PSG Group records $37.1-million profit in H1 2024

Feyisayo Ajayi -
Key Points
  • PSG Group reported R656.29-million ($37.11 million) profit after tax for H1 2024, up from R522.1 million a year earlier.
  • A 24.58% increase in insurance revenue to R1.27 billion ($72.01 million) boosted earnings and asset growth.
  • PSG raised its interim dividend by 26% and repurchased 11.2 million shares, reinforcing its commitment to rewarding investors.

PSG Group, an investment holding company founded by South African businessman Jannie Mouton, announced solid interim results for the first six months of 2024, with profits climbing to R 656.29 million ($37.11 million).

The results reflect resilience amid economic headwinds, buoyed by asset growth, increased client investments, and robust insurance operations across its segments.

Insurance revenue boosts profitability

For the six months ending Aug. 31, 2024, the company’s profit after tax rose 25.7 percent, up from R522.1 million ($29.52 million) in the same period last year.

Total income also grew by 13.04 percent to R3.29 billion ($186.28 million), driven by improved customer activity and market-linked revenue streams.

A key driver of this growth was a 24.58-percent increase in insurance revenue, totaling R1.27 billion ($72.01 million).

“Our key financial metrics highlight the competitive advantage of our advice-led business model,” said Francois Gouws, Chairman and CEO. He noted an increase in earnings, showcasing strong operational execution.

Commitment to shareholder value

In line with its rising profitability, PSG has approved an interim dividend of R0.17 ($0.0097) per share, a 26-percent increase from the prior year's R0.135 ($0.008). This decision underscores the company’s commitment to rewarding shareholders despite the broader economic landscape.

PSG also achieved notable asset growth, reporting a 36.3-percent increase in total assets to R124.31 billion ($7.03 billion) by Aug. 31, 2024. Shareholders' funds rose 17.8 percent to R4.07 billion ($230.11 million). 

The group continued to optimize capital, repurchasing 11.2 million shares during the period, further emphasizing its focus on shareholder value.

Looking ahead, PSG remains optimistic about future growth, with plans to invest in technology and expand its client offerings, positioning itself for long-term success in a competitive environment.