Written by Jasir Jawaid
Even as its larger and arguably more complex peers announce buyback plans, Zions Bancorp. NA will be more "cautious" in its approach to capital management, Chairman and CEO Harris Simmons said on a quarterly earnings call.
The Federal Reserve in December 2020 eased restrictions on capital distributions by allowing large banks to resume share repurchases with limitations. As a publicly traded national bank, Zions has to file an application with the Office of the Comptroller of the Currency for a permanent reduction in capital in order to buy back shares.
"Well, I think we just want to continue to see a little more clarity with respect to how this pandemic will affect borrowers," Simmons said, adding that he believes conditions will allow Zions to be "pretty actively engaged" in buybacks toward the second half of the year.
"We just want to make sure that we're being sensible about it," he said. "And we'll have that conversation with regulators and with our board, but I think all the conditions are going to be there for a reasonably active buyback program."
Comerica Inc. also decided to hold off on repurchasing shares for now due to ongoing uncertainty about the pace of the economic recovery.
This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.
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