Zions Bancorporation (ZION) Q4 2024 earnings summary

Executive summary

• Net earnings for 4Q24 were $200 million ($1.34/share), up from $116 million in 4Q23 but down $4 million sequentially due to higher credit loss provision and preferred stock redemption costs.

• Adjusted pre-provision net revenue rose 19% year-over-year to $312 million, driven by higher net interest income and customer-related fee growth.

• Net interest margin expanded for the fourth consecutive quarter, reaching 3.05% in 4Q24, up from 2.91% a year ago.

• Customer deposits increased for the quarter and full year, with non-interest-bearing deposits stable or slightly declining.

• Credit quality remains strong overall, though classified and criticized CRE loans increased, mainly in multifamily, industrial, and office segments.

Financial highlights

• Net interest income was $627 million in 4Q24, up $44 million (8%) year-over-year; net interest margin was 3.05%.

• Adjusted pre-provision net revenue for Q4 was $312 million, up 4% sequentially and 19% year-over-year.

• Customer-related noninterest income reached $173 million, up 7.5% sequentially and 15% year-over-year.

• Efficiency ratio improved to 62.0% in 4Q24, down from 65.1% a year ago.

• Net loan losses were $36 million in Q4, with two-thirds from a single C&I credit; annualized net charge-offs were 0.24%.

Outlook and guidance

• 2025 guidance anticipates continued improvement in profitability, positive operating leverage, and further net interest margin expansion.

• Net interest income for Q4 2025 projected to be 6.8% higher than Q4 2024, with moderate increases in customer-related fee income.

• Adjusted non-interest expense for 2025 expected to rise slightly to moderately, with higher marketing, technology, and branch acquisition costs.

• Period-end loan balances and commercial loan growth expected to increase slightly, offset by managed declines in CRE and mortgages.

• AOCI loss projected to improve by $700 million (30%) from 4Q24 to 4Q25, adding 75 bps to tangible common equity ratio.