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RMH - RMB Holdings Limited - Summarised, Audited Results Announcement, Cash
and Special Dividend Declaration for the year ended 30 June 2011
RMB Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1987/005115/06
Share code: RMH ISIN code: ZAE000024501
("RMBH")
SUMMARISED, AUDITED RESULTS ANNOUNCEMENT, CASH AND SPECIAL DIVIDEND
DECLARATION FOR THE YEAR ENDED 30 JUNE 2011
+21% to
241,3 cents
Normalised earnings
R1,4 billion
or 101,0 cents
Ordinary dividend
R1,3 billion
or 95,0 cents
Special dividend
R36,6 billion
or 2 589 cents
Intrinsic Value
Group restructuring
Having obtained the requisite shareholder and regulatory approval, RMBH
implemented a far reaching restructuring on 7 March 2011. This included,
inter alia, the following steps:
* the issue of new RMBH ordinary shares to Royal Bafokeng Holdings
(Proprietary) Limited for a cash consideration of R2,5 billion;
* the acquisition by RMBH of additional FirstRand Limited
("FirstRand") ordinary shares in exchange for the issue of new
RMBH ordinary shares, thereby increasing RMBH`s holding in
FirstRand to 33,9%;
* the separation of RMBH`s insurance and banking interests,
through the transfer of RMBH`s insurance interests to a wholly-
owned subsidiary, Rand Merchant Insurance Holdings Limited ("RMI
Holdings"); and
* the unbundling of RMI Holdings to RMBH`s ordinary shareholders
on a one-for-one basis and the separate listing of RMI Holdings
on the JSE as an insurance-focused investment entity.
After the restructuring, RMBH`s sole interest is its 33,9% investment in
FirstRand, one of South Africa`s pre-eminent banking groups.
RMBH`s results for the financial year ended 30 June 2011 thus represents an
amalgam of its attributable share of FirstRand`s income (after recognising
the change in interest during the year) and its attributable share of the
income of its insurance interests up to the unbundling thereof. This,
together with accounting for the restructuring itself, gives rise to a
number of counter-intuitive outcomes in the reported results.
To overcome the impact of this, the commentary focuses on normalised
earnings from continuing operations as its main measurement. A
reconciliation of the adjustments made to derive normalised earnings is
presented in the accompanying schedules. The computation of normalised
earnings has not been audited.
Overview of results
Global economic growth started to moderate in the first half of 2011,
particularly in highly-indebted, developed economies and sentiment was
further dampened by increased concern over the fiscal health of certain
peripheral Eurozone nations.
Factors that weighed on global economic activity included the devastating
Japanese earthquake (resulting in the disruption of global supply chains);
political unrest in North Africa and the Middle East; adverse weather
conditions; and growing demand from emerging market economies (pushing oil
and grain prices upwards).
Against this uncertain global economic backdrop, the South African economy
held up well, registering quarterly growth rates above 2,5% during the
financial year. South African consumers, who benefited from low debt service
costs and robust real income growth, were the main drivers behind this
expansion. In addition, increased global commodity prices provided support
to the South African export sector. However, employment growth, demand for
credit and investment spending by the private sector stayed sluggish.
Inflation remained within the South African Reserve Bank`s ("SARB") target
band.
RMBH continued to build on its strong first half performance to produce
excellent results for the financial year to 30 June 2011, achieving
normalised earnings from continuing operations of R3,09 billion, an
increase of 28% on the previous year.
After taking cognisance of the ordinary shares issued during the year, the
following outcome was achieved:
Year ended 30 June 2011 Cents % change
per on prior
share year
* Attributable earnings 321,9c +60
* Headline earnings 231,7c +15
* Normalised earnings 241,3c +21
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.
RMBH`s proportional interest therein may be extrapolated as follows:
Retail banking 47%
Corporate banking 20%
Investment banking 33%
RMBH capital position and borrowings
At the end of June 2011, RMBH`s net borrowings at holding company level
amounted to some R1,37 billion (2010: R0,75 billion). We anticipate that
borrowings can be maintained at this level.
