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The asset under management (AUM) of Guaranty Trust Pension Managers (GTPM) Limited, a subsidiary of Guaranty Trust Holding Company (GTCO) Plc increased by 12.90 percent to N90.12 billion in June 2024 from N79.79 billion as at December 2023, according to data from the company’s website.
The growth in pension funds means the company is taking advantage of the country’s rapidly growing population, age compounding, and greater allocation of pension assets to equities and real assets.
Guaranty Trust Pension Managers or GTPM grew revenue by 47.75 percent to N1.44 billion as at June 2024, driven by organic growth in AUM and introduction of customer friendly products.
GTPM saw profit before tax (PBT) rise by 37.80 percent to N738.70 million in the period under review, on the back of a strong revenue growth and focus on operational efficiency.
The improvement in pension fund assets and earnings comes amid a tough and unpredictable macroeconomic environment as companies are shrinking their workforce by way of downsizing while others have closed shops, which leads to withdrawal of funds from Pension Fund Administrators (PFAs).
At the backdrop of sustained economic turbulence, a total of 14,179 Retirement Savings Account, RSA, holders who lost their jobs this year have withdrawn 25 per cent of their pension savings to sustain themselves and their families in the first half of 2024, H1’24, According to the second quarter report released by the National Pension Commission, PenCom.
The commission added that the RSA holders withdrew N23.4 billion during the period.
The bold economic reforms of president Bola Ahmed Tinubu such as the removal of subsidy of fuel and the unification of the exchange rate to spur foreign direct investment stoked unprecedented spiraling inflation and economic hardship as some firms recorded huge operational losses due to the impact of currency devaluation.
Nigeria’s headline inflation rate decreased to 33.40 per cent in July 2024, down from 34.19 per cent in June 2024.
Parent company Guaranty Trust Holding Company (GTCO), as part of aggressive expansion plans, acquired 100 percent shares in Investment one Pension Manager Limited as it continues to grow organically. It also seeks to take advantage of inorganic growth if the opportunity arises.
The Bank aims to become the largest pension fund in the next five year, using its robust talented work force and solid liquidity position to explore more opportunities in the pension industry that is in its embryonic stage.
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