6th February 2025, Kathmandu
The Citizen Investment Trust (NLK) has released its unaudited financial report for the second quarter of fiscal year 2024/25. As per the report, NLK achieved a net profit of Rs. 62.28 crore by the end of Poush (mid-January), reflecting a 14.08% increase compared to Rs. 54.60 crore in the same period last year.
NLK Q2 Performance Profit Up
During the review period, NLK’s total revenue reached Rs. 1.03 billion, 12.43% higher than last year’s Rs. 924.5 million. Meanwhile, total expenses rose by 6.14%, amounting to Rs. 208.6 million.
Investment Breakdown
CIT’s total investment portfolio now stands at Rs. 2.64 trillion, spread across different sectors:
Fixed Deposits – Rs. 1.38 trillion
Nepal Government Bonds – Rs. 50 billion
Term Loans – Rs. 258 billion
Shares of Organized Institutions – Rs. 308.9 billion
Subsidiary Companies – Rs. 27.2 billion
CIT also maintains a bank balance of Rs. 3.02 billion, while its current assets total Rs. 7.31 billion. The reserve fund has reached Rs. 287.08 billion, showing a stable financial position.
EPS Declines Despite Profit Growth
Although net profit increased, earnings per share (EPS) dropped. EPS declined by Rs. 1.35, settling at Rs. 19.20 per share. The net worth per share stood at Rs. 143.18 at the end of the second quarter.
Interest income declined by 15.76%, while service fees and commission income surged by 187.31%. Despite the 12.43% growth in total revenue, rising expenses impacted profitability.
Company’s Financial Strength
CIT has a paid-up capital of Rs. 6.48 billion. Its reserve fund has accumulated Rs. 287.08 billion, ensuring a strong financial foundation.
Conclusion
CIT’s profitability has increased, but EPS has declined due to rising expenses. The company’s investment portfolio remains strong, with significant allocations in fixed deposits, government bonds, and equity markets. However, the decline in interest income suggests a shift in revenue sources, partially balanced by the growth in service and commission earnings.
For more: NLK Q2 Performance Profit Up