The intrinsic value of RMBH`s investment portfolio reflects the effect of
the unbundling that took place during the year, with the values at year end
being as follows:
As at 30 June 2011 2010
R million
Market value of interest in FirstRand 37 922 30 609
Net borrowings (1 368) (754)
Market value of interest in FirstRand after 36 554 29 855
borrowings
Assets unbundled - 8 860
Total Intrinsic Value 36 554 38 715
Per RMBH share (cents) 2 589c 3 202c
At 30 June 2011 RMBH`s market capitalisation amounted to R37,7 billion
or 2 665c per share, representing a 2,9% premium to the group`s underlying
intrinsic value.
Dividend payment
RMBH has traditionally followed the practice of returning substantially all
net dividends (after providing for funding and other costs incurred at the
centre) received by it in the ordinary course of business to shareholders.
It is envisaged that this practice will continue after the group
restructuring.
For the year ended 30 June 2011, RMBH`s normalised earnings from continuing
operations (that is after recognizing the impact of the unbundling of RMI
Holdings) amounted to 241,3 cents per share (2010: 199,2 cents).
The Board is of the opinion that RMBH 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 final dividend declared below.
Having due regard to the final dividend receivable from FirstRand and
applying the dividend practice outlined above, the Board of RMBH has
declared a final dividend of 58,3 cents per share. Such final dividend,
together with the interim dividend of 42,7 cents brings the total dividends
for the year ended 30 June 2011 to 101,0 cents (2010: 124,0 cents). Such
dividend is covered 2,4 times by normalised earnings per share.
In total, an RMBH shareholder who has retained his RMI Holdings shares from
the unbundling would have received the following ordinary dividends per
share for the year ended 30 June 2011:
2011 2010 %
Cents per share Interim Final Total Total change
RMBH 42,7 58,3 101,0 124,0
RMI Holdings 22,8 33,7 56,5 -
65,5 92,0 157,5 124,0 +27%
The Board of RMBH is of the view that the level of borrowings that the group
currently carries at the centre is appropriate. Consistent with its policy
of not retaining surplus resources at the centre, the Board has decided to
return the proceeds of the special dividend declared by FirstRand to
shareholders. Accordingly, the Board of RMBH has declared a special dividend
of 95,0 cents per share.
Outlook for the coming year
Significant disquiet in global markets results in a highly uncertain
outlook. We expect that domestic economic conditions will remain subdued in
the current financial year. Growth in retail advances will remain low and
given current levels of corporate capacity, investment opportunities will be
limited and growth in corporate advances is therefore expected to remain
subdued.
Given the revenue pressures resulting from such a low growth macro
environment, FirstRand continues to drive cost efficiencies.
In addition, FirstRand`s operating franchises will continue to focus on
opportunities in those market segments that display growth trends, and where
they remain under-represented. With the exception of WesBank which
anticipates a healthy lending landscape in both corporate and retail
portfolios, overall balance sheet growth will be tough to generate.
However, non-interest revenue should remain healthy, particularly given
FNB`s focus on innovation and customer service delivery and the strength of
RMB`s investing, trading and advisory franchises.
GDP growth in Sub-Saharan Africa is expected to further strengthen in 2011
and 2012 and all of FirstRand`s franchises will continue to capitalise on
growth opportunities in those countries identified as priorities for
expansion. FNB will continue to expand its operating footprint supported by
its South African platform and RMB will mine the trade and investment flows
between Asia and Africa, leveraging off the existing FNB platforms and its
own platform in India.
The restructuring of the RMBH group into focused, separately listed banking
(via RMBH) and insurance (via RMI Holdings) groups has given shareholders
greater flexibility and transparency in managing their investment in the
group.
The quality of FirstRand`s operating franchises and their respective
strategies domestically and in the rest of Africa should underpin that
group`s ability to provide us, as shareholders, with sustainable superior
returns.
For and on behalf of the Board
GT Ferreira P Cooper
Chairman Chief executive officer
Sandton 14 September 2011
Dividend declaration
Notice is hereby given that on 14 September 2011 the Board:
* declared a final dividend of 58,3 cents per share in respect of
the financial year ended 30 June 2011; and
* in addition a special dividend of 95,0 cents per share, was
declared.
