ZION - Zions stock slides on higher provision for credit losses amid recession risks

Zions Bancorporation ( NASDAQ: ZION ) stock retreated 5.8% in Monday after-hours trading as its higher third-quarter provision for credit losses offset the rise in net interest income

"Despite material improvements in most of our credit quality metrics relative to both last quarter and last year, we boosted our loan loss reserve to reflect both loan growth and a heightened probability of economic recession in the coming year,” said Chairman and CEO Harris H. Simmons.

Q3 GAAP EPS of $1.40 at September 30 fell short of the average analyst estimate of $1.58, and compared with $1.29 at June 30 and $1.45 at Sep. 30, 2021.

Revenue came in at $828M, surpassing the consensus of $816.01M, and rising from $763M in Q2 and $722M in the year-ago period.

Net interest income was $663M in Q3, up from $593M in Q2 and $555M in Q3 of last year. Net interest margin, in turn, climbed to 3.24% from 2.87% in Q2 and 2.68% in Q3 2021.

Noninterest income of $165M compared with $172M in the prior quarter and $139M in the year before.

Provision for credit losses was $71M vs. $41M in Q2 and a benefit of $46M in Q3 2021.

Tangible book value of $21.54 a share dipped from $27.76 in Q2 and $40.37 in Q3 2021.

Earlier, Zions GAAP EPS of $1.40 misses by $0.18, revenue of $828M beats by $11.99M .

For further details see: