Guaranty Trust Holding Company Plc (GTCO) has acquired 100 percent shareholding in Investment One Pension Managers.
It has also acquired 100% shares of Investment One Funds Management Limited.
The National Pension Commission has also granted ‘No Objection’ to the deal which was recently concluded, sources tell MoneyCentral.
Investment One Pension Managers had total assets of N1.4 billion at the end of 2019 and GTCO is expected to grow the business organically going forward.
Commenting on the completion of the Acquisition, Segun Agbaje, Group chief Executive Officer of GTO Plc said:
“We are excited about our foray into the wealth management space, as it provides us with the opportunity of becoming a one-stop shop for financial service and products that will empower our customers through the course of their lives. We will focus on replicating our digital-first customer-centric retail strategy to create distribution channels for wealth solutions that we will offer, to both institutional and retail clients.”
The new subsidiary will provide GTCO Plc the platform to provide technology driven funds and investment Management Service designed to meet the unique investment needs of retail and corporate investors.
The erstwhile Guaranty Trust bank (GTBank) transformed into a Holding Company operating model and service offerings in a bid to remain relevant in the financial services sector and position the bank for sustainable long-term growth given the increasing evolution of businesses across the globe.
The management had earlier last year signaled that the GTB Holdco structure will consist of the banking subsidiaries and the non-banking subsidiaries.
The banking subsidiaries will include GTBank (Nigeria, West Africa & East Africa) and GTBank UK while the non-banking subsidiaries will be a payment company, an asset management company, and a pension business.
Investment-One Pension Managers had market share of 82,585 Retirement Savings Accounts (RSA), making up 0.9 percent of the 9.3 million RSAs as at the end of March 2021.
GTCO probably needs other sources of revenues as it reported a 9 percent slide in third quarter (Q3), 2021 profit on the back of materially lower interest income for the period.
GTCO reported profit of N129.4 billion in the Q3, 2021 period, compared to N142.2 billion in the earlier 2020 period.
Net interest income fell by 14.1 percent to N162.9 billion in the period as fair value gains from investment securities fell for the period.