PSG Financial Services reported a sharp increase in earnings for the year to the end of February 2026, with management pointing to favourable market conditions alongside continued growth across its core businesses.
JSE-listed PSG Financial Services provides a range of services, including wealth management, asset management and insurance, with a focus on financial planning, investments, and risk products for individuals and businesses.
Recurring headline earnings per share increased by 33.5% to 135 cents (2025: 101.1 cents), while return on equity rose to 31.7% (26.6%), reflecting what the group described as solid performance in a challenging operating environment.
Chief executive Francois Gouws said that “while operating conditions remained challenging, favourable securities markets aided the group’s results”, adding that positive markets resulted in improved asset performance, higher investment income, and a rise in performance fees.
Performance fees accounted for 9.2% of headline earnings, up from 3.7% in the prior year.
Growth supported by higher assets and client activity
Total assets under management increased by 19.9% to R564.6 billion (R470.7bn), comprising R480.9bn (17.3%) in PSG Wealth and R83.7bn (37.7%) in PSG Asset Management.
The group reported net inflows across its investment businesses, including R24.9bn in Wealth and R4.9bn in Asset Management.
Gross written premiums in PSG Insure increased by 5% to R8bn (R7.6bn), or 7% on a comparable basis excluding the Western Namibia business disposal.
The latest results extend a multi-year trend of growth. According to the group’s investor presentation, recurring headline earnings increased to R1.68bn (R1.27bn).
The group distinguishes between IFRS-reported income and “core income”, which excludes the impact of linked investment business and consolidated investment schemes. Core income amounted to R8.28bn (R6.8bn), compared with IFRS-reported income of R8.33bn (R6.69bn).
Performance across business segments
The group’s three segments generate income from different sources, with Wealth deriving revenue primarily from managed and platform assets, Asset Management from assets under management and administration, and Insure from premiums and underwriting activities.
Growth was recorded across all three operating divisions, supported by a combination of client activity, investment performance and operational factors.
PSG Wealth reported a 25% increase in recurring headline earnings to R950.6 million (2025: R763.2m), driven by growth in management and other recurring fees, as well as higher transactional brokerage income.
The division’s adviser network expanded to 641 wealth advisers, contributing to what the group described as “solid performance” in its core advice-led business.
PSG Asset Management reported a 59% increase in recurring headline earnings to R472.8m (R297.2m).
Management attributed the increase to higher performance fees and growth in management fees of 17.6%, supported by strong fund performance.
PSG Insure reported a 22% increase in recurring headline earnings to R258.8 million (R211.8m), supported by underwriting improvements and a more favourable claims environment.
The underwriting margin improved to 15.1% (12.7%), supported by underwriting initiatives and a favourable claims environment, including the absence of catastrophe events.
PSG said it continues to invest in its claims and administration functions to build scale and improve efficiency, while also expanding underwriting and actuarial capacity and completing its investment in geo-coding capabilities.
Investment in technology, people and distribution
The group continued to invest in its operating platform and workforce during the year. This includes ongoing investment in client engagement platforms and digital channels, alongside systems supporting advice, administration and distribution.
Technology and infrastructure spend increased by 8.6%, while fixed remuneration costs rose by 8.1%.
PSG added 147 newly qualified graduates, reflecting its focus on developing internal talent.
The group’s distribution capability is supported by an adviser network of 976 advisers (2025: 971) across its wealth and insurance businesses.
Total expenses increased to R5.67bn from R4.74bn in the prior year, according to the condensed income statement.
Capital position, allocation and shareholder returns
The group reported a capital cover ratio of 260% (257%), well above the regulatory minimum of 100%.
During the year, PSG repurchased and cancelled 12.3 million shares at a cost of R296.9m as part of its capital management strategy.
The group also marginally increased its exposure to equities within shareholder investable assets to 10%, from 9% in the prior year.
The board declared a final dividend of 45 cents per share, bringing the total dividend for the year to 65 cents per share, up from 52 cents in the prior year.
Gouws said the group’s capital position and liquidity “endorse our strong financial position” and support its approach to balancing growth and shareholder returns.
Cash flow and balance sheet structure
Net cash flow from operating activities amounted to R1.33bn, compared with R2.34bn in the prior year.
The group attributed this movement to timing differences in working capital, particularly those linked to client-related balances and investment contract flows.
Total assets increased to R158.4bn, while net asset value per share rose to 456.1 cents from 397.1 cents.
PSG noted that a significant portion of its reported assets and liabilities relates to client-linked balances, including investment contracts and consolidated investment schemes, with the underlying “own” balance sheet representing a smaller component of total assets.
Outlook: caution on markets, confidence in long-term prospects
Management said the global environment remains uncertain, highlighting a range of macro-economic and geopolitical risks.
“Global debt levels remain elevated, political populism is increasing, trade competition is intensifying, and military conflict persists in certain regions,” said Gouws.
He added that market conditions may not fully reflect underlying fundamentals. “In the short term, markets may be running ahead of underlying economic fundamentals.”
On the domestic front, management said there has been some progress in key areas, but that economic improvement remains limited.
“The reduction in inflation and the improved fiscal position should be recognised; however, economic growth remains subdued, reform momentum has been uneven, and execution has been inconsistent,” Gouws said.
He added that a co-ordinated policy approach remains necessary.
“An integrated economic plan, supported by effective implementation, remains imperative to unlock sustainable economic growth in South Africa.”
Against this backdrop, PSG said it remains focused on its long-term growth strategy, supported by its adviser-led distribution model and diversified business operations.
It will continue to invest in technology, people, and its operating platform, in line with its historical approach.
PSG’s primary focus remains on organic growth, while it will consider acquisitions that meet defined strategic and financial criteria, including acceptable pricing, a compelling strategic rationale, clearly definable synergies, and ease of integration.
The group said it remains optimistic about long-term opportunities, despite near-term uncertainty in global and domestic markets.
