Zions Stock Rises 1.7% as Q4 Earnings Beat on NII & Fee Income Growth

Core Insights - Zions Bancorporation (ZION) reported better-than-expected fourth-quarter 2025 results, with adjusted earnings per share (EPS) of $1.75, surpassing the Zacks Consensus Estimate of $1.57 and reflecting a 30.5% increase from the previous year [1][9]. Financial Performance - The growth in earnings was primarily driven by higher net interest income (NII) and non-interest income, supported by increases in loan and deposit balances, although rising non-interest expenses posed a challenge [2][12]. - For the full year 2025, Zions reported earnings of $6.01 per share, exceeding the Zacks Consensus Estimate of $5.93 and marking a 21.4% increase from the prior year [4]. - Net revenues for the fourth quarter were $902 million, an 8.4% year-over-year increase, and also beat the Zacks Consensus Estimate of $864.4 million [5]. - For the full year, net revenues reached $3.43 billion, up 8.1% year over year, surpassing the Zacks Consensus Estimate of $3.38 billion [5]. Income and Expenses - NII for the fourth quarter was $683 million, reflecting an 8.9% increase from the prior year, attributed to lower funding costs and a favorable mix of interest-earning assets [6]. - Non-interest income rose to $208 million, a 7.8% increase year over year, driven by higher retail and business banking fees [7]. - Adjusted non-interest expenses increased by 7.6% year over year to $548 million [7]. Asset Quality and Capital Ratios - The ratio of non-performing assets to loans and leases was 0.52%, a slight increase of 2 basis points from the previous year [9]. - Net loan and lease charge-offs decreased significantly to $7 million from $36 million in the year-ago quarter [9]. - As of December 31, 2025, the common equity tier 1 capital ratio improved to 11.5% from 10.9% a year ago, and the Tier 1 risk-based capital ratio rose to 11.6% [11]. Future Outlook - The modest loan growth and improving fee income, along with relatively higher interest rates, are positive indicators for Zions' future performance [12].