Guaranty Trust Pension Managers Limited, the pension management division of Guaranty Trust Holding Company, recorded 51 percent growth in its earnings last year, BusinessDay analysis shows.
The firm’s latest financial statement shows that its after-tax profit rose to N745.4 million in 2023 from N492.4 million in the previous year.
It also experienced a 46 percent growth in revenue to N2.1 billion from N1.43 billion.
Further breakdown of the statement revealed that revenue was driven by interest income earned from investing company capital of N402.7 million and investment management fees, which is income earned from managing pension funds, worth N196.3 million.
Moneycounsellors, in its report titled ‘Guaranty Trust Pension Managers: 2023 Audited Accounts Summary’ stated that Guaranty Trust Pension Managers continues to try to find its feet in the pension industry, having come late to the party and it continues to demonstrate stable financial health for its shareholders.
The firm’s shareholders fund grew marginally by 8.4 percent to N12.61 billion from N11.63 billion in 2022.
“The company now needs to grow its RSA numbers to generate income from its core mandate of managing pension funds,” Moneycounsellors stated. “ It also needs to improve the investment returns generated by those pension funds and be more competitive as this, amongst other things, is what will attract anyone looking at the transfer window to move to Guaranty Trust Pension Managers.”
Here are five highlights from Guaranty Trust Pension Managers’ financial results
Retirement savings account holders rose to 94,049
The number of retirement savings account holders in Guaranty Trust Pension Managers Limited surged by seven percent to 94,049 in 2023 from 6,397 in 2022.
“The majority of 330,000 RSA holders (83.9 percent) registered in 2023 fell within the age bracket of <30 years to 39 years, indicating a young and growing industry subscriber base. Of the 2023 registrations, Guaranty Trust Pension Managers recorded just 1.94 percent of this growth,” Moneycounsellors stated.
Shareholders’ funds grew by 8.4%
The firm’s shareholders’ fund increased to N12.61 billion in 2023 up 8.38 percent from N11.63 billion in 2022.
After-tax profit was up 51%
The firm’s after-tax profit surged 51 percent to N745.4 million from N492.4 million during the reviewed period.
Revenue grew 46% in 2023
Guaranty Trust Pension Managers Limited recorded 46 percent growth in total revenue to N2.1 billion in 2023 from N1.43 billion in 2022.
“The core growth came from interest income earned from investing company capital, which rose 39 percent (N402.7 million) in 2023. Investment management fees, i.e., and income earned from managing pension funds grew N196.3 million (50 percent),” Moneycounsellors said.
OPEX grew faster than revenue
Operating expenses (OPEX) increased by 56 percent which is faster than the revenue growth of 46 percent in 2023.
The firm’s operating expenses grew to N1.08 billion from N692.5 million.
Moneycounsellors stated in its report stated that Guaranty Trust Pension Managers Limited’s increase in operating expenses led to a rise in the company’s cost-to-income ratio from 48.45 percent to 51.91 percent indicating company feeling the current inflationary pressures.