Zions Bancorp Q4 net earnings rise

Overview

• U.S. financial services firm's Q4 net earnings rose 31% yr/yr to $262 mln

• Adjusted taxable-equivalent revenue increased 7.1% yr/yr to $879 mln

• Company's CET1 capital ratio improved to 11.5% from 10.9% a year ago

Outlook

• Zions Bancorp expects continued prudent growth in the coming year

• Company anticipates positive operating leverage to continue

• Zions Bancorp sees improved net interest margin supporting growth

Result Drivers

• NET INTEREST MARGIN - Zions reported an improved net interest margin of 3.31%, up from 3.28% last quarter and 3.05% a year ago

• CREDIT QUALITY - Credit quality was strong with annualized net charge-offs at 0.05% of loans

• CAPITAL STRENGTH - CET1 capital ratio increased to 11.5% from 10.9% a year ago

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", 15 "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 $64.00, about 7.3% above its January 16 closing price of $59.62

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn7LB9vxa

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