Zions Bancorp Posts Strong Q3 Profit Rise Amid Loan Loss Challenges

Zions Bancorp reported stronger third-quarter earnings, with net income rising to $221 million or $1.48 per share, surpassing analyst expectations despite a $50 million loss on two commercial loans from its California division. The bank's revenue increased 8.4% to $672 million, driven by higher net interest income amid a challenging financial environment. Zions took legal action to recover the loan losses and maintained low net charge-offs excluding those loans. The bank's shares rose significantly in after-hours trading following the earnings release, reflecting investor confidence in its strategic management and resilience. Zions Bancorp operates primarily in 11 Western and Southwestern U.S. states, focusing on small and midsize business banking with over 400 branches and assets exceeding $50 billion. The positive earnings report comes amid broader earnings season momentum, with S&P 500 companies expected to show a continued but decelerating growth in earnings per share for the quarter.