Comerica Earnings Rise on Lower Operating Costs

Comerica (CMA) in Dallas reported an uptick in earnings as the company benefited from lower operating costs and improved credit quality.

The company earned $139 million in the first quarter, up 4% from the same period a year ago. Earnings per share of 73 cents fell a penny shy of the estimates of analysts polled by Bloomberg.

Comerica's net interest income was $410 million, a 1% decline from the first quarter of 2013. The decrease was driven in part by a 3% decline in revenue from loan interest and fees, despite strong growth in commercial loans. Comerica's net interest margin fell 11 basis points, to 2.77%.

Noninterest income slipped 2%, to $208 million, as income from commercial lending fees fell. A decrease in deferred compensation plan asset returns also contributed to the decline.

Lower operating costs helped offset the falloff in revenue. Comerica's noninterest expenses declined 2%, to $406 million, because of lower expenses from employee salaries and benefits.

As Comerica's credit quality continued to stabilize, the company chopped its loan-loss provision to $9 million — a 43% decrease from the same period a year ago.

The quarter's results are a substantial improvement from the previous period for the $65.7-billion asset Comerica. In January, Comerica was forced to revise its fourth-quarter earnings downward by 20%, to $117 million, after a Montana jury ordered it to pay $52 million in damages to an office supply company.

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