Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Zions Bancorporation — Investor Presentation (June 2015)
12 slides from Zions Bancorporation N.a's investor presentation, Jun 1, 2015
Slide 1: Zions' Path to Substantial Improvement of Profitability
June 1, 2015 Zions’ Path to Substantial Improvement of Profitability
Slide 2: Forward-Looking Statements & Peer Group Abbreviations
Forward-Looking Statements & Peer Group Abbreviations This presentation contains statements that relate to the projected or modeled performance or condition of Zions Bancorporation and elements of or affecting such performance or condition, including statements with respect to forecasts, targets, op
Slide 3: Executive Summary
Today, Zions is announcing several organizational and operational changes, including: • Consolidate bank charters from seven to one while maintaining local leadership, local product pricing, and local brands • Create a Chief Banking Officer position, with responsibility for retail banking, wealth ma
Slide 4: Stepping Back in Time
Stepping Back in Time Historically, Zions produced superior returns on equity and efficiency ratio; lagging peers is a recent issue 4 0% 5% 10% 15% 20% 25% 2003-2007 Avg 2012-2014 Avg Return on Average Tangible Common Equity ZION Peer Median 50% 55% 60% 65% 70% 75% 80% 2003-2007 Avg 2012-2014 Avg Ef
Slide 5: Positive Operating Leverage: Expenses Roadmap to Substantially Improving Profitability
5 Positive Operating Leverage: Expenses Roadmap to Substantially Improving Profitability Four Expense Initiatives focused on creating “simple, easy, fast” operational processes and customer experience. 1) Technology1 • Simplify and reduce customization in core systems • Reduce 15 loan processing cen
Slide 6: Positive Operating Leverage: Expenses Roadmap (Financial Initiatives)
6 Positive Operating Leverage: Expenses Roadmap to Substantially Improving Profitability 4) Financial: High cost debt & substantial portion of preferred equity • Financing costs already substantially reduced • Savings of $103 million on interest expense on debt FY14 vs. FY12 • Reduction of $99 milli
Slide 7: Positive Operating Leverage: Expenses Roadmap to Substantially Improving Profitability
Positive Operating Leverage: Expenses Roadmap to Substantially Improving Profitability 7 • We expect to hold noninterest expense to below $1.60 billion in FY15 and FY16, slightly increasing in FY171 • Targeted FY17 Gross Cost Savings vs. FY14: • Operational Initiatives: $120 million • Maturing of su
Slide 8: Revenue Opportunities: Three Initiatives
8 Revenue Opportunities: Three Initiatives • Treasury / securities portfolio • Significantly asset sensitive – currently top decile within the industry • Capacity to add several billion dollars of mortgage-backed securities and interest-rate swaps • Expect to remain one of the more asset-sensitive U
Slide 9: Positive Operating Leverage: Path to low 60% or Better Efficiency Ratio
9 Positive Operating Leverage Path to low 60% or Better Efficiency Ratio 76 % Low 60s FY14 Actual Normalized FY14 (1) Debt Reduction Savings from Operational, Technology and Charter Consolidation Balance Sheet Repositioning (e.g. MBS) Loan & Fee Income Growth Other Expense Increases (2) Pro Forma FY
Slide 10: What Remains the Same: Staying Local When It Comes to the Customer Experience
10 What Remains the Same Staying Local When It Comes to the Customer Experience • Maintain local brands as currently constituted • Continue with customer-centric model (rather than silo / product- centric model) • Local CEOs remain responsible for: • Client-facing bankers • Product pricing (e.g., lo
Slide 11: Conclusion
11 Conclusion • Commitment to hold noninterest expense to below $1.60 billion annually through 2016, slightly increasing and with substantial positive operating leverage in 2017 • Targeting an increase of revenue through: • Deployment of cash into MBS • Drive fee income growth • Drive loan growth •
Slide 12: Appendix: Potential Benefits, Offsets and Risks to Achieve Targeted Profitability
12 Appendix: Potential Benefits, Offsets and Risks to Achieve Targeted Profitability • Significant Factors Included in Outlook: • Continued competitive pricing on loans • Increased salary and benefits from normal cost of living adjustments and merit increases • Investment in growth businesses • Pote
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