ZION's Revenues Rise in 2025: What Will Drive Growth Ahead?

Core Insights - Zions Bancorporation (ZION) achieved solid revenue growth in 2025, with net revenues of $3.43 billion, reflecting an 8.1% year-over-year increase driven by higher net interest income (NII) and fee income [1][11] Revenue Performance - ZION's net interest income for 2025 was reported at $2.63 billion, also up 8.1% year-over-year, with net interest margin (NIM) expanding by 26 basis points to 3.31% due to loan growth and asset repricing [5][11] - The company experienced a compound annual growth rate (CAGR) of 3.9% in total revenues over the five years ending in 2025, supported by a 2.6% CAGR in loans and leases [3] Fee Income Contribution - Fee income has been a significant contributor to ZION's revenue growth, with a CAGR of 5.7% from 2020 to 2025, driven by growth in fee-based services and increased customer-related activities [7] Future Outlook - Management anticipates moderate year-over-year growth in loan balances, primarily from commercial lending and commercial real estate loans, while consumer lending is expected to remain stable [8] - ZION expects NII to rise modestly in 2026, aided by a favorable earning asset mix and growth in loans and deposits, along with improved customer-related adjusted non-interest income [9]