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Zions (ZION) Stock Jumps 6.8% as NII Rises in July, August
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Shares of Zions (ZION - Free Report) jumped 6.8% following the latest insights provided by management on net interest income (NII).
At the Barclays Global Financial Services Conference, ZION management presented updates for July and August. It showed marked improvement in NII, with July's number being $197 million and August's $199 million. In the second quarter of 2023, NII was $591 million, with $204 million, $194 million and $193 million in April, May and June, respectively.
Further, Zions witnessed a 4.8% jump in average deposits in the last two months. The metric grew from $72.7 billion in June 2023 to $75.1 billion in July and $76.2 billion in August. The increase was mainly driven by a higher average interest-bearing deposit balance, up 11.3% in the last two months.
Likewise, Zions’ net interest margin (NIM) expanded in the first two months of the ongoing quarter. NIM was 2.92% in July and 2.96% in August. The metric was 2.91% in June 2023. The improvement in NIM is despite the rise in total cost of deposits, which rose to 1.8% in July and 1.94% in August from 1.6% in June.
These latest updates show that Zions will be able to maintain decent NII growth in the current quarter and beyond despite not much change in the operating backdrop over the last couple of months.
Additionally, the company reiterated its outlook provided during the second-quarter result announcement in July. Management projects NII in the second quarter of 2024 to be stable or slightly decline on a year-over-year basis.
Another regional bank, Truist Financial (TFC - Free Report) , also provided financial updates at the same conference. The company unveiled its strategic expense saving program, which will result in approximately $750 million of gross savings (excluding one-time severance charges) to be realized over 12 to 18 months.
Driven partially by these initiatives, TFC expects adjusted non-interest expenses in 2024 to be relatively stable or rise nearly 1%. Further, the company affirmed revenue and adjusted non-interest expense guidance for the third quarter and full-year 2023.
Likewise, KeyCorp (KEY - Free Report) , while presenting at the same Barclays conference, reiterated its guidance for the third and fourth quarters of 2023 and full-year 2023.
KEY expects tax-equivalent NII to decline 4-6% in the third quarter of 2023 on a sequential basis. For the fourth quarter, the metric is expected to be flat to down 2% sequentially. For full-year 2023, it is anticipated to decline in the range of 12-14%.
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Zions (ZION) Stock Jumps 6.8% as NII Rises in July, August
Shares of Zions (ZION - Free Report) jumped 6.8% following the latest insights provided by management on net interest income (NII).
At the Barclays Global Financial Services Conference, ZION management presented updates for July and August. It showed marked improvement in NII, with July's number being $197 million and August's $199 million. In the second quarter of 2023, NII was $591 million, with $204 million, $194 million and $193 million in April, May and June, respectively.
Further, Zions witnessed a 4.8% jump in average deposits in the last two months. The metric grew from $72.7 billion in June 2023 to $75.1 billion in July and $76.2 billion in August. The increase was mainly driven by a higher average interest-bearing deposit balance, up 11.3% in the last two months.
Likewise, Zions’ net interest margin (NIM) expanded in the first two months of the ongoing quarter. NIM was 2.92% in July and 2.96% in August. The metric was 2.91% in June 2023. The improvement in NIM is despite the rise in total cost of deposits, which rose to 1.8% in July and 1.94% in August from 1.6% in June.
These latest updates show that Zions will be able to maintain decent NII growth in the current quarter and beyond despite not much change in the operating backdrop over the last couple of months.
Additionally, the company reiterated its outlook provided during the second-quarter result announcement in July. Management projects NII in the second quarter of 2024 to be stable or slightly decline on a year-over-year basis.
Shares of this Zacks Rank #3 (Hold) company have surged 32.2% over the past three months, significantly outperforming the industry’s growth of 3.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Another regional bank, Truist Financial (TFC - Free Report) , also provided financial updates at the same conference. The company unveiled its strategic expense saving program, which will result in approximately $750 million of gross savings (excluding one-time severance charges) to be realized over 12 to 18 months.
Driven partially by these initiatives, TFC expects adjusted non-interest expenses in 2024 to be relatively stable or rise nearly 1%. Further, the company affirmed revenue and adjusted non-interest expense guidance for the third quarter and full-year 2023.
Likewise, KeyCorp (KEY - Free Report) , while presenting at the same Barclays conference, reiterated its guidance for the third and fourth quarters of 2023 and full-year 2023.
KEY expects tax-equivalent NII to decline 4-6% in the third quarter of 2023 on a sequential basis. For the fourth quarter, the metric is expected to be flat to down 2% sequentially. For full-year 2023, it is anticipated to decline in the range of 12-14%.