Core Insights - The report from the Bank of China Research Institute indicates that Chinese commercial banks will increase support for the real economy, with strong internal momentum for asset and liability growth. It is expected that commercial banks will maintain a steady development trend in the third quarter [1] - The asset quality of commercial banks is projected to continue improving, with a decrease in the non-performing loan (NPL) ratio [2] Group 1: Financial Performance - As of the end of the first quarter, commercial banks achieved a net profit of 659.5 billion yuan, representing a year-on-year increase of 7.4%, with profit growth returning to normal levels [1] - The net profit growth rate for commercial banks in the third quarter is expected to reach 8% year-on-year [1] Group 2: Asset Quality - By the end of the first quarter, the balance of non-performing loans was 2.9 trillion yuan, an increase of 4.45% year-on-year, with the NPL ratio at 1.69%, down 0.11 percentage points year-on-year [2] - The NPL ratio is expected to decline to approximately 1.68% in the third quarter, despite potential slight increases in NPL balances due to external shocks from localized COVID-19 outbreaks [2] Group 3: Strategic Focus - The banking sector is encouraged to enhance service to the real economy, strengthen comprehensive risk management, and leverage technology to support economic stability [3] - Key strategies include increasing credit issuance, optimizing service models tailored to different industries, and reducing service costs through integrated financial resources [3]