ZION - Zions Bancorp stock falls after 2023 outlook sees rising expenses

Zions Bancorporation ( NASDAQ: ZION ) stock fell 4.7% as the bank said it expects 2023 adjusted noninterest expenses to increase moderately.

Its outlook for the year also calls for net interest income to climb at a rate in the high single digits compared with 2022, but expects Q4 2023 NII to increase slightly vs. the year-ago quarter.

Loan balances, customer-related noninterest income, and CET1 regulatory capital ratio are also expected to rise moderately, Zions ( ZION ) said in its Q4 earnings slides .

Q4 adjusted EPS of $1.88 , topping the $1.66 consensus, increased from $1.36 in Q3 and from $1.26 in Q4 2021.

Net interest income was $720M in Q4, vs. $663M in the previous quarter and $553M in the year-ago period. Net interest margin of 3.53% rose from 3.24% in Q3 and 2.58% in Q4 2021.

Noninterest income of $153M slipped from $165M in Q3 and $190M in Q4 2021.

"Though our quarterly operating results were strong, we continued to build our loss reserves due to both continued loan growth and the prospect of a slowing or recessionary economic environment in coming months," said Chairman and CEO Harris H. Simmons.

Provision for credit losses of $43M, lower than the Visible Alpha consensus of $49.6M, fell from $71M in the prior quarter and rose from $25M in the year-earlier period.

Q4 adjusted preprovision net revenue of $420M increased from $351M in Q3 and $288M in Q4 2021.

Tangible book value per share of $43.72 at Dec. 31, 2022  vs. $42.52 at Sept. 30, 2022.

Loans and leases were $55.7B, up from $53.4B in Q3 and $50.3B in Q4 2021.

Conference call at 5:30 PM ET.

Earlier, Zions ( ZION ) non-GAAP EPS of $1.88 beats by $0.22, revenue of $873M beats by $11.24M .

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