Comerica on Tuesday reported higher quarterly earnings, boosted by a yearlong effort to slash costs.
The Dallas company earned $203 million in the second quarter, or 95% more than a year earlier. Earnings per share were $1.13, or 7 cents higher than the consensus of analyst estimates compiled by FactSet Research Systems.
A sharp reduction in operating costs drove the quarterly results. Noninterest expenses plunged 12% to $457 million due to a mix of lower salary, occupancy and restructuring costs. The company’s efficiency ratio was 58.63%, compared with 72.43% a year earlier.
Net interest income rose 12% to $500 million. The net interest margin climbed 29 basis points to 3.03%. The provision for credit losses declined 65% to $17 million.
Total loans dipped 2% to $48.7 billion as the company has scaled back on energy lending following the crash in oil prices last year. The bank had total assets of $71.3 billion on June 30.
Fee-based income climbed 3% to $276 million thanks to gains in card fees and service charges.