Stanbic IBTC Pension Fund Managers Limited is taking advantage of a young population to magnify earnings, but there are concerns that retiree returns for all pension funds are not higher than inflation.
For the year ended December 2021, Stanbic IBTC Pension Fund Managers (SIPFM) or the “fund” saw profit after tax increase by 14.04 percent to N22 billion from N19.29 billion as at June 2020.
Gross revenue was up 15.38 percent to N46.06 billion in December 2021 from N39.92 billion the previous year.
The Fund’s operating income is growing faster than operating expenses as the cost to income ratio reduced to 29.30 percent in the period under review from 29.90 percent as at December 2020.
Pension Funds Managers in Africa’s largest economy have been riding the wave of a reformed Pension Industry and a young population that are entering the labour market annually.
As at 27 April 2022, total industry shareholders’ fund was N211.27bn with Stanbic IBTC having the largest at N75.83 billion, followed by Trustfund Pensions and GTB Pensions with shareholders’ funds of N14.51bn and N11.30 billion respectively.
Nigeria’s total pension fund assets has risen to a record highest of N13.61 trillion as of January 2022, growing by 1.4% compared to N13.42 trillion recorded as of the previous month.
However, Pension Fund returns are lower than inflation rate, which means rising prices erode retirees’ and customers’ income.
The country’s inflation rate has surged further to 20.52% in the month of August 2022, from 19.64% recorded in the previous month. This represents the highest rate since September 2005, according to the latest data from the National Bureau of Statistics (NBS).
Stanbic IBTC Pension Fund Managers has a total shareholders’ fund of N75.95 billion in December 2021, which is 17.28 percent higher than 2020’s N64.45 billion.