Comerica (CMA) in Dallas reported flat quarterly earnings as cost cuts and improved credit quality offset a dip in lending revenue.
The $63 billion-asset company had a profit of $143 million in the second quarter, unchanged from the second quarter of 2012. Per-share earnings of 76 cents beat by 6 cents the estimates of analysts polled by Bloomberg.
Comerica's income from loans and fees slid, but a reduction in noninterest expenses of $18 million, along with lower bad-loan charges, made up the difference.
Noninterest expense fell 4%, to $416 million, due largely to a reduction in salary costs. Net loan charge-offs fell by $28 million, to $17 million, the lowest level since 2007, Comerica said in the news release. Comerica's provision for loan losses was $13 million, $6 million less than the same period in 2012.
Comerica's net interest income fell 5%, to $414 million, as its net interest margin tightened by 27 basis points, to 2.83%. Its lending increased, however, as total interest-earning assets rose 4%, to $58.9 billion.
Its noninterest income fell 1%, to $208 million.