Zions Bancorporation (ZION) has reported third-quarter financial results that topped Wall Street estimates, alleviating concerns about the health of the regional U.S. lender.
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Zions posted earnings per share of $1.48, which beat analyst estimates of $1.46. The bank’s profit was up 8.3% from a year earlier. Zions reported $672 million in net interest income for the third quarter, which is the primary source of revenue for banks. Pre-Provision net revenue was up 14% from a year earlier.
The bank’s net interest margin increased 25 basis points compared to the same quarter last year, while customer-related noninterest income grew 8%. Tangible book value per share increased 17% from a year ago. “We’re pleased with the company’s core earnings, which included 14% growth in pre-provision net revenue over the prior year period,” said Harris H. Simmons, CEO of Zions Bank.
Zions’ income statement. Source: Main Street Data
Loans Contract
Zions also reported that its deposits grew at an annualized rate of 7% in Q3. However, despite the top and bottom line beats, Zions’ loans contracted at a 3% annualized rate in the year’s third quarter. As previously reported, the Q3 results were impacted by a $60 million charge-off due to bad loans.
Last week, Zions said it would take the hefty provision for credit losses when it reported its third-quarter financial results, sending its stock down 11% in a single trading day. Provisions for credit losses represent money that banks set aside to cover bad loans. Zions operates in 11 western U.S. states and had total assets of $89 billion at the end of 2024.
Is ZION Stock a Buy?
The stock of Zions has a consensus Hold rating among 20 Wall Street analysts. That rating is based on six Buy, 13 Hold, and one Sell recommendations issued in the last three months. The average ZION price target of $62.94 implies 20.85% upside from current levels. These ratings could change after the company’s financial results.
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