Shareholders` attention is drawn to the following important dates:
* Last day to trade in order to Friday, 7 October 2011
participate in these dividends
* Shares commence trading "ex dividend" Monday, 10 October 2011
on
* The record date for the dividend Friday,14 October 2011
payments will be
* Dividend payment date Monday,17 October 2011
No dematerialisation or rematerialisation of share certificates may be done
between Monday, 10 October 2011 and Friday, 14 October 2011 (both days
inclusive).
By order of the Board
AL Maher
Company secretary
14 September 2011
FirstRand group
With Effect from 7 March 2011, RMBH`s sole interest is its 33,9% investment
in FirstRand, one of South Africa`s pre-eminent banking groups.
FirstRand`s vision is to be the African financial services group of choice,
creating long-term franchise value and delivering superior and sustainable
economic returns to shareholders within acceptable levels of volatility. It
seeks to:
* Become a predominant South African player focusing on both
existing markets and those markets where the business is
currently under-represented; and
* Further grow the existing African franchise, targeting those
markets that are expected to produce above average domestic
growth and are strongly positioned to benefit from the trade
and investment flows between Africa and Asia, particularly
China and India.
These strategies are executed through FirstRands` operating franchises,
within a strategic framework set by the group. During the year, First
National Bank ("FNB"), the retail and commercial bank; Rand Merchant Bank
("RMB"), the investment bank; and WesBank, the instalment finance business,
continued to make good progress against this strategic intent.
Operational performance
FirstRand`s operating franchises, FNB, RMB and WesBank, delivered very
strong operational performances.
Overall non-interest revenue ("NIR") grew 7% as a result of ongoing customer
acquisition and robust transactional volumes at FNB, particularly in
electronic channels. WesBank generated strong fee and commission growth and
RMB`s knowledge-based fee income benefited from good deal flow throughout
the year.
Earnings continued to be positively impacted by the significant decrease in
retail bad debts (impairment charge down 34% on the previous period),
particularly in the large books of FNB and WesBank. The absolute rate of
reduction in bad debts flattened in the second half of the year and has now
reached a normalised level.
Investment income also contributed strongly, driven by the private equity
and resources portfolios of RMB, and profits from the disposal of Visa Inc.
shares.
Asset margins benefited from new business repricing across the large lending
books, although given the significant size of the in-force advances
(particularly in residential mortgages) compared to the current levels of
new business, the benefits will take time to materialise. Margins also
continued to be impacted by the negative endowment effect on capital and
deposits as average interest rates for the financial year were 114 bps lower
than the previous period.
Overall FirstRand`s group operating expenses reflect good ongoing cost
control with costs increasing only 9%.
Financial outcome
FirstRand continued to build on its strong first half performance to produce
excellent results for the financial year to 30 June 2011:
* achieving normalised earnings from normalised continuing
operations of R10,1 billion, an increase of 22% on the previous
period; and
* producing a normalised return on equity ("ROE") of 18,7% (2010:
17,7%).
Key points regarding FirstRand`s performance may be summarised as follows:
Year ended 30 June 2011 2010 %
R million change
Normalised earnings for ordinary
shareholders derived from:
- FNB South Africa 5 022 4 276 +17%
- FNB Africa 540 455 +19%
- RMB 3 610 3 316 + 9%
- WesBank 1 862 953 +95%
- FirstRand Corporate center (917) (717) +28%
(including pref. div. payments)
Normalised earnings from continuing 10 117 8 283 +22%
operations
Attributable to RMBH* 3 201 2 494 +28%
* After consolidation eliminations
For an in-depth review of FirstRand`s performance, RMBH shareholders are
referred to www.firstrand.co.za.
FirstRand capital position
Given the macro environment, FirstRand seeks to operate at the higher end of
its targeted shares capital levels to ensure balance sheet resilience. Its
targeted capital adequacy ratio of 12% to 13,5% needs to be contrasted to
the actual FirstRand ratio of 16,5%.
FirstRand has completed a process of assessing current ratios against
anticipated deployment, the implementation of Basel III regulatory changes
and its ability to generate future capital through earnings. It is of the
view that it is currently operating above the appropriate target levels.
