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Performance of group

 

Sources of income

RMH’s main income stream is drawn from FirstRand, which offers the full spectrum of banking services is predominantly sourced from South Africa. As announced to the market on 3 May 2016, the group is in the process of expanding its single investment in FirstRand to create a property investment business. The financial effects of this transaction will be immaterial on the financial results of RMH over the short to medium term.

RMH’s interest in FirstRand’s normalised earnings is as follows:

    For the year ended
30 June
 
R million   2015 2014 % change
FNB 11 300 9 701 16
RMB 5 888 5 507 7
WesBank 3 309 3 013 10
Other 789 442 78
FIRSTRAND NORMALISED EARNINGS 21 286 18 663 14
Attributable to RMH 7 240 6 325 14
Center costs (82) (88) (7)
RMH NORMALISED EARNINGS
7 158 6 237 15


Underlying intrinsic value

Over the year to 30 June 2015, RMH’s market capitalisation increased by 30% and at that date amounted to R93.8 billion or 6 645 cents per share (June 2014: R72.4 billion). This represented a 7.4% discount (June 2014: 3.3% discount) to RMH’s underlying intrinsic value.

    as at 30 June  
R million   2015 2014 % change
Market value of listed interest (FirstRand) 101 864 77 850 31
Net funding (1 067) (1 128) 5
Total intrinsic value 100 797 76 722 31
Intrinsic value per share (cents)
7 140.1 5 434.7 31


At 30 June 2015 net borrowings at the centre amounted to R1.07 billion, of which the core element comprised R1.18 billion in fixed rate preference shares due for redemption on 6 December 2017, paying dividends at 7.09% per annum, six monthly in arrears.