Zions Bancorporation Tops Q3 Estimates Amid Loan Contraction
Zions Bancorporation (ZION) delivered a stronger-than-expected third quarter, with earnings per share of $1.48 surpassing the $1.46 analyst consensus. Profit ROSE 8.3% year-over-year, while revenue growth of 14% exceeded expectations. The bank's net interest margin expanded by 25 basis points, and tangible book value per share jumped 17%.
Despite deposit growth of 7%, loans contracted at a 3% annualized rate—a notable pressure point. CEO Harris H. Simmons highlighted a 14% increase in pre-provision net revenue, framing the results as evidence of resilient Core earnings. The performance alleviates near-term concerns about regional lenders but underscores the sector's loan growth challenges.