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].

Financial Data and Key Metrics Changes - The company reported adjusted net income of $30 million or $0.06 per diluted share in Q4 2025, compared to a net loss of $0.07 per diluted share in the previous quarter [5][6] - Pre-Provision Net Revenue increased by $45 million, with positive Operating Leverage of approximately 900 basis points [7] - The CET1 capital ratio increased by almost 400 basis points to 12.83%, ranking among the best capitalized regional banks [9][15] Business Line Data and Key Metrics Changes - Net C&I loan growth was up 2% on a linked quarter basis, or about 9% on an analyzed basis [7] - Total commitments in C&I lending increased by 28% to $3 billion, while originations increased by 22% to $2.1 billion [10] - The company reduced overall CRE exposure by $2.3 billion, with a CRE concentration ratio now below 400% [7][22] Market Data and Key Metrics Changes - The company experienced significant par payoffs of approximately $1.8 billion in Q4, with 50% rated substandard [20][21] - Total CRE balances declined by $12.1 billion or 25% since year-end 2023, aiding the strategy to diversify the loan portfolio [22] - The multifamily portfolio declined by 13% or $4.3 billion year-over-year, with strong reserve coverage of 1.83% [22] Company Strategy and Development Direction - The company aims to transform into one of the best-performing regional banks with a diversified balance sheet and revenue streams [6] - Focus on further improving the credit profile by managing CRE exposure and diversifying the loan portfolio through growth in non-CRE loans [8][9] - Plans to generate deposit growth across various business lines while maintaining discipline on pricing [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued profitability in 2026, driven by growth in net interest income and margin expansion [8] - The company is optimistic about the trajectory of adjusted EPS, forecasting $0.65-$0.70 for 2026 and $1.90-$2.00 for 2027 [16] - Management highlighted the importance of proactive management of credit quality and the potential for further reductions in non-performing loans [30] Other Important Information - The company reduced brokered deposits by almost $8 billion during the year, enhancing liquidity and reducing funding costs [9][19] - The company has a strong capital position with over $2 billion in excess capital pre-tax, providing a buffer against potential credit quality issues [25] Q&A Session Summary Question: Can you talk about the drivers behind the lowered NII guidance? - Management indicated that higher payoff activity, particularly related to multifamily and CRE loans, was the primary driver for the reduction [34][35] Question: How comfortable are you with funding loan growth through core deposit growth? - Management expressed confidence in core deposit growth, leveraging existing bank branches and new C&I relationships to drive deposits [46][50] Question: What are the prospects for capital return and stock buybacks? - Management noted that discussions regarding capital deployment, including potential stock buybacks, are ongoing and will depend on balance sheet growth and credit quality improvements [52][53] Question: Can you provide updates on the rent-regulated portfolio and potential rent freezes? - Management acknowledged ongoing discussions regarding rent regulations and emphasized that they have not seen a decline in liquidity in the multifamily portfolio [71][72] Question: What is the current status of the borrower that went through bankruptcy? - Management confirmed that the auction process was completed and expected to close soon, with no additional charge-offs anticipated related to this case [80][81]

Financial Data and Key Metrics Changes - For the full year 2025, the company produced $3.49 per share, with net income just under $135 million and a net interest margin (NIM) of 3.9% [4] - In Q4, net income was $34 million, equating to $0.89 per share, slightly down from Q3, with a return on assets (ROA) of 1.37% [5] - The NIM rose to 3.99%, up six basis points from the previous quarter, marking the best performance since Q2 2023 [6] - Non-interest income increased by $500,000 in Q4, with expectations for fees in 2026 to remain around $13 million to $14 million per quarter [13] Business Line Data and Key Metrics Changes - Loan growth for Q4 was just under $100 million at 4.5%, primarily driven by commercial banking, with C&I and CRE portfolios growing by $53 million and $34 million, respectively [8] - Customer deposit growth was just under $60 million at 2.9%, with a strong deposit mix where demand deposits accounted for 27% of total balances [6] - The allowance for credit losses (ACL) decreased from 1.23% to 1.15% quarter over quarter, reflecting a reduction in criticized and classified loans by $30 million, or 13% [10] Market Data and Key Metrics Changes - The company anticipates mid-single digit loan growth for 2026, primarily from C&I and CRE, supported by increased activity from investments in team leadership and banker talent [9] - The company experienced a strong Q4 in customer deposit