UBS: Market expects a slightly negative reaction to the last quarter performance of China Construction Bank Corporation (00939), giving a "buy" rating.

UBS released a research report stating that China Construction Bank Corporation (00939) had a net profit of 257.4 billion yuan in the first three quarters of this year, a slight increase of 0.6% compared to the same period last year, reversing the downward trend of a 1.4% decline in the first half of the year. In the third quarter alone, net profit increased by 4.2% year-on-year, with a growth rate similar to the average level of the four major banks (4.1%). However, the bank's third-quarter revenue declined, mainly due to a 2.7% year-on-year decrease in net interest income, a narrowing of net interest margin by 21 basis points compared to last year, and other factors leading to a weakening of non-interest income. UBS expects the market's reaction to the bank's performance in the last quarter to be slightly negative, but still maintains a "buy" rating with a target price of HK$10.2.