Citizen Investment Trust’s Profit Surpasses NPR 1.25 Billion, Investments Grow by 18.65 Percent
10th August 2025, Kathmandu
Citizen Investment Trust (CIT) has released its unaudited financial statements for the fiscal year 2024/25, revealing a strong performance characterized by a notable improvement in profitability and a significant expansion of its investment portfolio.
CIT Profits and Investments
The institution’s net profit surged by 13.71%, demonstrating its ability to grow revenue despite facing a decline in traditional income streams. This robust financial health highlights CIT’s strategic adaptability in a dynamic market, positioning it for continued success.
The financial report provides a detailed overview of the trust’s performance, indicating that its total investments grew by an impressive 18.65%. This expansion reflects a proactive approach to asset allocation and a strong confidence in market opportunities. This comprehensive analysis will explore the key financial indicators, shedding light on the factors that contributed to CIT’s profitability and investment growth.
A Tale of Two Revenues: Growth in Fees vs. Decline in Interest Income
CIT’s financial performance in the last fiscal year was a study in strategic diversification. The institution recorded a net profit of NPR 1.2535 billion, a substantial increase from NPR 1.1024 billion in the previous fiscal year. However, this growth was not driven by its traditional interest income. In fact, interest earnings fell by 23.75% to NPR 337.4 million from NPR 442.5 million. This decline can be attributed to several factors, including shifting market interest rates, changes in the allocation of investments, and potentially lower yields from certain debt instruments.
In contrast, CIT’s service charges and commission income proved to be a key driver of its success. This revenue stream saw solid growth, increasing by 17.17% to NPR 1.6535 billion from NPR 1.4112 billion. This upward trend indicates that CIT has successfully diversified its income sources, relying less on interest-based returns and more on its fee-based services. This strategic shift towards non-interest income streams is a crucial factor in the institution’s ability to maintain profitability and stability in a fluctuating economic landscape.
Capital Structure and Investment Expansion
A healthy financial foundation is essential for any institution’s long-term sustainability, and CIT’s balance sheet reflects just that. The trust has a robust paid-up capital of NPR 6.4817 billion. Furthermore, its reserve funds and other associated funds grew to NPR 311.0667 billion, a 0.77% increase from NPR 308.6972 billion in the previous year. This steady accumulation of reserves strengthens the institution’s financial stability and its ability to meet future obligations and manage unforeseen risks.
The most significant highlight of CIT’s financial report is the impressive growth in its total investments. The institution’s total investments grew by 18.65%, reaching NPR 289.1666 billion, up from NPR 243.7218 billion in the prior year. This expansion demonstrates a strategic and proactive approach to asset allocation, with the trust positioning itself in various sectors of the economy. Such a large-scale increase in investments suggests a strong confidence in market opportunities and a forward-thinking strategy to maximize returns.
Performance Metrics: EPS and Net Worth
While the overall performance was strong, a deeper dive into the metrics reveals some nuances. CIT’s annualized earnings per share (EPS) saw a slight decline, standing at NPR 19.34 compared to NPR 20.75 in the previous year. This marginal drop, despite the growth in net profit, could be a result of an increase in the number of outstanding shares or a shift in the composition of its revenue streams.
The trust’s return on investment (ROI) was recorded at 5.68%, which provides a clear picture of the overall yield on its deployed capital. Furthermore, CIT’s net worth per share stood at NPR 164.23, underscoring a strong financial base and a healthy underlying value for the institution.
Conclusion: A Resilient and Strategically Positioned Institution
The financial results for Citizen Investment Trust in 2024/25 highlight a resilient institution capable of navigating market challenges and capitalizing on new opportunities. The impressive growth in net profit and investments, despite a decline in interest income, showcases a successful diversification strategy. By strengthening its non-interest income streams and expanding its investment portfolio, CIT is well-positioned to sustain long-term growth and stability. The focus on prudent reserve management and strategic asset allocation will likely be key to its continued success in the coming fiscal year.
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