Net profit +0.6% Q-o-Q, meets estimates. ADCB reported net profit of AED1.0bn, flat Q-o-Q and down 15.5% Q-o-Q. The bank’s earnings came in-line with our estimate (consensus: AED980mn). ADCB proposed a cash dividend of AED0.40/share, which is in line with our estimate.   Our view of the results:  Results were a mixed bag. Earnings came in-line with expectation as strong fee and FX income compensated for higher-than-expected provisioning. ADCB’s provisioning rose 18% Q-o-Q as the NPL ratio rose to 2.7% from 2.6% in the previous quarter. That said, the bank’s NPL coverage level remains satisfactory at 130%, while GP reserve stood at 1.9%. Spreads were relatively stable Q-o-Q as the bank was able to pass on an increase in cost of funds to customers. Loan book contracted 2% Q-o-Q, while deposits grew a marginal 1%.     Main Positives: Strong fees and FX income (+21% Q-o-Q); Controlled cost growth (2% Y-o-Y)   Main Negatives: High provisioning (cost of risk: 108bps in 4Q16 versus 93bps in 3Q16 and 27bps in 4Q15); Weak loan growth (-2% Q-o-Q) (Shabbir Malik, company)   ADCB: AED7.14 as of 30 Jan, Rating: Buy, TP: AED7.60/share, MCap: USD10,122mn, ADCB UH / ADCB.AD