Zions Bancorporation (ZION): Key takeaways from earnings

Research evidence excerpt

Zions Bancorporation (ZION): Key takeaways from earnings

based growth expected in other areas driven by - Reintroduced oil and gas hedging business, expect to be $5-

increased customer activity 10mn revenue opportunity

- Moderately increasing driven by tech, marketing, and

continued investments in revenue generating businesses

Adj. noninterest expense - Expect positive operativing leverage of 100-150bps for FY - Expect to drive efficiencies by 2-3% over the next few years

- Expect growth across NIB dimensions and IB deposits

- EOP loans moderately increasing led by growth in

commercial loans, specifically C&I and owner occupied,

- Expect FHLB and brokered to be shrinking over time

followed by CRE

Balance Sheet - Expect commerical loans to lead the way in loan growth

- Expect consumer loans to be relatively stable

- Expect energy portfolio to grow ~10% for next 3-4 years

- Expect CRE term book an opportunity yto grow

-

- Current pace of capital return is sustainable and could - Targeting 10% CET1 ex-AOCI, in-line with peer median

Capital probably see some increase - CET1 less AOCI projected to exceed 11% by June 2028

- Basel proposal estimated to benefit CET1 by 50–90 bps (currently ~8.8%).

* For ZION - Slightly means LSD; Moderately means MSD

Source: Company data

Valuation:

ZION (Buy): We are Buy-rated on ZION with a 12-month $78 price target ($80 prior)

based on an implied multiple of 11.0x 2027E P/E (from 11.5x) reflecting a lower market

multiple. We revise our 2026 core EPS estimates to $6.80 from $6.75 to reflect better

revenue trends and revise our 2027/2028 EPS estimate to $7.10/$7.60 from

$7.30/$7.80 reflecting updated company guidance, and our updated expense, NII, and

fee income outlook. Key risks include expense pressure from investments resulting in