RMB HOLDINGS LIMITED - Trading statement - financial impact of the Discovery card transaction on FirstRand Limited

Trading statement - financial impact of the Discovery card transaction on FirstRand Limited

RMB HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1987/005115/06)
JSE ordinary share code: RMH
ISIN: ZAE000024501
("RMH")

TRADING STATEMENT - FINANCIAL IMPACT OF THE DISCOVERY CARD TRANSACTION ON
FIRSTRAND LIMITED

In terms of the JSE Limited Listings Requirements, a company is required to publish a trading statement as soon
as it becomes apparent, that the financial results for the next reporting period will, with a reasonable degree of
certainty, differ by at least 20% from the previous corresponding reporting period.

On 22 February 2019, FirstRand Limited ('FirstRand') released a trading statement which provided guidance on the
financial impact of the profit realised on the sale of the Discovery Card business ('Discovery Card transaction') to
Discovery Bank Limited, which profit amounted to R2.3 billion. Since RMH owns 34.1% of FirstRand, the impact of
the Discovery Card transaction will flow through to the interim financial results of RMH for the six months ended 31
December 2018.

In terms of International Financial Reports Standards ('IFRS'), RMH's portion of FirstRand's realised profit on the
Discovery Card transaction will be included in 'earnings from associates' for the six months ended 31 December
2018. FirstRand however excludes this profit from headline earnings due to its capital and non-operational nature,
which treatment is in line with the South African Institute of Chartered Accountant Circular (4/2018). RMH will follow
this treatment and accordingly the realised profit will only impact RMH's IFRS earnings and not its headline nor its
normalised earnings. As previously communicated to shareholders, RMH believes normalised earnings are a more
accurate reflection of underlying operational performance.

Accordingly, the table below provides guidance for the expected increase in RMH's IFRS earnings attributable to
ordinary equity holders and basic earnings per share for the six months ended 31 December 2018:

                                   As reported for the six    Guidance increase for the     Guidance increase for the
                                           months ended 31          six months ended 31           six months ended 31
                                             December 2017                December 2018             December 2018 (%)
IFRS earnings attributable                           4 097                1 147 - 1 311                       28 - 32
to ordinary equity holders
(R million)
IFRS earnings per share                              290.4                  81.3 - 92.9                       28 - 32
(cents)

The financial information on which this trading statement is based has not been reviewed or reported on by RMH's
external auditors.

RMH's interim financial results for the six months ended 31 December 2018 will be published on or about
13 March 2019.


Sandton
26 February 2019

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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