This can be ascribed to:
* the recent disposal of certain non-core assets, including the
group`s stakes in VISA Inc and OUTsurance, has resulted in an
excess that is not required for the current expansion strategy
and regulatory changes; and
* the group`s operating franchises are generating good returns at
a time when there is limited opportunity to grow risk weighted
assets due to the current economic climate.
The group has declared a special dividend of 70 cents per share due to the
disposal of the non-core assets. It is FirstRand`s view that as shareholders
were invested in these assets through FirstRand, the opportunistic
transactions led to the unlocking of shareholder value and this realised
value should be returned to shareholders.
Progress with FirstRand`s African expansion strategy
The case for investing in Africa is persuasive - economies are strong,
political risks have stabilised, and the business climates continue to
improve.
FirstRand has a compelling strategy to grow its franchises on the African
continent, matched with a highly disciplined approach to protecting
shareholder returns. In order to protect its ROE as it builds a presence
outside of its core South African operations, FirstRand prefers
"greenfields" operations or small rather than significant acquisitions.
Whilst this can mean expansion takes longer, potential dilution of returns
can be contained. "Bolt-on" acquisitions to existing "greenfields"
operations are also preferable, as these can bring additional scale more
rapidly.
The group regards domestic market size and potential market growth as early
key considerations when identifying priority countries for expansion outside
of South Africa. Based on these considerations, Nigeria, Ghana, Tanzania,
Botswana, Kenya, Uganda, Angola and Zambia have been identified as the more
desirable markets. As these priority countries present different commercial
opportunities, FNB, RMB and WesBank pursue differentiated entry strategies,
albeit within the group`s overall risk appetite and framework. Thus, FNB
continues to make significant progress in building out its infrastructure in
Zambia and has established a full service banking operation in Tanzania,
while RMB (which already has a presence in India) has opened representative
offices in Kenya and Angola to benefit from investment and trade flows
between these countries and India.
www.rmbh.co.za
Summarised consolidated income statement
For the year ended 30 June 2011 2010 %
R million Audited Audite change
d
Continuing operations
Share of after tax results from 4 255 2 543 67
associate company
Investment income 13 9
Income 4 268 2 552
Acquisition, marketing and (50) (22)
administration expenses
Operating profit 4 218 2 530 67
Net finance costs (98) (100)
Profit before tax 4 120 2 430 70
Taxation 1 1
Profit from continuing operations 4 121 2 431 70
Operations unbundled (discontinued)
Profit attributable to operations 1 206 1 414 (15)
unbundled
Negative goodwill on acquisition of 1 370 -
associate
Profit on unbundling of discontinued 4 983 -
operations
Profit for the year 11 680 3 845 >100
Attributable to:
Equity holders of RMBH 11 468 3 607 >100
Non-controlling interests 212 238 (11)
Profit for the year 11 680 3 845 >100
Computation of headline earnings
For the year ended 30 June 2011 2010 %
R million Audited Audite change
d
Earnings attributable to equity holders 11 468 3 607 >100
Adjustment for:
Negative goodwill on acquisition of (1 -
associate 370)
Profit on unbundling of discontinued (4 -
operations 983)
Other 12 (2)
Share of adjustments made by
associates:
Profit on sale of shares in (1 (37)
subsidiary and associate 211)
Profit on sale of joint venture (178) -
Profit on sale of available-for-sale (159) (69)
financial assets
Gains from a bargain purchase - (66)
