Citic Securities: The operating trend of the quality of retail business is key to the change in the quality of bank assets, and forward-looking indicators reflect that the quality of retail credit is still worth attention.

The latest research report from CITIC Securities pointed out that, based on the latest operating data, the overall quality of operation of listed banks remains stable, but individual trends continue to diverge. Breaking it down, the overall asset quality of the public-side of banks has improved, but there have been fluctuations in the asset quality of the construction and wholesale and retail industries. The non-performing loan generation rate for retail loans has increased, and the non-performing loan rate for operating loans has also risen. In terms of bank responses, the industry's overall impairment provision remains stable, with an increased write-off intensity. Looking ahead, the operating trend of retail business quality is crucial for the change in bank's asset quality, and forward-looking indicators reflect that retail credit quality still deserves attention. Consumer credit expectations are shifting towards stability, and operating loans are worth focusing on, although there is no clear deterioration trend at the margin.