Bank Aljazira reported 4Q16 net income of SAR152mn, below our estimates as well as Bloomberg consensus.   Main positives: i) Deposit growth (+2.5% Q-o-Q); ii) Stable NIMs (+2bps Q-o-Q); iii) Stronger non-interest income (+10% Q-o-Q)   Main negatives: i) Decline in loans (-2.5% Q-o-Q); ii) Higher provisioning costs (est. cost of risk of 38bps)   Our take on the results: While NIMs were broadly stable Q-o-Q, non-interest income is likely to have benefitted from better trading volumes at Tadawul. We estimate that Aljazira’s annualized credit costs for 4Q16  rose to 38bps, offsetting the slight improvement in revenues. Loan book declined for the second consecutive quarter, however deposits recovered 2.5% Q-o-Q after remaining flattish in the past two quarters. (Company disclosure, Murad Ansari)   Bank Aljazira: SAR13.29 as of 12 January 2017, Rating: Neutral, TP: SAR12.50 per share, MCap: USD1,418 million, BJAZ AB / 1020.SE