PSG Financial Services highlights positive interim results as earnings steadily climb

PSG Financial Services Limited (JSE:KST) today announced its interim results for the six months ended 31 August 2025, reporting a 21% growth in recurring headline earnings per share and an impressive return on equity of 28.6%.

“While local and global economic pressures remain challenging, a more favourable securities market positively impacted our results over the latest period.” This is according to PSG Financial Services CEO Francois Gouws, who says the group continues to deliver solid growth, reaffirming that its advice-led model and diversified businesses provided sustained earnings strength and a competitive advantage in a tough market.

Compared to the prior comparable period, technology and infrastructure spend increased by 15% (these costs continue to be fully expensed), while the fixed remuneration cost grew by 5%. “We are also very proud of the progress we’ve made in investing in homegrown talent, with 73 newly qualified graduates having joined during the period,” says Gouws.

Business highlights

Total assets under management increased by 19% to R517.6 billion, comprising assets managed by PSG Wealth of R448.9 billion (18% increase) and PSG Asset Management of R68.7 billion (21% increase), while PSG Insure’s gross written premium amounted to R4 billion (6% increase). Performance fees constituted 7.3% (2024: 6%) of headline earnings.

PSG Financial Services’ key financial performance indicators for the six months ended 31 August 2025 are shown below:

Strong balance sheet and capital management

PSG Financial Services’ fiscal position remains robust, with a capital cover ratio of 299% (2024: 286%), nearly three times the regulatory minimum of 100%.

In July 2025, Global Credit Rating Company upgraded PSG Financial Services’ long and short-term credit ratings to AA-(ZA) from A+(ZA) and to A1+(ZA) from A1(ZA), respectively, both with a Stable Outlook. This marks the fifth ratings upgrade the group has achieved in the past decade.

Gouws adds, “These upgrades are a clear endorsement of our financial strength, liquidity and prudent capital management. They reflect not only the resilience of our progressive business model, but also the trust we’ve built with clients, investors and regulators over many years.”

PSG Financial Services also continues to generate strong cash flows, providing flexibility to support growth while returning value to shareholders. During the period, it:
• Repurchased and cancelled 6.7 million shares for R147.3 million as part of its capital optimisation programme; and
• Increased shareholder investable assets’ exposure to equity to 10% (2024: 9%), with a long-term target of gradually building further exposure in line with market conditions.

“These results underline our disciplined approach to capital allocation, ensuring we balance caution with delivering attractive, risk-adjusted returns for our shareholders,” says Gouws.

Interim dividend

Considering the strong cash position, the board declared an interim gross dividend of 20.0 cents per share (2024: 17.0 cents per share) for the six months ended 31 August 2025. This represents continued growth in line with PSG Financial Services’ dividend policy, which targets a payout of 40% to 60% of full-year recurring headline earnings (excluding intangible asset amortisation).

Looking forward

“We are a proudly South African company. We believe in the people and potential of our country and in the importance of well-functioning capital markets as a driver of sustainable growth. As a responsible corporate citizen, we are committed to playing an active role in driving progress,” Gouws continues.

As an example, Gouws cites PSG’s Think Big SA competition, run in collaboration with Economic Research South Africa (ERSA), which continues to stimulate debate among South Africans and encourage actionable ideas to unlock economic growth. The winning paper of this year’s competition, titled Move, Multiply, Matter: Unlocking the potential of South Africa’s Capital Market by Jeanette Safi, was recently announced. “The competition offers the winner the opportunity to have their paper published by ERSA, as well as contributing to debate on public policy. With this competition, we want to bring awareness, encourage involvement and stimulate positive, constructive conversations and solutions, which aim to lead to a sustainable future for our country.”

After a decade of subdued growth, Gouws says that there are signs of cautious optimism in the local economy. “While South Africa remains at a crossroads, reform momentum is visible. However, energy constraints, logistics bottlenecks and high unemployment continue to weigh heavily. Global uncertainty adds to the challenge. While the Government of National Unity and growing private-sector collaboration provide a foundation for hope, bold reforms and effective execution are still required to secure sustainable progress,” he concludes.