Why Is Zions (ZION) Up 0.8% Since Last Earnings Report?

Core Viewpoint - Zions' recent earnings report shows strong performance with adjusted earnings per share beating estimates and significant year-over-year growth, driven by higher net interest income (NII) and non-interest income, despite rising non-interest expenses [2][4]. Financial Performance - Q4 2025 adjusted earnings per share were $1.75, exceeding the Zacks Consensus Estimate of $1.57, and up 30.5% from the previous year [2]. - Full-year 2025 earnings were $6.01 per share, surpassing the Zacks Consensus Estimate of $5.93, and reflecting a 21.4% increase year-over-year [4]. - Net income attributable to common shareholders for Q4 was $262 million, a 31% increase year-over-year [3]. Revenue and Expenses - Q4 net revenues (tax equivalent) reached $902 million, an 8.4% increase year-over-year, beating the Zacks Consensus Estimate of $864.4 million [5]. - For the full year 2025, net revenues were $3.43 billion, up 8.1% year-over-year, also exceeding the Zacks Consensus Estimate of $3.38 billion [5]. - NII for Q4 was $683 million, an 8.9% increase from the prior year, with a net interest margin (NIM) expansion of 26 basis points to 3.31% [6]. Non-Interest Income and Expenses - Non-interest income for Q4 was $208 million, up 7.8% year-over-year, driven by higher retail and business banking fees [7]. - Adjusted non-interest expenses rose 7.6% year-over-year to $548 million [7]. Credit Quality - The ratio of non-performing assets to loans and leases was 0.52%, an increase of 2 basis points from the prior year [9]. - Net loan and lease charge-offs were $7 million, significantly down from $36 million in the year-ago quarter [10]. Profitability and Capital Ratios - As of December 31, 2025, the common equity tier 1 capital ratio was 11.5%, up from 10.9% a year ago [11]. - Return on average assets was 1.16%, an increase from 0.96% in the previous year [11]. 2026 Outlook - Loan balances are expected to increase moderately, driven by commercial loans, while consumer loans are anticipated to remain stable [12]. - NII is projected to see moderate year-over-year growth, influenced by earning asset remix and loan growth [13]. - Adjusted non-interest expenses are expected to rise moderately due to technology costs and increased marketing expenses [14]. Market Performance - Zions has experienced an upward trend in estimates revisions since the earnings release, indicating positive investor sentiment [15]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [17].