Core Insights - The banking and insurance sectors in China showed overall growth in total assets and financial services in Q1 2025, indicating a stable economic environment and increasing support for small and micro enterprises [1][2]. Banking Sector Overview - As of the end of Q1 2025, the total assets of banking institutions reached 458.3 trillion yuan, a year-on-year increase of 6.7%. Large commercial banks accounted for 198.5 trillion yuan, growing by 7.3% [1]. - The non-performing loan balance for commercial banks was 3.4 trillion yuan, with a non-performing loan ratio of 1.51%, reflecting a slight increase from the previous quarter [3]. - Commercial banks reported a net profit of 656.8 billion yuan in Q1 2025, with an average capital return rate of 8.82% and an average asset return rate of 0.68% [4]. - Liquidity indicators remained stable, with a liquidity coverage ratio of 146.20%, although it decreased by 4.63 percentage points year-on-year [5]. Insurance Sector Overview - The total assets of insurance institutions reached 37.8 trillion yuan, with a growth of 5.4% compared to the beginning of the year [1]. - Insurance companies reported original premium income of 2.2 trillion yuan, a year-on-year increase of 0.8%, while claims and benefits paid amounted to 827.4 billion yuan, up 12.2% [2]. - The solvency ratios for insurance companies remained robust, with a comprehensive solvency adequacy ratio of 204.5% and a core solvency adequacy ratio of 146.5% as of the end of Q1 2025 [5].