NLPC pension fund administrator and Leadway Pensure pension fund administrator have both demonstrated growth going by their financial year ended 31 December 2022 reports.
According to a press release from moneycounsellors.com, NLPC PFA closed the year with 350,884 RSA holders, up from 338,716 RSA holders in 2021. Additionally, assets under management for Retirement Savings Accounts (RSAs) reached an N747.35 billion, up from N383.12 billion (+95.07%) in the previous year (the PFA had a substantial inflow of N245 billion into its Fund VI – Non-Interest (Active) fund.
The total income for the year ending 31st December 2022 rose 15.30% to N4.14 billion reversing the decline of 2021 when total income had fallen 8.77% to N3.59 billion from N3.93 billion in 2020. Cost to income ratio declined to 74.37% from 88.30% in 2021, though it was 66.83% in 2020 but 85.42% in 2019. Over the last five years, this ratio has averaged 78.85%, one of the highest in the industry.
The company’s Profit After Tax (PAT) also did more than doubled, surging by 171.83% to almost N900 million, compared to N327.40 million in 2021. Return on equity (ROE) fell to 15.60% from the previous year’s 16.58% another annual decline from 2020 when ROE was 30.26%. Shareholders’ funds for 2022 was up by 188.86% to N5.71 billion from N1.96 billion in 2021, a result of the regulatory induced recapitalization across the pension industry.
Leadway Pensure on the other hand, closed for the December 31 year ended 2022 financial year with 688,557 RSA holders in the 7 publicly available funds, up from 660,825 RSA holders in 2021. Additionally, assets under management for Retirement Savings Accounts (RSAs) reached an N643,428 billion, up from N542,138 billion in 2021 according to the release.
It shows that the total income grew by 22.98% to N7.93 billion, compared to N6.45 billion in 2021. Costs of managing the business rose 26.58%, which lead to the cost to income ratio rising to 64.01% from 62.19% in 2021. This ratio was 57.79% in 2020. Over the last five years, this ratio has averaged 61.99%.
Profit After Tax (PAT) for 2022 rose 21.87% to N2.03 billion, compared to N1.67 billion in 2021. The company had seen a decline in PAT by 7.24% in 2021 after a rise in 2020 by 21.99%, showing the same level of inconsistency over the years. Return on equity (ROE) was 23.41%, up from 21.80% in 2021 but down from 25.45% in 2020. There was no need for Leadway Pensure to recapitalize during the last recapitalization exercise. Shareholders’ funds rose 13.49% to N8.68 billion from N7.65 billion in 2021.
