In its first-quarter report, Zions Bancorporation revealed a decline in revenue compared to the same period last year. The company’s revenue for the first quarter of fiscal year 2024 amounted to $742 million, representing an 11.6% decrease year-over-year. This figure fell short of the analyst consensus estimate of $743.481 million.
However, Zions Bancorporation’s adjusted EPS of $1.03 exceeded the analyst consensus estimate of 98 cents, according to data from Benzinga Pro. The company’s pre-provision net revenue (PPNR) experienced a 33% decline, reaching $226 million. Despite this, loans and leases saw a 3% increase to $58.1 billion.
Zions Bancorporation’s nonperforming assets amounted to $254 million, representing 0.44% of loans and leases. The company’s total deposits increased by 7% to $74.2 billion. Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented on the results, stating that the first quarter continued to reflect the adverse impact of bank failures a year ago on net interest income.
Simmons noted that taxable-equivalent revenue decreased by 11.3% year-over-year. Nonetheless, the company observed incremental improvement in its net interest margin and earning asset growth. Additionally, adjusted operating expenses, excluding an additional FDIC special assessment related to last year’s bank failures, increased by a modest 0.4% compared to the same quarter last year.
Following the earnings announcement, Zions Bancorporation shares experienced a 1.6% increase, trading at $41.99 on Tuesday. Several analysts adjusted their price targets for Zions Bancorporation. RBC Capital raised its target from $46 to $47, maintaining a Sector Perform rating. UBS lowered its target from $47 to $45, with a Neutral rating.
