UBS: Market May React Slightly Negatively to CCB's (00939) Q3 Performance, Maintains "Buy" Rating

Stock News
10/31

UBS released a research report stating that China Construction Bank (CCB) (00939) reported a net profit of RMB 257.4 billion for the first three quarters of the year, a slight increase of 0.6% year-on-year, reversing the 1.4% decline seen in the first half. In the third quarter alone, net profit rose 4.2% year-on-year, in line with the average growth of the "Big Four" banks (4.1%). However, the bank's Q3 revenue shifted from growth to decline, primarily due to a 2.7% year-on-year drop in net interest income, a 21-basis-point narrowing of net interest margin, and weaker non-interest income. UBS expects the market to react slightly negatively to CCB's Q3 results but maintains a "Buy" rating with a target price of HK$10.2.

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