Earnings rise 12% Q-o-Q; in line estimates. Bank Muscat reported 1Q2016 net income of SAR43.8 million, 12% higher Q-o-Q, and slightly below our forecast of SAR45.2 million.   Our take on the results:  Strong growth in non-interest income helped offset pressure on net interest spreads. Loan growth remained strong. However, deposit growth outpaced loan growth, which should have put pressure on spreads. Provisioning pressure eased from a high base in 4Q2015 (which was driven by year-end provisioning), helping earnings recover Q-o-Q.     Main positives: strong non-interest income growth (+16% Q-o-Q); lower provisions (-32% Q-o-Q); loan growth (+3.4% Q-o-Q). Main negative: weaker spreads. (Company, Murad Ansari)