Zions Bancorporation, National Association Q2 2026 Earnings Recap

Shares fell 4.5% as investors reacted negatively to cautious outlook commentary and modest net interest income growth, which fell short of driving more meaningful momentum despite disciplined expense management and steady capital markets performance.

Key Takeaways

• Reported EPS of $3.05 includes a $215 million pretax gain from Visa shares liquidation and a $37 million net unrealized gain on an SBIC investment; excluding these, EPS was $1.74, up 10% year-over-year.
• Net interest income rose 2% sequentially to $677 million, with a stable net interest margin of 3.27%, showing limited margin expansion despite higher rates.
• Customer-related noninterest income increased to $182 million, supported by capital markets fees which gained $8 million, driven by real estate and investment banking advisory services.
• Adjusted noninterest expenses fell quarter-over-quarter to $546 million, reflecting seasonal compensation reductions and lower FDIC assessments.
• Management’s outlook suggests only moderate growth in net interest income and fee-related income over the next year, signaling tempered expectations amid a challenging environment.