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Johannesburg - Financial services group FirstRand [JSE:FSR] said on Friday that its basic earnings per share for the six months ended December 31 2010 are expected to improve by at least 20%.
"This is due to the significant gain arising from the unbundling of Momentum Group Limited as a dividend in specie to its shareholders at fair value," it said.
As a result of this fair value gain and in accordance with JSE requirements, the group is required to issue a trading statement.
FirstRand said that it was still quite early in the reporting period.
It could not with reasonable certainty quantify the extent of the impact of the fair value gain resulting from the Momentum unbundling within the 20% range as required by the JSE.
"Headline earnings per share are not impacted by this fair value gain as it is excluded from headline earnings in terms of Circular 03/09 headline earnings," FirstRand said.
The group is anticipated to provide a further update for the six months ended December 31 2010 closer to the release of its interim results on or about March 8 2011.
