PSG Financial Services increased recurring headline earnings a share by 28% for the six months to August 31 after high interest rates impacted positively on the results and the business continued to benefit from the competitive advantages of an advice-led model.
“While operating conditions remained challenging, more favourable equity market conditions and sustained high interest rates impacted positively on the group's results,” CEO Francois Gouws said yesterday in a statement.
He said they remained confident about their long-term growth prospects, and the company continued to invest in technology and people.
Compared to the prior comparable period, technology and infrastructure spend increased by 20%, while fixed remuneration cost increased by 14%.
“We are proud of the progress made in growing our own talent, with 77 newly qualified graduates having joined the company during the six-month period,” said Gouws.
Assets under management increased 15.9% to R435.7 billion, comprising assets managed by PSG Wealth of R379.1bn (16.4% increase) and PSG Asset Management of R56.6bn (12.4% increase), while PSG Insure's gross written premium came to R3.7bn (10.3% increase). Performance fees constituted 6% of headline earnings.
During August, Global Credit Rating Company affirmed the company's long-term and short-term credit ratings at A+(ZA) and A1(ZA) respectively, with a Positive Outlook. PSG continued to also generate strong cash flows. An interim dividend of 17 cents per share was declared.
Gouws said there was a slight improvement in gross domestic product (GDP) growth in the period under review.
“Policy reform and a legislative agenda that is conducive to economic growth are sorely 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,” said Gouws.
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