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Insurance growth lifts PSG Konsult
Financial services company, PSG Konsult, published its 2019 interim results with an 8 per cent growth in recurring headline earnings per share. The company, which was boosted by insurance growth, had a return on equity of 20.2 per cent. PSG Konsult CEO, Francois Gouws joins CNBC Africa for more.
Thu, 10 Oct 2019 16:31:14 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- PSG Konsult's wealth management division recorded a 10% increase in revenue, driven by an inflow of net new assets totaling nearly 5 billion rand.
- The asset management division faced challenges due to difficult market conditions, resulting in a 7% decrease and the inability to generate performance fees.
- The standout performer for PSG Konsult was the insurance business, which saw a remarkable 50% growth, partially attributed to previous acquisitions.
PSG Konsult, a financial services company, recently released its 2019 interim results revealing an 8 per cent growth in recurring headline earnings per share. The company, led by CEO Francois Gouws, has managed to navigate the challenging political and economic uncertainties in the market. Despite a 6% dip in the Genesberg Stock Exchange, PSG Konsult focused on revenue growth rather than cost-cutting measures, resulting in positive outcomes across its divisions. Gouws highlighted the performance of their three main divisions: wealth management, asset management, and insurance.
The wealth management division saw a 10% increase, driven by an inflow of net new assets amounting to nearly 5 billion rand. Asset management, on the other hand, experienced a 7% decrease due to difficult market conditions that impacted the generation of performance fees. However, excluding performance fees, the division showed growth on a like-for-like basis. The standout performer was the insurance business, posting an impressive 50% increase, partly attributed to acquisitions made in the previous year.
During the interview, Gouws addressed concerns about the challenges in asset management and the flat market conditions experienced over the past five years. Despite the discouraging trend, he remains optimistic about the future, particularly with the recent economic plan proposed by the Minister of Finance. Gouws expressed support for the plan and its potential to stimulate positive market movement before the upcoming Moody's re-rating in November.
PSG Konsult's success can also be attributed to its focus on client satisfaction and retention. With a client base of 580,000 in South Africa, the company caters to a diverse range of clients, offering savings-related products and discretionary savings options. Gouws emphasized the importance of providing quality products and services to ensure a seamless experience for their customers.
Regarding the topic of immigration and its impact on fund management, Gouws mentioned that while there have been anecdotal reports of increased net emigration from South Africa, PSG Konsult has not observed significant drawdowns or liquidations of funds under their management. However, a noticeable trend has been the outflow of funds offshore by South Africans, a pattern that has been consistent since 2015.
Looking ahead, PSG Konsult remains focused on growth and investment in its people and technology. The company hired 180 new employees in the past year and increased its technology expenditure by nearly 30%. Gouws emphasized their commitment to investing in the local economy and expressed confidence in the long-term prospects of South Africa's economic landscape.
In conclusion, PSG Konsult's resilience in the face of market challenges and its strategic focus on growth and client satisfaction have positioned the company for continued success in the financial services sector.
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