PSG Financial Services Limited Year End Results – 29 February 2024

CAPE TOWN, 18 April 2024

Leading financial services group PSG Financial Services Limited (JSE:KST) (the group) today released its full-year results for the period ended 29 February 2024, delivering another year of impressive performance.

The group attributes its continued growth, delivered despite continued tough market conditions, to its ability to sustain a healthy new business pipeline, attracting inflows from current and new clients.

This resulted in a 23.4% return on equity and an 11% increase in recurring headline earnings per share for the period, following net client inflows of R23 billion. The group also increased core income by 11% over the prior year.

Chief Executive Officer Francois Gouws believes that this ability to consistently secure new business in a challenging operating environment is a marker of a healthy business with a clear strategy.

"The group's proud track record of delivering consecutive earnings growth demonstrate the success of our advice-led business model and strong network of advisers – which is continuing to expand. This network, and its commitment to excellent client service, has helped the business gain market share and has generated significant value for shareholders over the years."

"This is evidenced in our total assets under management growing by 15% to R406.9bn during the year under review. It is a strong performance in a tepid environment where the Johannesburg Stock Exchange lost 6% of its value over the period.”

“We also continue to invest in our people and the technology and infrastructure required to help them succeed. Our technology and infrastructure spending increased by 13% from the previous year (these costs continue to be fully expensed), and fixed remuneration costs grew by 12%. We are also making strides in developing talent, welcoming 152 new qualified graduates this year."

The 15% increase in assets under management comprised of assets managed by PSG Wealth increasing by 16% to R355.1 billion, PSG Asset Management by 7% to R51.8 billion, while PSG Insure’s gross written premium amounted to R7 billion (a 13% increase over prior year). Performance fees earned constituted 2.8% (2023: 6.5%) of headline earnings.

Referring to the increase in AUM achieved by PSG Wealth, Gouws highlighted that “The firm remains confident about the fundamentals and prospects of the Wealth division and believes that our commitment to long-term relationships with clients will continue to differentiate us in the markets in which we compete.”

PSG Asset Management’s strong fund performance across the fund range was recognised at the 2023 Raging Bull Awards. The division received five fund-specific awards and a second place in the South African Manager of the Year award category.

From a cost perspective, the group’s Insure division was adversely impacted by several catastrophe events during the year, including two severe flooding events in the Western Cape and a hailstorm in Gauteng.

However, Western National’s comprehensive reinsurance programme cushioned the effect on underwriting results. Western National also won the non-life insurer of the year: commercial award, for the second year running at the 2023 FIA Intermediary Experience Awards.

Read more: https://www.psg.co.za/investor-relations/overview 

ENDS

About PSG Financial Services

PSG Financial Services (Previously PSG Konsult Limited) is a leading registered financial services group established in 1998 that predominantly services individuals and companies in South Africa and Namibia. Its advice-focused business is founded on personal service, lifelong relationships with clients, integrity, trust and transparency.

Through three operating divisions – PSG Wealth, PSG Asset Management and PSG Insure – the group delivers a range of financial services and a suite of financial products.