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Jun 30, 2024

Comerica Q2 2024 Earnings Report

Reported an increase in earnings per share, driven by loan growth and strong credit quality, along with successful execution of expense management and fee income initiatives.

Key Takeaways

Comerica reported a net income of $206 million, or $1.49 per share, for the second quarter of 2024. The results reflect an increase of $0.51 over the first quarter, driven by responsible loan growth, improvements in fee income and expense management, and continued strong credit quality.

Earnings per share increased by $0.51 over first quarter results, reaching $1.49.

Loan balances saw an inflection through quarter-end, indicating responsible growth.

Fee income and expenses improved quarter-over-quarter, reflecting a balance between strategic investments and efficiency.

Net charge-offs remained low at 9 basis points, demonstrating a proven approach to credit management.

Total Revenue
$824M
Previous year: $924M
-10.8%
EPS
$1.53
Previous year: $2.01
-23.9%
Return on Avg. Assets
1.05%
Previous year: 1.21%
-13.2%
Efficiency Ratio
67.77%
Previous year: 57.7%
+17.5%
Net Interest Margin
2.86%
Previous year: 2.93%
-2.4%
Gross Profit
$934M
Previous year: $924M
+1.1%
Cash and Equivalents
$4.81B
Previous year: $10.2B
-52.9%
Total Assets
$79.6B
Previous year: $90.8B
-12.3%

Comerica

Comerica

Forward Guidance

This earnings report contains forward-looking statements regarding Comerica's plans, objectives, and economic performance, which are subject to risks and uncertainties as detailed in their filings with the Securities and Exchange Commission.

Positive Outlook

  • Descriptions of plans and objectives for future or past operations, products or services
  • Forecasts of revenue, earnings or other measures of economic performance and profitability
  • Estimates of credit trends and stability
  • Statements of profitability, business segments and subsidiaries
  • The effectiveness of methods of reducing risk exposures

Challenges Ahead

  • Changes in customer behavior
  • Unfavorable developments concerning credit quality
  • Fluctuations in interest rates and their impact on deposit pricing
  • Transitions away from the Bloomberg Short-Term Bank Yield Index towards new interest rate benchmarks
  • Cybersecurity risks and heightened legislative and regulatory focus on cybersecurity and data privacy