Zions Bancorporation National Association (ZB1) AI Stock Analysis

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.