Earnings rise 25% Q-o-Q; ahead of consensus estimates. Alinma Bank reported 4Q16 net income of SAR390mn, 25% higher Q-o-Q. Earnings were 8% ahead of Bloomberg consensus of SAR362mn.   Our take on the results: Alinma reported a strong recovery in earnings, primarily driven by sharp increase in non-interest income (+25% Q-o-Q). Historically, Alinma’s non-interest income has been volatile, and can be high in one quarter driven by lumpy fees booked in a particular quarter. Net interest spreads were marginally weaker, while we estimate that provisioning costs rose Q-o-Q. However these were comfortably offset by strong non-interest income. Loan growth momentum continued to ease after strong acceleration in 1H16, with net loans growing 1.5% Q-o-Q in 4Q16. Deposit growth however remained strong (+4.2% Q-o-Q), driving the bank’s loan-to-deposit ratio lower by 237bps Q-o-Q to 87.2% in 4Q16.   While earnings are strongly ahead of consensus estimates, our key concern is on its sustainability as Alinma’s non-interest income tends to be volatile.   Key Positives: Strong non-interest income growth (+53% Q-o-Q); strong deposit growth (+4.3% Q-o-Q) (Murad Ansari)   Alinma Bank: SAR14.18 as of 17 January 2017, No Rating, MCap: USD5,672 million, ALINMA AB / 1150.SE