Leadway Pensure PFA: 2023 Audited Accounts Summary

Leadway Pensure PFA has published its 2023 summary audited accounts, providing a short, but insightful overview of the company’s financial health and pension funds’ performance. This report provides a summary review and presents key financial highlights, financial ratios, managed funds’ performance, and the trend in the number of Retirement Savings Account (RSA) holders.

Financial Highlights

• Total Revenue: Total revenue for the company rose 27% to ₦10.05 billion in 2023, up from ₦7.93 billion in 2022. This increase is attributed majorly to higher fee income generated from the pension funds it has under management, which rose 24% - ₦1.68 billion, from ₦8.78 billion to ₦7.10 billion. Income from investing shareholder capital rose by ₦395 million to ₦1.22 billion from ₦825 million.
• Profit After Tax (PAT): PAT rose 23% to ₦2.50 billion, up ₦474 million on the previous year’s ₦2.03 billion.
• Operating Expenses: Operating expenses rose faster than both revenue and PAT, up by 28% to ₦6.48 billion from ₦5.07 billion. This increase of ₦1.41 billion led to a slight increase in the company’s cost-to-income ratio, which rose to 64.52% from 64.01% indicating a slight win for inflationary pressures which was up ticking most of 2023.
• Shareholder’s Funds: The company’s shareholders ended the year at ₦9.96 billion in 2023 up 15% from ₦8.68 billion in 2022.
• Return on Equity (ROE): The ROE was reported at 25.14%. Whilst this demonstrates efficient use of shareholders’ equity to generate profits, it is lower than inflation which closed 2023 at 28.92%.

Financial and Fund Highlights

Corporate Audited Annual Results

Financial Ratios

Fund Performance Highlights

• RSA Funds Performance: Leadway Pensure PFA now has all 7 regulated RSA pension funds available to the public. All 7 funds put in a better performance in 2023 than 2022, whilst all but one of the funds out-performed the industry benchmark returns (see our article on benchmark returns here).

5-Year Audited Pension Funds Performance

Number of RSA Holders

• RSA Growth: The number of RSA holders grew by 3.84% in 2023, reaching a total of 714,989 from 688,557 the year before.

Demographic Analysis

• Age Distribution: The majority of 330,000 RSA holders registered in 2023 fell within the age bracket of <30 years to 39 years (83.9%), indicating a young and growing industry subscriber base. Of the 2023 registrations, Leadway Pensure PFA recorded 8% of this growth.

Conclusion

Leadway Pensure PFA continues to demonstrate robust financial health. Revenue continues to rise, its cost to income ratio has averaged 61% over the last 10 years, return on equity, though lower than inflation in 2023 had averaged 26% over the last 10 years. In terms of fund management, like all PFA’s managing funds for the working and retired population, improvements can and need to be made and will be welcome from current RSA holders as well as anyone looking to use the transfer window to move to Leadway Pensure PFA.

Watch out for the 2024 Money Counsellors Annual Report on Pensions. MCARP 2023 available here.