Zions Bancorp (NASDAQ:ZION) shares dipped Tuesday after the regional bank said its net interest income outlook was “decreasing.” The bank’s previous guidance described the outlook as “moderately decreasing,” according to StreetAccount. The update came in a presentation published Monday afternoon.
Other factors to consider: Zions Bancorporation's shares were revalued lower after the collapse of Silicon Valley Bank. However, the bank's deposit base only declined slightly, suggesting depositors view it as stable, and it has a strong liquidity position. ZION is trading at a significant discount to its one-year average P/B ratio, offering investors material recovery potential.
Shares of Zions Bancorporation, National Association revalued lower sharply doing the March selloff in the U.S. community banking market which was driven by the collapse of Silicon Valley Bank. However, the regional bank has only seen a relatively small drawdown in deposits in the first-quarter due to heightened stress levels in the sector and the bank has more than enough liquidity to fund the withdrawals of all its uninsured deposits. Experts express the view that the situation in the regional banking market has greatly stabilized and since Zions Bancorporation's shares continue to trade at a price significantly below its one-year average P/B ratio, a continual improvement in the bank's operating conditions should translate to revaluation upside.
ZION shares dipped $1.08, or 3.6%, to to $29.16.
