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FCMB Pensions hints on doubling AUM in 3yrs amid stake increase

Pensions
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FCMB pensions will leverage the strength of the group to double the growth of its Asset Under Management (AUM) in three years and be a top tier industry player in the long run.

This is on the back of an increase in majority stake by the firm in erstwhile Legacy pension to about 92 percent as at July 2019, Misbahu Yola, managing director/ CEO of the firm said.

“In the short term, we are aligning with the brand and the culture of the firm with that of the group so we can become part and parcel of the growth”, Yola said in an exclusive interview with BusinessDay. “In the medium term, we want to double our asset under management and be a top tier player in the long run”.

FCMB pensions has a total AUM of N275 billion and a customer base of 400 thousand, as at end of January 2019. Double asset growth in three years means that the firm hopes to boost its asset to N550 billion by 2022.

Yola noted that with an increase in stake by FCMB, the firm will have access to a wider branch network, more importantly; “we will have more brand recognition which the FMCB brand is known for because they have been around for over 30 years”.

Between 2017 and 2019, FCMB group completed an additional 63.8 percent stake in Legacy Pension Managers Limited from 28.2 percent to 92 percent as at January this year.

The completion of the transaction follows the approvals of the Central Bank of Nigeria, the National Pension Commission, and the Securities and Exchange Commission. FCMB Group’s acquisition of Legacy was aimed at opening a new vista of sustained growth for Legacy through the enhanced distribution and market presence, the group said in a statement.

“The advantage of this synergy is obvious as they offer us spread in terms of location with their 200 branches not only that, they offer us experience in financial services so we can cross-sell products,” Yola told BusinessDay.

FCMB Group Plc’s subsidiaries include First City Monument Bank Limited, FCMB Capital Markets, CSL Stockbrokers Limited, CSL Trustees Limited, First City Asset Management Limited, FCMBMicrofinance Limited and now, Legacy Pension Managers Limited.

FCMB pension occupies only about four percent of the entire N8.4 trillion pension industry. However, leveraging on FCMB, the firm says it has an organic growth to tap into the opportunity which is already presenting itself.

With an increase in stake, FCMB pension says it anticipates that Legacy Pension will be better positioned to grow its market share, compete effectively upon the onset of Retirement Savings Account portability, and also enter the micro-pensions segment in the informal market by leveraging on the network of the retail and commercial banking arm of the group.

 

MICHEAL ANI

 

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