Comerica Inc. (NYSE: CMA) released its second-quarter earnings report before the markets opened Friday. The company had $0.73 in earnings per share (EPS) on $682 million in revenue. Thomson Reuters consensus estimates were $0.75 in EPS on $673.25 million in revenue. In the second quarter of the previous year, Comerica posted EPS of $0.80 and revenue of $636.0 million.
The company gave its full year outlook as net interest income relatively stable, average full-year loan growth consistent with 2014 and noninterest expenses higher. The consensus estimates are $3.01 in EPS on $2.71 billion in revenue for the full year.
In this quarter, average loans were up $2.1 billion, or 5%, compared to a year ago, and were up $682 million, or 1%, relative to the first quarter, with increases in most markets and business lines. Relative to the first quarter, average deposits increased $408 million, or 1%, with noninterest-bearing deposits up $668 million.
The estimated common equity Tier 1 capital ratio was 10.53% for the second quarter. The company noted that the estimated ratio under fully phased-in Basel III capital rules was not significantly different from the transitional ratio. Comerica’s tangible common equity ratio was 9.92%.
Ralph Babb Jr., chairman and CEO of Comerica, commented on earnings:
Revenue was up 2 percent, with growth in both net interest income and fee income in the second quarter. Charge-offs, nonaccruals and criticized loans remained well below normal historical levels. The provision for credit losses increased, primarily as a result of an increase in reserves for energy exposure. Noninterest expenses decreased $23 million to $436 million, primarily due to a decrease in litigation-related expense.
Our balance sheet is well positioned to benefit as rates rise. We remain focused on the long term with a relationship banking strategy that continues to serve us well.
Shares of Comerica closed Thursday up 0.7% to $50.47, in a 52-week trading range of $40.09 to $53.45. The stock has a consensus analyst price target of $51.80.
ALSO READ: 5 Big Defensive Dividend Stocks to Buy Trading at Deep Discounts
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.