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Zions Bancorporation National Association (ZB1) AI Stock Analysis

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CH:ZB1

Zions Bancorporation National Association

(BX Swiss:ZB1)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Profitability and Cash GenerationThe TTM recovery combines higher revenue, stronger margins and substantial free cash flow, indicating improved earnings quality rather than growth driven only by balance-sheet expansion. Strong cash conversion can support capital needs, shareholder distributions and continued investment over the next several quarters.
Negative Factors
Margin and Funding-Cost PressureRising deposit and funding costs are compressing the spread between earning assets and liabilities, directly pressuring a core earnings driver. The expected further increase in deposit pricing could limit the benefit of higher asset yields and make profitability more sensitive to funding mix and rate conditions.

Zions Bancorporation National Association Business Overview & Revenue Model

Company Description

Headquartered in Salt Lake City, Utah, Zions Bancorporation, National Association is a long-standing financial institution, founded in 1873. Operating primarily across the western United States, it delivers a comprehensive suite of banking and financ...

Zions Bancorporation National Association Earnings Call Summary

Earnings Call Date:Oct 19, 2026(Q3-2026)|Next Earnings Date:Jan 26, 2027
Earnings Call SentimentPositive

The call was broadly positive, supported by 20% year-over-year growth in earnings per share, strong credit quality, deposit growth, fee income momentum, capital strength and multiple strategic growth initiatives. The main challenges were net interest margin compression, rising deposit costs, moderated loan growth expectations, higher acquisition-related expenses, flat wealth fees and increased AOCI losses. Management nevertheless provided constructive 2027 outlooks for net interest income, fee income and operating leverage.

Positive Updates

Year-over-Year Earnings Improvement
Net earnings available to common were $262 million, or $1.78 per share, increasing 20% from $1.48 in the third quarter of 2025 and 2% from $1.74 in the prior quarter after adjusting for the prior quarter's large equity securities gains. The year-over-year increase was attributed to growth in net interest income and customer-related noninterest income, modest loan growth and exceptional credit performance.

Negative Updates

Net Interest Margin Compression
The net interest margin was 3.23%, down 4 basis points from the prior quarter and down 5 basis points from a year ago. The linked-quarter decline was primarily driven by higher deposit costs and growth in lower-yielding assets.

Company Guidance

For the third quarter of 2027, Zions anticipates net interest income to increase by approximately 8% to 12%, based on 3 rate increases occurring in December, March and June, with the cost of deposits rising to around 2% from current levels of 1.59%, a deposit-cost increase of about 40 basis points, a beta in the upper 40s to low 50s, and a 5 to 7 basis point increase in earning asset yields; adjusted customer-related fee income is expected to grow 6% to 9%, adjusted noninterest expense to increase by approximately 4% to 6%, and loan growth to be between 2% to 4%, including commercial real estate growth of 1% to 3%. Zions now expects operating leverage of approximately 40 to 50 basis points for full year 2026, while excluding the acquisition operating leverage would approach the low end of prior expectations of 100 to 150 basis points; the multifamily agency platform is expected to generate approximately $17 million to $20 million of revenue and $12 million to $13 million of expense in 2027 and approximately $30 million to $40 million of annual revenue over the medium term, while the company sees scenarios that would allow it to operate in the mid-3s and reach those mid-3 levels in 2027.

Zions Bancorporation National Association Risk Analysis

Zions Bancorporation National Association disclosed 38 risk factors in its most recent earnings report. Zions Bancorporation National Association reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
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 (68)

Financial Indicators

CH:ZB1 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
COLBCOLB81Outperform$8.52B10.5911.08%4.82%22.03%29.83%
FIBKFIBK77Outperform$3.52B11.749.49%4.97%-4.20%35.06%
UMBFUMBF75Outperform$10.32B10.1413.15%1.33%16.68%49.42%
Sector *68Neutral$18.00B11.429.92%3.81%9.73%1.22%
WALWAL67Neutral$8.21B8.2713.09%2.27%8.49%11.51%
CFRCFR66Neutral$9.83B14.6415.58%2.57%1.81%10.44%

* Financial Sector Average

Performance Comparison

0%20%40%COLBCFRFIBKUMBFWALDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
CH:ZB1 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
COLBColumbia Banking System30.715.1520.15%
CFRCullen/frost Bankers157.8538.2531.98%
FIBKFirst Interstate Bancsystem37.807.9026.42%
UMBFUmb Financial Corp.134.6427.1725.28%
WALWestern Alliance Bancorporation75.64-1.35-1.75%
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.