Friday's Financial Winners & Losers

Zions Bancorp(ZION Quote) climbed Friday after the Salt Lake City-based bank reported a 22% gain in second-quarter earnings. The company earned $145.3 million, or $1.35 a share, compared with $118.8 million, or $1.30 a share a year ago. The most recent quarter includes an after-tax merger expense of $5.6 million, or 5 cents a share, related to the acquisition of Amegy Bancorp. Analysts polled by Thomson Financial were looking for earnings of $1.37 a share, excluding the charge. Net interest income for the quarter totaled $442.3 million compared with $336.1 million a year ago. Noninterest income increased 30% over the year ago figure to $137.8 million. The net interest margin was 4.64% compared with 4.60% a year ago. The stock also received analyst upgrades from Sandler O'Neill and Friedman Billings Ramsey. Shares gained $3.14, or 4%, to $82.03.

UnionBanCal(UB Quote) sank after the San Francisco-based bank reported a 2% drop in profits, missing Wall Street's second-quarter earnings expectations. The company reported income of $182.9 million, or $1.26 a share, compared with $187.2 million, or $1.27 a share a year ago. Wall Street was looking for earnings of $1.27 a share. Net interest income was $469 million in second quarter 2006, up $9 million, or 2%, from a year ago, primarily due to strong growth in loans, the company said. Noninterest income was $219 million, up $16 million, or 7.7 percent, from a year ago. The bank's noninterest expense rose 6% to $413 million. Commercial loans rose 22% and residential loans increased 14%. Average noninterest bearing deposits were flat in sequential quarters, while interest bearing deposits increased 3.8%. Shares fell $4.38, or 6.77%, to $60.28 in recent trading.

Shares of Capital One Financial(COF Quote) declined after the Virginia-based bank's second-quarter profits rose 4%, which fell short of analyst expectations. Capital One earned $552.6 million, or $1.78 a share, up from $531.1 million, or $2.03 a share, a year earlier. The results were pulled down by the company's United Kingdom operations, which Capital One said is being hit by a worsening credit environment. The company recorded a writedown related to the UK operation that shaved 16 cents a share off earnings. Analysts, on average, had expected earnings of $2.06 a share. Capital One backed its forecast for 2006 earnings of $7.40 to $7.80 a share. Analysts see earnings of $7.91 a share for the year. Shares were off $8.89, or 10%, to $77.28 recently.