RMH RMH - RMBH - Trading Statement: Six Months ended 31
December 2011 RMB HOLDINGS LIMITED (Incorporated in the
Republic of South Africa) Registration number: 1987/005115/06
ISIN: ZAE000024591 Share Code: RMH ("RMBH" or
"the Group") TRADING STATEMENT: SIX MONTHS ENDED 31
DECEMBER 2011 INTRODUCTION In terms paragraph 3.4(b) of the
Listings Requirements of the JSE Limited, an issuer is
required to publish a trading statement as soon as it becomes
apparent that earnings per share ("EPS") and/or
headline earnings per share ("HEPS") for the next
period to be reported on are expected, with a reasonable
degree of certainty, to differ by at least 20% from those of
the previous corresponding reporting period. NORMALISED
EARNINGS RMBH considers Normalised EPS from continuing
operations to most accurately represent operational
performance. On this basis, Normalised EPS for the six months
to December 2011 are expected to increase by between 20% and
24% from 110.1 cents for the six months ended 31 December
2010. NON-RECURING PRIOR PERIOD EVENTS Shareholders are
reminded that in the interim reporting period ended 31
December 2010("prior period"): - RMBH's
associate, FirstRand Limited ("FirstRand")
distributed its interest in MMI Holdings Limited
("MMI") to shareholders as a dividend in specie.
This resulted in MMI becoming a directly held associate of
RMBH. - In addition, RMBH's then associate, Discovery
Holdings Limited ("Discovery") concluded a business
combination whereby it acquired the Standard Life Healthcare
Group and merged that with the Pruhealth Group
(Discovery's UK based joint venture). In terms of the
accounting conventions applicable, these events gave rise to
significant non-recurring increases in both HEPS and EPS for
the six months ended 31 December 2010. During the six months
ended 30 June 2011: - RMBH increased its shareholding in
FirstRand to 33.9%; - RMBH acquired FirstRand's 45%
interest in OUTsurance Holdings Limited
("OUTsurance"); and - RMBH unbundled its
shareholding in RMI Holdings Limited ("RMI") to
shareholders. RMI holds the insurance operations previously
held by RMBH. These include OUTsurance, RMB Structured
Insurance, MMI and Discovery. Consequently: - For the six
months ended 31 December 2010, both RMBH's HEPS and EPS
comprise the earnings of both its interest in FirstRand and
it's then wholly-owned subsidiary RMI; while - For the
current six month period ended 31 December 2011, RMBH's
HEPS and EPS only reflect the outcome of its 33,9% interest
in FirstRand. EARNINGS GUIDANCE FOR SIX MONTHS ENDED 31
DECEMBER 2011 Given the impact of the non-recurring prior
period items and the changes in the interim to the Group
structure, shareholders are advised that the expected outcome
for the six months ended 31 December 2011 is as follows: Per
Share (cents) December Guidance for 2010 six months to
December 2011 Normalised earnings- 110.1 c 20% to 24% From
continuing operations increase Headline earnings - 161.0 c
12% to 20% Includes both continuing and decrease unbundled
operations in prior period Earnings - 295.5 c 45% to 55%
Includes both continuing and decrease unbundled operations in
prior period The financial information on which this trading
statement is based has not been reviewed and reported on by
the Group's external auditors. RMBH's interim results
for the six months ended 31 December 2011 is expected to be
released on SENS on or about Wednesday 29 February 2012.
Sandton 23 February 2012 Sponsor RAND MERCHANT BANK (A
division of FirstRand Bank Limited) Date: 23/02/2012 10:36:01
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