growth, particularly in the consumer space, despite some anomalous activity with large commercial depositors [36] Company Strategy and Development Direction - The company announced a new $100 million share repurchase authorization, indicating robust capital levels and the ability to consider M&A opportunities [7] - The focus remains on maintaining asset quality while pursuing growth in commercial banking and consumer home equity [9] - The company is committed to adding talent in C&I and CRE to accelerate growth, with a strong emphasis on deposit gathering and developing new relationships [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining asset quality in 2026, with expectations that results will not perform worse than in 2025 [52] - The overall state of the economy is improving, but management is cautious about predicting growth rates significantly higher than GDP [20] - The company is optimistic about its ability to respond to competitive pressures in the deposit market, aiming to grow deposits at a rate that matches loan growth [89] Other Important Information - The TCE ratio decreased by 29 basis points due to share repurchases, but regulatory ratios remain strong with significant excess capital [14] - The company is utilizing AI tools for BSA, AML compliance, and fraud protection, which have resulted in significant savings [67][69] Q&A Session Summary Question: What is holding back loan growth from ramping to mid to high single-digit pace? - Management indicated that it is not a demand issue but ensuring asset quality of new customers meets criteria to maintain lower levels of criticized and classified loans [19] Question: How focused is hiring on the C&I side? - Hiring is a top priority across C&I and CRE, with efforts to enhance deposit gathering and customer relationships [22] Question: What is the outlook on deposit growth and funding loan growth? - The company expects to fund loan growth internally through deposit growth, with a strong focus on core deposit growth [36] Question: Can you provide an update on M&A discussions? - Management confirmed active dialogue across geographies, with a focus on executing current strategies while exploring M&A opportunities [27] Question: What are the competitive factors on the deposit side? - Early Q4 saw pressure from competitors to retain deposits, but the market became more rational in the second half of the quarter [88]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a net income of just under $135 million, equating to $3.49 per share, with a net interest margin (NIM) of 3.9% [4] - In Q4, net income was $34 million, or $0.89 per share, slightly down from Q3, with a return on assets (ROA) of 1.37% [5] - The NIM rose to 3.99%, up six basis points from the previous quarter, marking the best performance since Q2 2023 [6] - Non-interest income increased by $500,000 in Q4, with expectations for fees in 2026 to remain around $13 million to $14 million per quarter [14] Business Line Data and Key Metrics Changes - Loan growth for Q4 was just under $100 million at 4.5%, primarily driven by commercial banking, with C&I and CRE portfolios growing by $53 million and $34 million, respectively [6][8] - Customer deposit growth was just under $60 million at 2.9%, with a strong deposit mix where demand deposits (DDAs) represented 27% of total balances [6] - The allowance for credit losses (ACL) decreased from 1.23% to 1.15% quarter over quarter, reflecting a reduction in criticized and classified loans by $30 million, or 13% in Q4 [11] Market Data and Key Metrics Changes - The company anticipates mid-single digit loan growth for 2026, primarily from C&I and CRE, supported by investments in team leadership and banker talent [10] - The competitive landscape for deposits has become more rational, with the company focusing on core deposit growth to fund loan growth [66] Company Strategy and Development Direction - The company announced a new $100 million share repurchase authorization, indicating strong capital levels and the ability to consider M&A opportunities [7] - The focus remains on maintaining asset quality while pursuing growth in commercial banking and consumer home equity [10][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining asset quality similar to 2025 levels, with a focus on reducing non-performing loans (NPLs) [12][43] - The overall economic environment is improving, but management is cautious about predicting growth rates significantly higher than GDP growth [19] Other Important Information - The company has been actively hiring to support growth in C&I and CRE, with a focus on adding talent across various segments [20][32] - AI tools are being utilized for compliance and fraud detection, with ongoing efforts to enhance operational efficiency [54][56] Q&A Session Summary Question: Loan growth expectations and constraints - Management indicated that loan growth is not constrained by demand but by ensuring asset quality of new customers [18] Question: Margin outlook and competitive pressures - Management noted that competitive pressures on deposit rates have eased, allowing for better margin stability [21][66] Question: M&A activity and geographic focus - Management confirmed ongoing active dialogue regarding M&A opportunities without a significant shift in geographic preference [25] Question: Asset quality and charge-offs - Management clarified that recent charge-offs were related to previously identified credits, emphasizing the reduction in criticized and classified loans [40][43] Question: Deposit growth and funding loan growth - Management expects to fund loan growth internally through deposit growth, focusing on core deposit strategies [30][32]

