First City Monument Bank (FCMB) Group Plc has benefitted from retirees opening accounts to save for rainy days as the lender’s asset under management (AUM), reached a monster N910 billion, according to its half-year financial statement.
That’s a 24 percent increase from last year as the acquisition of AIICO Pension Limited a few years ago appears to be a good investment.
The lender’s Pensions business contributed 79 percent of AUM in the second quarter (2Q) 2023, compared with 84% contribution in the same period in 2022.
The number of Retirement Savings Accounts increased by 1.11 percent in June 2023, to 742,540, with Registrations via its digital Platform contributing 63 percent of the increase, compared with 60 percent at the end of 2022.
Nigeria’s Pension has been on a growth trajectory underpinned by a rapidly growing population, greater allocation of pension assets to equities and real assets, Regulation, and full enforcement of the PRA 2014 in terms of compliance.
Analysts at Chapel Hill Denham said the recapitalisation of the industry is catalyst for industry fast changing dynamics.
According to the National Pension Commission (PENCOM), as at 27 April 2022, all PFAs had complied with the recent increase in minimum regulatory capital to N5bn from N1 billion.
“We highlight that the previous recapitalisation was in 2012, ten years ago, when the industry AUM was N3 trillion,” said analysts at Chapel Hill Denham.
FCMB said its AIICO Pension transaction impact on AUM and profit before tax (PBT) were N174.4 billion and N770 million in the first six months of 2023.
The small and midsized lender said it remains on track to achieve its AIICO PBT contribution target of N1.41 billion for full-year (FY) 2023.
In 2021, FCMB acquired the entire shares of AIICO Pension Limited as it believed the combined entity would be better positioned for stronger organic assets under management.
“Our Fund registration request to the SEC, to raise at least N10 billion under Series 1 of our upcoming Alternative Assets Fund remains under review,” said the Bank.
“We remain optimistic that final approval to launch the Fund will be secured in the third quarter (3Q) 2023,” summed the bank.