Earnings rise 8% Q-o-Q; marginally below estimates. NBO reported 4Q16 net income of OMR13.7mn, 8% higher Q-o-Q, and 5% below our estimates.   Our take on the results:  Weak revenues – mainly driven by lower net interest spreads and flattish non-interest income – were the key disappointments. However, they were more than offset by a sharp decline in provisioning costs. While collective provisioning should have been low (due to sluggish loan growth), we suspect that the recoveries/write-backs on previously classified NPLs are likely to have been strong in 4Q16. Loans and deposits declined on a Q-o-Q basis.   Main Positives: Lower provisions (est. -84% lower Q-o-Q. Main Negatives: Decline in net interest spreads (est. -9bps Q-o-Q); Decline in net loans (-2% lower Q-o-Q); Decline in deposits (-1% Q-o-Q).   National Bank Of Oman: OMR0.244 as of 12 January 2017, Rating: Neutral, FV: OMR0.260 per share, MCap: USD936mn, NBOB OM / NBO.OM (Murad Ansari, Company)