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 a return on equity of 26.2%.

• Assets under management increased 16% to R436bn, and assets under administration rose 19% to R598bn.

• Maintained an advice-led business model with 957 advisors across 265 offices in South Africa and Namibia; adviser network expanded to 628 in Wealth and consolidated to 329 in Insure.

• Continued investment in technology and people, with technology spend up 20% and 77 new graduates hired.

• Strong cash flows, with cash earnings exceeding reported earnings due to non-cash items like ZAR 38 million intangible asset amortization; business remains free cash flow generative and not balance sheet intensive.

Financial highlights

• Headline earnings rose 26% to R610m for H1 2025; recurring HEPS reached 48.2c, and dividends per share increased 26% to 17.0c.

• Top-line revenue grew 14% year-over-year: Wealth 13%, Asset Management 30%, Insure 12%.

• Operating margin was 15.9% for H1 2025.

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

• Dividend payout ratio maintained between 40% and 60% of recurring headline earnings.

Outlook and guidance

• Confident in long-term growth prospects, supported by small market shares and ongoing investments in digital capabilities and talent.

• Focus remains on expanding the adviser network, optimising risk-adjusted returns, and maintaining strong governance.

• Continued emphasis on growing assets and recurring revenues while managing regulatory and market risks.

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