Bank Sohar’s 4Q2015 net income declined 10% Q-o-Q to OMR6.7 million, 7% below our estimates of OMR7.2 million.   Main positive: Slight improvement in revenues (+1.8% Q-o-Q)   Main negatives: i) Higher provisioning costs (+103% Q-o-Q); ii) Decline in loans (-1.4% Q-o-Q)   Our view on the results: Though revenues improved marginally, earnings were dented by a rise in provisioning costs. We estimate that Bank Sohar’s 4Q2015 annualised credit costs jumped to 48bps versus 23bps in the previous quarter. Loan book contracted after strong growth in the previous two quarters, while deposits were broadly flat Q-o-Q. We have a Neutral rating on Bank Sohar. Slowing growth and pressure on net interest spreads are our key concerns. (Earnings release, Murad Ansari)   Bank Sohar: OMR0.15 as of 13 January 2016, Rating: Neutral, FV: OMR0.18 per share, MCap: USD550 million, BKSB OM / BKSB.OM