Zions Bancorp: The Bank Has Attractive Growth Potential From Its Footprint in US Western States

Zions Bancorp focuses primarily on small and midsize businesses across its Western US footprint. We think its strategy of building on-the-ground relationships with SMB clients is sound. However, with roughly 80% of revenue coming from net interest income, Zions’ profitability is more sensitive to interest-rate movements and deposit performance than larger regional banks with more diversified fee income streams.