Guaranty Trust Pension Managers has published its 2023 corporate and pension fund audited accounts, providing a detailed overview of its financial health and fund performance.
The audited accounts revealed a remarkable 46% increase in total revenue, rising to just under ₦2.1 billion in 2023, up from ₦1.43 billion in 2022. This growth was primarily driven by interest income earned from investing company capital, which rose by 39% to ₦402.7 million, and a 50% increase in investment management fees to ₦196.3 million.
Profit After Tax (PAT) also saw a significant increase, rising by 51% to ₦745.4 million, compared to ₦492.4 million the previous year. However, operating expenses grew faster than revenue and PAT, increasing by 56% to ₦1.08 billion from ₦692.5 million. This led to a rise in the company’s cost-to-income ratio from 48.45% to 51.91%, indicating the impact of current inflationary pressures.
The company’s shareholders’ funds ended the year at ₦12.61 billion, up 8.38% from ₦11.63 billion in 2022. Despite these positive financial results, the Return on Equity (ROE) came in at 5.91%, substantially below the inflation rate, which closed 2023 at 28.92%.
In terms of fund performance, Guaranty Trust Pension Managers offers six regulated RSA pension funds. All six funds performed better in 2023 compared to 2022, but two underperformed the 2023 industry benchmark for their respective funds. Additionally, none of the funds outperformed the inflation rate, which stood at 28.92% by the end of December 2023.
The number of RSA holders grew by 7.30% in 2023, reaching 94,049, an increase of 6,397 from 2022. Demographically, the majority of the 330,000 RSA holders registered in 2023 fell within the age bracket of 30 to 39 years, indicating a young and growing subscriber base. Of these new registrations, Guaranty Trust Pension Managers accounted for just 1.94%.
In conclusion, Guaranty Trust Pension Managers has shown stable financial health and strong growth in revenue and PAT. However, the company needs to focus on increasing its RSA numbers and improving the investment returns of its pension funds to attract more clients and remain competitive in the industry. The company’s late entry into the market means it must continue to demonstrate value and innovation to its shareholders and customers.
Overall, Guaranty Trust Pension Managers aims to solidify its presence in the pension industry by leveraging its financial stability and commitment to providing innovative financial solutions for its clients.
