Core Viewpoint - The banking sector in China is experiencing a slowdown in asset expansion, with total assets reaching 39.43 trillion yuan in Q1 2025, a 7.2% year-on-year growth, indicating a deceleration compared to previous quarters [1] Group 1: Banking Sector Performance - Commercial banks' total assets grew by 7.2% year-on-year in Q1 2025, with a stable quarter-on-quarter performance [1] - The asset expansion rates for joint-stock banks and city commercial banks increased to 5.2% and 9.6% respectively, while state-owned banks and rural commercial banks saw slight declines [1] - The overall asset quality remains stable, with non-performing loan (NPL) balance at 3.4 trillion yuan and an NPL ratio of 1.51%, down 0.08 percentage points from the previous year [4] Group 2: Credit and Loan Trends - The balance of inclusive loans for small and micro enterprises reached 35.3 trillion yuan, growing by 12.5% year-on-year [2] - Green loans amounted to 36.6 trillion yuan, with a significant year-on-year growth of 21.7% [2] - The weighted average interest rate for new loans was 3.44%, down 0.55 percentage points year-on-year, indicating a trend towards lower borrowing costs [2] Group 3: Risk Management and Future Outlook - The banking sector's risk control indicators remain stable, with a provision coverage ratio of 208.13% and a capital adequacy ratio of 15.28% [4] - Analysts suggest that the rebound in NPL ratios for city and rural commercial banks may be attributed to rising risks in smaller, non-listed banks [5] - The banking industry is expected to continue supporting key sectors and projects, maintaining a focus on high-quality development despite challenges in profitability [5]