PSG Financial Services (KST) H1 2025 earnings summary

Executive summary

• Recurring headline earnings per share rose 28% year-over-year to 48.2 cents, with total recurring headline earnings up 26% to R610 million and return on equity at 26.2%.

• Assets under management increased 16% to R436 billion, and assets under administration rose 19% to R598 billion.

• Maintained a broad adviser network with 957 advisors across 265 offices in South Africa and Namibia, with wealth advisers growing to 628 and insure advisers declining to 329 due to consolidation.

• Continued strong cash flow generation, with cash earnings exceeding reported earnings and the business remaining free cash flow generative.

• Recognized for industry excellence, winning multiple awards in wealth management, asset management, and insurance.

Financial highlights

• Headline and recurring headline earnings reached R610 million, a 26% increase from the prior year.

• Return on equity reached 26.2% for the period.

• Top-line/core revenue grew 14% year-over-year; Wealth up 13%, Asset Management up 30%, Insure up 12%.

• Dividend per share increased by 26% to 17.0 cents, with a payout ratio between 40% and 60% of recurring headline earnings.

• No interest-bearing debt, supporting strong liquidity and a conservative capital structure.

Outlook and guidance

• Confident in long-term growth prospects, supported by ongoing investment in technology and people.

• Strategy focuses on expanding the adviser network, recurring revenues, profit margins, and risk-adjusted returns.

• Continued emphasis on managing regulatory and market risks.

• Small market shares in core segments provide room for future expansion.

• The South African economy showed slight GDP improvement and less load shedding, but policy reform is needed for sustainable growth.