Zions Q4 EPS Beats by $0.18 as NII Jumps 8.9% and NIM Expands
Zions reported Q4 adjusted EPS of $1.75, beating estimates by $0.18 and rising 30.5% year over year on higher net interest income and non-interest income. Net revenues reached $902 million (+8.4% YoY) with NII up 8.9% to $683 million, while net income of $262 million rose 31%.
1. Strong Q4 Earnings Performance
Zions delivered adjusted EPS of $1.75 in Q4, surpassing the $1.57 estimate and marking a 30.5% increase from a year earlier. GAAP net income attributable to common shareholders totaled $262 million, up 31% year over year after excluding SBIC gains and FDIC assessment reversals.
2. Revenue, Interest Income and Margins
Net revenues (tax equivalent) rose 8.4% to $902 million, beating the $864.4 million consensus. Net interest income increased 8.9% to $683 million, driven by a favorable mix in earning assets and lower funding costs, while net interest margin expanded 26 basis points to 3.31%.
3. Balance Sheet and Credit Quality
As of December 31, loans and leases held for investment stood at $60.2 billion (+1% sequentially) and deposits were $75.6 billion (+1%). Non‐performing assets ratio edged up 2 basis points to 0.52%, while net charge-offs fell to $7 million from $36 million year over year.
4. 2026 Outlook and Guidance
Management forecasts moderate year-over-year loan growth led by commercial and CRE lending, assumes two 25 bp rate cuts, expects net interest income to rise moderately, and projects non-interest income growth driven by client activity. Technology and marketing investments will pressure expenses, but positive operating leverage is anticipated.