Glonghui, May 6 | CICC released a report stating that the Bank of China's first quarter results were basically in line with expectations. The banking performance of last year and the first quarter of this year reflected the pressure on banking operations in an environment of weak macroeconomic recovery, reflected in phenomena such as declining net profit growth, pressure on interest spreads, rising market share of large banks, and declining market share of small and medium-sized banks. At the same time, banks also responded positively through forward-looking risk increases, stabilizing interest spreads with a balance between volume and price, and reducing operating expenses. The bank anticipates that the decline in interest spreads will enter the second phase this year. As the rate of table expansion slows down, banks are pursuing volume-price balance, and interest spreads slowly declined from around 1.5% to 1.4%, but due to declining loan growth, net interest income will still grow negatively; after the next phase, with interest rates falling across the board after 2025, interest spreads may stabilize at a low level of around 1.3%, and credit demand may also recover in a low interest rate environment, and the growth rate of net interest income may be corrected. Recently released policy signals can help reduce market concerns about the quality of bank assets. Taking into account dividends and fundamentals, the bank is optimistic about China Merchants Bank, Bank of Communications, Bank of Chengdu, Bank of China, which have improved fundamentals, Minsheng Bank, Zheshang Bank, Yunong Commercial Bank, and the growing Bank of Ningbo.