Earnings down 12% Q-o-Q, miss estimate. CBD reported a net profit of AED216mn, down 12% Q-o-Q and 29% Y-o-Y. The bank’s earnings missed our forecast of AED299mn.   Our view of the results: CBD’s earnings missed expectation mainly due to higher provisioning. The bank’s cost of risk came in at 145bps as its NPL ratio stood at 7% (6.3% in 3Q15), which is the highest within our UAE coverage. Loans grew at a modest pace of 6% Y-o-Y, driven by both corporate and retail segments. Its deposit growth was strong at 12% Y-o-Y (LDR at 98%), while its CASA composition remains quite healthy at 46% (DIB: 39%; ENBD: 55%).   Key highlights: i) Pressure on spreads (-6bps Q-o-Q to 2.57%); ii) Decent loan growth (+2% Q-o-Q and +6% Y-o-Y); iii) Weak credit quality metrics (NPL ratio 7.3% and NPL coverage of 100%); iv) Higher-than-expected provisioning. (Company, Shabbir Malik)   Commercial Bank of Dubai: AED5.00 as of 27 October, Rating: Sell, FV: AED4.60/share, MCap: USD3,818mn, CBD UH / CBD.DU