Africa-Press – South-Africa. PSG Financial Services delivered strong results for its 2025 financial year, as the company benefited from favourable equity market conditions.
PSG is one of South Africa’s top financial services groups and operates through three divisions, Asset Management, Insure, and Wealth, in both South Africa and Namibia.
The company released its results for the year ended 28 February 2025 on Wednesday, 16 April, revealing a remarkably strong performance.
PSG’s core income grew by 15.6% to R6.80 billion, while its recurring headline earnings per share increased by 24.7% to 101.1 cents.
The company attributed this growth to a continued increase in management and other recurring fees, as well as transactional brokerage fees.
The company achieved a return on equity of 26.6%, and its total assets under management grew to R470.7 billion, up 15.7%.
This comprises assets managed by PSG Wealth of R410.0 billion and PSG Asset Management of R60.7 billion.
Client assets managed by PSG Wealth advisers increased by 15.5% to R410 billion during the current year, which included R20.6 billion of positive net inflows.
For PSG Asset Management, its client assets under management increased by 17.2% to R60.7 billion during the current year, with net client inflows of R4.5 billion.
The company said assets administered by this division increased by 16.1% to R264.3 billion, supported by R13.0 billion of multi-managed net inflows.
However, PSG’s strongest-performing division in the 2025 financial year was PSG Insure, which grew its recurring headline earnings by 41.4% in the period.
PSG Insure’s gross written premium amounted to R7.6 billion, a 9.2% increase, in the year. The division also achieved a net underwriting margin of 12.7%, compared to 9.7% in 2024.
PSG attributed this division’s strong performance largely to its comprehensive reinsurance programme, which reduced the adverse impact of catastrophe events during the year, including the Western Cape storms and large fire claims.
On a group level, compared to the 2024 financial year, PSG’s technology and infrastructure spend increased by 18.6%, while its fixed remuneration cost grew by 6.1% in 2025.
“The firm remains confident about its long-term growth prospects, and we therefore continued to invest in both technology and people,” it said.
“We are proud of the progress made in growing our own talent, with 150 newly qualified graduates having joined during the financial year.”
Looking forward, PSG raised concerns about low levels of economic growth, South Africa’s debt and fiscal situation and heightened geopolitical tensions, which remain a seemingly intractable problem.
“Irrespective of the short-term challenges, we remain confident in our long-term strategy and will continue to invest in our businesses, thereby securing prospects for growth,” it said.
“We, however, understand that our economic and societal challenges will not be resolved quickly.”
“Therefore, we will continue to monitor local and global events and the associated impact on the group’s clients and other stakeholders, and will adjust our approach if required.”
For now, PSG is going strong and, in light of its robust cash position, declared a final gross dividend of 35 cents per share for the 2025 financial year.
This is up significantly from the 28.5 cents it declared in 2024, and brings the total dividend distribution to shareholders to 52 cents per share for 2025.
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