ADIB Egypt issued a brief release yesterday stating that its 4Q16 net income stood at EGP110mn, up 46% Y-o-Y  and 24% Q-o-Q, broadly in line with our forecast of EGP104mn (+5%). Pre-tax income rose 30% Y-o-Y and 24% Q-o-Q, in line with our estimate of EGP239mn. FY16 net income reached EGP397mn, up 87% Y-o-Y and in line with our forecast of EGP391mn. Net interest income was strong in 4Q16, up 63% Y-o-Y (20% Q-o-Q), exceeding our forecast by 14%. Fee income was solid, up 68% Y-o-Y and broadly in line with our estimate (-5%). As expected, loan growth jumped to 26% Q-o-Q (48% Y-o-Y) in 4Q16, from a subdued 2% Q-o-Q in 3Q16, driven partly by the translation of USD loans (which accounted for 22% of total loan book in Sep.16) at a higher EGP/USD rate post EGP devaluation. Deposit growth was also strong at 12% Q-o-Q in 4Q16, up from just 1% Q-o-Q in 3Q16, with USD deposits (10% of total book) being translated at a higher FX rate. ADIB Egypt stated in its release that it had booked exceptionally strong FX gains of EGP1,350mn in 4Q16 related to the revaluation of assets and liabilities post EGP floatation. However, as in 1Q16 when EGP devalued, these gains were offset by a provision for a similar amount of EGP1,310mn in 4Q16; hence, the impact on the bottom-line of these very strong FX gains was muted.   On a separate note, ADIB Egypt stated that it had received a subordinated loan of USD18mn from its parent, ADIB UAE, dedicated to shore up its capital adequacy that has been weakened by the impact of EGP devaluation. The financing has a seven-year maturity and is split in two tranches: USD9mn disbursed in Sep.16 at 5.88% interest rate; and USD9mn received in Dec.16 at 6.5% interest rate. CAE and QNB Alahli also resorted to subordinated lending from their parent companies in order to strengthen their capital adequacy ratios post devaluation. (Company disclosure, Rajae Aadel, Elena Sanchez-Cabezudo)   Abu Dhabi Islamic Bank - Egypt: EGP8.30 as of 19 Feb. 2017, Rating: Buy, TP: EGP9.98/share, MCap: USD105mn, ADIB EY/ADIB.CA