ZION - Zions Bancorporation: Solid Q2 With Minimal Credit Deterioration (Rating Upgrade)

2024-07-23 08:48:58 ET

Summary

• Zions Bancorporation shares have risen 33% in the past year, with a 3.5% increase after solid Q2 results.
• ZION has seen growth in net interest income, aided by stable deposits, and modest loan growth, with improved liquidity given security maturities.
• The bank is well-capitalized, with a strong CET1 ratio, and may be a candidate for bank consolidation in the future.
• Its community-oriented model continues to lead to differentiated credit outcomes.

Shares of Zions Bancorporation ( ZION ) have been a solid performer over the past year, rising about 33% and sitting near a 52-week high. Shares popped a further 3.5% after-hours on Monday after reporting solid Q2 results. I last covered Zions in January , rating shares a hold, and since then, they have performed in line with the market, rising by 16.4%. With significant liquidity and strong underwriting results, I am upgrading shares to a buy....

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