Financial services group PSG Konsult raised its interim dividend in its six months to end-August, after its results got a boost from its wealth and insurance businesses.
The company declared a dividend of 8c, an increase of 7%.
Despite poor operating conditions, the group managed to grow headline earnings per share by 7% to 24.8c while generating a return on equity of 19.6%.
Headline earnings for the wealth division grew 25% boosted by an increase in management fees and local brokerage fees as well as increased trading activity during the six months. Despite client relief measures implemented during the period, Insure grew 17%.
PSG Konsult CEO Francois Gouws said the company continued to further automate and streamline its platforms and processes as part of its digital strategy to enhance capabilities and client experience.
He said its financial performance was, however, adversely affected by the lower interest rates, which resulted in a reduction in its net investment income.
As part of the SA Reserve Bank’s intervention to combat the economic fallout from the Covid-19 pandemic, policymakers have cumulatively slashed interest rates by 275bps so far in 2020, to a low of 3.5%
At midday, shares in PSG Konsult were 1.83% weaker to trade at R7.50c.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.