Core Viewpoint - The article discusses the recent reforms in the housing provident fund system in China, highlighting the reduction in loan interest rates and the optimization of policies to stimulate housing demand and improve financial conditions for homebuyers [3][5]. Policy Adjustments - The central government has initiated reforms to the housing provident fund system, with a focus on lowering interest rates, increasing loan limits, and expanding the usage scenarios for the funds [3][5]. - As of January 1, 2026, the interest rate for the first home provident fund loan has been reduced to 2.6%, while the second home rate is now 3.075% [5]. - Various cities have implemented specific measures, such as Xiamen removing withdrawal frequency limits and Sichuan supporting flexible employment individuals in using the provident fund [5][6]. Market Impact - The reduction in the first home loan interest rate from 2.85% to 2.6% results in a decrease of approximately 47,600 yuan in total interest payments over a 30-year loan for 1 million yuan, with monthly payments dropping by 132 yuan [8]. - The commercial loan interest rate is a critical variable influencing the future of provident fund loan rates, with the average rate for new commercial loans at 3.07%, only 47 basis points above the new provident fund rate [8][9]. Banking Sector Implications - The reduction in provident fund loan rates may pressure banks' interest income as customers may prefer these lower rates over commercial loans [11]. - However, customers using provident fund loans typically have stable payment records, which can improve banks' asset quality [11]. - Banks are adapting by restructuring their mortgage business, using low-cost provident fund loans to attract customers while also promoting commercial loans to balance risk and income [11][12]. Future Outlook - Analysts suggest that there is potential for further reductions in provident fund loan rates, depending on the macroeconomic environment and the recovery of the real estate market [9][10]. - The ongoing policy adjustments are expected to enhance housing demand and improve the financial capabilities of homebuyers, particularly for families with multiple children and talent groups [6][10].

（原标题：世界银行报告显示，越南金融服务业在亚洲排名第五） 《越南经济》1月13日报道，根据世界银行最近发布的《2025年营商环境成熟度报告》，越南金融 服务业得分为80.32分（满分100分），在亚洲30个经济体中排名第五，在全球排名第十五。 金融服务主题从三个不同的维度衡量商业贷款、担保交易、电子支付以及信用信息。第一维度评估 商业贷款、担保交易和电子支付相关监管的有效性，越南今年的得分提高了34分，达到75.4分（满分 100分），在全球101个国家中排名第49位。第二维度评估征信机构、登记机构和抵押品登记机构的运作 情况，衡量信贷基础设施信息的可及性，越南得分85.33分，较去年提高46.17分，在全球排名第16位。 第三维度衡量贷款获取、担保权益登记、信用信息共享的及时性以及电子支付的使用情况和效率。在这 一指标上，越南得分为80.23分，位列全球第18位。 ...

Core Viewpoint - The reform of the housing provident fund system is gaining attention, with a focus on interest rate adjustments and the recovery of the real estate market as key factors influencing future developments [1][4]. Group 1: Policy Changes - The central economic work conference in December 2025 emphasized the need to deepen the reform of the housing provident fund system, leading to a reduction in policy interest rates and the interest rates for personal housing provident fund loans [1]. - As of January 1, 2026, the interest rate for the first housing provident fund loan was lowered to 2.6%, approaching historical lows, with the second loan rate at 3.075% [2]. - Local governments are rapidly implementing policies to optimize the provident fund system, including adjustments to withdrawal and loan policies, increasing loan limits, and expanding usage scenarios [2][3]. Group 2: Market Impact - The reduction in housing provident fund loan rates is expected to lower the cost of home financing for residents, potentially stimulating demand [2]. - The average interest rate for newly issued commercial housing loans fell to 3.07% in September 2025, narrowing the gap with the first housing provident fund loan rate to just 47 basis points [4]. - Analysts suggest that the future trajectory of commercial loan rates will be a critical variable in determining whether further reductions in provident fund loan rates are feasible [4][5]. Group 3: Banking Sector Implications - The reduction in provident fund loan rates may pressure banks' interest income as customers may prefer these lower-cost loans over commercial loans [5][6]. - However, customers utilizing provident fund loans typically have stable payment records, which can improve banks' asset quality [6]. - Banks are adapting by restructuring their mortgage business, using low-interest provident fund loans to attract customers while also promoting commercial loans to balance risk and return [6][7].

