Zions 4Q profit up 11 percent |
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Tue, 23 Jan 2007 23:04
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SALT LAKE CITY (AFX) - Zions Bancorp. said Tuesday fourth-quarter profit rose 11 percent as the regional bank lent more money and navigated a tough interest rate environment.Zions reported fourth-quarter net income of $142.7 million, or $1.32 per share, compared with profit of $128.1 million, or $1.32 per share, in the fourth quarter of 2005. Analysts polled by Thomson Financial forecast profit of $1.38 per share.Income from lending rose 22.5 percent to $459 million. Lending income rose because of a wider base of deposits and loans.The bank said it lent $1 billion in the fourth quarter, bringing the balance of loans to $34.7 billion at the end of 2006. Zions said it lent a lot of money to commercial borrowers at Zions Bank and Amegy Bank of Texas.Zions said it attracted $1.3 billion in deposits, leading to a deposit base of $35 billion.The profit margin from lending shrank slightly to 4.6 percent from 4.62 percent. Chief Executive Harris Simmons said in a statement the bank maintained a stable margin despite an interest rate environment that makes it difficult for banks to make money from lending.Noninterest income, or earnings from activities other than lending like charges and fees, rose 19 percent to $139.9 million.The bank established a reserve of $26.7 million anticipating losses from missed payments on loans, compared with a reserve of $10.1 million in last year's fourth quarter. Zions said it expects more loan defaults because it lent more money. As a percentage of outstanding loans, the provision is lower this quarter than it was last year.For 2006, net income rose 21 percent to $579.3 million, or $5.36 per share, from $480.1 million, or $5.16 per share, in 2005.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Zions offers 4Q outlook, hurt by charges 