED - INTERIM RESULTS

Release Date: 28/02/2001 13:35
Code(s): FSR
Wrap Text

THE FINANCIAL SERVICES GROUP WITH THE HEARTBEAT OF A MERCHANT BANK FIRSTRAND
INTERIM PROFIT ANNOUNCEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2000 INTRODUCTION
This report relates to the consolidated results of FirstRand Limited
(FirstRand), and its wholly owned subsidiaries, FirstRand Bank Holdings Limited and Momentum Group Limited. Separate reports relating to these subsidiaries are included in this circular, and should be read in conjunction with this report. THE FINANCIAL SERVICES GROUP WITH THE HEARTBEAT OF A MERCHANT BANK FINANCIAL HIGHLIGHTS * Group headline earnings +26% * Dividends +25% * Assets under management R333 billion
This report is available on our website at:www.firstrand.co.za SUMMARISED INCOME STATEMENT for the six months ended 31 December
Year ended 30 June 2000 1999 % 2000 R million (Unaudited) (Unaudited) change (Audited) Headline earnings
Banking operations 1 288 1 008 28 2 190 Insurance operations 423 359 18 790 Unallocated holding company costs - (5) - - 1 711 1 362 26 2 980 STC 1 (26) (26) - (26) Headline earnings 1 685 1 336 26 2 954 Headline earnings reconciliation Attributable earnings
Banking operations 1 275 1 008 26 2 190 Insurance operations 413 545 (24) 1 003 Sale of shares in insurance subsidiary
- intergroup profit - (104) - (104) Goodwill amortised - intergroup 3 - - - Unallocated holding company costs - (5) - - 1 691 1 444 17 3 089 STC (26) (26) - (26) Earnings attributable to ordinary
shareholders 1 665 1 418 17 3 063 Add: Goodwill amortised 20 - - 6 Add: -Once-off effect of insurance transitional
tax on prior years - 35 - 35 Less: -Disposal of shares in
insurance subsidiary - (117) - (150) Headline earnings 1 685 1 336 26 2 954 Dividends (Rm) 613 490 25 1 035 Return on average equity (%) 22 22 - 23 Number of shares in issue (million) 5 445 5 445 - 5 445 Earnings per share (cents) 30,5 26,0 17 56,3 Headline earnings per share (cents) 30,9 24,5 26 54,2 Dividend per share (cents)
Interim 11,25 9,00 25 9,00 Final n/a n/a - 10,00 Total 11,25 9,00 25 19,00 The charge represents the STC paid during the six months ended 31 December 2000. This treatment is in line with recent changes to Generally Accepted Accounting Practice, details of which are contained in the commentary on these results. The STC charge during the prior year has been restated to take account of this change. BALANCE SHEET at 31 December
Year ended 30 June 2000 1999 2000 R million (Unaudited) (Unaudited) (Audited) ASSETS
Banking operations 154 303 134 323 140 176 Cash and short-term funds 7 771 10 389 8 309 Short-term negotiable securities 16 560 9 188 14 470 Liquid assets and trading securities 11 552 8 765 9 773 Securities purchased under agreements
to resell 38 3 764 2 434 Advances 115 900 100 992 102 668 Other investments 2 482 1 225 2 522 Insurance operations 64 249 59 044 60 991 Funds on deposit 7 009 7 244 7 930 Government and public authority stocks 6 465 5 406 4 800 Mortgages, debentures and other loans 6 622 5 175 5 964 Policy loans 655 616 465 Equity investments 40 350 37 169 38 703 Property investments 3 148 3 434 3 129 Current assets 18 628 13 084 15 936 Loans 1 108 - 1 108 Investments in associated companies 722 410 672 Deferred taxation 370 - 184 Goodwill 536 32 58 Property and equipment 3 588 3 460 3 666 Total assets 243 504 210 353 222 791 LIABILITIES AND SHAREHOLDERS' FUNDS Liabilities
Deposits and current accounts 129 375 117 670 117 559 Current liabilities 29 349 14 274 23 491 Securities sold under agreements to repurchase - 3 723 2 387 Deferred taxation 1 671 1 410 1 556 Debentures and long-term liabilities 3 396 2 496 3 847 Life insurance funds 62 549 57 695 58 591 Total liabilities 226 340 197 268 207 431 Outside shareholders' interests 1 015 623 641 Shareholders' funds
Share capital and share premium 9 595 8 486 9 595 Convertible debentures 350 350 350 Reserves 6 204 3 626 4 774 Total shareholders' funds 16 149 12 462 14 719 Total liabilities and shareholders' funds 243 504 210 353 222 791 SUMMARISED CASH FLOW STATEMENT for the six months ended 31 December
Year ended 30 June 2000 1999 2000 R million (Unaudited) (Unaudited) (Audited) Cash flows from operating activities
Cash generated by operations 5 658 5 917 11 454 Working capital changes 3 233 (4 314) 3 404 Cash inflow from operations 8 891 1 603 14 858 Normal tax paid (607) (494) (898) Dividends paid (545) (436) (926) Net cash inflow from operating activities 7 739 673 13 034 Net cash outflow from investment activities (8 899) (3 067) (18 172) Net cash (outflow)/inflow from
financing activities (299) 183 1 533 Net decrease in cash and cash equivalents (1 459) (2 211) (3 605) Cash and cash equivalents at beginning
of period 16 239 19 844 19 844 Cash and cash equivalents at end of period 14 780 17 633 16 239 STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 December 2000 Retained Non- Convertible R million earnings distributable debentures reserves Balance as at 1 July 2000
- As previously stated 3 932 257 350 - Provision for dividends 545 - - - Provision for STC 40 - - Restated balance as at 1 July 2000 4 517 257 350 Movement on foreign currency
translation reserves - 298 - Non-distributable reserves arising on the purchase of subsidiaries
and associates - 12 - Earnings attributable to shareholders 1 665 - - Dividends paid (545) - - Transfer (to)/from reserves (15) 15 - Balance as at 31 December 2000 5 622 582 350 Balance as at 31 December 1999 3 181 445 350 Share Total capital share- Preference and share holders' R million shares premium funds Balance as at 1 July 2000
- -As previously stated 1 109 8 486 14 134 - -Provision for dividends - - 545 - -Provision for STC - - 40 Restated balance as at 1 July 2000 1 109 8 486 14 719 Movement on foreign currency
translation reserves - - 298 Non-distributable reserves arising on the purchase of subsidiaries
and associates - - 12 Earnings attributable to shareholders - - 1 665 Dividends paid - - (545) Transfer (to)/from reserves - - - Balance as at 31 December 2000 1 109 8 486 16 149 Balance as at 31 December 1999 - 8 486 12 462 ASSETS UNDER MANAGEMENT
at 31 December 30 June 2000 1999 2000 R million (Unaudited) (Unaudited) (Audited) Holding company 1 111 - 1 113 Banking Group 172 275 147 101 155 513 Insurance Group 159 474 134 755 146 369 On-balance sheet 70 118 63 252 66 165 Off-balance sheet assets managed and
administered on behalf of clients 89 356 71 503 80 204 Total 332 860 281 856 302 995 SOURCES OF PROFIT
for the six months ended 31 December 2000 1999 % % Banking operations 77 75 Bank head office and capital centre 15 25 Retail bank

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