Core Viewpoint - Starting from January 1, 2026, both commercial and public housing loan interest rates have decreased, leading to lower monthly repayments for borrowers, with some reporting reductions of nearly 100 yuan in their monthly payments [1][2][7]. Group 1: Commercial Loan Adjustments - The one-year Loan Prime Rate (LPR) is now 3.0%, and the five-year LPR is 3.5%, both down by 10 basis points from the previous adjustment in May 2025 [2][12]. - As of November 1, 2024, a new pricing mechanism for commercial personal housing loans allows borrowers to adjust their repricing cycle to 3 months, 6 months, or 1 year, enabling some customers to benefit from the latest rates sooner [3][13]. Group 2: Public Housing Loan Adjustments - The People's Bank of China announced a reduction in public housing loan rates by 0.25 percentage points effective May 8, 2025, with new rates set at 2.1% for loans of 5 years or less and 2.6% for loans over 5 years for first-time buyers [4][14]. - For second-time buyers, the rates are adjusted to 2.525% for loans of 5 years or less and 3.075% for loans over 5 years [4][14]. - Monthly payments for a first-time public housing loan of 500,000 yuan over 20 years will decrease from 2,735.59 yuan to 2,673.94 yuan, a reduction of 61.65 yuan [5][16]. For a second-time loan, the payment drops from 2,855.04 yuan to 2,791.80 yuan, saving 63.24 yuan monthly [5][16].

Group 1 - From January 1, 2026, both existing commercial loan rates and housing provident fund loan rates will be reduced simultaneously [1][2] - For a typical family loan of 1.2 million yuan over 30 years, the interest savings for the first home will be approximately 57,100.85 yuan, while for the second home, it will be around 59,070.01 yuan [1] - For families with multiple children borrowing 1.56 million yuan over 30 years, the interest savings will be about 74,229.62 yuan for the first home and 76,789.24 yuan for the second home [1] Group 2 - In commercial loans, the LPR was adjusted in May 2025, with the 1-year LPR at 3.0% and the 5-year LPR at 3.5%, both down by 10 basis points from the previous period [1] - For first-time homebuyers choosing a repricing date of January 1, if the loan rate is LPR-30BP, the new rate will be 3.2%; if LPR-45BP, the rate will drop to 3.05% [1] - Starting November 1, 2024, a new pricing mechanism for commercial personal housing loans will allow borrowers to request repricing every 3 months, 6 months, or 1 year [1] Group 3 - According to the People's Bank of China, from May 8, 2025, the personal housing provident fund loan rates will be reduced by 0.25 percentage points, with rates for first homes set at 2.1% for loans under 5 years and 2.6% for loans over 5 years [2] - For second homes, the rates will be 2.525% for loans under 5 years and 3.075% for loans over 5 years [2] - Existing provident fund loans issued before May 8, 2025, will adopt the new rates starting January 1, 2026 [2] Group 4 - The adjusted rates for the first and second homes for loans under 5 years will be 2.1% and 2.525%, respectively, while for loans over 5 years, they will be 2.6% and 3.075% [3] - For a first home loan of 500,000 yuan over 20 years, the monthly payment will decrease from 2,735.59 yuan to 2,673.94 yuan, saving 61.65 yuan per month [3] - For a second home loan of 500,000 yuan over 20 years, the monthly payment will drop from 2,855.04 yuan to 2,791.80 yuan, saving 63.24 yuan per month [3]

