Zions Bancorporation surpasses Q4 EPS estimates despite income drop

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SALT LAKE CITY – Zions Bancorporation (NASDAQ:) has reported its fourth-quarter earnings, revealing mixed financial results. The bank’s adjusted earnings per share (EPS) of $1.29 exceeded analysts’ expectations. However, this figure represents a notable decline from the same quarter the previous year.

The financial institution’s net income for shareholders fell to $116 million. This drop was partly due to an FDIC special assessment charge among other factors. Zions Bancorporation’s tax equivalent net revenue reached $741 million for the quarter, with both net interest income and non-interest income showing decreases.

In terms of expenses, the bank saw its adjusted non-interest expenses rise to $489 million. This increase contributed to a higher efficiency ratio, signaling a dip in profitability for the bank. Despite these increased costs, the bank did report some positive movements in its loan and lease metrics, which saw modest improvements. On the other hand, deposits experienced a slight decline.

Additionally, Zions Bancorporation recorded $9 million in net loan and lease charge-offs during the quarter. From a capital perspective, the bank’s capital ratios, including Tier 1 leverage and Tier 1 risk-based capital, showed an increase. Nevertheless, the returns on assets and tangible equity returns saw significant reductions, indicating pressure on the bank’s overall performance.

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