Zions Bancorp Q2 Earnings Surge on $252M in Gains; CET1 Hits 11.8%
ZION sits 56% above its 52-week low of $46.19.
Summary
Zions Bancorporation reported Q2 2026 net earnings of $452 million ($3.05 per share), boosted by $252 million in pre-tax gains from Visa share sales and SBIC investments. Core profitability improved, capital ratios strengthened, and credit quality remained excellent.
Key Events · Earnings and Guidance · ZION
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Earnings Surge on One-Time Gains
Q2 net earnings of $452 million, or $3.05 per diluted share, included a $215 million gain on Visa Class B-1 share sales and $37 million in net unrealized SBIC gains. Excluding these, adjusted EPS was $1.74, up 10% YoY.
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Net Interest Margin Stable, Income Up
Net interest margin held at 3.27%, unchanged from Q1 but up 10 bps YoY. Net interest income rose 4% YoY to $677 million, driven by lower funding costs and improved earning asset mix.
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Capital Ratios Strengthened
Estimated CET1 capital ratio reached 11.8%, up from 11.0% a year ago. Tangible book value per share increased 22% YoY to $44.74, reflecting retained earnings and reduced AOCI losses.
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Credit Quality Remains Excellent
Net charge-offs were 0.06% of average loans (annualized), nonperforming assets were 0.48% of loans and OREO, and classified loans declined to 3.72% of total loans. The allowance for credit losses stood at 1.13% of loans.
Analysis · ZION · Finance
Zions reported Q2 net earnings of $452 million, or $3.05 per share, driven by a $215 million gain on the sale of Visa Class B-1 shares and $37 million in unrealized SBIC gains. Excluding these items, adjusted EPS was $1.74, up 10% year-over-year. The net interest margin held steady at 3.27%, and credit quality remained strong with net charge-offs of just 0.06%. The CET1 capital ratio improved to 11.8%, and tangible book value per share rose 22% to $44.74. Management provided a moderately positive outlook for the coming year, expecting loan growth, net interest income expansion, and broad-based fee income increases. The results highlight a bank with improving profitability, robust capital, and disciplined credit risk management.
At the time of this filing, ZION was trading at $71.89 on NASDAQ in the Finance sector, with a market capitalization of approximately $10.6B. The 52-week trading range was $46.19 to $73.34. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.