RMB earnings take steep rise
Johannesburg - Financial services group RMB Holdings [JSE:RMH] advised on Thursday that headline earnings per share for the year ended June are expected to be 31% to 41% higher than the 219.7 cents earned the year before.
Earnings per share are expected to 37% to 47% higher than last year's 207.1 cents while normalised earnings per share will also be 37% to 47% than the 207.9 cents recorded in 2009.
In a trading statement, the group referred to a trading statement issued earlier on Thursday by its associate, FirstRand (FSR). In that
announcement FirstRand highlighted to its shareholders that, as projected at the interim reporting date, its operating environment had
continued to be challenging with revenue from banking activities remaining under pressure.
However, bad debts have continued to reduce in line with expectations and consequently, WesBank's earnings have recovered strongly, the losses at FNB Homeloans have reduced significantly and FNB Card has returned to profitability.
In addition, RMB's Equity Trading division will be profitable for the year and its Private Equity division has realised a material investment.
FirstRand therefore believes that its diluted normalised Earnings Per Share for the year to 30 June 2010 will increase by between 32% and 42%.
RMBH added that the remainder of its portfolio has continued to perform in line with the trends reported at the interim stage.
Details of RMBH's results for the financial year ending June 30 2010 are expected to be released on Sens and published in the press on or about September 15 2010.
- I-Net Bridge