Zions Bancorporation (ZION) investor relations material

Executive summary

• Net earnings for Q2 2026 were $452 million ($3.05 per share), up 86% year-over-year and 95% sequentially, driven by improved pre-provision net revenue and $252 million in non-recurring gains from Visa share sale and SBIC investment.

• Adjusted EPS rose 10% to $1.74, supported by fee income growth, modest loan growth, margin improvement, expense discipline, and solid credit performance.

• Strategic investments continued in capital markets, technology, and consumer/small business banking, including new product launches and the pending acquisition of Basis Investment Group's multifamily lending business.

• Organic growth in customer-related noninterest income rose 11% year-over-year, led by capital markets and diversified fee streams.

• Tangible book value per share increased 22% year-over-year to $44.74.

Financial highlights

• Net interest income was $677 million, up 4% year-over-year and 2% sequentially; net interest margin held steady at 3.27%, up 10 bps year-over-year.

• Adjusted pre-provision net revenue rose 10% sequentially and 5% year-over-year to $332 million.

• Customer-related non-interest income increased to $182 million, with broad-based growth and capital markets fees up $8 million.

• Adjusted noninterest expense was $546 million, down sequentially but up 5% year-over-year due to higher professional, legal, and technology costs.

• Efficiency ratio improved to 62.2% from 65.0% in the prior quarter.

Outlook and guidance

• Net interest income, loan balances, adjusted customer fee-related income, and non-interest expense are all expected to moderately increase by Q2 2027.

• Positive operating leverage of 100-150 basis points is expected for full-year 2026.

• Loan growth is projected to remain moderate, with continued focus on disciplined lending and deposit growth through targeted campaigns.

• Technology and marketing investments will put mild pressure on expenses, but positive operating leverage is anticipated.

• Management highlighted strong capital and credit quality, with expectations for continued organic growth in fee income and stable credit metrics.