Zions Bancorp NA (ZION) Q4 2024 Earnings Call Highlights: Strong Revenue Growth Amid Credit Concerns

GuruFocus.com01-22 15:04

Fourth Quarter Adjusted Pre-Provision Net Revenue: Increased 19% relative to the prior year quarter. Net Earnings for the Year: $737 million or $4.95 per share. Fourth Quarter Earnings: $200 million ...

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GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/zions-bancorp-na-zion-q4-070409054.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Fourth Quarter Adjusted Pre-Provision Net Revenue: Increased 19% relative to the prior year quarter.\nNet Earnings for the Year: $737 million or $4.95 per share.\nFourth Quarter Earnings: $200 million ...</p>\n\n<a href=\"https://finance.yahoo.com/news/zions-bancorp-na-zion-q4-070409054.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NA","symbol_name":"纳比特","start_time":0,"source_url":"https://finance.yahoo.com/news/zions-bancorp-na-zion-q4-070409054.html","article_id":"2505795875","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2505795875","pubTimestamp":1737529449,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Fourth Quarter Adjusted Pre-Provision Net Revenue: Increased 19% relative to the prior year quarter.Net Earnings for the Year: $737 million or $4.95 per share.Fourth Quarter Earnings: $200 million or $1.34 per share.Net Interest Margin: Expanded to 3.05% for the quarter from 3.03% in the prior quarter.Average Loan Growth: 1.1% on a linked-quarter basis and 3.2% for the full year.Net Loan Losses: $36 million or 24 basis points annualized.Diluted Earnings Per Share: $1.34 compared to $1.37 in the prior period and $0.78 in the prior year quarter.Provision for Credit Losses: $41 million, impacting earnings by $0.21 per share.Customer-Related Noninterest Income: $173 million for the quarter, a 7.5% increase on a linked quarter basis.Average Deposit Balances: Increased modestly for the fourth quarter.Cost of Total Deposits: Declined by 21 basis points to 1.93%.Zions Bancorp NA  reported a 19% increase in fourth quarter adjusted pre-provision net revenue compared to the prior year.Zions Banco","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"NA":"纳比特","ZIONP":"Zions Bancorporation NA","ZION":"齐昂银行"},"translate_title":"Zions Bancorp NA(ZION)2024年第四季度收益看涨期权亮点：信贷担忧下收入强劲增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NA":1,"ZION":1,"ZIONP":0.9},"content_text":"Fourth Quarter Adjusted Pre-Provision Net Revenue: Increased 19% relative to the prior year quarter.\nNet Earnings for the Year: $737 million or $4.95 per share.\nFourth Quarter Earnings: $200 million or $1.34 per share.\nNet Interest Margin: Expanded to 3.05% for the quarter from 3.03% in the prior quarter.\nEfficiency Ratio: Improved by 62%.\nAverage Loan Growth: 1.1% on a linked-quarter basis and 3.2% for the full year.\nNet Loan Losses: $36 million or 24 basis points annualized.\nDiluted Earnings Per Share: $1.34 compared to $1.37 in the prior period and $0.78 in the prior year quarter.\nProvision for Credit Losses: $41 million, impacting earnings by $0.21 per share.\nCustomer-Related Noninterest Income: $173 million for the quarter, a 7.5% increase on a linked quarter basis.\nAdjusted Noninterest Expense: Increased to $509 million.\nAverage Deposit Balances: Increased modestly for the fourth quarter.\nCost of Total Deposits: Declined by 21 basis points to 1.93%.\nAllowance for Credit Losses: Stable at 1.25%.\nCommon Equity Tier 1 Ratio: Increased to 10.9%.\n\n\nRelease Date: January 21, 2025\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nZions Bancorp NA (NASDAQ:ZION) reported a 19% increase in fourth quarter adjusted pre-provision net revenue compared to the prior year.\nThe net interest margin expanded for the fourth consecutive quarter, reaching 3.05%, up from 2.91% a year ago.\nCustomer deposits increased on both an ending and average basis in the fourth quarter and the full year, with stability in noninterest-bearing deposits.\nThe capital markets business experienced strong results, contributing to a 15% increase in customer-related noninterest income compared to the previous year.\nZions Bancorp NA (NASDAQ:ZION) redeemed $374 million of preferred stock with high coupons, replacing it with lower-cost subordinated notes, positively impacting earnings per share.\n\n Negative Points \n\nNet loan losses were higher in the quarter at $36 million, with two-thirds attributable to a single commercial and industrial credit.\nClassified loan balances increased by $777 million, primarily in commercial real estate, indicating potential credit quality concerns.\nThe provision for credit losses of $41 million negatively impacted earnings per share by $0.21.\nThe allowance for credit losses remained stable, but the increase in classified loans suggests potential future challenges.\nZions Bancorp NA (NASDAQ:ZION) anticipates slightly to moderately increasing noninterest expenses in 2025, including costs related to branch acquisitions and marketing.\n\n Q & A Highlights \nQ: Can you discuss the current deposit betas and how you expect them to progress, considering the fewer rate cuts in the forward curve? A: Chris Kyriakakis, Chief Risk Officer: We've been pleased with the response of interest-bearing deposits, which have behaved as anticipated. There is a lag factor with time deposits and broker deposits, and we remain ready to adjust rates as needed. We expect another potential 25 basis point rate decrease in 2025, and we anticipate performance to remain in line with past trends.\nQ: How are you managing your CET1 ratio, especially with the volatility in the long end of the curve? A: Chris Kyriakakis, Chief Risk Officer: We are aware of the volatility and manage our capital inclusive of AOCI. We monitor our capital levels and expect to grow capital over time to align with peer levels. Volatility in the long end of the curve would primarily impact buybacks rather than loan book growth.\nQ: Can you elaborate on the rate sensitivity and assumptions for net interest income growth? A: Ryan Richards, Chief Financial Officer: The deposit beta assumption aligns with current trends. We've grown more comfortable with noninterest-bearing deposits, allowing us to be more constructive about NII sensitivity. We expect continued benefits from fixed asset repricing and stable deposit bases, supporting a positive outlook.\nQ: What is your outlook on net interest margin (NIM) returning to mid-3% levels? A: Ryan Richards, Chief Financial Officer: We don't manage to a specific NIM outcome, but with a more naturally sloped yield curve, reaching mid-3% levels seems feasible. The timing is uncertain, but we see potential for improvement.\nQ: Can you provide more details on the increase in classified loans, particularly in multifamily, industrial, and office sectors? A: Derek Steward, Chief Credit Officer: The increase was granular and distributed across our footprint. It was driven by construction delays, slower lease-up performance, increased costs, and interest rate hikes. We expect these loans to stabilize over time, given our low loan-to-value ratios.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.30.2","shortVersion":"4.30.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2505795875"}