Zions Bancorporation delivered a fourth quarter that the market viewed positively, buoyed by better-than-expected revenue and strong growth in customer deposits. Management explained that net interest margin, a key profitability metric for banks, expanded for the eighth consecutive quarter due to an improved funding mix and reduced reliance on short-term borrowings. CEO Harris Simmons credited the quarter’s progress to “stronger revenues and notably lower provision for credit losses,” as well as healthy deposit gathering and a resilient credit environment.
Is now the time to buy ZION? Find out in our full research report (it’s free for active Edge members).
Zions Bancorporation (ZION) Q4 CY2025 Highlights:
- Revenue: $879 million vs analyst estimates of $870.1 million (7.1% year-on-year growth, 1% beat)
- Adjusted EPS: $1.64 vs analyst estimates of $1.57 (4.5% beat)
- Adjusted Operating Income: $325 million vs analyst estimates of $332.5 million (37% margin, 2.2% miss)
- Market Capitalization: $8.74 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Zions Bancorporation’s Q4 Earnings Call
- Manan Gosalia (Morgan Stanley) inquired about the base for expense guidance. CFO Ryan Richards clarified that the charitable contribution should be excluded when modeling expense growth for the upcoming year.
- David Rochester (Cantor Fitzgerald) asked about the funding of future loan growth and deposit strategy. Richards emphasized ongoing remixing from securities to loans, and a focus on increasing core deposits to pay down brokered funding.
- John Pancari (Evercore ISI) questioned the drivers of loan growth and whether recent hiring would support expansion. CEO Harris Simmons highlighted the focus on small business lending and the benefits of recent banker additions, especially in California.
- Christopher McGratty (KBW) followed up on the timing and considerations for share repurchases. Richards and Simmons indicated that capital returns could accelerate in the second half of the year, pending regulatory and board approval.
- Jon Arfstrom (RBC Capital) probed on workforce trends and technology. President Scott McLean described ongoing reductions in full-time employees due to increased outsourcing and automation, noting the bank is moving from exploratory to focused, high-impact AI projects.
Catalysts in Upcoming Quarters
In future quarters, our analysts will monitor (1) the pace and quality of loan and deposit growth, especially in small business and commercial segments, (2) execution of technology-driven efficiency initiatives such as automation and outsourcing, and (3) trends in credit quality, particularly within commercial real estate and new loan categories. Progress toward increased capital returns and the impact of broader interest rate changes will also be closely watched.
Zions Bancorporation currently trades at $59.00, in line with $59.09 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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