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.
Source: Thinkstock
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
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
