Alexforbes has delivered a strong set of interim results, announcing a 17% increase in headline earnings per share (HEPS) for the six months ending 30 September 2025. This significant uplift was primarily driven by robust inflows of new business across the firm’s core segments. The company demonstrated solid growth in its corporate, investments, retail, and growth-market divisions, reflecting stability in its client base, according to Chief Executive Dawie de Villiers. The firm’s operational momentum saw its total assets under management and administration swell to R696 billion, marking a substantial 23% year-on-year expansion from the preceding period, as detailed in the Extract from the interim results for the six months ended 30 September 2025.
The financial institution’s strong performance was evident in key metrics beyond HEPS. Operating income for the period climbed 9% to R2.33 billion, while normalised profit from operations, which excludes non-trading and capital items, surged by 18% to R446 million. This profitability was bolstered by strong new business acquisition, with institutional flows reaching R28.4 billion and retail flows experiencing a particularly sharp increase of 33% to R15.6 billion. Reflecting this positive trajectory and sustained cash generation, Alexforbes’s board declared an interim cash dividend of 24 cents per share, representing a 9% increase compared to the corresponding period in 2024. Furthermore, the group’s balance sheet remains robust, with a sound regulatory surplus capital position of R1.1 billion and a group cover ratio of 2.1 times, which significantly exceeds its target solvency ratio of 1.2 times, as reported by Moneyweb.
A major macroeconomic factor expected to influence the financial services industry, and consequently Alexforbes’s strategy, is the South African government’s shift towards a 3% inflation target. This structural change is widely anticipated to support the economy over the long term by easing borrowing costs, enhancing asset valuations, and reinforcing the stability of the Rand, bringing local monetary policy closer to international norms, according to the South African Reserve Bank‘s analysis on the revised target. Alexforbes anticipates that the Reserve Bank’s repo rate could ultimately settle within the range of 5.5% to 6%, which would create a more supportive backdrop for equities and property markets.
However, this transition presents a nuanced mix of challenges and opportunities for the advice and investment firm. On one hand, lower inflation could lead to slower wage growth, potentially constraining growth in contributions and assets under management. Furthermore, reduced nominal investment returns could put pressure on fee-based revenues derived from assets. On the other hand, the shift presents significant opportunities for innovation in bespoke financial advice and solutions. Specifically, the environment is expected to increase client demand for sophisticated, advice-led products, such as flexible drawdown strategies and living annuities, as individuals seek to navigate a lower-return environment and protect their real wealth over the longer term.
Looking to the future, Alexforbes is undertaking a multi-year, strategic modernisation project to consolidate its legacy fund administration platforms into a single, unified system across its key markets, including South Africa, Namibia, and Botswana. This major initiative, which commenced in mid-2025, is reportedly on schedule. Despite this strategic focus, the group remains cautious, acknowledging potential external headwinds. These include ongoing market volatility, heightened geopolitical uncertainties, rising regulatory and cybersecurity demands, and broader economic pressures that could impact discretionary savings and employer contributions to retirement funds. The firm’s management, however, expressed confidence that its diversified business model, strong capital base, and disciplined cost management will provide the necessary resilience to adapt to these challenges.