COVID-19: Peregrine Group CEO on how to look at the FY numbers

Peregrine Holdings, a financial services provider, recently reported a 15% increase in its assets under management, reaching R142 billion. This news comes amid a challenging year for the company, as it also announced a significant decline in its profit for the year. The group's profit took a hit, slumping by 37% to R328 million, highlighting the financial strain caused by the ongoing COVID-19 pandemic. Peregrine Holdings has decided not to declare a final dividend, reflecting the uncertainty and market volatility that has been brought about by the global health crisis. In an interview with CNBC Africa, Peregrine Group CEO Robert Katz shared insights on the company's financial performance and the outlook for the future. Katz addressed the challenges faced by the company, emphasizing the unprecedented nature of the current economic environment. He stated, 'The stability going forward is actually going to be very different from what we've ever seen in probably 135 years.' This statement underscores the unique and unpredictable nature of the current market conditions, as Peregrine Holdings navigates through a period of uncertainty and change. The CEO also highlighted the impact of the global health crisis on the company's operations, pointing out the need for agility and strategic decision-making in response to rapidly evolving circumstances. Despite the decline in profit, Peregrine Holdings remains focused on managing its assets effectively and adapting to the changing landscape of the financial industry. Katz's assessment of the market volatility reflects the company's cautious approach to future planning, as he expects the current level of uncertainty to persist for the next 6 to 12 months. The financial sector has been significantly impacted by the COVID-19 pandemic, with companies like Peregrine Holdings facing unique challenges in maintaining profitability and stability. The company's decision not to declare a final dividend underscores the need for prudent financial management and risk mitigation in the current economic climate. As Peregrine Holdings continues to navigate the complexities of the global market, the CEO's remarks shed light on the adaptive strategies being employed to ensure the company's resilience in the face of unprecedented challenges. The financial results reported by Peregrine Holdings provide valuable insights into the broader implications of the COVID-19 pandemic on the financial sector, highlighting the importance of strategic planning and operational resilience in times of crisis. Despite the financial pressures faced by the company, Peregrine Holdings remains committed to delivering value to its clients and stakeholders, demonstrating resilience and adaptability in response to the evolving economic landscape.