Impairment of assets in terms of 5 57
IAS36
Loss on disposal of investment 18 -
securities
Impairment of goodwill 29 53
Other 22 33
Total tax effect of adjustments 6 17
Total non-controlling interest 87 1
adjustments
Headline earnings attributable to 3 746 3 594 4
equity holders
Sources of headline earnings
For the year ended 30 June 2011 2010 %
R million Audited Audite change
d
Headline earnings from:
FirstRand 3 076 2 518 22
Funding costs (110) (86) 28
Headline earnings from continuing 2 966 2 432 22
operations
Momentum 98 384
MMI Holdings 96 -
Discovery 260 411 (37)
OUTsurance 304 359 (15)
RMB Structured Insurance 22 8 >100
Headline earnings from unbundled 780 1 162 (33)
operations
Headline earnings for the year 3 746 3 594 4
Computation of earnings per share from continuing and unbundled
operations
For the year ended 30 June 2011 2010 %
R million Audited Audite change
d
Earnings attributable to equity holders 11 468 3 607 >100
Headline earnings attributable to 3 746 3 594 4
equity holders
Number of shares in issue (millions) 1 412 1 209
Weighted average number of shares in 1 272 1 199
issue (millions)
Earnings per share (cents) 901,3 300,8 >100
Diluted earnings per share (cents)* 895,4 298,0 >100
Headline earnings per share (cents) 294,4 299,8 (2)
Diluted headline earnings per share 290,2 297,0 (2)
(cents)*
Dividend per share (cents)
Interim 42,7 54,0 -
Final 58,3 70,0 -
Total 101,0 124,0 -
Dividend cover (relative to headline 2,9 2,4
earnings)
From continuing operations
For the year ended 30 June 2011 2010 %
R million Audited Audite change
d
Earnings attributable to equity holders 4 121 2 431 70
Headline earnings attributable to 2 966 2 432 22
equity holders
Number of shares in issue (millions) 1 412 1 209
Weighted average number of shares in 1 280 1 209
issue (millions)
Earnings per share (cents) 321,9 201,6 60
Diluted earnings per share (cents)* 316,1 200,7 57
Headline earnings per share (cents) 231,7 201,2 15
Diluted headline earnings per share 227,5 199,1 14
(cents)*
* The diluted calculations give cognisance to the impact of the
similar calculation within FirstRand. This has no impact on
RMBH`s weighted average number of shares.
Computation of normalised earnings (Unaudited)
The group believes that normalised earnings more accurately
reflect operational performance. Headline earnings are adjusted
to take into account non-operational and accounting anomalies.
These unaudited adjustments are consistent with those reported
at 30 June 2010.
For the year ended 30 June Not 2011 2010 %
R million e Unaudite Unaudite chang
d d e
Headline earnings attributable to 3 746 3 594 4
equity holders
RMBH`s share of adjustments made
by associates:
Treasury Shares 1 162 83
Reversal of private equity 156 -
subsidiary realisations
Net realised and fair value gains (26) -
on shareholders funds
Basis changes and investment 6 -
variances
Amortisation of intangible assets 35 -
relating to business combinations
Recapture of reinsurance 78 -
Other 13 -
IFRS 2 share based expenses (5) 73
Normalised earnings after 4 165 3 750 11
normalised adjustments by
associates
Adjustment for:
RMBH shares held by 2 55 66
policyholder
Group treasury shares 3 (201) (249)
Normalised earnings attributable 4 019 3 567 13
to equity holders
Notes:
1. Deconsolidation of treasury shares and "deemed" treasury
shares
by FirstRand and Discovery to account for:
- the Discovery BEE transaction;
- FirstRand shares acquired to hedge liabilities under staff
share schemes; and
- FirstRand shares held as policyholders` assets by group
insurers.
2. Deconsolidation of "deemed" RMBH`s treasury shares held for
policyholders by group insurers.
3. Adjustment to reflect earnings impact based on actual RMBH
shareholding in group companies, i.e. reflecting treasury
shares as if they are non-controlling interests.
