RMB reveals strong results ahead of group executive changes - CNBC Africa

RMB reveals strong results ahead of group executive changes

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Normalised earnings, for the period ending 30 June 2013, increased from 4.1 billion rand in 2012 to 5 billion rand in 2013 and net income increased by 10 per cent from 4.6 billion rand to 5.1 billion rand.

“For the year ended 30 June 2013 the macroeconomic environment remained challenging with global growth as a whole remaining below the long-term trend. RMBH continued to build on the strong base of the previous year and produced excellent results for the year ended 30 June 2013,” Rand Merchant Bank (RMB) said in a statement.  

Profit before tax increased from 4.5 billion rand in 2012 to 4.9 billion rand in 2013 and income from operations showed a 10 per cent increase from 4.6 billion rand to 5 billion rand.

Total dividend per share increased by 36 per cent from 125.5 cents in 2012 to 170.5 cents in 2013.

“This outcome was driven by excellent results from FirstRand which continued to benefit from good operational performances in all franchises,” the corporate and investment bank had said.

The FirstRand group, which consists of [DATA RMH:RMB], First National Bank (FNB), WesBank and Ashburton Investments, announced a number of executive position amendments on Wednesday.

Johan Burger, FirstRand’s current financial director and group chief operating officer has been appointed as group deputy CEO, effective 1 October 2013. He will however retain the group financial director role until 31 December 2013.

As a result of this, Harry Kellan, current CFO at FNB will take over as FirstRand Bank CFO.  Jaco van Wyk has been appointed as group head of finance.

In addition to his role as FirstRand Bank CFO, Kellan will be appointed as group financial director from 1 January 2014.

Chris de Kock, currently the general manager of sales and marketing at WesBank, has been appointed WesBank CEO, also effective from 1 January 2014. 

Alan Hedding, the CFO of FirstRand Bank and group head of finance, and Brian Riley, the CEO of WesBank, are set to retire, effective 30 September 2013 and 31 December 2013 respectively.

“Given our owner manager culture, and the level of empowerment that our management teams enjoy, moving people into senior roles is quite straightforward and seamless. We have seen a great deal of change in our management teams – at both a group and franchise level - over the past 10 years. Thanks to the depth and quality of our people, these transitions have been smooth and have ensured continuity and momentum in our operations,” said FirstRand CEO Sizwe Nxasana.

“By way of example, Chris de Kock has been at WesBank for 26 years in a number of executive roles. He has a deep understanding of the business and is one of the architects of the current strategy. We wish Brian Riley the very best in his retirement, he has overseen an incredibly successful period of growth at WesBank,” he added.

Going forward, both RMB and FirstRand expect further investment in growth opportunities and sustained revenue flow.

“The group expects to continue good organic growth despite the difficult macroeconomic environment. FNB’s focus on customer acquisition and drive for transactional volumes across all platforms should contribute positively to non-interest income growth, as will RMB’s client activities locally and in the rest of Africa.”