The asset quality of China's commercial banks slightly improved in the fourth quarter last year, according to figures released by the China Banking and Insurance Regulatory Commission on Wednesday.

The outstanding balance of nonperforming loans of China's commercial banks hit 3 trillion yuan ($438.66 billion) at the end of the fourth quarter, dropping by 8.3 billion yuan from the previous quarter.

The NPL ratio was 1.63 percent, down 0.02 percentage points during the same period.

The ratio of allowance for loan impairment losses to NPLs was 205.85 percent at the end of the fourth quarter, up 0.31 percentage points from the previous quarter.

China's banking sector ramped up support for small businesses as part of its effort to bolster the real economy. The outstanding balance of inclusive loans - loans to micro and small businesses with a total credit line of up to 10 million yuan per borrower - reached 23.6 trillion yuan, increasing 23.6 percent year-on-year.

The CBIRC also said China's commercial lenders realized a net profit of 2.3 trillion yuan in 2022, up 5.4 percent year-on-year.