Citizen Investment Trust profit rises above Rs 66 crore
8th February 2026, Kathmandu
Citizen Investment Trust (CIT), popularly known as Nagarik Lagani Kosh, has demonstrated institutional resilience in its latest financial disclosure for the second quarter of the fiscal year 2082/83. As a state-backed fund manager with a mandate to mobilize national savings, the Trust’s performance is a key indicator of the broader financial health of Nepal’s pension and investment sectors. Despite a cooling interest rate environment that squeezed traditional income streams, the Trust reported a net profit of Rs 66.53 crore, reflecting its ability to leverage its massive fund size and diversified service portfolio.
Citizen Investment Trust profit
The second quarter report, covering the period up to Poush end 2082, highlights a strategic shift toward service-based revenue. As the Trust manages a growing number of participants—now exceeding 800,000 citizens—its role as a market maker and institutional investor has become increasingly sophisticated.
Consistent Growth in Net Profit
The net profit of Rs 66.53 crore for the current six-month period represents a 6.92 percent increase over the Rs 62.22 crore earned during the corresponding period of the previous fiscal year. This growth is particularly notable because it was achieved during a period when many financial institutions in Nepal struggled with credit quality and declining yields. The Trust’s profitability remains grounded in its low-risk investment philosophy, focusing on government bonds, fixed deposits, and long-term equity in stable enterprises.
Income Dynamics: Service over Interest
A closer look at the income components reveals a divergence in revenue drivers. Net interest income experienced a decline of 10.20 percent, falling from Rs 19.33 crore to Rs 17.64 crore. This trend is consistent with the broader banking sector in 2082, which has seen excess liquidity lead to a downward revision of interest rates on fixed deposits and government securities.
However, the Trust successfully offset this decline through its service-oriented operations. Service fee and commission income rose to Rs 83.94 crore, a 3.62 percent increase from the previous year’s Rs 81.01 crore. As CIT manages various retirement schemes, insurance funds, and unit-based programs, the steady inflow of management fees provides a stable, non-cyclical revenue stream that acts as a hedge against interest rate volatility.
Massive Expansion in Fund and Investment Size
The scale of Citizen Investment Trust is its most significant competitive advantage. During the review period, the total fund size grew by 11.46 percent, reaching a staggering Rs 294.65 billion. This increase of more than Rs 30 billion in a single year reflects the growing reliance of Nepali employees on formal retirement systems.
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To put this capital to work, the Trust expanded its total investment portfolio by 12.80 percent, bringing the total deployed capital to Rs 298.67 billion. This aggressive deployment is aimed at maximizing returns for the contributors while supporting large-scale national infrastructure projects. By investing in diverse sectors, the Trust ensures that its participants receive a “satisfactory return” that often exceeds the base interest rates offered by commercial banks.
Per Share Metrics and Capital Structure
The Trust maintains a strong capital base with a paid-up capital of Rs 6.80 billion. The financial indicators for shareholders remain stable:
Annualized Earnings Per Share (EPS): Rs 19.55 Net Worth Per Share: Rs 142.40 Return on Investment (ROI): 4.49 percent
While the ROI of 4.49 percent might appear modest compared to high-risk equity funds, it aligns with CIT’s mandate as a “safe-haven” for public savings. The annualized EPS of Rs 19.55 ensures that the Trust can continue its long history of consistent dividend distributions, which have historically ranged from 13 to over 50 percent in combined bonus and cash formats.
Conclusion and Future Outlook
The Q2 report for 2082/83 confirms that Citizen Investment Trust is successfully navigating the transition into a massive institutional player. With the fund size nearing the Rs 300 billion milestone, the primary challenge for the management will be to find high-yield investment opportunities in a market with limited large-scale project availability.
The Trust’s five-year strategic plan emphasizes expanding services to the remittance economy and increasing its footprint in mega-projects. If the Trust can successfully minimize its concentration in low-interest bank deposits and pivot further toward productive sector investments, it will likely sustain its upward profit trajectory. For now, the 6.92 percent profit growth serves as a testament to its stability as the bedrock of Nepal’s organized fund sector.
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