Business

R30 billion finance group has a warning for South Africa

Luke Fraser

 ·16 Oct 2025

PSG Financial Services has delivered strong financial results, but has warned that South Africa needs major reforms to see sustained economic growth.

In its interim financial results for the six months ending 31 August 2025, the group said its operating conditions remained challenging. 

However, more favourable securities market conditions positively impacted the group’s results. 

It said that its key financial metrics under the challenging conditions highlight the competitive advantage of its advice-led business model. 

Total assets under management increased by 19% to R517.6 billion. This comprised assets managed by: 

• PSG Wealth of R448.9 billion (18% increase) 
• PSG Asset Management of R68.7 billion (21% increase)
• PSG Insure’s gross written premium rose to R4.0 billion (6% increase). 

The firm remains confident about its long-term growth prospects and said it will invest in technology and people. 

Its technology and infrastructure spend rose by 15% (these costs continue to be fully expensed), while its fixed remuneration costs grew by 5%.

“Following a decade of subdued growth, the South African economy has begun to show signs of cautious optimism,” said the group. 

“However, the country stands at a crossroads, where reform-driven momentum is balanced against persistent structural challenges” 

“Energy constraints, logistics bottlenecks and high unemployment remain critical hurdles, further compounded by global uncertainties.” 

Although the GNU and private sector collaboration offer hope, the financial service provider warned that sustainable economic progress will depend on bold reforms and progressive management of internal and external environments.

PSG Financial Services is one of the largest financial service providers in South Africa, and has a market cap of R31 billion.

Financials 

Overall, the group’s core income rose by 18% to R3.95 billion, while its headline and recurring headline earnings rose by 19% to R726 million. 

PSG Wealth was the largest contributor, with its recurring headline earnings sitting at R407 million, while Asset Management saw headline earnings of over R197 million, and PSG Insure stood at R122 million. 

Headline earnings per share rose by 21% to 58.1 cents per share, while dividend per share rose to 28.6 cents per share. 

The group’s ROE also rose from 26.2% in the prior period to 28.6% in the current period.