Comerica Incorporated (NYSE:CMA) delivered stronger-than-expected second-quarter results on Friday, driven by broad-based loan expansion and stable interest income.
The bank posted net income of $199 million, translating to $1.42 per share—comfortably above Wall Street estimates of $1.25 per share. Revenue also came in ahead of projections at $849 million, surpassing the consensus figure of $843.63 million.
Compared to the previous quarter, net income climbed 16%, although it fell 3% year-over-year from $206 million. The revenue improvement was supported by consistent net interest income and gains in noninterest income.
Comerica recorded a $451 million increase in average loans, reaching $50.7 billion, while period-end loans surged by $1.3 billion to $51.2 billion. Loan growth was seen across most business categories. Meanwhile, average deposits slipped $653 million to $61.2 billion.
“Improved customer sentiment contributed to broad-based loan growth, offsetting modest deposit pressures and keeping net interest income flat to the first quarter and in line with guidance,” said Chairman and CEO Curtis C. Farmer.
Net interest income held steady at $575 million quarter-over-quarter, representing an 8% gain from $533 million in the same quarter last year. However, the net interest margin dipped slightly to 3.16% from 3.18%.
Noninterest income rose by $20 million to $274 million, fueled by stronger performance in capital markets, higher returns from deferred compensation assets, and growth in fiduciary income. On the expense side, noninterest costs dropped by $23 million to $561 million.
The bank’s credit quality remained healthy, with net charge-offs at 22 basis points—”at the low end of our normal range,” according to the company. The allowance for credit losses remained unchanged at $735 million, or 1.44% of total loans.
“We believe our proven approach to credit and underwriting serves as a competitive advantage,” Farmer said. He added that Comerica is “well-positioned to support our customers as they navigate the dynamic environment.”
Capital strength remained solid, with an estimated Common Equity Tier 1 (CET1) ratio of 11.94%. During the quarter, Comerica returned $193 million to shareholders through $100 million in stock buybacks and $93 million in dividends.
Comerica Incorporated stock price
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