Analysis of PFA & Pension fund 2023 audited annual accounts: Premium Pension

2023 Premium Pension Corporate and Pension Fund Accounts for the year ended December 2023

Background.

Premium Pension is one of the first set of Pension Fund Administrators (PFA) licensed by the National Pension Commission (PenCom) in December 2005.

The company ended the 2023 financial year with 794,946 RSA holders in the 7 publicly available pension funds it manages, an increase of 22,061 RSA holders from 772,885 RSA holders in 2022, a growth of 2.85%. Additionally, assets under management for the 7 audited funds published was ₦978.35 billion, up 13.71% from ₦860.43 billion in 2022.

Performance Analysis: Premium Pension (The Company)

Premium Pension Limited’s revenue for the fiscal year ending on December 31, 2023, amounted to ₦11.63 billion, up 15.84% when compared to revenue of ₦10.04 billion recorded in 2022. Total expenses increased by 16.57% to ₦7.05 billion from ₦6.05 billion in 2022.

Whilst the company grew profit after tax (PAT) in 2023 by 32% to ₦3.51 billion, growth slowed slightly from the almost 36% recorded in 2022. Further digging revealed that whilst revenue had grown by the 15.84%, expenses grew slightly faster at 16.57% to ₦7.05 billion from ₦6.05 in 2022, leading the company’s cost-to-income ratio to also rise slightly to 60.65% from 60.27%.

Shareholders’ funds closed 2023 at ₦8.71 billion, up 22.54%, whilst return on equity (ROE) for the year was 40.24% up from 37.33% in 2022.