Sources of normalised earnings (unaudited)
For the year ended 30 June 2011 2010 %
R million Unaudite Unaudite chang
d d e
Normalised earnings from:
FirstRand 3 201 2 494 28
Funding costs (110) (86) 28
Normalised earnings from continuing 3 091 2 408 28
operations
Momentum 152 418
MMI Holdings 121 -
Discovery 342 389 (12)
OUTsurance 291 341 (15)
RMB Structured Insurance 22 11 >100
Normalised earnings from unbundled 928 1 159 (20)
operations
Normalised earnings for the year 4 019 3 567 13
Computation of normalised earnings per share from continuing and
unbundled operations (Unaudited)
For the year ended 30 June 2011 2010 %
R million Unaudite Unaudite chang
d d e
Normalised earnings for the year 4 019 3 567 13
Weighted average number of shares in 1 281 1 209
issue (millions)
Normalised earnings per share (cents) 313,8 295,0 6%
Diluted normalised earnings per share 313,8 295,0 6%
(cents)
Dividend cover (relative to 3,1 2,4
normalised earnings)
From continuing operations
Normalised earnings from continuing 3 091 2 408 28
operations
Weighted average number of shares in 1 281 1 209
issue (millions)
Normalised earnings per share (cents) 241,3 199,2 21%
Diluted normalised earnings per share 241,3 199,2 21%
(cents)
Summarised consolidated statement of comprehensive income
For the year ended 30 June 2011 2010 %
R million Audited Audited chang
e
Profit for the year 11 680 3 845 >100
Other comprehensive income, net of
tax
Currency translation differences 10 18
Available-for-sale financial assets 13 25
Share of other comprehensive income (127) (105)
of associates
Other comprehensive income for the (104) (62)
year
Total comprehensive income for the 11 576 3 783
year
Total comprehensive income
attributable to:
Equity holders of RMBH 11 355 3 528 >100
Non-controlling interests 221 255 (13)
Total comprehensive income for the 11 576 3 783 >100
year
Summarised consolidated statement of financial position
as at 30 June 2011 2010
R million Audited Audited
ASSETS
Property and equipment 2 165
Goodwill and other intangible assets - 46
Investment in associate companies 25 061 22 371
Financial assets 19 5 288
Receivables and prepayments 25 635
Reinsurers` share of insurance provision - 152
Cash and cash equivalents 15 2 749
Total assets 25 122 31 406
EQUITY
Share capital and premium 8 750 5 126
Reserves 14 951 17 722
Capital and reserves attributable to equity 23 701 22 848
holders of the company
Non-controlling interests - 1 036
Total equity 23 701 23 884
LIABILITIES
Financial liabilities 1 367 2 792
Insurance contract provisions - 4 184
Payables and provisions 54 546
Total liabilities 1 421 7 522
Total equity and liabilities 25 122 31 406
Summarised consolidated statement of cash flows
For the year ended 30 June 2011 2010
R million Audited Audited
Cash available from operating activities from 1 458 931
continuing operations
Cash available from operating activities from 593 1 824
discontinued operations
Dividends paid (1 447) (1
195)
Investment activities from continuing (47) 303
operations
Investment activities from discontinued (843) (542)
operations
Financing activities from continuing 2 494 (203)
operations
Financing activities from discontinued 79 (368)
operations
Net increase in cash and cash equivalents
from continuing and discontinued operations 2 287 750
Unrealised foreign currency translation 26 13
adjustments
Transfer to non-current assets held for sale (5 047) -
Cash and cash equivalents at the beginning of 2 749 1 986
the year
Cash and cash equivalents at the end of the 15 2 749
year
Cash available from operating activities includes net premium
receipts by short-term insurance operations. Given the
fluctuations inherent in non-recurring structured insurance
transactions, such cashflows are not necessarily directly
comparable between years.
