PSG Financial Services H1 HEPS up 28%

PSG Financial Services has released its half-year financial results, showcasing a 28% growth in headline earnings per share (HEPS) despite facing challenging market conditions. Mike Smith, the Chief Financial Officer at PSG Financial Services, joined CNBC Africa to discuss the company's performance and shed light on the factors driving their success. Smith highlighted the company's consistent ability to generate earnings over the long term, with a doubling of earnings over the past four years and a quadrupling over the past decade. He attributed part of the recent positive results to favorable equity market conditions and the influx of 84 billion in positive net flows into the wealth business over the past five years, with 10.3 billion coming in during the most recent six-month period. Smith expressed confidence in the company's ability to maintain this momentum in the second half of the year, citing positive net flows and market movements as key drivers. He emphasized the role of PSG's advisors, quality of advice, investment in technology, and focus on meeting client needs as factors contributing to the significant inflows into their portfolios. Despite the implementation of the two-pot system, Smith noted minimal impact, with only around two million rand in withdrawals. Looking ahead, Smith acknowledged an improving business environment marked by increased consumer and business confidence, less severe load shedding, and positive signs from the Government of National Unity (GNU). He stressed the importance of clear policies to drive economic growth and address unemployment, calling for growth-oriented initiatives and detailed feasibility studies to assess the impact of legislation. Smith also commented on the recent interest rate cuts by central banks, anticipating a positive impact on businesses and consumers. When questioned about the future of the GNU, Smith expressed optimism for improved collaboration and working together, while remaining cautious and monitoring the trade-offs and medium-term budget allocation. Overall, Smith conveyed hopefulness and positivity towards the government's implementation of growth-oriented policies and the potential benefits for the economy and consumers. PSG Financial Services continues to navigate challenging conditions with resilience and a strategic focus on long-term growth and client satisfaction.