PSG Financial Services delivers 21% HEPS hike

PSG Financial Services, an investment and insurance holding company, has recently announced a remarkable 21% increase in their interim headline earnings. This growth comes as total assets under management surged by 19%, showcasing a strong performance for the company. Mike Smith, the Chief Financial Officer of PSG Financial Services, joined CNBC Africa to discuss the factors contributing to this outstanding growth. Smith highlighted the key driver for the company's success as assets under management, noting that they attracted $7.3 billion of positive net flows during the period. He credited the investments in technology and the dedication of their advisors for attracting both existing and new clients. Despite challenges such as the Boxburg earthquakes and floods, the insured division achieved a 9% underwriting margin, thanks to the quality of their underwriting practices. The asset management earnings also saw a significant 23% increase, even with lower performance fees, attributed to the steady climb in weighted average assets under management. Moreover, PSG's asset manager received prestigious industry recognition by winning six Raging Bull Awards, including South African Fund Manager of the Year. Smith emphasized that the company's clear strategies, talented workforce, and disciplined execution have all played a crucial role in achieving these favorable results. Looking ahead, Smith expressed confidence in the sustainability and repeatability of PSG Financial Services' growth. Despite small market shares in various sectors, the company aims to deliver market-beating returns by focusing on their current strategy. When asked about potential risks in the upcoming period, Smith acknowledged the uncertainties in equity markets but highlighted the company's well-diversified client assets as a strength that positions them well to weather market fluctuations. Moving into the second half of the year, PSG remains optimistic about delivering strong returns, provided the economy addresses growth impediments effectively. From a long-term perspective, Smith underscored the importance of addressing challenges to foster a robust and growing economy that benefits all stakeholders. Switching gears to the upcoming medium-term budget, Smith emphasized the significance of fiscal discipline and stability for PSG Financial Services. He stressed the need for sensible trade-offs in government expenditure to prioritize long-term growth initiatives, focusing on infrastructure development and investments that create a conducive environment for job creation and economic expansion. Education was also highlighted as a critical component for nurturing a skilled workforce and maintaining a competitive business environment. In conclusion, the robust interim earnings report from PSG Financial Services reflects a successful period marked by strategic investments, industry accolades, and a clear vision for sustained growth in the coming years.