BEIJING - China's banks saw steady asset expansion in 2023, an official of the country's financial regulator said on Thursday.

The assets of financial institutions in China's banking sector grew 9.9 percent year-on-year to 417.3 trillion yuan ($58.7 trillion) last year, Liu Zhiqing, a spokesperson for China's National Administration of Financial Regulation, told a press conference.

The asset quality of these institutions was generally stable last year, he said, noting that outstanding non-performing loans (NPL) were at 3.95 trillion yuan by the end of 2023, with the NPL ratio at 1.62 percent.

Preliminary data shows that China's commercial banks raked in 2.38 trillion yuan in net profits last year, up 3.24 percent from the previous year. And their provision coverage ratio, a backstop guarding against financial risks, came in relatively high at 205.1 percent.

Liu said that China's lenders will maintain their steady growth momentum this year, with financial resource allocation to be optimized further.

The country's sound long-term fundamentals will remain unchanged, he said, noting that he expects the improving fundamentals and new growth opportunities to boost the development of the banking sector.