Saudi British Bank (SABB) reported 3Q16 net income of SAR995mn, 14% lower Q-o-Q. Earnings were below our forecast of SAR1,136mn, and Bloomberg consensus of SAR1,046mn.   Main positive: Better net interest spreads (+9 bps Q-o-Q)   Main negatives: i) Jump in provisioning costs (est. cost of risk of 57bps); ii) Weak non-interest income (-20% Q-o-Q); iii) Decline in loans (-4% Q-o-Q); iv) Decline in deposits (-4% Q-o-Q)   Our take on the results:  An overall disappointing set of earnings. While net interest spreads maintained their upward trajectory, non-interest income was very weak, which we estimate was due to lower fee and investment income. Provisioning costs also jumped sharply, with annualised cost of risk almost doubling Q-o-Q to 57bps. Balance sheet trends were also weak with both loans and deposits declining.   Saudi British Bank: SAR17.79 as of 12 October 2016, Rating: Buy, FV: SAR28.00 per share, MCap: USD7,116mn, SABB AB / 1060.SE