Faisal Islamic Bank issued a brief release stating that standalone net income reached EGP1,995mn in 4Q16, up strongly from EGP107mn in 4Q15 and EGP466mn in 3Q16. The reported earnings in 4Q16 are exceptionally strong and came in well ahead of our forecast of EGP206mn. The bank’s pre-tax income stood at EGP2,734mn in 4Q16, strongly up from EGP288mn in 4Q15 and EGP665mn in 3Q16. The spike in earnings this quarter is likely driven by exceptionally strong one-off FX revaluation gains, post EGP free float. Faisal has a portion of its equity denominated in USD, which -when translated into EGP at a higher rate post currency floatation in November- triggered strong FX revaluation gains through the income statement, in our view.   FY16 net income reached EGP2,887mn, a spike of 283% Y-o-Y and well ahead of our forecast of EGP1,099mn (163% above our estimate). FY16 pre-tax income reached EGP3,627mn, up 150% Y-o-Y and 88% above our estimate. (Company disclosure, Elena Sanchez-Cabezudo, Rajae Aadel)   Faisal Islamic Bank of Egypt: EGP1.26 as of 11 January 2017, Rating: Neutral, TP: EGP1.21 per share, MCap: USD374mn, FAITA EY / FAITA.CA