RMB withholds dividend amid restructuring
The financial services company says normalised earnings increased due to support from FirstRand’s strong performance
RMB Holdings, whose core investment is a stake in FirstRand, has opted not to pay an interim dividend as it proceeds with a restructuring that could lead to its stake in the banking group being unbundled.
The group said its normalised earnings increased 3% in the six months to end-December, supported by the strong performance of FirstRand.
The financial services company, which holds a 34% stake in FirstRand, worth about R130bn, said in November it would distribute its shareholding in FirstRand to its shareholders.
RMB’s normalised earnings rose to 3% R4.6bn during the period, while normalised earnings per share increased to 325.1c per share from 314.9 c in the comparable period.
FirstRand, whose subsidiaries include FNB and WesBank, increased normalised earnings by 5%.
At midday on Wednesday, RMB’s share price was up R1.52% to R68.06.