Glonghui, May 9 | Bank of China International released a report stating that profits of commercial banks in the mainland declined slightly in the first quarter, and the industry needed to continue to provide financial support to the real economy, so net interest spreads narrowed more than expected. Although profits fell slightly, asset quality was maintained. The bank covers the main domestic bank AH shares. Net profit for the first quarter fell 1.28% year-on-year, up 3.37% from the same period last year. Operating profit before provision fell 2.51% year-on-year, and fell 3.35% from the same period last year. According to the report, the fundamentals of domestic banks covered in the first quarter remained stable. As of the end of March, asset size, liabilities, loans, and deposits increased by 3.26%, 3.23%, 4.03%, and 2.99%, respectively. At the end of March, the non-performing loan ratio was 1.16%, down 4 basis points year-on-year, reflecting an improvement in asset quality. The average net interest spread for the first quarter was 1.67%, down 11 basis points from 2023. The bank maintains an “increase in holdings” rating for the domestic banking sector. It believes that the industry's profit increased slightly throughout the year, mainly benefiting from the expansion of scale and stable asset quality, while the extent to which the net interest spread narrows in the next three quarters will slow down, and CCB and CMB are preferred in the industry.