Zions Bancorp. in Salt Lake City posted a big increase in quarterly earnings despite increasing its loan-loss provision to account for energy-related exposure.
The $59.7 billion-asset company said in a press release Monday that its fourth-quarter profit rose 32% from a year earlier to $88.2 million, or 43 cents a share.
Zions merged its seven subsidiary banks to a single national bank charter Dec. 31.
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The Salt Lake City company is targeting an efficiency ratio more in line with other regional banks by closing branches and finding ways to boost revenue. Zions hopes its efforts will reduce annual pretax expenses by $120 million by 2017.
June 2 -
Zions Bancorp. in Salt Lake City will consolidate its seven bank charters into one and create the position of chief banking officer to cut costs and improve returns.
June 1 - Utah
Zions Bancorp. in Salt Lake City posted stronger third-quarter earnings from lower costs and higher fee income. The $58.4 billion-asset company said in a press release Monday that its earnings rose 6% from a year earlier, to $84.2 million, or 41 cents a share.
October 19
Net interest income rose 4.3% to $448.8 million. Loans increased by 1.5% to $40 billion, while the net interest margin compressed by 2 basis points to 3.23%. The company's provision nearly doubled to $22.7 million.
Noninterest income fell 4.2% to $124 million because of a large decline in dividends and other investment income.
Noninterest expense fell 4.7% to $402.8 million because of lower salaries and employee benefits, other real estate expense and a 50% decline in professional and legal fees. The efficiency ratio was 69.8%, an improvement from the 74.1% a year earlier.
"We are pleased with the relatively limited energy net chargeoffs during the quarter, and the relatively strong pay-downs and payoffs of energy-related loans in the quarter," Harris Simmons, Zions' chairman and chief executive, said in the release.
