Zions Bancorporation (ZION) Barclays 22nd Annual Global Financial Services Conference 2024 summary

Economic and business environment

• Western U.S. markets remain healthy but show signs of slowing, especially in labor and loan demand.

• Multifamily leasing is slower than expected, but customer balance sheets are strong, limiting credit concerns.

• Business owners seek more policy certainty post-election to spur expansion; lower rates would help marginally.

• Uncertainty from the pandemic lingers, with normalization seen as key to renewed activity.

Loan and deposit trends

• Loan demand is tepid, with business owners cautious about expansion.

• Deposit costs rose after industry turmoil but are now stabilizing, with demand deposit migration decelerating.

• Deposit pricing pressure varies by market, with larger clients in Houston driving higher costs.

• Net interest margin is expected to improve over the next year as the deposit base stabilizes.

Balance sheet and margin management

• Shift toward originate-and-sell model for one-to-four family loans to reduce balance sheet usage.

• Small and mid-sized business lending is expected to grow as a share of the loan portfolio.

• Margin improvement is anticipated as the effects of last year's industry events recede.