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Zions Bancorporation National Association (ZION)
NASDAQ:ZION
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Zions Bancorporation National Association
(NASDAQ:ZION)
Rating:74Outperform
Price Target:
$60.00
▲(13.92% Upside)
Positive Factors
Earnings
Core EPS and core PPNR exceeded both analyst and consensus estimates, indicating stronger than expected financial performance.
Financial Performance
Zions Bancorporation has streamlined its corporate structure, reducing regulatory costs and improving efficiency.
Revenue Growth
Guidance has been raised for key revenue growth categories such as loans, NII, and customer-related fee income, indicating an optimistic future outlook.
Negative Factors
Loan Growth
The forward guide was lowered marginally due to a more cautious outlook on loan growth and expected rate cuts.
Macroeconomic Environment
Management tone on the macro environment was more negative given tariff-related uncertainty, with potential negative impacts for businesses.
Profitability
With higher fees come higher expenses, which could impact profitability.
Zions Bancorporation National Association (ZION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.78B
Dividend Yield3.3%
Average Volume (3M)1.60M
Price to Earnings (P/E)9.6
Beta (1Y)1.52
Revenue Growth2.64%
EPS Growth32.07%
CountryUS
Employees9,392
SectorFinancial
Sector Strength65
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.63
Shares Outstanding147,623,800
10 Day Avg. Volume1,559,923
30 Day Avg. Volume1,600,936
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)1.30
Price to Sales (P/S)1.60
P/FCF Ratio7.60
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue2.86
Enterprise Value/Gross Profit4.59
Enterprise Value/Ebitda12.16
Forecast
1Y Price Target
$61.03Price Target Upside15.87% Upside
Rating ConsensusHold
Number of Analyst Covering19
Zions Bancorporation National Association Business Overview & Revenue Model
Company DescriptionZions Bancorporation, National Association provides various banking and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers corporate banking services; commercial banking, including a focus on small- and medium-sized businesses; commercial real estate banking services; municipal and public finance services; retail banking, including residential mortgages; trust services; wealth management and private client banking services; and capital markets products and services. As of December 31, 2020, it operated 422 branches, which included 273 owned and 149 leased. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.
How the Company Makes MoneyZions Bancorporation generates revenue primarily through net interest income, which arises from the interest earned on loans and investments minus the interest paid on deposits and borrowings. Key revenue streams include commercial loans, consumer loans, mortgages, and various banking fees. The bank also earns non-interest income from services such as wealth management, investment services, and fees associated with transaction processing. Strategic partnerships with financial technology companies enhance its service offerings and customer experience, contributing to customer retention and increased transaction volume, thereby bolstering overall earnings.
Zions Bancorporation National Association Earnings Call Summary
Earnings Call Date:Jul 21, 2025
(Q2-2025)
| % Change Since: -6.15%|
Next Earnings Date:Oct 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, with significant improvements in net earnings, net interest margin, and efficiency ratio. There was notable growth in small business banking and positive feedback on new product offerings. However, challenges remain in managing deposit costs and the decline in average deposits. Despite these issues, the overall sentiment is positive given the strength of the financial results and growth initiatives.Q2-2025 Updates
Positive Updates
Significant Increase in Net Earnings
Second quarter net earnings were $243 million, representing a 28% improvement over the prior year period and a 44% increase compared to the first quarter.
Expansion in Net Interest Margin
The net interest margin increased for the sixth consecutive quarter to 3.17%, supported by lower funding costs and an improved earning asset mix.
Growth in Small Business Banking
The SBA 7(a) program saw a 91% increase in the number of deals booked in the first 9 months of the SBA's 2025 fiscal year relative to the same period last year.
Positive Response to Consumer Gold Account Offering
Sales of the new consumer gold account increased by 78% versus its predecessor, with average balances around $30,000.
Improvement in Efficiency Ratio
The efficiency ratio improved to 62.2%, reflecting better cost management and revenue growth.
Increase in Diluted Earnings Per Share
Diluted earnings per share was $1.63, up from $1.13 in the prior period and $1.28 in the year-ago period.
Improvement in Asset Quality
Net loan losses for the quarter were $10 million or 7 basis points annualized, and nonperforming assets remained low at 0.51% of loans and other real estate owned.
Negative Updates
Deposit Decline on a Linked Quarter Basis
Average customer deposits were down 1.4% annualized on a linked quarter basis.
Challenges in Deposit Costs
Total average deposits declined 0.9% due to seasonal customer deposit outflows and an 8% decline in average broker deposits.
Negative Provision for Credit Losses
A negative $1 million provision for credit losses was recorded, which, combined with net charge-offs, reduced the allowance for credit losses by $11 million.
