Net profit down 4% Q-o-Q; in-line with forecast. NBAD reported a net profit of AED1,320mn (EPS: AED0.71) for 3Q16, -4% Q-o-Q and -0.5% Y-o-Y. Earnings came in line with our estimate of AED1,300mn (Bloomberg consensus AED1,343mn).   Our view of the results:  NBAD results were a mixed bag. Earnings came in-line with expectations as strong investment income compensated for pressure on spreads and weak fee income. Provisioning remained under control – cost of risk 54bps – as the NPL ratio was stable at 2.7% and NPL coverage continues to be robust at 110%. Loan growth was sluggish (1% Q-o-Q and -3% Y-o-Y) and deposits were down slightly relative to 2Q16. The bank’s liquidity however continues to be above sector average with LDR at 85%.     Main Positives: i) Provisioning under control (cost of risk 54bps); ii) Controlled cost growth (-1% Q-o-Q and -2% Y-o-Y). Main Negatives: i) Pressure on spreads (-8bps Q-o-Q to 1.74%); ii) Sluggish loan growth (+1% Q-o-Q and -3% Y-o-Y); iii) Weak fee income.