Summarised consolidated statement of changes in equity
R million Share Treasur Equity Non-
capita y accounted Distri-
l and shares reserves butable
premiu reserve reserve
m s
Balance at 30 June 2009
(audited)
As previously reported 5 328 (137) 12 496 559
Total comprehensive income - - (105) 26
for the year
Dividend paid - - - -
Income of associated - - 2 282 -
companies retained
Capital invested by - - - -
minorities
Sale of emerging market - - - -
portfolio
Reserve movements relating - - - 24
to subsidiaries
Change in carrying value of - - (91) -
associate due to elimination
of treasury shares
Movement in treasury shares - (65) 94 -
Reserve movements relating - - (62) -
to associates
Balance at 30 June 2010 5 328 (202) 14 614 609
(audited)
Issue of shares 6 735 - - -
Total comprehensive income - - (127) 14
for the year
Dividend paid - - - -
Dividend in specie: (3 - (6 976) (325)
Unbundling of RMI Holdings 238)
Income of associated - - 3 512 -
companies retained
Capital invested by - - - -
minorities
Reserve movements relating - - - 40
to subsidiaries
Change in carrying value of - - (601) -
associate due to elimination
of treasury shares
Movement in treasury shares - 127 115 -
Reserve movements relating - - 1 451 -
to associates
Balance at 30 June 2011 8 825 (75) 11 988 338
(audited)
R million Retaine Total Non- Total
d equity Con- equity
earning holders` trolling
s funds interest
s
Balance at 30 June 2009
(audited)
As previously reported 2 396 20 642 1 099 21 741
Total comprehensive income 3 607 3 528 255 3 783
for the year
Dividend paid (1 (1 197) (189) (1 386)
197)
Income of associated (2 - - -
companies retained 282)
Capital invested by - - 188 188
minorities
Sale of emerging market - - (323) (323)
portfolio
Reserve movements relating (26) (2) 6 4
to subsidiaries
Change in carrying value - (91) - (91)
of associate due to
elimination of treasury
shares
Movement in treasury 1 30 - 30
shares
Reserve movements relating - (62) - (62)
to associates
Balance at 30 June 2010 2 499 22 848 1 036 23 884
(audited)
Issue of shares - 6 735 - 6 735
Total comprehensive income 11 468 11 355 221 11 576
for the year
Dividend paid (1 (1 449) (98) (1 547)
449)
Dividend in specie: (6 (16 (1 307) (18
Unbundling of RMI Holdings 353) 892) 199)
Income of associated (3 - - -
companies retained 512)
Capital invested by - - 130 130
minorities
Reserve movements relating (35) 5 18 23
to subsidiaries
Change in carrying value - (601) - (601)
of associate due to
elimination of treasury
shares
Movement in treasury 7 249 - 249
shares
Reserve movements relating - 1 451 - 1 451
to associates
Balance at 30 June 2011 2 625 23 701 - 23 701
(audited)
Basis of preparation of results
The accompanying summarised results for the year ended 30 June 2011 reflect:
* the operations of RMBH and its proportionate interest in its
associate, FirstRand; which has been equity accounted; and
* the operations of its previously held subsidiaries, OUTsurance
and RMB Structured Insurance, for the eight months ended
28 February 2011; and
* RMBH`s proportionate interest in its previously held
associates, Discovery and MMI Holdings, which have been equity
accounted for the eight months ended 28 February 2011.
This 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, as amended; and
* The Listings Requirements of the JSE Limited ("the JSE").
These summarised results incorporate accounting policies that are consistent
with those used in preparing the financial results for the year ended 30
June 2010.
These financial statements were audited by PricewaterhouseCoopers Inc. A
copy of their unqualified audit opinion is available for inspection at RMB
Holdings` registered office.
RMB Holdings Limited ("RMBH")
Registration number 1987/005115/06
Share code RMH ISIN code ZAE000024501
Directors
GT Ferreira (Chairman), P Cooper (CEO), L Crouse (appointed 25 May
2011), NDJ Carroll (appointed 25 May 2011), LL Dippenaar, JW Dreyer,
JJ Durand (resigned 25 May 2011), PM Goss, PK Harris, KC Shubane, (Ms) SEN
Sebotsa and MH Visser.
Secretary AL Maher
Registered office and 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 1010
Telefax +27 86 632 0963
Web address www.rmbh.co.za
Sponsor (in terms of JSE 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
RMBH`s sole interest is a 33,9% investment in FirstRand, one of South
Africa`s pre-eminent banking groups.
Effective interest 33,9%*
FirstRand Limited (the "FirstRand or FirstRand group")
The FirstRand group comprises a portfolio of leading financial services
franchises; these are First National Bank ("FNB"), the retail commercial and
wholesale bank, Rand Merchant Bank ("RMB"), the investment bank, and
WesBank, the instalment finance business.
The FirstRand provides customers with a comprehensive range of products and
services according to specific target market segments.
First National Bank ("FNB") services the retail, business and medium
corporate segments. In addition it provides transactional services to the
group`s large corporate clients.
Rand Merchant Bank ("RMB") is responsible for the large corporate segment,
to which it provides loans, value added advisory and structuring services.
WesBank is South Africa`s dominant movable asset financier.
The balance of the group includes its African banking subsidiaries and Group
treasury.
Date: 14/09/2011 16:00:02 Supplied by www.sharenet.co.za
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