PSG Financial Services Limited (JSE:KST) today announced its annual results for the year ended 28 February 2026, reporting 33.5% growth in recurring headline earnings per share and an impressive return on equity of 31.7%.
PSG Financial Services CEO Francois Gouws says that while operating conditions remained challenging, favourable securities markets aided the group’s results. Positive markets resulted in better asset performance, improved investment income and a rise in performance fees, which constituted 9.2% (2025: 3.7%) of headline earnings. “Against a demanding backdrop, the group delivered solid growth, reaffirming that our advice-led model and diversified businesses provide consistent increase in earnings and a clear competitive advantage.”
Total assets under management for the group increased by 19.9% to R564.6 billion, comprising assets managed by PSG Wealth of R480.9 billion (17.3% increase) and PSG Asset Management of R83.7 billion (37.7% increase), while PSG Insure’s gross written premium amounted to R8.0 billion (5.0% increase).
Gouws says that despite the current turmoil in the global economic environment, the group remains confident about the long-term growth prospects, and therefore continued its commitment to invest in both technology and people. “This is evidenced by our technology and infrastructure spend increasing by 8.6% over the prior period, while our fixed remuneration cost grew by 8.1%. We are particularly proud of the ongoing progress in developing our own talent, with 147 newly qualified graduates joining the group during the period.”
Business highlights
PSG Financial Services’ key financial performance indicators for the year ended 28 February 2026 are shown below:
^ Includes a R56.5 million profit on sale of the Western Namibia business to Santam Namibia. The sale was concluded on 3 March 2025, after the fulfilment of suspensive conditions. The assets and liabilities relating to this business were previously recognised as held for sale.
Strong balance sheet and disciplined capital management
The firm’s fiscal position remains robust, with a capital cover ratio of 260% (2025: 257%) based on the latest insurance group return, which comfortably exceeds the minimum regulatory requirement of 100%.
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. This marks the fifth ratings upgrade the group has achieved in the past decade.
The firm continues to generate strong cash flows, giving the group flexibility to support growth while returning long-term, risk adjusted value to shareholders. During the year, the group:
- Repurchased and cancelled 12.3 million shares at a cost of R296.9 million 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.
- Increased shareholder investable assets’ exposure to equity to 10% (2025: 9%), aligned with gradually increasing our value at risk exposure until our long-term target is reached.
“The increase in the group’s capital cover ratio and the upgrade of our credit rating endorse our strong financial position and excellent liquidity.” Gouws added “These results also underline our disciplined approach to capital allocation, ensuring that we balance caution with the delivery of attractive, risk-adjusted returns for shareholders. Together, they reflect not only the resilience of our progressive business model, but also the trust we have built with clients, investors and regulators over many years.”
Final dividend
Considering the group’s strong cash position, the board declared a final gross dividend of 45.0 cents per share for the year ended 28 February 2026 (2025: 35.0 cents per share). This brings the total dividend distribution to shareholders to 65.0 cents per share (2025: 52.0 cents per share) for the full year, reflecting the group’s sound financial position and confidence in its prospects.
This also represents continued growth in line with the firm’s dividend policy, which targets a payout of 40% to 60% of full-year recurring headline earnings (excluding intangible asset amortisation).
Looking forward
In the short term, Gouws noted that both 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.”
Turning to South Africa, Gouws said progress in key areas should be recognised, but that much more remains 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. In addition, the absence of stronger socioeconomic impact assessments to support policy and legislative change continues to weigh on confidence in the country’s long-term growth and employment outlook.”
He continues, “South Africa needs a more coherent and forward-looking economic strategy. An integrated economic plan, which moves beyond crisis management and creates the conditions for sustained growth and job creation, remains imperative.”
Even so, he said PSG Financial Services remains optimistic about the resilience and potential of South Africans, and about 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. For us, this continues to translate into opportunity. We will therefore 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.”