PSG Financial Services FY HEPS jumps 11%

PSG Financial Services, a leading financial group, recently announced an 11% increase in full-year recurring headline earnings per share. This significant growth comes amidst challenging economic times in South Africa. Mike Smith, the CFO of PSG Financial Services, highlighted the business's ability to navigate these headwinds and continue to invest in long-term growth prospects. The group's assets under management surged to R407 billion, with a double-digit increase, while the total dividend marked a 17% uptick over the previous year. The stock of PSG Financial Services has seen a remarkable 15% rise in the past year, showcasing the market's confidence in the company's performance. In a recent interview with CNBC Africa, Smith shed light on the key drivers behind the impressive financial results and the strategic initiatives taken by the company. One of the standout achievements for PSG Financial Services was the influx of net new client money, totaling 23 billion during the period. The wealth business alone brought in 19.6 billion, demonstrating the trust and confidence clients have in the company's offerings. Smith attributed this success to the top-line revenue growth across all business units, emphasizing the positive investment outcomes delivered to clients. Despite a challenging year for the Johannesburg Stock Exchange, PSG Financial Services managed to generate a significant market value improvement for its clients, showcasing the effectiveness of its investment strategies. Smith further emphasized the importance of the company's advice-led business model, which has been a key differentiator in the market. While technological innovations like artificial intelligence are shaping the future of financial services, PSG Financial Services remains committed to maintaining a strong human touch and personalized approach. Smith acknowledged the role of technology in driving efficiency gains and enhancing the client experience, but stressed the enduring value of experienced advisors in turbulent market conditions. In line with its commitment to growth and innovation, PSG Financial Services has allocated increased spending on technology, with a focus on system enhancements and cybersecurity. Smith highlighted investments in digital onboarding processes, client statements, and reporting, aiming to elevate the overall client experience. The company's budget also includes a 12% raise for employees, reflecting its dedication to talent retention and development. When addressing risk management in the insurance division, Smith underscored the importance of understanding accumulation risk and implementing mitigating strategies. With the rise in weather-related events and agricultural sector challenges, PSG Financial Services is proactively assessing and addressing potential risks. The company's robust reinsurance programs serve as a safeguard against unforeseen catastrophes, ensuring financial resilience amidst market uncertainties. Looking ahead, PSG Financial Services remains optimistic about its growth prospects and commitment to delivering value to clients and shareholders. Despite the short-term economic challenges, the company's solid financial performance and strategic investments position it well for sustained success in the competitive financial services landscape.