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Sep 30, 2021
Comerica Q3 2021 Earnings Report
Generated earnings of $1.90 per share and an ROE of 13.53 percent.
Key Takeaways
Comerica reported a net income of $262 million, or $1.90 per share, for the third quarter of 2021. Solid loan growth in several business lines was overshadowed by headwinds from PPP loan forgiveness and reduced auto dealer loans due to supply constraints. The company continued to drive strong deposit growth, robust fee income, and excellent credit quality.
Earnings per share were $1.90 and ROE was 13.53 percent.
Solid loan growth in a number of business lines was overshadowed by headwinds from PPP loan forgiveness and reduced auto dealer loans due to supply constraints.
Strong deposit growth, robust fee income, and excellent credit quality were continued.
Over 3 million shares were repurchased, reducing share count by over 2 percent.
Comerica
Comerica
Comerica Revenue by Geographic Location
Revenue by Geographic Location
Michigan Deposits Revenue
CapyFin.comCalifornia Deposits Revenue
CapyFin.comTexas Deposits Revenue
CapyFin.comOther Markets Deposits Revenue
CapyFin.com Forward Guidance
This outlook is based on management expectations for continued economic growth.
Positive Outlook
- Non-PPP portfolio to have growth in general Middle Market and several other business lines, partly offset by a decline in Mortgage Banker Finance.
- Deposits to remain strong.
- Strong credit quality continues.
- Growth in several customer-related fee categories
- Income tax expense for full-year 2021 to be between 22 and 23 percent of pre-tax income, excluding discrete items.
Challenges Ahead
- This growth is expected to be more than offset by forgiveness of the bulk of PPP loans.
- Non-PPP portfolio to have lower loan fees from elevated levels mostly offset by loan growth; this is expected to be more than offset by lower PPP-related income.
- More than offset by lower commercial loan fees and warrant and BOLI income.
- Increases in seasonal expenses and technology investments
- Offset by lower compensation expense from elevated level.
Revenue & Expenses
Visualization of income flow from segment revenue to net income