Earnings decline 19% Q-o-Q; below estimates. NBO reported 1Q2016 net income of OMR13.9 million, 18% lower Q-o-Q, and 11% below our forecast of OMR15.7 million.   Our take on the results:  Revenues declined 13% Q-o-Q on weaker net interest spread and lower non-interest income. Spreads are likely to have been dented by higher funding costs on stronger deposit growth. Provisioning also rose from a low base in the previous quarter. However, loan growth recovered after sluggish growth in the previous quarter. We continue to see pressure on spreads and provisioning as key risk to earnings.   Main Positives: Loan growth (+3.6% Q-o-Q); Strong deposit growth (+6.4% Q-o-Q); Lower operating costs (-14% Q-o-Q). Main Negatives: Weaker net interest spreads, Decline in non-interest income (-33.7% Q-o-Q), Higher provisioning costs (+76% Q-o-Q). (Company, Murad Ansari)