Financial giant worth R36 billion sends crisis message to South Africa – BusinessTech

PSG Financial Services has warned that South Africa needs to focus on long-term growth rather than just short-term crises.

In its financial results for the year ended 28 February 2026, PSG Financial Services said that it is concerned about rising political volatility worldwide and a lack of domestic progress.

In the short term, the group is concerned that both international and domestic markets have not sufficiently discounted downside risks and may have moved ahead of current economic fundamentals.

“Developed markets are heavily indebted, and the advent of political populism makes a return to normality difficult,” the group with a market cap of R36.1 billion said.

“At the same time, global competition in trade, combined with emerging disruptive technologies,
present clear risks, while military action in the Gulf is a particular concern.”

Nevertheless, the company said that the South African Reserve Bank (SARB) and the National Treasury should be applauded for reducing inflation, while also reining in the budget deficit and national debt.

While the higher commodity prices were a positive for South African markets, promised government reforms have lagged, and professional management remains uneven.

The group said that this is why there have been no material improvements in a broad range of economic
indicators in the South African economy.

“At the same time, a lack of adequate socioeconomic impact studies to support policy and legislation casts doubt on the rationale for sustained improvements in economic growth and employment,” it said.

“An integrated economic plan that looks beyond current crisis management is an imperative.”

Financial results

PSG Financial Services has delivered an incredibly strong set of results for the year ending 28 February 2026.

The company delivered a 33.5% increase in recurring headline earnings per share and a return on equity of 31.7%.

The company increased its total assets under management by 19.9% to R564.6 billion, while its dividend per share rose by 25% to 65 cents.

“Our key financial metrics continue to highlight the competitive advantage of the PSG advice-led business model,” it said.

“While operating conditions remained challenging, favourable securities markets aided the group’s results during the period.”

Positive markets led to better asset performance, improved investment income, and a rise in performance fees, which accounted for 9.2% of headline earnings.

The company’s assets under management totalled R480.9 billion, managed by PSG Wealth (17.3% increase), and R83.7 billion, managed by PSG Asset Management (37.7% increase).

PSG Insure’s gross written premium amounted to R8.0 billion, which was a 5.0% increase. Including the sale of its Western Namibia business, gross written premiums increased by 7.0%.

Given the firm’s confidence in its long-term growth prospects, it invested in both its technology and its people.

The group’s technology and infrastructure spend increased by 8.6% during the period, which was fully expensed.

Expensing sees costs immediately added to the income statement, which reduces net income in the current year and is seen as a conservative accounting method.