RMB ups earnings 3%

Sep 12 2012 13:06
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Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Johannesburg - Investment holding company RMB Holdings Limited [JSE:RMH] on Wednesday reported a 3% rise in diluted headline earnings per share for the year ended June 2012‚ at 298.6 cents from the 290.2 cents reported in 2011.

“The ongoing legacy of the 2008 financial crisis is one of significant macroeconomic uncertainty. Such uncertainty in major developed economies combined with high levels of government indebtedness‚ ongoing stress in the European banking system and households continuing to rebuild balance sheets weighed on economic activity‚” RMB said in a JSE Sens statement.

“This weakness spilled over into the major emerging economies and growth in countries such as China‚ India and Brazil‚ which slowed markedly during the latter part of the financial year‚” it said.

Diluted normalised earnings per share for the period under review increased 23% to 296.5 cents from 2011's 241.3 cents.

“The South African economy was not immune to the global developments and‚ although growth picked up in the latter part of 2011‚ it moderated again at the start of 2012. Slowing export growth and falling business confidence reflected muted global economic activity‚” RMB said.

The group reported normalised earnings from continuing operations of R4.2bn‚ an increase of 35% on the previous year.

RMB declared a dividend of 125.5 cents per share for 2012‚ a 24% increase from the dividend declared in 2011.

The group said the macroeconomic environment would remain challenging during the 2013 financial year and the global economy was likely to register below-average growth and would continue to face significant downside risk.

“This will mean economic activity in South Africa will remain under pressure. Gross domestic product growth is currently expected to be 2.5% for the 2013 financial year‚ and although interest rates are expected to remain flat for the rest of the year‚ there is downside risk if economic growth slows further‚” RMB said.

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