News Column

First Pension Custodian Records 25 Percent Growth in Q2

August 4, 2014

FIRST Pension Custodian Nigeria Limited, a subsidiary of FBN Holdings has announced an increase of 25 per cent in gross revenue in second quarter (Q2) ended June 2014.

The company in a statement signed by Head, Media and External Relations, Babatunde Lasaki, said its gross revenue grew by 25 per cent to N1.9 trillion by the end of June 2014 when compared to N1.5 trillion recorded in same quarter of 2013. This was driven by a combined 25 per cent increase in fee and investment income.

Besides, fee income increased by 24 per cent to N1.7 billion (Jun 2013: N1.3 billion) and investment income by 32 per cent to N256 million (Jun 2013: N194 million).

While profit for the period was up 42 per cent for the half year to N1.3 billion above the prior-year position of N0.90 billion.

However total assets dropped by 4.7 per cent y-t-d to N6.02 billion in June 2014 (Dec 2013: N6.3 billion) attributable to payment of 2013 dividend and company income tax.

The total market value of assets under custody as at June 2014 was N1.54 trillion, a growth of N0.30 trillion (+24.2%) from the year prior (Jun 13: N1.24 trillion).

The assets under custody comprise pension assets of N1.46 trillion and AMCON assets of N0.08 trillion. A new custody solution was implemented during the period to effectively meet customers' demands and increase sophistication in an evolving operating environment.

Also, it expects the new Pension Reform Act 2014 (PRA 2014) which repeals the Pension Act 2004 to address some of the challenges that have been encountered in the effective implementation of PRA 2004.

It added that among others, the PRA 2014 approved the upward review of rate of pension contribution from 15 per cent to 18 per cent , enhanced the coverage of the contributory pension scheme in the private sector, and increased the powers of the Commission on regulatory and enforcement activities and protection of pension fund assets.

While noting that it will also unlocks opportunities for the deployment of pension assets for national development whilst guaranteeing their safety and provides for the participation of the informal sector and framework for the adoption of the pension act.

On Contributory Pension Scheme by States and Local Governments, it said that the National Pension Commission (PenCom) is currently working on the inclusion of the informal sector of the Nigeria economy, estimated at over 70 per cent of the working population.

This will consequently increase the value of pension assets and drive confidence in the sustainability of the pension industry in Nigeria.

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Source: AllAfrica

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