{"id":857373,"date":"2026-04-16T13:30:00","date_gmt":"2026-04-16T11:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=857373"},"modified":"2026-04-16T15:00:44","modified_gmt":"2026-04-16T13:00:44","slug":"financial-giant-worth-r36-billion-sends-crisis-message-to-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/857373\/financial-giant-worth-r36-billion-sends-crisis-message-to-south-africa\/","title":{"rendered":"Financial giant worth R36 billion sends crisis message to South Africa"},"content":{"rendered":"\n

PSG Financial Services has warned that South Africa needs to focus on long-term growth rather than just short-term crises. <\/p>\n\n\n\n

In its financial results for the year ended 28 February 2026, PSG Financial Services said that it is concerned about rising political volatility worldwide and a lack of domestic progress. <\/p>\n\n\n\n

In the short term, the group is concerned that both international and domestic markets have not sufficiently discounted downside risks and may have moved ahead of current economic fundamentals.<\/p>\n\n\n\n

“Developed markets are heavily indebted, and the advent of political populism makes a return to normality difficult,” the group with a market cap of R36.1 billion said.<\/p>\n\n\n\n

“At the same time, global competition in trade, combined with emerging disruptive technologies,
present clear risks, while military action in the Gulf is a particular concern.” <\/p>\n\n\n\n

Nevertheless, the company said that the South African Reserve Bank (SARB) and the National Treasury should be applauded for reducing inflation, while also reining in the budget deficit and national debt. <\/p>\n\n\n\n

While the higher commodity prices were a positive for South African markets, promised government reforms have lagged, and professional management remains uneven.<\/p>\n\n\n\n

The group said that this is why there have been no material improvements in a broad range of economic
indicators in the South African economy. <\/p>\n\n\n\n

“At the same time, a lack of adequate socioeconomic impact studies to support policy and legislation casts doubt on the rationale for sustained improvements in economic growth and employment,” it said.<\/p>\n\n\n\n

“An integrated economic plan that looks beyond current crisis management is an imperative<\/strong>.”<\/p>\n\n\n\n

Financial results<\/h2>\n\n\n
\n
\"\"<\/a>
PSG Financial Services CEO Francois Gouws<\/figcaption><\/figure><\/div>\n\n\n

PSG Financial Services has delivered an incredibly strong set of results for the year ending 28 February 2026. <\/p>\n\n\n\n

The company delivered a 33.5% increase in recurring headline earnings per share and a return on equity of 31.7%.<\/p>\n\n\n\n

The company increased its total assets under management by 19.9% to R564.6 billion, while its dividend per share rose by 25% to 65 cents. <\/p>\n\n\n\n

“Our key financial metrics continue to highlight the competitive advantage of the PSG advice-led business model,” it said. <\/p>\n\n\n\n

“While operating conditions remained challenging, favourable securities markets aided the group\u2019s results during the period.” <\/p>\n\n\n\n

Positive markets led to better asset performance, improved investment income, and a rise in performance fees, which accounted for 9.2% of headline earnings. <\/p>\n\n\n\n

The company’s assets under management totalled R480.9 billion, managed by PSG Wealth (17.3% increase), and R83.7 billion, managed by PSG Asset Management (37.7% increase). <\/p>\n\n\n\n

PSG Insure’s gross written premium amounted to R8.0 billion, which was a 5.0% increase. Including the sale of its Western Namibia business, gross written premiums increased by 7.0%.<\/p>\n\n\n\n

Given the firm’s confidence in its long-term growth prospects, it invested in both its technology and its people.<\/p>\n\n\n\n

The group’s technology and infrastructure spend increased by 8.6% during the period, which was fully expensed. <\/p>\n\n\n\n

Expensing sees costs immediately added to the income statement, which reduces net income in the current year and is seen as a conservative accounting method. <\/p>\n\n\n\n

Financials<\/strong> <\/td>28 Feb 26<\/strong> (R’000)<\/strong><\/td>Change<\/strong> (%)<\/td>28 Feb 25<\/strong> (R’000)<\/strong><\/td><\/tr><\/thead>
Core income<\/strong><\/td>8 279 652<\/strong><\/td>22<\/td>6 797 835<\/td><\/tr>
Recurring and headline earnings<\/td>1 682 243<\/strong><\/td>32<\/td>1 272 236<\/td><\/tr>
Non-headline items<\/td>54 515<\/strong><\/td><\/td>1 565<\/td><\/tr>
Earnings attributable to ordinary shareholders<\/strong><\/td>1 736 758<\/strong><\/td>36<\/td>1 273 801<\/td><\/tr>
Divisional recurring headline earnings<\/strong><\/td><\/td><\/td><\/td><\/tr>
PSG Wealth<\/td>950 626<\/strong><\/td>25<\/td>763 212<\/td><\/tr>
PSG Asset Management<\/td>472 777<\/strong><\/td>59<\/td>297 246<\/td><\/tr>
PSG Insure<\/td>258 840<\/strong><\/td>22<\/td>211 778<\/td><\/tr>
Total<\/strong> recurring headline earnings<\/strong><\/td>1 682 243<\/strong><\/td>32<\/td>1 272 236<\/td><\/tr>
Basic earnings per share (cents)<\/strong><\/td><\/td><\/td><\/td><\/tr>
\u2013 Headline and recurring headline<\/td>135.0<\/strong><\/td>34<\/td>101.1<\/td><\/tr>
\u2013 Recurring headline (excl. intangible asset amortisation)<\/td>141.3<\/strong><\/td>32<\/td>107.1<\/td><\/tr>
\u2013 Recurring headline (excluding performance fees)<\/td>122.5<\/strong><\/td>26<\/td>97.3<\/td><\/tr>
\u2013 Attributable<\/td>139.3<\/strong><\/td>38<\/td>101.2<\/td><\/tr>
Dividend per share (cents)<\/strong><\/td>65.0<\/strong><\/td>25<\/td>52.0<\/td><\/tr>
\u2013 Interim dividend per share<\/td>20.0<\/strong><\/td><\/td>17.0<\/td><\/tr>
\u2013 Final dividend per share<\/td>45.0<\/strong><\/td><\/td>35.0<\/td><\/tr>
Return on equity (ROE) (%)<\/strong><\/td>31.7<\/strong><\/td><\/td>26.6<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n

<\/h2>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

PSG Financial Services has warned that only prioritising short-term crises will not result in economic or employment improvements in South Africa. <\/p>\n","protected":false},"author":95,"featured_media":337031,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[23466],"class_list":["post-857373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-psg-financial-services"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857373","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=857373"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857373\/revisions"}],"predecessor-version":[{"id":857415,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857373\/revisions\/857415"}],"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=857373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=857373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=857373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}