Francois Gouws, PSG Financial Services CEO
Image: Supplied
PSG Financial Services’ headline earnings per share increased by a strong 33% in the year to end-February after it benefited from positive markets, improved investment income, and a rise in performance fees.
The return on equity for the group that provides financial services for investments, retirement, stockbroking, and insurance came to 317%. Considering the strong cash position, a final gross dividend of 45 cents a share (2025: 35 cents) brought the dividend to 65 cents for the year, up 25% from 52 cents in 2025.
“Against a demanding backdrop, the group delivered solid growth, reaffirming that our advice-led model and diversified businesses provide consistent increases in earnings and a clear competitive advantage,” said CEO Francois Gouws.
CFO Mike Smith said in an interview gross net inflows came to R25 billion, which was about 30% of the entire market, indicating how well their products and services were being accepted and the strength of their advice and incremental growth-driven model.
He said all business units, PSG Health, PSG Asset Management, and PSG Insure, contributed positively to the good results.
Total assets under management increased by 19.9% to R564.6bn, comprising assets managed by PSG Wealth of R480.9bn (17.3% increase) and PSG Asset Management of R83.7bn (up 37.7%), while PSG Insure’s gross written premium amounted to R8bn (5% increase). He said they had focused on disciplined growth of quality insurance business.
Gouws expressed confidence about the long-term growth prospects, and they would continue to invest in both technology and people.
“Our technology and infrastructure spend increased by 8.6%, while our fixed remuneration cost grew by 8.1%. We are proud of the progress in developing our own talent, with 147 newly qualified graduates joining the group,” said Gouws.
Smith said about one-third of their core advisor cohort now comprised graduates that had been taken on by the firm in the last 8 years.
During July 2025, Global Credit Rating Company upgraded PSG Financial Services’ long- and short-term credit ratings to AA-(ZA) from A+(ZA) and to A1+(ZA) from A1(ZA) respectively, with a Stable Outlook. It marked the fifth ratings upgrade the group has achieved in the past decade.
During the year, 12.3 million shares were repurchased at a cost of R296,9m as part of shareholder capital optimisation. This repurchase included an amount equivalent to all shares issued under the group’s long-term incentive schemes during the financial year.
The shareholder investable assets’ exposure to equity was increased to 10% (2025: 9%), aligned with gradually increasing value-at-risk exposure until their long-term target is reached.
This group targets a dividend payout of 40% to 60% of full-year recurring headline earnings.
In the short term, Gouws noted that global and domestic markets may be running ahead of underlying economic fundamentals.
“Developed markets remain heavily indebted, political populism continues to complicate policymaking, and global trade competition, together with disruptive technologies, is creating a more uncertain operating environment. Military tension in the Gulf has been a further source of concern,” he said.
Turning to South Africa, Gouws acknowledged that progress in key areas should be recognised, but more remained to be done.
“The South African Reserve Bank and National Treasury should be applauded for helping to reduce inflation and for taking steps to contain the budget deficit and national debt. However, the pace of reform remains uneven, execution has been inconsistent, and this has limited broader improvements across the economy," he said.
The absence of stronger socioeconomic impact assessments to support policy and legislative change also continued to weigh on confidence in the country’s long-term growth and employment outlook, he said.
South Africa needed a more coherent and forward-looking economic strategy, he added.
He said however that PSG Financial Services remained optimistic about the potential of South Africans and the opportunities ahead for the group.
“We have confidence in the ability of ordinary South Africans to engineer a better future for themselves and their families. We will maintain our investment in technology and human capital broadly in line with our long-term historical trends while continuing to monitor market conditions closely as the year progresses,” he said.
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