Business Pandemic affects AFP results: reserve requirement reduces profits to...

Pandemic affects AFP results: reserve requirement reduces profits to June

Planvital, Provida and Capital lowered their earnings by 31%, 29% and 35%, respectively, in relation to the same period of 2019.

Planvital, Provida and Capital were the first AFPs to report their financial statements to the Commission for the Financial Market (CMF) yesterday, results that reflect the effect of the economic crisis generated by the pandemic.

Planvital reported that as of June 30 of this year it posted earnings of $ 11,702 million, a reduction of 31% compared to the same period in 2019, when it earned $ 16,921 million.

In its reasoned analysis, the manager specified that its main income is explained by the commissions paid by the affiliates for the administration of the funds that they add month by month to the individual capitalization account. “Said commissions are not affected by a potential financial risk (interest, exchange rate), which will only be affected by the country’s economy (increase or decrease in the unemployment rate), the collection of commissions from the administrator and the evolution of the number of contributors, “he indicated.

Provida reported that at the end of the first half of this year it recorded profits for $ 46,371 million. The figure represents a reduction of 29% compared to the same period last year, when it posted earnings of $ 65,288 million.

The manager linked to MetLife stated that the results were mainly due to the lower utility of the reserve requirement: “The negative effect is mainly due to the lower returns on the investment of pension funds in foreign instruments,” he explained in the reasoned analysis.

AFP Capital also reported its results to the CMF and reported that as of June 30 of this year it recorded earnings of $ 30,609 million. The figure represents a reduction of 35% compared to June of last year, a period in which it earned $ 47,381 million.

Like Provida, the manager linked to Sura indicated that this setback was due to a lower profitability of the reserve requirement “as a market effect mainly due to the current pandemic”, to which are added lower income from investments due to lower profitability of mutual funds for $ 324 million and participation of associates for $ 344 million, increases in administrative expenses of $ 2,305 million, mainly due to expenses in remodeling of branches and investment information services.

It should be remembered that in the first quarter of this year, Capital, Cuprum, Habitat and Provida recorded losses as a result of the pandemic.

10% withdrawal balance

Provida, the AFP controlled by MetLife, reported that 100% of the applications that were accepted until August 2 to withdraw pension funds have been paid.

Of these, 88% correspond to deposits in BancoEstado accounts and 12% to accounts of other banks in which the affiliates requested the payment of their withdrawal, totaling US $ 2 billion. He also indicated that he has already started the transfers to those affiliates who requested the withdrawal as of Monday, August 3. Of these, more than 50 thousand have already been paid.



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