PSG scores big – now handling R435 billion

PSG has upped its dividend following a strong start to its 2025 financial year, but warns that low economic growth remains a big problem in South Africa.

“While operating conditions remained challenging, more favourable equity market conditions and sustained high interest rates impacted positively on the group’s results during the period,” said the group in its financial results for the six months ended 30 August 2024 (H1 2025).

“Our key financial metrics under these conditions highlight the competitive advantage of our advice-led business model.”

The group’s total assets under management rose by 15.9% to R435.7 billion.

This comprised of assets managed by PSG Wealth of R379.1 billion (16.4% increase) and PSG Asset Management of R56.6 billion (12.4% increase), while PSG Insure’s gross written premium amounted to R3.7 billion (10.3% increase).

Regarding the financials, the group’s core income grew from R2.9 billion in H1 2024 to R3.3 billion in H1 2025.

Headline and recurring headline earnings jumped by 26.5% from R482 million to R610 million.

Performance fees comprised 6.0% (2023: 2.5%) of headline earnings.

The group thus upped its interim dividend by 26% to 17 cents per share.

Outlook

Although the company believes South Africa has the people to solve its major problems, there remains extreme untapped potential.

“Nevertheless, continued low levels of economic growth remains a seemingly intractable problem, resulting in stagnated economic development, exacerbating social issues such as crime and corruption.”

“The South African economy recently experienced less disruption from load shedding and saw a slight improvement in gross domestic product (GDP) growth during the period under review.”

“The market reacted positively to the formation of the Government of National Unity (GNU) following the recent national elections. This may indicate cautious optimism about improving consumer and business confidence in the country.”

That said, uncertainty remains, and clear signals are needed to show that there is sustainable economic growth.

The group said that policy reform and a legislative agenda conducive to economic growth are desperately needed.

“The process should include thorough social and economic impact studies to allow for the practical financial implications of the policy choices to be discussed with the various stakeholders.”

“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.”

The group added that it would continue investing in technology and the people with it, increasing its technology and infrastructure spending by 20%, with its fixed remuneration cost growing by 14%.

“These factors had a muted impact on our operating margins,” said the group.

Read: Goodbye to ‘bonuses’ for government workers