CIT Nepal Q3 Financials: Profit Jumps 1.88%, Assets Soar to NPR 3.72 Trillion
11th May 2025, Kathmandu
Citizen Investment Trust (CIT) has announced its unaudited financial results for the third quarter of the current fiscal year, showing a profit of NPR 88.29 million.
CIT Nepal Q3 Financials
This is a 1.88% increase compared to the same period last year. Along with profit growth, CIT has also reported a rise in its total assets, which have reached NPR 3.72 trillion, a significant boost from the previous year.
Financial Performance Overview
In the third quarter of the fiscal year, CIT recorded a profit of NPR 88.29 million. This was a slight increase from last year’s profit of NPR 88.24 million. Although the growth is modest, it reflects the Trust’s ability to maintain a steady financial performance despite economic fluctuations.
However, the report also highlights a 32.03% decline in interest income, which dropped to NPR 24.1 million from the previous year’s NPR 35.32 million. This reduction is attributed to lower returns from traditional investment channels. On the other hand, CIT saw a positive trend in service fees and commission income, which rose by 15.06%. This segment generated NPR 119.86 million, an increase from last year’s NPR 104.17 million.
Asset Growth and Capital Expansion
CIT’s paid-up capital stands at NPR 6.48 billion, while its reserves and other funds have expanded to NPR 3.72 trillion. This represents an increase of 13.21% over the previous year’s reserves of NPR 2.65 trillion. The growth in assets highlights the Trust’s ability to attract more investments and strengthen its financial position.
In total, CIT’s investment portfolio has grown to NPR 2.78 trillion, an increase from last year’s NPR 2.36 trillion. This growth underscores CIT’s active investment strategies, aimed at improving returns and ensuring financial stability in the long run.
Impact on Shareholder Value
Despite the asset growth, CIT experienced a decrease in Earnings Per Share (EPS). EPS fell to NPR 18.49, down from NPR 22.14 during the same period last year. This decline may be concerning for some investors, as it suggests that higher assets have not directly translated into higher profits for shareholders.
The Net Asset Value (NAV) per share stands at NPR 147.45, reflecting the overall value of CIT’s assets concerning its shares. Although the EPS dropped, the NAV per share remains relatively stable, indicating that the Trust’s total asset value is still strong.
Looking Ahead
CIT’s leadership is focused on diversifying its investments and enhancing its revenue streams. The Trust plans to continue expanding its capital reserves, which have shown consistent growth over the past few years. The decline in interest income will likely be mitigated by the ongoing growth in service fees and commission revenue. This shift toward more dynamic sources of income is a positive sign for the Trust’s future performance.
Additionally, CIT aims to build its asset base in a way that supports sustainable growth in the long term. The increase in service fees and commissions signals that CIT is adapting to changing market conditions and is less reliant on traditional income sources like interest rates.
Challenges and Opportunities
While the decrease in interest income has impacted the Trust’s overall performance, CIT’s ability to generate more income from service fees and commissions offers a new path for growth. The increase in reserves and assets demonstrates the Trust’s commitment to long-term success, while the decline in EPS highlights the need for more aggressive strategies to ensure continued shareholder value.
The Trust’s total investments now amount to NPR 2.78 trillion, which is an encouraging sign of its growing influence in the Nepali financial sector. However, to continue its upward trajectory, CIT will need to focus on enhancing its profitability and addressing the challenges posed by fluctuating interest rates.
Conclusion
The third-quarter financial results from Citizen Investment Trust (CIT) reflect a mixture of positive and negative trends. While the modest profit increase and asset growth suggest a stable financial position, the decline in interest income and EPS points to areas that require attention. Still, with a growing asset base, the Trust appears well-positioned to overcome these challenges and continue its progress in the financial sector.
CIT’s focus on diversifying its revenue sources and expanding its capital reserves is likely to play a critical role in its future growth. As the Trust adapts to a changing economic landscape, it will remain a key player in Nepal’s investment sector.
For more: CIT Nepal Q3 Financials
