Banks
Zions lifts quarterly EPS 20% as credit losses all but vanish
The Utah lender earned $1.78 a share in the third quarter, helped by a provision release and near-zero charge-offs.
HedgeWeekly News Desk ·
Zions Bancorporation reported third-quarter earnings of $1.78 per diluted share on Monday, up 20% from $1.48 a year earlier. Net earnings applicable to common shareholders rose to $262 million from $221 million.
Credit quality did much of the work. Net charge-offs dropped to $3 million, or 0.02% of loans on an annualised basis, from $56 million a year ago, and the bank booked an $8 million benefit for credit losses against a $49 million expense in the prior-year quarter. Nonperforming assets eased to 0.50% of loans and foreclosed property.
Core lending was steadier than spectacular. Net interest income rose 2% to $684 million, while the net interest margin slipped to 3.23% from 3.28%. Loans grew 4% from a year earlier to $62.5 billion but were flat on the quarter; customer deposits rose 5%.
Zions repurchased $75 million of stock in the period and lifted its estimated CET1 ratio to 11.8%. Earnings fell from the second quarter, which had been boosted by gains on the sale of Visa shares. The stock edged up about 0.3% in after-hours trading.