Alinma Bank reported 3Q16 net income of SAR312mn, 24% lower Q-o-Q. Earnings were 18% below Bloomberg consensus of SAR379mn.   Main positives: i) Better net interest spreads (+16 bps Q-o-Q); ii) Loan and deposit growth (+4% Q-o-Q)   Main negatives: i) Jump in provisions (almost 5.5x higher Q-o-Q); ii) Decline in non-interest income (-24% Q-o-Q)   Our take on the results: Alinma’s net interest spreads recovered from a sharp decline in the previous quarter, helped by a strong improvement in asset yields and control on funding costs; however, weaker non-interest income and higher provisioning drove a 24% Q-o-Q drop in earnings. We estimate that provisioning costs rose almost 5x Q-o-Q and are likely to be driven partly by investment impairments. Balance sheet growth momentum remained strong, with both loans and deposits growing 4% Q-o-Q. (Earnings release, Murad Ansari)   Alinma Bank: SAR12.06 as of 16 October 2016, No Rating, MCap: USD4,824mn, ALINMA AB / 1150.SE