PSG Financial Services delivers solid results despite challenging market conditions

Cape Town - PSG Financial Services Limited (JSE:KST) today announced its results for the six months ended 31 August 2026, reporting 5% growth in recurring headline earnings per share and a return on equity of 26.5%.

Commenting on the results, PSG Financial Services CEO Francois Gouws said the performance was achieved against a challenging operating backdrop, with securities market conditions significantly less favourable than in the previous comparable period. PSG Wealth nevertheless delivered performance in line with historical trends. PSG Asset Management’s earnings were negatively impacted by lower performance fees, while PSG Insure reported substantially lower investment income than the previous equivalent period, with its underwriting result adversely impacted by the Western Cape storms. “Notwithstanding these headwinds, the performance of our key operating and financial metrics demonstrates our competitive advantage and the resilience of our advice-led business model,” said Gouws.

Total assets under management increased by 15% to R594.1 billion, comprising assets managed by PSG Wealth of R504.9 billion (12% increase) and PSG Asset Management of R89.2 billion (30% increase), while PSG Insure’s gross written premium amounted to R4.2 billion (5% increase). Performance fees constituted 1.9% (2025: 7.3%) of headline earnings.

Gouws says that despite the current turmoil in the global economic environment, the firm remains confident about its long-term growth prospects, and therefore continued its investment in both technology and people. “This is evidenced by our technology and infrastructure spend increasing by 4%, while our fixed remuneration cost grew by 10%. We are also particularly proud of the ongoing progress in developing our own talent, with 95 newly qualified graduates joining us during the six-month period.”  

Strong balance sheet and disciplined capital management

PSG Financial Services’ fiscal position remains strong, with a capital cover ratio of 292% (2025: 299%), nearly three times the minimum regulatory requirement of 100%.

During July 2026, Global Credit Rating Company affirmed the group’s long and short-term credit ratings at AA-(ZA) and A1+(ZA) respectively, with a Stable Outlook.

PSG Financial Services also continues to generate strong cash flows, providing it with various options to optimise its capital structure, while returning long-term, risk adjusted value to shareholders. During the period, the firm:

• Repurchased and cancelled 8.0 million shares at a cost of R243.3 million as part of ongoing shareholder capital optimisation; and
• Kept shareholder investable assets’ exposure to equity at 10%, with a long-term target of gradually increasing exposure based on ongoing assessment of investment market conditions.

“PSG Financial Services’ capital cover ratio and the affirmation of our credit rating are testament to our strong financial position, excellent liquidity and disciplined capital management.” Gouws added, “Our capital allocation balances caution with attractive, risk-adjusted returns for shareholders. These outcomes reflect not only the resilience of our advice-led business model, but also the trust we have built with clients, investors and regulators over many years.”

Interim dividend

Given the firm’s strong cash position, the board declared an interim gross dividend of 22.0 cents per share for the six months ended 31 August 2026 (2025: 20.0 cents per share). The firm’s dividend pay-out ratio remains between 40% to 60% of full-year recurring headline earnings (excluding intangible asset amortisation).

Looking forward

Gouws noted that PSG Financial Services remains a proudly South African company with strong conviction in the country’s long-term future. “While we remain constructive about South Africa’s prospects, we recognise that short-term volatility and uncertainty are likely to persist.”

Globally, he noted that financial markets have stayed resilient despite elevated geopolitical uncertainty and rising sovereign debt levels. “Asset valuations in certain sectors increasingly appear to depend on optimistic growth expectations. Ongoing conflict in the Middle East, pressure on global trade relationships and the rapid advancement of artificial intelligence and other disruptive technologies continue to create both opportunities and risks for investors.”

Domestically, Gouws said the South African Reserve Bank and National Treasury continue to provide an important anchor of macroeconomic stability. “Inflation and fiscal outcomes have been generally well managed. However, economic growth remains below the levels needed to address unemployment, reduce poverty and meaningfully improve living standards. Progress has been made in several reform areas, but infrastructure constraints, uneven service delivery and policy uncertainty continue to weigh on investment and economic activity.”

Even so, he said PSG Financial Services remains optimistic about the country and the opportunities that lie ahead. “We remain confident in the ability of ordinary South Africans to build a better future for themselves and their families. The country continues to offer attractive opportunities across a range of sectors, supported by entrepreneurial talent, resilient businesses and deep capital markets. We will therefore continue to invest in technology and people at levels broadly consistent with our long-term historical averages, while remaining disciplined and adaptable as economic and market conditions change.”