Comerica Inc

Latest Results (21.12.2024):

Net Income

In the third quarter of 2024, Comerica Inc reported a net income of $184 million, translating to earnings of $1.33 per share. This performance was supported by favorable trends in customer deposits and net interest income, which exceeded expectations despite muted loan demand. The company maintained strong credit quality with net charge-offs at 8 basis points, significantly below historical averages.

Net Interest Income

Comerica Inc's net interest income for the third quarter of 2024 was stable at $534 million, with a slight increase of $1 million compared to the previous quarter. However, the net interest margin decreased by 6 basis points to 2.80%, influenced by higher interest-bearing deposit costs and lower nonaccrual interest.

Noninterest Income and Expenses

Noninterest income for Comerica Inc decreased by $14 million to $277 million in the third quarter of 2024. This decline was primarily due to a $10 million reduction in risk management hedging income. On the other hand, noninterest expenses increased by $7 million to $562 million, driven by higher salaries and benefits expenses.

Capital Ratios

Comerica Inc reported a strong Common Equity Tier 1 capital ratio of 11.97% and a Tier 1 capital ratio of 12.51% for the third quarter of 2024. The company plans to resume share repurchases targeting $100 million in the fourth quarter of 2024 and declared dividends of $94 million on common stock and $6 million on preferred stock.

Outlook and Strategic Initiatives

Comerica Inc remains focused on expense discipline and strategic growth initiatives. The company continues to execute action plans to enhance earnings power while maintaining a conservative approach to capital management. The estimated CET1 capital ratio rose to 11.97%, reflecting the company's commitment to strong capitalization and manageable future credit migration.