Zions Bancorporation (ZION) Q2 2026 earnings summary

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, higher noninterest and net interest income, 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 the launch of new products and the acquisition of Basis Multifamily Finance I, LLC.

• 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 was 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 noninterest income increased 11% year-over-year, with capital markets fees up $8 million.

• Noninterest expense rose 5% year-over-year to $551 million, mainly due to higher professional, legal, and technology costs.

• Average loans grew 4.7% annualized (2.3% year-over-year), led by commercial and industrial lending; average deposits increased 4% year-over-year.

Outlook and guidance

• Net interest income, loan balances, adjusted customer fee-related income, and noninterest 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.

• Management expects continued focus on deposit growth, prudent credit risk management, and technology investments.