Is Strong Investment Banking Performance and a Shift in Fed Policy Changing the Zions (ZION) Investment Story?

• In October 2025, Zions Bancorporation and several regional banking peers reported third-quarter earnings that exceeded Wall Street's forecasts, led by a strong rebound in investment banking and trading activities.
• An additional boost in sector sentiment came after Federal Reserve Chair Jerome Powell signaled a possible end to quantitative tightening, raising expectations for increased market liquidity.
• With this earnings momentum and shifting Fed policy outlook, we'll explore how enhanced investment banking results could impact Zions’ longer-term investment narrative.

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Zions Bancorporation National Association Investment Narrative Recap

To be a Zions Bancorporation shareholder right now, you’d need confidence in its ability to capitalize on regional economic growth and ongoing digital transformation, while managing credit quality and funding costs. The recent third-quarter earnings beat, fueled by a rebound in investment banking and trading, gives momentum to the company’s short-term story, yet it doesn’t materially change the underlying risk that Zions' high exposure to commercial real estate (CRE) loans could still challenge long-term stability if sector-wide property values falter.

Among recent announcements, the August 2025 dividend increase stands out as most relevant here, signaling management’s confidence amid improved earnings and sector sentiment. While rewarding shareholders with a 5% dividend hike, the sustainability of such payouts will be closely tied to continued performance in investment banking and the overall resilience of fee-based businesses as key profit drivers.

Yet, in contrast to upbeat earnings, investors should also understand the concentration risk from the bank’s CRE loan portfolio and...

Read the full narrative on Zions Bancorporation National Association (it's free!)

Zions Bancorporation National Association's outlook anticipates $3.5 billion in revenue and $818.0 million in earnings by 2028. This scenario assumes 3.7% annual revenue growth and a modest $12.0 million increase in earnings from the current $806.0 million.

Uncover how Zions Bancorporation National Association's forecasts yield a $62.30 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have fair value estimates for Zions ranging from US$62.30 to US$106.07, based on three distinct analyses. While optimism surrounds recent banking sector earnings, concentrated CRE exposure remains a broad challenge for future performance, consider how your outlook stacks up against these varied viewpoints.

Explore 3 other fair value estimates on Zions Bancorporation National Association - why the stock might be worth as much as 92% more than the current price!

Build Your Own Zions Bancorporation National Association Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zions Bancorporation National Association research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Zions Bancorporation National Association research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zions Bancorporation National Association's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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