BEIJING — China's banking sector is likely to see its profits grow by 5 percent in the first half (H1) of 2021, predicted Bank of China Research Institute in a recent report.

Chinese commercial banks registered net profit decline in 2020 compared with 2019 largely due to narrower interest margins and sizeable provisions, which will be eased in the first half of the year, according to the report.

The recovery and improvement of China's macro economy will bring growth potential to the banks' asset business development, according to the report.