The Pension Fund Administrators (AFP) recorded profits of S/ 553,586,000 during 2021, this figure is around 10.5% higher than 2019, the pre-pandemic year. And 33% more than in 2020, when it added S/ 414 million 224,000 (see infographic).
According to data from the Superintendency of Banking, Insurance and AFPs (SBS), Prima was the one that earned the most, closing last year with profits of S/ 187,753,000, which means an increase of 39.46% compared to 2020 and 28.99% compared to levels before the COVID-19.
It was followed by Profuturo with S/ 165,929,000 million; 49.56% more than 2020, and 13.12% compared to 2019.
For its part, AFP Integra was the third with the most profits, registering a figure of S/ 147 million 14,000, thus exceeding the previous year by 15.15%. However, it was the only one that failed to exceed pre-pandemic levels, and is 13.82% below 2019, when it scored S/ 170,580,000 million.
Finally, Habitat reported profits of S/ 52,889,000 (+29.08% compared to 2020 and +36.26% compared to 2019).
According to the SBS report, the earnings of the AFPs from the commissions they charge their affiliates amounted to S/ 1,186 million. Y the return on equity (ROE) was 20%.
performance factors
Among the main factors that boosted the earnings of the AFPs last year are the investments of the legal reserve; that is, their own funds, mainly those from abroad. Since they obtained income of S / 159.6 million for this concept, which was higher than in 2020, which was S / 73.1 million, according to Arturo García, professor of Finance at ESAN Graduate School of Business.
“Let’s remember that the AFPs invest 50% in products from abroad, that has meant that despite the Peruvian stock market going down, the investment generates good returns for the affiliates and the AFPs,” he said.
The specialist added that it is also due to the increase in new affiliates (active contributors), as a result of “the recovery of formal jobs due to the recovery of the economy, faster than expected.”
And it is that in 2021, 471,256 new workers were affiliated to the Private Pension System (SPP), which means a monthly average of 39,271 new contributing affiliates. Thus, it went from 7.7 million affiliates at the end of 2020 to 8.2 million in 2021.
Impact of withdrawals
García explained that the AFPs reduced their capital in 2021 due to withdrawals of funds, which went from S/ 1,391 million to S/ 1,137 million, being 18.3% less.
However, this would have contributed to improving its profitability indicators. Since the AFPs resized their size according to the lower level of managed funds –due to withdrawals–, reducing their capital and their operating expenses.
“It should also be noted that affiliates who withdrew their funds and even those who left their accounts at zero have remained affiliated to the SPP and they have continued to contribute”, he pointed out.
Congress seeks to create a seed fund
The Consumer Protection Commission of the Congress debated a project that seeks to create a new Mixed Pension Financing and Assurance System. “Valid for the beneficiary from birth until his death and in order to obtain a decent pension.”
It would be made up of three pillars: seed fund financed by the State, contributions derived from the tax credit of natural persons and complementary contributions of a voluntary nature.
The congressmen asked for the opinion of the MEF and the SBS to continue the debate and subsequent voting.
The data
Affiliated by AFP. Integra registers 3 million 134,944 active affiliates; while Prima has 2 million 349,596; Profuturo, 1 million 750,009 and Habitat, 1 million 17,428 contributors.
Earnings of the AFPs during 2021
Source: Larepublica
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