Company Guidance
During the Zions Bancorp Earnings Conference Call for the second quarter of 2025, the company reported net earnings of $243 million, marking a 28% increase year-over-year and a 44% rise from the first quarter. Key metrics highlighted included a net interest margin expansion to 3.17% and an efficiency ratio improvement to 62.2%. The bank experienced a 5.6% annualized growth in average loans on a linked quarter basis, with average customer deposits rising by 0.5% year-over-year. Notably, the bank's consumer gold account offering, launched in mid-May in Nevada, saw a 78% increase in sales through early July, with average balances around $30,000. This success came before the commencement of paid marketing efforts in late June. Additionally, the bank's diluted earnings per share increased to $1.63, up from $1.13 in the prior year, and the allowance for credit losses as a percentage of loans decreased to 1.2%. The company also outlined an optimistic outlook for continued growth in net interest income and customer-related fee income, supported by strategic investments in revenue-generating initiatives and market expansions.Zions Bancorporation National Association Financial Statement Overview
Summary
Zions Bancorporation demonstrates solid profitability with strong EBIT and EBITDA margins. Despite a slight decline in revenue growth, the company manages efficient operations and maintains moderate leverage. The low equity ratio poses some financial stability risks, but strong cash generation supports its financial health.Income Statement
The TTM (Trailing-Twelve-Months) data shows a stable gross profit margin of 62.27% and a net profit margin of 16.11%, indicating strong profitability. However, there is a slight decline in revenue growth, which is a concern. EBIT and EBITDA margins are robust at 21.08% and 23.49% respectively, reflecting efficient cost management.72
Positive
Balance Sheet
The debt-to-equity ratio is 0.70, indicating a moderate leverage level. The return on equity (ROE) is healthy at 12.66%, demonstrating effective use of equity. However, the equity ratio is somewhat low at 7.19%, suggesting potential risks in terms of financial stability.68
Positive
Cash Flow
Free cash flow is positive and shows a stable base with a free cash flow to net income ratio of 1.21. The operating cash flow to net income ratio is 1.33, indicating strong cash conversion efficiency. However, the free cash flow has slightly decreased year over year.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.97B | 4.99B | 4.62B | 3.34B | 2.97B | 2.94B |
| Gross Profit | 3.10B | 3.06B | 2.98B | 3.03B | 3.19B | 2.38B |
| EBITDA | 1.17B | 1.14B | 1.03B | 1.26B | 1.43B | 758.00M |
| Net Income | 801.00M | 784.00M | 680.00M | 907.00M | 1.13B | 539.00M |
Balance Sheet | ||||||
| Total Assets | 87.99B | 88.78B | 87.20B | 89.55B | 93.20B | 81.48B |
| Cash, Cash Equivalents and Short-Term Investments | 12.07B | 12.63B | 12.50B | 13.91B | 34.93B | 17.35B |
| Total Debt | 4.44B | 4.37B | 4.54B | 11.07B | 1.92B | 2.91B |
| Total Liabilities | 81.67B | 82.65B | 81.51B | 84.65B | 85.74B | 73.59B |
| Stockholders Equity | 6.33B | 6.12B | 5.69B | 4.89B | 7.46B | 7.89B |
Cash Flow | ||||||
| Free Cash Flow | 972.00M | 1.05B | 772.00M | 1.28B | 423.00M | 548.00M |
| Operating Cash Flow | 1.07B | 1.15B | 885.00M | 1.47B | 629.00M | 719.00M |
| Investing Cash Flow | -32.00M | -1.64B | 2.37B | 1.41B | -11.58B | -12.20B |
| Financing Cash Flow | -910.00M | 427.00M | -3.20B | -2.81B | 11.00B | 11.32B |
Zions Bancorporation National Association Technical Analysis
Positive
52.67
Price Trends
52.30
Positive
49.04
Positive
51.60
Positive
Market Momentum
-0.13
Positive
48.77
Neutral
80.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZION, the sentiment is Positive. The current price of 52.67 is below the 20-day moving average (MA) of 53.39, above the 50-day MA of 52.30, and above the 200-day MA of 51.60, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 80.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZION.
Zions Bancorporation National Association Risk Analysis
Zions Bancorporation National Association disclosed 36 risk factors in its most recent earnings report. Zions Bancorporation National Association reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zions Bancorporation National Association Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.56B | 12.09 | 11.60% | 1.53% | 4.74% | 10.10% | |
79 Outperform | $7.97B | 11.45 | 12.73% | 2.31% | 6.27% | 45.08% | |
79 Outperform | $6.64B | 12.47 | 9.54% | 2.19% | -0.54% | 16.85% | |
77 Outperform | $8.74B | 13.21 | 10.05% | 1.38% | 30.40% | 12.40% | |
74 Outperform | $7.78B | 9.61 | 13.23% | 3.30% | 2.64% | 32.07% | |
70 Neutral | $6.49B | 12.45 | 7.02% | 3.42% | 3.65% | 20.33% | |
63 Neutral | €14.32B | 9.70 | 3.42% | 3.56% | 10.93% | -33.72% |
* Financial Sector Average
Performance Comparison
ZION
Zions Bancorporation National Association
52.67
7.15
15.71%
BOKF
Bok Financial
104.31
4.97
5.00%
BPOP
Popular
118.00
21.60
22.41%
PB
Prosperity Bancshares
67.17
-2.50
-3.59%
UMBF
UMB Financial
115.08
17.86
18.37%
WTFC
Wintrust Financial
127.09
26.13
25.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.