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Business News of Friday, 5 August 2022

Source: thenationonlineng.net

‘PFAs earn N125.39b in 2021’

PenCom PenCom

The National Pension Commission (PenCom) has said that Pension Fund Administrators (PFAs) generated total earnings of N125.39 billion in the financial year ended 31 December 2021.

The total earnings of the PFAs indicate a 14.33 per cent increase, when compared with total income of N109.68 billion earned in 2020.

This was made known by the commission in its 2021 annual report obtained by the newspaper.

The commission stated that the total operating expenses amounted to N65.58 billion as against N55.20 billion recorded in 2020.

Gross operating profits however rose from N54.78 billion in 2020 to N59.52 billion in 2021.

PenCom stated: “The major source of income for the PFAs was fund management fees, which accounted for over 90 per cent of total income. The PFAs recorded combined Return on Assets of 19.68 per cent and Return on Equity of 25.44 per cent, indicating that the PFAs sustained their profitability in the year under review.

“The six Closed Pension Fund Administrators (CPFAs) generated total revenue of N3.65 billion, an increase of 19.67 per cent, when compared with the total inflow of N3.05 billion generated in 2020. Their major source of inflows were receipts from their sponsor companies, which constituted 65 per cent of their total revenue, while management fees and investment income accounted for 32 per cent and three per cent respectively.

“Meanwhile, CPFAs incurred total expenditure of N3.55 billion and a net gain of N92.44 million for the year ended 31 December 2021 while operating expenses comprised mainly of staff costs, which accounted for over 65 per cent of operating expenses”, the commission disclosed.