Johannesburg - Independent financial services provider PSG Konsult reported yesterday a 13 percent growth in recurring headline earnings per share to 16.6 cents for the six months to August.
The growth was up from 14.7c per share reported in 2015, with all of its three divisions contributing to the performance of the company.
An increase in headline earnings per share ensured that the group was able to declare a gross interim dividend of 5.1c per share, a 16 percent improvement from 4.4c per share in 2015.
PSG Konsult also reported an 18 percent increase in total assets under management to R167 billion, up from R142bn reported in 2015, with a total number of advisers, including insurance advisers, increasing 11 percent to 738.
Chief executive Francois Gouws said the double digit growth in earnings was achieved because all the divisions reported growth. He said the overall portfolio performed in line with expectations and the PSG wealth division, which reported a 17 percent growth in headline earnings.
Improvement
“We have seen strong numbers from our insurance division, which showed a significant improvement in the period under review. The group’s focus on client service excellence through the quality of its advice, products and platforms is proving resilient,” Gouws said.
The wealth management again proved to be a strong contributor with wealth managed assets of R139.1bn, up 21 percent compared to 2015. This included record net flows of R8.2bn in the past six months.
The PSG Asset Management’s headline earnings grew by a modest 2 percent, impacted by the decision to reduce operational risk and lower performance fees as a consequence of market conditions. “However, we remain confident and optimistic over the long-term growth prospects for this business,” added Gouws.
PSG Insure’s headline earnings grew by 29 percent, helped by the related events that occurred during the period. Gouws said the division managed to achieve an excellent net underwriting margin of 7.8 percent.
PSG Konsult is a member of the PSG Group, which includes companies such as Capitec Bank, Zeder Investments and Curro Holdings. Gouws, however, lamented the country’s current economic conditions, arguing that uncertainty and volatility in investment markets remains. “However, the group is confident that it will continue to build its client franchise despite this market outlook,” he said.
Ian Cruickshanks, chief economist at SA Institute of Race Relations, said the company was holding its own in a tough financial services sector in the country. Shares closed 1.71 percent lower at R6.88 per share on the JSE yesterday.
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