ACCESS Pensions recently published its 2023 audited accounts, providing a comprehensive overview of its financial health and fund performance.
The report provided a summary review and presented key financial highlights, financial ratios, fund performance and the trend in the number of Retirement Savings Account (RSA) holders.
The audited accounts revealed a significant growth in total revenue, reaching N12.35 billion in 2023, an increase from N7.04 billion in 2022. This increase was attributed to higher management fees, which were higher by 67 per cent and to a lesser extent due to volume-improved investment income, a raise by 159 per cent.
Profit After Tax (PAT) rose 71 per cent to N3.78 billion, reflecting a robust growth compared to theprevious year’s N2.21 billion. Operating expenses rose faster than revenue and PAT by 78% to N6.63 billion from N3.72 billion. This led to a slight increase in the company’s cost-to-income ratio, which rose to 53.71% from 52.81% indicating prudent financial management amidst inflationary pressures.
The company’s shareholders ended the year at N14.04 billion in 2023, higher by 15.6% from ₦12.14 billion in 2022. Return on Equity (ROE) was reported at 26.90%. Whilst this demonstrates efficient use of shareholders’ equity to generate profits, it is lower than inflation which closed 2023 at 28.92%.
Access Pensions had all seven regulated RSA pension funds available to the public. Only three of the seven funds put in a better performance than the previous year, whilst all funds out-performed the industry benchmark returns.
The number of RSA holders grew by 4.8% in 2023, reaching a total of 1.105 million.The majority of 330,000 RSA holders (83.9%) registered in 2023 fell within the age bracket of <30 years to 39 years, indicating a young and growing industry subscriber base. Of the 2023 registrations, Access pensions recorded 15.6%.
Access Pensions demonstrated robust financial health for its shareholders in 2023, highlighted by significant revenue growth and strong profitability. In terms of fund management, improvements can be made and will be welcome from current RSA holders as well as anyone looking to use the transfer window to move to Access Pensions.
