PSG Konsult weathers Covid-19 challenges

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PSG Konsult weathers Covid-19 challenges

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Published Date: 2021-04-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

PSG Konsult weathers Covid-19 challenges

The financial services group says it was able to operate successfully in a challenging environment due to investment in its systems.


PSG Konsult says it has delivered on all key financial and operational metrics despite a difficult year due to Covid-19. It says this demonstrates the resilience of its franchise.

The financial services group has three operating divisions, including PSG Wealth, PSG Asset Management and personal and commercial short-term insurance business PSG Insure. It said years of investing in its systems and enhancing its digitation capabilities put it in a strong position when the pandemic broke out last year, enabling it to operate successfully in a challenging environment, and still generate good returns for shareholders.

Over the year to end-February, PSG Wealth recorded managed assets net inflows of R14-billion and grew recurring headline earnings by 19% to R448-million. PSG Insure increased gross written premium by 1% to R5.5-billion and reported a 24% improvement in headline earnings to R151-million. However, PSG Asset Management, whose business is impacted by style and cyclical market factors, posted a 28% decline in headline earnings to R105-million. Nevertheless, the group said recent, shorter-term performance by Asset Management showed encouraging early signs of improvement, with several funds performing in the top quartile over a one-year period.

For the year to end-February, total assets under management increased by 17% to R268-billion. Net profit rose 8% to R698-million and recurring headline earnings per share for the group increased by 10% to 52.7c. It raised its total dividend for the year by 9% to 24.5c. Its return on equity held steady at 20.4%.

Due to strong cash flows, it spent R167-million repurchasing its own shares last year. It said it remained well capitalised, with a capital cover ratio of 213% against the required minimum of 100%.





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