redeemed $374 million of preferred stock with coupons exceeding 9% and called $88 million of subordinated debt, the latter of which have begun to phase out of Tier 2 capital. These issuances were replaced with $500 million of lower cost subordinated notes that will positively impact earnings per share starting in the first quarter of 2025 by $0.02 to $0.03 per share.
— Harris Simmons
03Detailed Report
ZION
Company ZION
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
Zions Bancorporation reported a resilient Q4 2024 despite a challenging rate environment and ongoing CRE headwinds. The company posted net income of $216 million and diluted earnings per share (EPS) of $1.34 for the quarter, with a full-year net income of $737 million ($4.95 per share). The fourth quarter saw continued improvement in profitability metrics, notably a net interest margin (NIM) of 3.05%—the fourth consecutive quarterly expansion from the prior trough of 2.91% a year earlier. Management highlighted a 19% year-over-year increase in adjusted pre-provision net revenue (PPNR) excluding the FDIC assessments related to 2023 bank failures, underscoring improving revenue mix and disciplined cost management. The firm’s balance sheet remained solid with a CET1 ratio of 10.9% and stable non-interest bearing deposits, supported by a 1.1% linked-quarter loan growth and a 3.2% annual loan growth for 2024.
Key Performance Indicators
Revenue
Increasing
1.26B
QoQ: -1.65% | YoY: 5.64%
Gross Profit
Increasing
779.00M
62.07% margin
QoQ: 0.00% | YoY: 6.57%
Operating Income
Increasing
270.00M
QoQ: -2.53% | YoY: 80.00%
Net Income
Increasing
216.00M
QoQ: 0.93% | YoY: 71.43%
EPS
Increasing
1.34
QoQ: -2.19% | YoY: 71.79%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $1.255 billion in Q4 2024, up 5.6% YoY, down 1.65% QoQ.
- Gross profit: $779 million (gross margin ~62.07%).
- Operating income: $270 million (operating margin ~21.51%).
- Net income: $216 million; net income margin ~17.21%; EPS $1.34.
- NII/NIM: NIM 3.05% in Q4, up from 3.03% in Q3 and 2.91% YoY; NII growth supported by favorable funding costs and liability repricing.
- Efficiency: 62% efficiency ratio in Q4, with ongoing cost discipline; 2025 outlook contemplates modest expense growth offset by revenue leverage.
- Deposit and funding: Total deposits increased ~$500 million QoQ; total deposit costs declined to 1.93% on average; drill-down reveals roughly 60% spot deposit betas in the commentary.
- Loans: Average loans grew ~1.0% QoQ; full-year 2024 loan growth 3.2%; growth expected to be led by commercial loans with modest declines in mortgages and CRE exposures.
- Credit quality: Annualized net charge-offs 24 bps in Q4; 12-month NCOs at 10 bps; CRE classified balances rose by $777 million driven by CRE subsegments (multifamily, industrial, office). ACL at 1.25% with coverage of non-accruals at ~234%.
- Capital: CET1 10.9%; AOCI losses approximately $2.4 billion over the trailing year; redemption of $374 million of high-coupon preferred stock and $88 million of subordinated debt, replaced with $500 million of lower-cost subordinated notes, supporting EPS accretion in 2025 (~$0.02–$0.03 per share).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.26B
5.64%
-1.65%
Gross Profit
779.00M
6.57%
0.00%
Operating Income
270.00M
80.00%
-2.53%
Net Income
216.00M
71.43%
0.93%
EPS
1.34
71.79%
-2.19%
Key Financial Ratios
Gross Profit Margin
Excellent
62.10%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
21.50%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
17.20%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
0.24%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.53%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.18
Current ratio below safe levels, potential liquidity risk
Zions Bancorporation National Association (ZION) QQ1 2026 Results: Revenue Decline Overlayed by Profitability Strength – Solid Net Income and EPS Gr...
Zions Bancorporation National Association (ZION) Q3 2024 Results Analysis: NIM Expansion, CRE Credit Quality Trends, and Strategic Growth in a Moderat...