RMB Holdings Results

“In a year of unprecedented turmoil in financial markets, RMBH’s diversified portfolio held up well” GT Ferreira – Chairman

RMBH (market capitalisation at end June 2008 of R25.4 billion) holds strategic investments in a portfolio of leading financial services franchises in South Africa, viz.:

· banking and insurance group FirstRand (30%);

· health and life assurer Discovery (25%);

· personal lines insurer OUTsurance (59%);

· specialist insurer RMB Structured Insurance (77%); and

· short-term insurance broker Glenrand M.I.B (12%).

FINANCIAL HIGHLIGHTS

In the year to 30 June 2008, global financial markets continued to experience unprecedented turmoil. South Africa, and in particular South African consumers, did not escape the impact thereof. RMBH with its diversified portfolio of premier banking and insurance businesses was, in the main, able to avoid the contagion arising from this unsettled financial environment.

RMBH reported normalised earnings of R3,6 billion, down 10% from the exceptional performance in 2007 when normalised earnings was up by 33%. On a per share basis the key take outs are:

Cents per % change on

share prior year

· Attributable earnings 346.2c -1%

· Normalised earnings 297.5c -11%

· Full year dividend 141.5c Unchanged

Strong top-line growth at most business units contributed to this performance. Setbacks that diluted an otherwise acceptable growth trend, were significant increases in bad debts at FNB and WesBank, combined with losses incurred in the offshore equity trading division of Rand Merchant Bank as well as increased losses in the employee benefits business of Glenrand M.I.B.

The Group’s strategy remains focused on building a diverse portfolio of leading financial services franchises in South Africa. We will also, admittedly from a small base, increasingly focus on selected international opportunities, particularly in Africa, India and Brazil.

Ferreira comments:

“…We believe that the South African interest rate cycle may have reached its peak but it is difficult to predict or time the end of the current credit cycle. Our Group is actively managing its businesses to ensure that they are well positioned to benefit as the cycle improves.

Given current economic uncertainties we are of the view that it would not be prudent to set narrowly circumscribed growth targets. We do however believe that, given the diversified and inherently sound nature of our portfolio of businesses, the group should over the medium term revert to delivering real growth in earnings.”