ZION's Revenues Rise in 2025: What Will Drive Growth Ahead?

Zions Bancorporation ZION delivered solid revenue growth in 2025, highlighting higher net interest income (NII) and fee income. The company’s net revenues (tax equivalent) of $3.43 billion were up 8.1% year over year. The company’s focus on organic growth, decent loan demand, efforts to boost fee income and stabilizing funding costs are expected to support revenue growth going forward.

Similar to ZION, its peers also reported solid revenue growth in 2025. East West Bancorp EWBC reported net revenues of $2.93 billion, reflecting a 12.2% year-over-year increase, while Columbia Banking System COLB reported total revenues of $2.32 billion, up 19%. Revenue growth at both banks was driven by higher NII and improved non-interest income.

Key Catalysts Behind ZION’s Revenue Growth

Steady loan and deposit growth has been a key driver of Zions’ revenue performance. Over the five years ended 2025, the company’s total revenues recorded a compound annual growth rate (CAGR) of 3.9%, supported by consistent expansion in loans and leases, which increased at a CAGR of 2.6% during the same period. The rise in lending activities increased the company’s earning assets and contributed meaningfully to overall revenue growth.

Going forward, sustained loan demand across the commercial and commercial real estate segments, along with stable deposit growth and a low-cost funding base, is expected to support Zions’ revenues.

Consistent top-line growth has been supported by NII and net interest margin (NIM) expansion. In 2025, ZION reported NII of $2.63 billion, reflecting an 8.1% year-over-year increase. Additionally, NIM rose 26 basis points (bps) year over year to 3.31%, driven by earning asset remix, loan and deposit growth, the repricing of fixed-rate assets and stabilizing funding costs. These factors are likely to continue supporting NII and NIM expansion.

Likewise, both East West Bancorp and Columbia Banking System reported expansion in NIM. In 2025, EWBC’s NIM increased 17 bps to 3.41%, while COLB’s NIM expanded 42 bps to 4.06%.
 
Coming back to ZION, the company’s fee income remains another significant contributor to its revenue growth. Over the past five years, the metric recorded a CAGR of 5.7% (2020-2025), reflecting steady growth in fee-based services and increased customer-related activities. As the company continues to expand its client base and increase deposits and loans, fee income from deposit-related services and lending activities is expected to rise further.

ZION’s 2026 Revenue Growth Outlook

Management anticipates moderate year-over-year growth in period-end loan balances, mainly supported by expansion in commercial lending (mainly commercial & industrial and owner-occupied loans), along with growth in commercial real estate loans, while consumer lending is expected to remain stable.

Management assumes two 25 bps rate cuts in 2026 and expects NII to rise modestly. This will likely be aided by a favorable earning asset mix, growth in loans and deposits, and the repricing of fixed-rate assets. 

The company expects customer-related adjusted non-interest income to improve moderately, driven by higher client engagement, new client acquisition, stronger capital markets activity and increased loan-related fees.

ZION’s Price Performance & Zacks Rank

Zions’ shares have declined 6.1% in the past three months, compared with the industry’s fall of 6.8%.
 

Currently, ZION carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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