CITIC Securities: The quality of retail business operations is key to changes in bank asset quality.

The research report of CITIC Securities states that, based on the latest situation, the overall quality of listed banks is stable and provisions continue to shrink slightly, while individual trends continue to diverge. Breaking it down, the quality of banks' public assets has improved overall, but there has been fluctuation in the quality of assets in the construction and wholesale retail industries. The non-performing loan generation rate for retail loans has increased, and the non-performing loans for operating loans have risen significantly. In terms of response, while the industry has stabilized the provision for impairment, there has been an increase in write-offs. In the context of regional economic differentiation, regional banks are particularly strong. Looking ahead, the quality of retail business operations is crucial for changes in bank asset quality, with forward-looking indicators reflecting a continuation of the previous year's trend in the non-performing loan generation rate for retail loans, and the quality of operating loans remains a key focus.