{"id":821222,"date":"2025-04-16T15:32:36","date_gmt":"2025-04-16T13:32:36","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=821222"},"modified":"2025-04-16T15:32:40","modified_gmt":"2025-04-16T13:32:40","slug":"psg-hits-r470-billion-milestone","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/821222\/psg-hits-r470-billion-milestone\/","title":{"rendered":"PSG hits R470 billion milestone"},"content":{"rendered":"\n

PSG Financial Services Limited’s total assets under management (AUM) have grown to over R450 billion, and the company’s earnings have risen steeply.<\/p>\n\n\n\n

The group’s total AUM increased by 15.7% to R470.7 billion, as noted in its financial results for the year ended 28 February 2025.<\/p>\n\n\n\n

The assets managed by PSG Wealth reached R410.0 billion (a 15.5% increase), and PSG Asset Management reached R60.7 billion (a 17.2% increase).<\/p>\n\n\n\n

PSG Asset Management\u2019s 17.2% increase in AUM was driven by R4.5 billion of inflows and R4.4 billion of market movement.<\/p>\n\n\n\n

The increase was partly due to the stronger equity markets during the year under review. This led to its recurring headline earnings growing by 36.9% over the prior year.<\/p>\n\n\n\n

The 15.5% increase for assets managed by PSG’s Wealth advisers included R20.6 billion positive net inflows. PSG’s Wealth’s recurring headline earnings also increased by 15%<\/p>\n\n\n\n

PSG Insure\u2019s gross written premium jumped by 9.2% to R7.6 billion, achieving a net underwriting margin of 12.7%.<\/p>\n\n\n\n

CEO Francois Gouws said that the more favourable equity market conditions positively impacted the group\u2019s results during the year despite the challenging operating environment.<\/p>\n\n\n\n

\u201cOur key financial metrics under these conditions highlight the competitive advantage of our advice-led business model,\u201d said Gouws.<\/p>\n\n\n\n

The overall group delivered a 24.7% increase in recurring headline earnings per share and a 26.6% return on equity. <\/p>\n\n\n\n

Based on the latest insurance return, the group’s capital cover ratio also remains strong at 257%, which comfortably beats the minimum regulatory requirement of 100%.<\/p>\n\n\n\n

The group also repurchased and cancelled 19.1 million shares for R330.3 million for shareholder capital optimisation.<\/p>\n\n\n\n

With its strong cash position, the board declared a final gross dividend of 35.0 cents per share from income reserve.<\/p>\n\n\n\n

The total dividend to 52 cents per share surpassed the 42 cents per share seen in 2024.<\/p>\n\n\n

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\"\"<\/a><\/figure><\/div>\n\n\n

Looking ahead<\/strong><\/h2>\n\n\n\n

Despite South Africa’s promise, Gouws noted that the continued low levels of economic growth, South Africa\u2019s debt and fiscal position, and heightened geopolitical tensions remain intractable problems.<\/p>\n\n\n\n

\u201cWe understand that our economic and societal challenges will not be resolved quickly,” said Gouws.<\/p>\n\n\n\n

“Therefore, we will continue to monitor local and global events, as well as the associated impact on the group\u2019s clients and other stakeholders, and we will adjust our approach if required.”<\/p>\n\n\n\n

Irrespective of the short-term challenges, Gouws said that the group remains confident in its long-term strategy and will continue to invest in its business, especially technology and people.<\/p>\n\n\n\n

Compared to the previous year, PSG’s technology and infrastructure spending increased by 18.6%, with these costs fully expensed, while its fixed remuneration cost grew by 6.1%.<\/p>\n\n\n\n

Expensing the technology and infrastructure costs is a conservative move by the company, as infrastructure costs are fully accounted for in the current year.<\/p>\n\n\n\n

These costs can often be capitalised over their lifespan, which leads to higher initial profits on the income statement. However, PSG’s strong profit metrics show that it is unnecessary.<\/p>\n","protected":false},"excerpt":{"rendered":"

The PSG Group has significantly upped its profits and dividends despite using conservative accounting methods. <\/p>\n","protected":false},"author":95,"featured_media":337031,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[4671],"class_list":["post-821222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-psg"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/821222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=821222"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/821222\/revisions"}],"predecessor-version":[{"id":821242,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/821222\/revisions\/821242"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/337031"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=821222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=821222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=821222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}