Zions Bancorp 2Q profit jumps 24 percent

SALT LAKE CITY -- Regional bank operator Zions Bancorp. Said Monday its net income grew 24 percent in the second quarter after it redeemed half of the U.S. government's bailout investment.

In late March Zions paid back half of the government's $1.4 billion investment by buying the government's preferred stock. That reduced its preferred stock dividends. The company expects to repay the remaining $700 million by the end of 2012. Zions said credit quality also improved and business loans grew, although it said business customers are still very cautious.

Zions net income rose to $55.2 million, or 30 cents per share, from $29 million, or 16 cents per share. Zions it would have earned 40 cents per share in the most recent quarter, if one-time items were excluded.

Analysts expected the company to report a profit of 33 cents per share, or 40 cents per share excluding special items, according to FactSet.

Zions said its net interest income rose 4 percent, to $432 million from $416.2 million.

Shares of Zions Bancorp lost 16 cents to close at $18.57.