Johannesburg — RMB Holdings (RMBH), which has strategic shareholdings in FirstRand , Discovery and OUTsurance, increased the intrinsic value of its underlying investments by 15% to R31,94 per share, and an unchanged interim dividend of 54c a share was declared.

RMBH's share price moved up 2,37% to R31,51 yesterday, slightly ahead of the 1% gain in bank sector shares where RMBH is listed, and pretty close to embedded value.

Traditionally, the share trades at a 6%-7% discount to intrinsic value of the share.

Chairman GT Ferreira said the year to June last year had been described "as the most difficult in RMBH's 30-year history", so the result for the six months to December 31 was "a satisfying outcome". Chief operating officer Peter Cooper said he did not expect changes to the investment portfolio in the short term.

Banking group FirstRand's results reflected a muted outcome between the two comparative six-month periods to December 31, but it also showed a major improvement in the six months to December over the preceding half-year to June last year.

Insurance and healthcare group Discovery attributed the major part of its growth to new business gained and lower start- up losses where new business ventures were beginning to gain traction.

Short-term insurer OUTsurance lifted operating profit 15% after satisfying growth in its southern African businesses and before the effect of Youi's start-up costs in Australia, where operations were ahead of the business plan. OUTsurance's headline earnings fell 14% to R284m, but headline earnings would have grown 10% excluding Youi and its associated funding costs.

RMBH exited the emerging market portfolio in which it was invested directly, without further cost ( R249m loss in 2008).

FirstRand expected earnings from its banking franchises and assurance operations to benefit as the economy started to recover. Discovery and OUTsurance's new initiatives were expected to continue to gain momentum.

Normalised earnings increased 22% to 136,8c per share, while attributable earnings increased 23% to R1,69bn.

RMB HOLDINGS

Half-year 2010 2009

Rev (Rbn) 4,53,5

Pretax (Rbn) 2 1,4

Earnings (Rbn)1,8 1,3

Headline EPS (c)141,2 120,8

Dividend PS (c) 54 54