Bank Aljazira reported 3Q16 net income of SAR161mn, broadly in line with our estimates, but 10% above Bloomberg consensus of SAR147mn   Main positive: Improvement in net interest spreads (11bps Q-o-Q)   Main negatives: i) Decline in loans (-2% Q-o-Q); ii) Decline in deposits (-1% Q-o-Q); iii) Weaker non-interest income (-14% Q-o-Q); iv) Higher provisioning costs (est. cost of risk of 35bps)   Our take on the results: The strong improvement in net interest spreads was a positive surprise and was likely supported by the optimising of balance sheet liquidity. While funding costs continued to rise, the bank was able to improve yield by reducing excess assets reflected in the decline in total assets. Non-interest income was weak, as expected, due to seasonality and sluggish trading volumes at Tadawul, which should have driven lower broking income. Balance sheet trends were sluggish, with both loans and deposits declining. (Earnings release, Murad Ansari)   Bank Aljazira: SAR10.08 as of 12 October 2016, Rating: Neutral, FV: SAR12.50 per share, MCap: USD1,075mn, BJAZ AB / 1020.SE