ABOUT RMB HOLDINGS
📊 RMB (Royal Merchant Bank) Holdings, an investment company, is one of southern Africa’s premium banking groups. The group’s history can be traced back to the consolidation of Rand Merchant Bank and Rand Consolidated Investments in South Africa in 1987.
📊 RMB Holdings is the biggest shareholder in FirstRand, the largest banking group in South Africa, in which it has a 34% stake which translates into a market capitalization of R300 billion. The group views FirstRand as its core asset and is represented on all the company’s strategic and governance forums.
📊 FirstRand Bank currently controls First National Bank, Wesbank, Royal Merchant Band and Ashburton Investments. RMB Holdings also plans to expand its single investment in FirstRand Bank by purchasing a 25% stake in the leadings South African property group, Atterbury.
📊 RMB Holdings’ major shareholders are Financial Securities, Royal Bafokeng Holdings, Public Investment Commissioner, LL Dippenaar and Foord Asset Management. The company trades on the Johannesburg Stock Exchange (JSE) under the stock symbol “RMH”.
VISION & VALUES OF RMB HOLDINGS
- The company’s liveonline stock chart shows that the RMB Holdings shareprice has been quite stagnant on the JSE. This can be ascribed to the very tough economic climate in South Africa.
- RMB Holdings focuses on being a value-adding long-term partner to FirstRand Bank in a quest to enable strong leadership and innovation in the banking and financial services sectors. It therefore strategically positions itself among key shareholder in order to buy heavily into decision-making on corporate level.
RMB Holdings’ strategic priorities comprise portfolio optimization, growth and structural benefits. Its portfolio optimization strategy focuses on holding investments as long as needed to optimize their value.
- The company creates value through growth and paid dividends in an effort to enable its share performance to be above market average. It actively seeks to accelerate the diversification of FirstRand’s portfolio, both in South Africa and globally. This enables the company to maintain balance between growth, yield and consistent RMB share price, adding value for its investors. Shareholders can therefore buy or sell company shares in the expectation of sound dividends and returns.
- Despite the challenges of a weak local and international economic environment, FirstRand managed to perform consistently, with FNB, RMB and Wesbank all outperforming the market. The group’s investment in technological innovation has successfully attracted many new customers and investors.
- Through its investment in Atterbury, RMB Holdings aims to develop a diverse portfolio of entrepreneurial and owner-managed businesses with sound track-records of managing and building property portfolios in the retail, commercial and industrial markets.
MARKET PERFORMANCE OF RMB HOLDINGS
- RMB Holdings has consistently delivered satisfactory performance, despite the economic downturn by reporting profit growth and distributing higher dividends.
- FirstRand Ban is continuously attracting new customers, making it one of the most stable financial institutions in the South African banking industry. This fact boosts investor confidence and adds value for shareholders.
- Analysts predict a rise in RMB Holdings share price in the near future. They therefore recommend RMB shares as a good buy, especially in light of the fact they are currently hovering at a lower than normal price due to the recession.