Citigroup has released a research report indicating that China Construction Bank (00939) achieved a 13% year-on-year increase in pre-provision operating profit (PPOP) for the first quarter of this year. This growth accelerated from the 5% rate recorded in the fourth quarter of last year, driven by a rebound in net interest margin, strong trading gains, solid fee income, and an improved cost-to-income ratio (CIR). The report noted that CCB's first-quarter PPOP performance exceeded the bank's expectations, while profit growth met forecasts, ranking second and third respectively among large banks. Citigroup expressed encouragement over the significant recovery in CCB's net interest margin and views its current valuation as attractive. The firm has assigned an "Buy" rating to CCB's H-shares with a target price of HK$9.88.