Report Summary 1. Hot News - Since January 1, 2026, the interest rates of existing "provident fund + commercial loans" have been lowered synchronously. For provident fund loans issued before May 8, 2025, the first - home mortgage rate for terms below 5 years dropped to 2.1%, and above 5 years to 2.6%; the second - home mortgage rate for terms below 5 years dropped to 2.525% and above 5 years to 3.075%. The 5 - year LPR for commercial loans dropped to 3.5%, and borrowers can choose a repricing cycle of 3, 6, or 12 months [2] - In December 2025, China's manufacturing PMI, non - manufacturing PMI, and composite PMI were 50.1%, 50.2%, and 50.7% respectively, up 0.9, 0.7, and 1.0 percentage points month - on - month. All three indices entered the expansion range, indicating an overall recovery of China's economic prosperity [2] - Since January 1, 2026, the EU's Carbon Border Adjustment Mechanism (CBAM) has officially entered the charging period. Initially, 6 product categories including steel, cement, aluminum, fertilizers, electricity, and hydrogen are included, and it is planned to expand to about 180 steel and aluminum - intensive downstream products by 2028 [2] - The CSRC approved the registration of coking coal options on the Dalian Commodity Exchange. The DCE announced that coking coal options will be listed for trading on January 16, with a maximum order quantity of 1,000 lots per order and a position limit of 8,000 lots [2] - US President Trump claimed that the US successfully attacked Venezuela, captured Venezuelan President Maduro and his wife, and took them out of Venezuela. The US oil embargo on Venezuela remains fully in effect, and large US oil companies will invest billions of dollars to repair Venezuela's dilapidated oil infrastructure. The UN Secretary - General is shocked, and the UN Security Council will hold an emergency meeting on the US military action in Venezuela at 10:00 local time on January 5 [3] 2. Sector Performance - Key sectors to watch: PVC, Shanghai nickel, platinum, crude oil, and plastics [4] - Night - session varieties' performance on Wednesday's day session: Non - metallic building materials rose 2.00%, precious metals 32.96%, oilseeds and oils 8.02%, coal, coke, steel, and minerals 10.08%, energy 2.39%, chemicals 10.50%, grains 1.20%, agricultural and sideline products 3.43%, soft commodities 3.97%, and non - ferrous metals 25.45% [4][5] 3. Sector Positions - The document shows the changes in the positions of commodity futures sectors in the past five days, involving sectors such as agricultural and sideline products, grains, chemicals, energy, coal, coke, steel, and minerals, non - ferrous metals, etc [6] 4. Performance of Major Asset Classes | Category | Name | Daily Return (%) | Monthly Return (%) | Year - to - Date Return (%) | | --- | --- | --- | --- | --- | | Equity | Shanghai Composite Index | 0.09 | 0.00 | 0.00 | | | SSE 50 | - 0.18 | 0.00 | 0.00 | | | CSI 300 | - 0.46 | 0.00 | 0.00 | | | CSI 500 | 0.09 | 0.00 | 0.00 | | | S&P 500 | - 0.74 | 0.19 | 0.19 | | | Hang Seng Index | - 0.87 | 2.76 | 2.76 | | | German DAX | 0.00 | 0.20 | 0.20 | | | Nikkei 225 | 0.00 | 0.00 | 0.00 | | | UK FTSE 100 | - 0.09 | 0.20 | 0.20 | | Fixed - Income | 10 - Year Treasury Bond Futures | - 0.07 | | | | | 5 - Year Treasury Bond Futures | - 0.04 | 0.00 | 0.00 | | | 2 - Year Treasury Bond Futures | - 0.03 | 0.00 | 0.00 | | Commodity | CRB Commodity Index | - 1.01 | - 0.32 | - 0.32 | | | WTI Crude Oil | - 0.78 | - 0.37 | - 0.37 | | | London Spot Gold | - 0.50 | 0.33 | 0.33 | | | LME Copper | - 0.49 | - 0.29 | - 0.29 | | | Wind Commodity Index | - 2.89 | 0.00 | 0.00 | | Other | US Dollar Index | 0.05 | 0.19 | 0.19 | | | CBOE Volatility Index | 4.33 | - 2.94 | - 2.94 | [7]