Zions Bancorp stock drops after PPNR and net interest income fall short of estimates

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Zions Bancorp stock drops after PPNR and net interest income fall short of estimates
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Steve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.

Zions Bancorp NA’s ZION, -4.78% stock was down by 5.7% on Thursday after the bank missed analyst estimates for net interest income and pre-provision net revenue . The bank’s

fell 23% to $255 million due to an increase in the cost of funds exceeded the increase in earning asset yields, the bank said after the closing bell on Wednesday. Citi analyst Keith Horowitz said the bank’s core figure fell short of consensus estimates by 4 cents a share and missed his own estimate by 7 cents a share. Horowitz reiterated a buy rating on the stock because “we see value there” given that the bank’s outlook for net interest income remains stable. Zion’s net interest income declined 12% to $585 million, while analysts polled by FactSet expected net interest income of $595.3 million.

is defined as net interest income plus non-interest income minus noninterest expense. Zion’s third-quarter earnings of $1.13 a share beat the FactSet consensus estimate by 2 cents a share.

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