| Fri 30 May 2008, 15:27 | | RMH - RMB Holdings Limited - Voluntary Trading Update In Respect Of Finacial |
|
RMH
RMH
RMH - RMB Holdings Limited - Voluntary Trading Update In Respect Of Finacial
Ended 30 June 2008
RMB HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1987/005115/06)
ISIN: ZAE000024501
Share Code: RMH
(`RMBH` or `the Company`)
VOLUNTARY TRADING UPDATE IN RESPECT OF FINACIAL ENDED 30 JUNE 2008
Shareholders are referred to the voluntary trading update issued by the
Company`s associate FirstRand Limited ("FirstRand") earlier today.
In that update, FirstRand advises that a deteriorating macro environment, both
domestically and globally, has resulted in a more challenging operating
environment for its banking businesses. In particular:
Its retail banking franchises are experiencing the effects of a tough consumer
cycle, with retail lending continuing to slow down and impairment levels
increasing, particularly at FNB HomeLoans, FNB Card and WesBank.
While its corporate franchises continue to experience strong organic growth,
RMB`s international Equities Trading portfolio incurred further losses during
the second half of the financial year. Notwithstanding, RMB is expected to
produce strong (all be it reduced) profitability in the current year.
FirstRand`s insurance subsidiary, Momentum Group, is expected to meet its
earnings growth target.
Firstrand advises that the combination of increases in bad debt levels and the
further losses in the international equities trading portfolio will impact the
Group`s earnings for the financial year to 30 June 2008. Accordingly, FirstRand
expects 2008 normalised earnings to be similar to year ended 30 June 2007.
As its investment in FirstRand produces the bulk of RMBH`s earnings, it is
anticipated that the impact outlined in FirstRand`s updated trading statement
will, to a large extent, flow through into RMBH`s results for the year ended 30
June 2008.
RMBH expects that normalised earnings for the year to 30 June 2008 to be similar
to that achieved in 2007 (R3 984 million or 335.4 cents per share).
In the face of the challenging environment encountered, this anticipated outcome
does underscore the inherent resilience of RMBH`s portfolio of financial
services franchises. The Group expects that over the medium term earnings growth
will trend back to an acceptable real growth rate.
The financial information on which this voluntary trading update is based has
not been reviewed and reported on by the Company`s external auditors.
Details of RMBH`s results for the financial year ending on 30 June 2008 are
expected to be released on SENS and published in the press on or about 17
September 2008.
Sandton
30 May 2008
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 30/05/2008 15:27:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
