Zions Bancorporation (ZION.O): 2Q26 Review - Lackluster Deposit Trends Take Centerstage

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Zions Bancorporation (ZION.O): 2Q26 Review - Lackluster Deposit Trends Take Centerstage

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21 Jul 2026 01:42:27 ET │ 16 pages

Zions Bancorporation (ZION.O)

2Q26 Review - Lackluster Deposit Trends Take Centerstage

CITI'S TAKE

Neutral Results this quarter likely embolden both the bullish and bearish

narratives... While the positive loan growth trends, healthy credit quality, Price (20 Jul 26 16:00) US$71.89

and better capital base likely support the “glass half full” investor base, we Target price US$73.00↑

believe concerns for negative deposit flows (and pricing headwinds) likely from US$69.00

take centerstage for the next quarter or two; which in turn likely limits Expected share price return 1.5%

valuation expansion if the current rate environment is maintained. While Expected dividend yield 2.7%

mgmt did highlight off-balance sheet deposit opportunities to fund the

Expected total return 4.2% improved 2H loan growth optionality, the relative NIM will likely be softer

Market Cap US$10,574M (vs past assumptions), compressive to overall profitability metrics. From

the Visa gain, the capital base is better than we expected, which is

supportive our TP (+$4 to $73), but we did fine-tune our NIM down and

see a modest softer ramp on core EPS trends. Benjamin GerlingerAC

+1-212-816-3538

Estimate changes — We refresh our model for the quarter’s results and updated benjamin.gerlinger@citi.com

guidance. We tweaked our estimate for 2026 (from $6.22 to $7.98; almost entirely Kaili Wang, CFA

from the Visa gain) and 2027 (from $6.68 to $6.61). While a large majority of the

+1-716-730-74082027 adjustment was driven by a softer NII outlook, we did also fine-tune our loan

kaili.wang@citi.comgrowth and expense growth outlooks to be a little stronger in 2027 and beyond. We