Zions Bancorp Q2 adjusted EPS misses estimates as one-time gains lift net profit

Overview

• U.S. regional bank's Q2 adjusted EPS missed analyst expectations

• Net earnings rose sharply, aided by equity investment gains on Visa and SBIC holdings

• Organic noninterest income grew 11% yr/yr, with strong capital markets activity

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• EQUITY INVESTMENT GAINS - Net earnings boosted by $215 mln in gains on Visa Class B-1 shares and $37 mln on SBIC investments

• NONINTEREST INCOME - Organic customer-related noninterest income rose 11% yr/yr, with strong growth from capital markets activities

• LOAN AND DEPOSIT GROWTH - Loans grew 3% yr/yr and 8% annualized linked-quarter; deposits up 4% yr/yr but seasonally lower vs Q1

Company press release: ID:nPn9VXY4za

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Zions Bancorporation NA is $71.50, about 1.1% below its July 17 closing price of $72.27

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 20 - Investar Q2 adjusted EPS beats estimates, net interest margin improves

• July 20 - MainStreet Bancshares Q2 profit rises on higher interest margin

• July 17 - Hingham Institution for Savings Q2 net income more than doubles on higher loan yields, lower funding costs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)