PSG FY25 recurring HEPS up 24.7%

PSG Financial Services, an investment and insurance holding company, has reported a 24.7 per cent increase in recurring headline earnings per share and a return on equity of 26.6 per cent for the fiscal year 2025. Despite describing the operating conditions as challenging, the company saw a significant growth in total assets under management, which increased by 15.7 per cent. Performance fees also played a significant role, constituting 3.7 per cent of headline earnings. The company's Chief Financial Officer, Mike Smith, expressed satisfaction with the overall growth achieved across its asset management and insurance divisions. He highlighted the positive net flows and market movements that contributed to the robust performance of the company's wealth management segment. The asset management arm attracted over $4 billion in positive net flows and delivered strong investment outcomes for clients. On the insurance side, PSG Financial Services reported positive top-line growth in gross written premiums and a healthy underwriting margin of 12.7 per cent for the year. Smith noted that all the company's businesses operated effectively, leading to an overall positive outcome. Despite facing higher performance fees and volatile market conditions, PSG Financial Services managed to navigate the economic challenges and achieve sequential growth in key performance metrics over the past decade. Smith emphasized the importance of diversification and effective monitoring of global events to mitigate risks associated with market volatility. The company's network of advisors in South Africa and Namibia played a crucial role in guiding clients through various market cycles and ensuring alignment with their risk profiles. Smith highlighted the benefits of having advisors to help clients make informed investment decisions and stay committed to their long-term financial goals. Regarding investment strategies, PSG Financial Services maintained a cautious approach, with a focus on client risk profiles and professional asset management. The company acknowledged the evolving market conditions but emphasized the importance of staying committed to well-diversified investment portfolios. In terms of market outlook, Smith addressed the challenges facing the South African economy, including low economic growth, high expenditure on grants and salaries, and policy uncertainty. PSG Financial Services prioritized organic growth while remaining open to strategic acquisitions that align with its investment criteria. The company emphasized the need for careful consideration of synergies and potential distractions that could arise from large acquisitions. Looking ahead, PSG Financial Services plans to invest in its IT systems and infrastructure to enhance advisor-client interactions and improve the overall client experience. The company's disciplined approach to IT investment and project execution aims to drive positive improvements and ensure seamless client onboarding processes. By focusing on strategic initiatives and continual innovation, PSG Financial Services aims to sustain its growth momentum and deliver value to its clients and stakeholders.