Zions Bancorporation NA at Morgan Stanley Financials Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Manan Gosalia - Morgan Stanley - Analyst : <_ALACRA_META_ABSTRACT>So Scott, I wanted to start with the overall environment, get a pulse check on what you're seeing? During the first quarter call, Harris highlighted that the level of uncertainty from tariffs was negative for sentiment across businesses. And then since then, we've had a few positive announcements. So how would that impact the customer sentiment?

Question: Manan Gosalia - Morgan Stanley - Analyst : So it sounds like from these large capital investments, that's still on hold a little bit. For the smaller businesses, you are seeing some inventory build here?

Question: Manan Gosalia - Morgan Stanley - Analyst : And Zion operates separate entities in many different markets in Europe, California, Texas, are you seeing any different trends any of the markets?

Question: Manan Gosalia - Morgan Stanley - Analyst : And Scott, another comment that you made in April was that there was more than the level of uncertainty around the one-year guide that you gave. Has some of that uncertainty reduced given that we've clawed back a little bit, we pulled back a little bit from the peak and what could have been the peak in tariffs. Do you feel better about your guide today? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 10, 2025 / 4:15PM, ZION.OQ - Zions Bancorporation NA at Morgan Stanley Financials Conference

Question: Manan Gosalia - Morgan Stanley - Analyst : Yes. So that's totally fair. And maybe we should dig into some of those more fundamentals trends. On the loan growth side, you've spoken about focusing on the commercial side to drive loan growth from here. What are the biggest opportunities for the bank there?

Question: Manan Gosalia - Morgan Stanley - Analyst : And to clarify, the 1,500 that, new client relationships or new loans? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 10, 2025 / 4:15PM, ZION.OQ - Zions Bancorporation NA at Morgan Stanley Financials Conference

Question: Manan Gosalia - Morgan Stanley - Analyst : And that gets you the relationship on the deposit side and the fee side and the lending side --

Question: Manan Gosalia - Morgan Stanley - Analyst : So you spoke about loan growth activity should pick up at some point as account fills. You're making all these new investments. Talk a little bit more about the steps you're taking benefit from that loan growth activity once it picks up. What investments are you making? What hires are you making?

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it. And maybe talk a little bit more about competition. You're clearly competing against not just other regional banks, but also the large money center banks in the business arena, take about what you're seeing on the competition side right now and how that's been evolving over the past year or so?

Question: Manan Gosalia - Morgan Stanley - Analyst : Especially in cases where you already have the client relationships --

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it.

Question: Manan Gosalia - Morgan Stanley - Analyst : The other aspect of competition is not just from traditional banks, but also from private credit. Can you talk about how you're thinking about Zions relationship with private credit, both as a competitor and as a partner? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 10, 2025 / 4:15PM, ZION.OQ - Zions Bancorporation NA at Morgan Stanley Financials Conference

Question: Manan Gosalia - Morgan Stanley - Analyst : And where is the traditional banking system winning business right now? So with Zion was on whether it's your peso private credit, where is the advantage that the banks have?

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it. Excellent. I want to pivot over to what you're seeing on the deposit side. Zion has seen five quarters of NIM expansion. A lot of that has been driven by success on the lowering deposit costs. Can you talk a little bit more about what is driving that?

Question: Manan Gosalia - Morgan Stanley - Analyst : Correct.

Question: Manan Gosalia - Morgan Stanley - Analyst : So is there more room for the overall portals to come down if every rates don't go down further?

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it. And then as you think about NII, you've spoken about seeing NII growth even with rate cuts and flattish loan growth. Can you talk about some of the inherent tailwinds that you have on the asset side of the balance sheet that drive that?

Question: Manan Gosalia - Morgan Stanley - Analyst : And you spoke about the latent sensitivity of the balance sheet. How are you thinking about the overall asset sensitivity as you think about the next few years, you are -- the balance sheet is more asset sense right now. Are you thinking about bringing that down neutral over time? Or how do you think about that?

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it. All right. Perfect. Maybe talk a little bit more about the fee side of the business. Where are you prioritizing investments on that front, treasury management, card mortgage?

Question: Manan Gosalia - Morgan Stanley - Analyst : All right. Perfect. Just talking about maybe credit. You noted that there's still some uncertainty for small businesses. Are there any specific sectors that you're looking at where you're seeing a higher level of stress? Anything to call out on the credit side?

Question: Manan Gosalia - Morgan Stanley - Analyst : And that's what drives the losses.

Question: Manan Gosalia - Morgan Stanley - Analyst : All right. Perfect. We're almost out of time. I'll wrap up with a question on capital. There's a lot of volatility on the long end of the curve. How are you thinking about managing capital? And is there a CET1 ratio, including AOCI that you're managing through here?

Question: Manan Gosalia - Morgan Stanley - Analyst : And plus you have the earnings accretion as well .

Question: Manan Gosalia - Morgan Stanley - Analyst : All right. Perfect. We're out of time. Scott, thank you very much for joining us.