PSG hits R470 billion milestone

PSG Financial Services Limited’s total assets under management (AUM) have grown to over R450 billion, and the company’s earnings have risen steeply.

The group’s total AUM increased by 15.7% to R470.7 billion, as noted in its financial results for the year ended 28 February 2025.

The assets managed by PSG Wealth reached R410.0 billion (a 15.5% increase), and PSG Asset Management reached R60.7 billion (a 17.2% increase).

PSG Asset Management’s 17.2% increase in AUM was driven by R4.5 billion of inflows and R4.4 billion of market movement.

The increase was partly due to the stronger equity markets during the year under review. This led to its recurring headline earnings growing by 36.9% over the prior year.

The 15.5% increase for assets managed by PSG’s Wealth advisers included R20.6 billion positive net inflows. PSG’s Wealth’s recurring headline earnings also increased by 15%

PSG Insure’s gross written premium jumped by 9.2% to R7.6 billion, achieving a net underwriting margin of 12.7%.

CEO Francois Gouws said that the more favourable equity market conditions positively impacted the group’s results during the year despite the challenging operating environment.

“Our key financial metrics under these conditions highlight the competitive advantage of our advice-led business model,” said Gouws.

The overall group delivered a 24.7% increase in recurring headline earnings per share and a 26.6% return on equity. 

Based on the latest insurance return, the group’s capital cover ratio also remains strong at 257%, which comfortably beats the minimum regulatory requirement of 100%.

The group also repurchased and cancelled 19.1 million shares for R330.3 million for shareholder capital optimisation.

With its strong cash position, the board declared a final gross dividend of 35.0 cents per share from income reserve.

The total dividend to 52 cents per share surpassed the 42 cents per share seen in 2024.

Looking ahead

Despite South Africa’s promise, Gouws noted that the continued low levels of economic growth, South Africa’s debt and fiscal position, and heightened geopolitical tensions remain intractable problems.

“We understand that our economic and societal challenges will not be resolved quickly,” said Gouws.

“Therefore, we will continue to monitor local and global events, as well as the associated impact on the group’s clients and other stakeholders, and we will adjust our approach if required.”

Irrespective of the short-term challenges, Gouws said that the group remains confident in its long-term strategy and will continue to invest in its business, especially technology and people.

Compared to the previous year, PSG’s technology and infrastructure spending increased by 18.6%, with these costs fully expensed, while its fixed remuneration cost grew by 6.1%.

Expensing the technology and infrastructure costs is a conservative move by the company, as infrastructure costs are fully accounted for in the current year.

These costs can often be capitalised over their lifespan, which leads to higher initial profits on the income statement. However, PSG’s strong profit metrics show that it is unnecessary.