Comerica, a financial services company, has reported its second-quarter 2024 financial results, revealing a net income of $206 million, or $1.49 per share. This marks a significant increase of $0.51 per share over the first quarter of 2024. The company's net interest income decreased to $533 million from $548 million in the previous quarter, while the provision for credit losses decreased by $14 million. Noninterest income increased to $291 million from $236 million, and noninterest expenses decreased to $555 million from $603 million.
The average loans decreased to $51.1 billion from $51.4 billion in the prior quarter, and the average deposits decreased to $63.1 billion from $65.3 billion. The return on average assets (ROA) increased to 1.05% from 0.66% in the first quarter, and the return on average common shareholders' equity (ROE) increased to 14.78% from 9.33%. Additionally, the efficiency ratio improved to 67.77% from 76.91%.
In terms of credit quality, Comerica reported net charge-offs of 9 basis points, below historical averages. The allowance for credit losses totaled $717 million and decreased by 5 basis points to 1.38% of total loans, reflecting changes in portfolio composition and continued improvement in the economic outlook.
Comerica's strategic lines of business, including the commercial bank, the retail bank, and wealth management, are also discussed in the press release, showcasing the company's diversified operations.
The press release also notes that Comerica will host a conference call and live webcast to review its second-quarter 2024 financial results, providing an opportunity for stakeholders and investors to gain further insights into the company's performance. Following these announcements, the company's shares moved -10.5%, and are now trading at a price of $50.4. For more information, read the company's full 8-K submission here.
