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Johannesburg - Financial services holding group RMB Holdings (RMBH) [JSE:RMH] on Wednesday reported a 20% leap in normalised earnings to R1.99bn or 164.2 cents per share for the six months ended December 31 2010.
The group declared a total interim dividend of R940m or 65.5c/share, which represented a 21% increase over the previous comparable half-year.
With effect from March 7 2011, all of RMBH's insurance interests were listed separately as RMI Holdings. RMBH shareholders received one RMI Holdings share for each RMBH share held.
The results of RMI Holdings for the six months ended December 31 2010 were included in the interim results of RMBH. However, RMI Holdings dividend flows for the half-year will be paid to RMI Holdings shareholders directly.
RMBH's results were driven by a 20% increase in normalised earnings to R4.752bn witnessed by FirstRand [JSE:FSR], as well as a 25% increase in earnings to R941m and 27% increase to R360m respectively by Discovery and OUTsurance.
"Across the South African banking sector, balance sheets experienced low growth, due to the limited recovery in economic activity and the ongoing process of consumers deleveraging their balance sheets. Given this background, FirstRand's performance is indeed a pleasant outcome," RMBH said.
The outcome reported by OUTsurance reflected satisfying growth in its southern African operations in the face of having to absorb start up costs in Australia, the group added.
"While the lower average interest rates weighed on FirstRand's endowment income, the cumulative benefit of the interest rate cuts, a modest recovery in house prices, higher equity prices and real growth in disposable income eased pressure on consumers," it said.
This was positive for retail bad debt levels, although there was an increase in commercial and corporate impairment levels in certain areas of the economy.
"The markets in which our insurance interests operate remain complex, and were impacted upon, not only by the spillover of the international financial crisis, but also by considerable policy debates and increased legislation expanding consumer protection," RMBH said.
In what could possibly be a record for the time elapsed from listing date to date of first dividend, RMI declared its maiden dividend. RMI Holdings shareholders will receive an interim dividend of 22.8c per RMI Holdings share.
RMBH itself has declared an interim dividend of 42.7c/share.
"In total, an RMBH shareholder who has retained his RMI Holdings shares from the unbundling will thus receive ordinary dividends of 65.5 cents per share for the six month period ending December 31 2010. This represents a year-on-year increase of 21%," the group explained.
RMBH chairperson GT Ferreira said: "The restructuring of the RMBH group into focused, separately listed banking (via RMBH) and insurance (via RMI Holdings) groups gives shareholders greater flexibility and transparency in managing their investment in the group."
"While the relative rerating of RMBH since announcing the restructuring has been gratifying, we believe that in due course the more focused nature of the investment entry points could allow shareholders to crystallise additional value from their investment in the group."
The group declared a total interim dividend of R940m or 65.5c/share, which represented a 21% increase over the previous comparable half-year.
With effect from March 7 2011, all of RMBH's insurance interests were listed separately as RMI Holdings. RMBH shareholders received one RMI Holdings share for each RMBH share held.
The results of RMI Holdings for the six months ended December 31 2010 were included in the interim results of RMBH. However, RMI Holdings dividend flows for the half-year will be paid to RMI Holdings shareholders directly.
RMBH's results were driven by a 20% increase in normalised earnings to R4.752bn witnessed by FirstRand [JSE:FSR], as well as a 25% increase in earnings to R941m and 27% increase to R360m respectively by Discovery and OUTsurance.
"Across the South African banking sector, balance sheets experienced low growth, due to the limited recovery in economic activity and the ongoing process of consumers deleveraging their balance sheets. Given this background, FirstRand's performance is indeed a pleasant outcome," RMBH said.
The outcome reported by OUTsurance reflected satisfying growth in its southern African operations in the face of having to absorb start up costs in Australia, the group added.
"While the lower average interest rates weighed on FirstRand's endowment income, the cumulative benefit of the interest rate cuts, a modest recovery in house prices, higher equity prices and real growth in disposable income eased pressure on consumers," it said.
This was positive for retail bad debt levels, although there was an increase in commercial and corporate impairment levels in certain areas of the economy.
"The markets in which our insurance interests operate remain complex, and were impacted upon, not only by the spillover of the international financial crisis, but also by considerable policy debates and increased legislation expanding consumer protection," RMBH said.
In what could possibly be a record for the time elapsed from listing date to date of first dividend, RMI declared its maiden dividend. RMI Holdings shareholders will receive an interim dividend of 22.8c per RMI Holdings share.
RMBH itself has declared an interim dividend of 42.7c/share.
"In total, an RMBH shareholder who has retained his RMI Holdings shares from the unbundling will thus receive ordinary dividends of 65.5 cents per share for the six month period ending December 31 2010. This represents a year-on-year increase of 21%," the group explained.
RMBH chairperson GT Ferreira said: "The restructuring of the RMBH group into focused, separately listed banking (via RMBH) and insurance (via RMI Holdings) groups gives shareholders greater flexibility and transparency in managing their investment in the group."
"While the relative rerating of RMBH since announcing the restructuring has been gratifying, we believe that in due course the more focused nature of the investment entry points could allow shareholders to crystallise additional value from their investment in the group."
