Performance of group

At 30 June 2011

Computation of normalised earnings (unaudited)

The group believes that normalised earnings more accurately reflect operational performance. Headline earnings are adjusted to take into account non-operational and accounting anomalies. These unaudited adjustments are consistent with those reported at 30 June 2010.

For the year ended 30 June R million	Note	2011 Unaudited	2010 Unaudited	% change
Headline earnings attributable to equity holders		3 746	3 594	4
RMBH’s share of adjustments made by associates:
Treasury Shares	1	162	83
Reversal of private equity subsidiary realisations		156	–
Net realised and fair value gains on
shareholders funds		(26)	–
Basis changes and investment variances		6	–
Amortisation of intangible assets relating to business
combinations		35	–
Recapture of reinsurance		78	–
Other		13	–
IFRS 2 share based expenses		(5)	73
Normalised earnings after normalised adjustments
by associates		4 165	3 750	11
Adjustment for:
RMBH shares held by policyholders	2	55	66
Group treasury shares	3	(201)	(249)
Normalised earnings attributable to equity holders		4 019	3 567	13

Notes:
1. Deconsolidation of treasury shares and "deemed" treasury shares by FirstRand and Discovery to account for:
    – the Discovery BEE transaction;
    – FirstRand shares acquired to hedge liabilities under staff share schemes; and
    – FirstRand shares held as policyholders' assets by group insurers.
2. Deconsolidation of "deemed" RMBH treasury shares held for policyholders by group insurers.
3. Adjustment to reflect earnings impact based on actual RMBH shareholding in group companies, i.e. reflecting treasury shares as if they are non-controlling     interests.

Sources of normalised earnings (unaudited)

For the year ended 30 June R million	2011 Unaudited	2010 Unaudited	% change
Normalised earnings from:
FirstRand	3 201	2 494	28
Funding costs	(110)	(86)	28
Normalised earnings from continuing operations	3 091	2 408	28
Momentum	152	418
MMI Holdings	121	–
Discovery	342	389
OUTsurance	291	341
RMB Structured Insurance	22	11
Normalised earnings from unbundled operations	928	1 159	(20)
Normalised earnings for the year	4 019	3 567	13

From continuing operations

For the year ended 30 June R million	2011 Unaudited	2010 Unaudited	% change
Normalised earnings from continuing operations	3 091	2 408	28
Weighted average number of shares in issue (millions)	1 281	1 209
Normalised earnings per share (cents)	241,3	199,2	21
Diluted normalised earnings per share (cents)	241,3	199,2	21