ADIB reported profit (before minority interest) of AED508mn, +5% Q-o-Q and +1% Y-o-Y. The bank’s earnings came in ahead of our AED477mn estimate, primarily due to stronger-than-expected non-interest income. Loan growth improved sequentially – 2% Q-o-Q in 2Q16 versus flat in 1Q16 – and liquidity was broadly stable with LDR at 82%.   Positives: i) Liquid balance sheet (LDR stable sequentially at 82%); ii) Pick-up in loan growth; iii) Improved credit quality metrics (NPL ratio eased to 3.2% from 3.4% in 1Q16; NPL coverage rose to 116% from 113% in 1Q16)   Negative: Capitalisation relatively stretched (CET1 ratio 8.6%) (Earnings release, Shabbir Malik, Murad Ansari)   Abu Dhabi Islamic Bank: AED3.96 as of 14 July 2016, Rating: Neutral, FV: AED4.20 per share, MCap: USD3,418mn, ADIB UH / ADIB.AD