Comerica Reports $184 Million Net Income

By Tamara Parker • Friday, October 18 10:20 • Permanent Link

Comerica Reports Third Quarter 2024 Results: Net Income at $184 Million

Comerica, a financial services company, reported a net income of $184 million for the third quarter of 2024, resulting in earnings per share of $1.33. This represents a decrease from the previous quarter's net income of $206 million and earnings per share of $1.49, as well as a decline from the third quarter of 2023 when net income was $251 million and earnings per share stood at $1.84.

The company's average loans decreased to $50.9 billion, down from $51.1 billion in the second quarter of 2024 and $53.9 billion in the third quarter of 2023. Additionally, average deposits increased to $63.9 billion, up from $63.1 billion in the second quarter of 2024 and $65.9 billion in the third quarter of 2023.

Return on average assets (ROA) for the third quarter of 2024 stood at 0.92%, down from 1.05% in the previous quarter and 1.12% in the third quarter of 2023. Return on average common shareholders' equity (ROE) also saw a decline to 10.88% in the third quarter of 2024, compared to 14.78% in the second quarter of 2024 and 19.50% in the third quarter of 2023.

The net interest margin decreased by 6 basis points to 2.80% compared to the previous quarter. The provision for credit losses was reported at $14 million for the third quarter of 2024, the same as the third quarter of 2023. Noninterest income decreased to $277 million from $291 million in the previous quarter.

Comerica's common equity tier 1 capital ratio increased to 11.97% compared to 11.55% in the second quarter of 2024 and 10.80% in the third quarter of 2023. The tier 1 capital ratio also saw an increase, reaching 12.51% in the third quarter of 2024, up from 12.08% in the second quarter of 2024 and 11.30% in the third quarter of 2023.

The company's net interest income remained stable at $534 million, with total earning assets at $73.1 billion. However, the net interest margin decreased by 6 basis points to 2.80%.

In terms of credit quality, Comerica reported net charge-offs of $11 million, unchanged from the previous quarter. The allowance for credit losses totaled $720 million, representing an increase of 5 basis points to 1.43% of total loans.

Following these announcements, the company's shares moved 4.8%, and are now trading at a price of $65.63. For the full picture, make sure to review Comerica's 8-K report.

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