格隆汇 November 1st | Citigroup's research report stated that due to the contraction of net interest margin and weak fee income, China Construction Bank Corporation's pre-provision profit in the third quarter decreased by 4.1% year-on-year, narrowing the decline from the previous quarter's 4.7%. Meanwhile, with the decrease in credit costs and effective tax rates, trading income and provision releases drove the third quarter's after-tax net profit to grow, with a year-on-year increase of 3.8%, compared to a 1.4% decline in the previous quarter, performing better than expected, ranking third among the six major state-owned banks. In the first three quarters of this year, China Construction Bank's pre-provision profit decreased by 4% year-on-year to 407.1 billion yuan, while after-tax net profit increased by 0.1% year-on-year to 255.8 billion yuan, achieving 77% of the market's generally expected full-year profit. Citigroup believes that the stable performance in the third quarter is a symbol of management's change in operational thinking. With profits in the first nine months normalizing, it is expected that full-year profits and dividends per share will at least remain flat year-on-year. Coupled with its dividend yield reaching 7.2%, it is relatively attractive, given a "buy" rating with a target price of HK$7.26.