In This Article:
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Earnings: $172 million or $1.25 per share.
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Net Interest Income: Stable at $575 million, with a 12 basis point expansion in net interest margin.
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Average Loans: Declined less than 1%, with specific decreases in national dealer services and commercial real estate.
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Average Deposits: Decreased by $1.4 billion from the fourth quarter, with non-interest bearing deposits remaining flat at 38% of total deposits.
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Net Charge-Offs: Increased to 21 basis points, at the low end of the normal 20 to 40 basis point range.
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Non-Interest Income: Increased by $4 million, with a notable $19 million benefit from the absence of prior quarter securities repositioning loss.
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Non-Interest Expenses: Decreased by $3 million, with reductions in litigation expenses and consulting fees.
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Common Equity Tier 1 (CET1) Ratio: Estimated at 12.05%, above the strategic target.
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Shareholder Returns: $143 million returned through share repurchases and dividends.
Release Date: April 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Comerica Inc (NYSE:CMA) exceeded expectations in several categories, resulting in higher profitability compared to the previous quarter.
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The company saw a 12 basis point expansion in net interest margin due to good deposit trends and structural benefits from swaps and securities portfolios.
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Comerica Inc (NYSE:CMA) maintained a strong capital position with an estimated CET1 ratio of 12.05%, providing flexibility to navigate economic uncertainties.
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The company returned $143 million to shareholders through share repurchases and dividends, demonstrating a commitment to shareholder value.
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Non-interest income grew, and the company expects to drive positive momentum in customer-related fees throughout the year.
Negative Points
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Comerica Inc (NYSE:CMA) experienced a modest reduction in average loan balances due to muted loan demand and declines in national dealer services and commercial real estate.
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Customer sentiment took a step back due to increased macroeconomic uncertainty, impacting market confidence.
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Net charge-offs increased, although they remained at the low end of the normal range, indicating some pressure on credit quality.
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Non-interest expenses declined, but the company noted a slowdown in business activity, which could impact future growth.
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The company anticipates a potential wide range of outcomes for 2025 due to increased economic uncertainty, with slower GDP growth expected compared to 2024.
Q & A Highlights
Q: Can you discuss the loan growth outlook and what you're hearing from lenders and borrowers? A: Peter Sefzik, Chief Banking Officer: Near-term, customers are taking their foot off the accelerator but not putting the brakes on. There's more concern in markets like Michigan compared to Texas. Long-term, we see good outlooks and pipeline growth, expecting loan demand to improve as the year progresses.