Zions Bancorp, a regional bank in New York, said that it gained profit in the third quarter of this year because it allocated a lesser budget for bad loans.

For three consecutive months ending in the 30th of September, the total revenue of the company was $65.2 million. This amounts to 35 cents per share. During the same time in the previous year, the company was incurring losses amounting to $80.5 million or 47 cents for every share.

Not including one-time items, the company shared that it earned around 40 cents for every share. With the same measure, analysts on estimates had predicted earnings of about 33 cents per share said FactSet.
Zions shares closed up to about $1 or 6 percent at $17.98.

The increase in Zion’s income is primarily a result of the quality of credit of the improving portfolio of Zions’ loan. The budget allocated for loan losses in the 3rd quarter amounted to $14.6 million. This is an increase from their $1.3 million provision in the 2nd quarter. But, this is also a marked decrease from its $184.7 million budget in the past year.

Despite the improvements in credit trends, the company said that it made the decision to raise its budget for loan loss compared to the last quarter due to the weaker data of the economy and the fiscal ambiguity in Europe. In the meantime, the company shared that its net income from interests for the third quarter became better as it reached $470.6 million. This is higher than the $451.9 million it earned in the past year as its expenses for interests decreased.

The net margin of interest, a measure of the distribution of earnings between the funds a bank lends and the money a bank borrows, increased to reach 3.99 percent. This is a slight rise from the 3.84 percent of the past year and the 3.62 percent in quarter two. The total noninterest profit reached $121 million from $110.2 million.

Zions Bancorp is based in Salt Lake City. It has around 500 offices in different states including California, Colorado, Idaho, New Mexico, Nevada, Texas, Oregon, Washington and Utah.

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