Net profit up 8% Q-o-Q, in line with estimate. NBAD reported a net profit of AED1,376mn (EPS: AED0.25) for 2Q16, +8% Q-o-Q and -5% Y-o-Y. Earnings came slightly ahead of our estimate of AED1,320mn (Bloomberg consensus AED1,328mn).   Our view of the results: A decent set of results. Earnings came 4% above our estimate as strong fee income offset higher-than-expected provisioning. Fee income growth continues to be impressive at 7% Q-o-Q and 9% Y-o-Y. Spreads were resilient at 1.82% as the bank was able to keep the cost of funding under control. The bank’s liquidity continues to be solid as the LDR improved to 83% from 86% in 1Q16. Loan growth recovered to 1.7% Q-o-Q from -3.1% Q-o-Q in 1Q16. Provisioning did not taper off in 2Q16 as we had expected – cost of risk was at 57bps versus our expectation of 48bps (1Q16: 56bps). (Earnings release, Shabbir Malik, Murad Ansari)   National Bank of Abu Dhabi: AED9.90 as of 27 July 2016, Rating: Neutral, FV: AED9.00 per share, MCap: USD14,053mn, NBAD UH / NBAD.AD