Comerica Incorporated, a financial services company, has reported its financial results for the fourth quarter and full year of 2024. The company posted a net income of $698 million, or $5.02 per share, for the full year of 2024, compared to $881 million, or $6.44 per share, in the previous year. In the fourth quarter of 2024, Comerica reported a net income of $170 million, or $1.22 per share, compared to $184 million, or $1.33 per share, in the third quarter of 2024.
In terms of average balances, loans decreased to $50.6 billion in the fourth quarter of 2024 compared to $50.9 billion in the third quarter of 2024. The average yield on loans (including swaps) increased by 1 basis point to 6.25% in the fourth quarter, reflecting the positive impact from the cessation of the Bloomberg Short-Term Bank Yield Index (BSBY) and higher nonaccrual interest.
Deposits decreased to $63.3 billion in the fourth quarter of 2024 from $63.9 billion in the third quarter of 2024. The average cost of interest-bearing deposits decreased by 40 basis points to 291 basis points in the fourth quarter, reflecting disciplined pricing and the decrease in brokered time deposits.
Net interest income increased to $575 million in the fourth quarter of 2024, with a net interest margin of 3.06%, up 26 basis points from the previous quarter. The company's provision for credit losses increased to $21 million in the fourth quarter of 2024.
Noninterest income decreased to $250 million in the fourth quarter of 2024, driven by a $19 million loss related to the repositioning of the securities portfolio, as well as decreases in deferred compensation asset returns, fiduciary income, and capital markets income.
Noninterest expenses increased to $587 million in the fourth quarter of 2024, with increases in litigation-related expenses, salaries and benefits expense, and charitable contributions, partially offset by gains on the sale of real estate and a decrease in operational losses.
Comerica also highlighted its capital position, reporting an estimated Common Equity Tier 1 Capital Ratio of 11.89% and a Tier 1 Capital Ratio of 12.43% as of December 31, 2024.
Additionally, the company returned a total of $193 million to common shareholders through share repurchases and dividends in the fourth quarter of 2024.
For the full year of 2024, loans decreased to $51.0 billion, securities decreased to $15.8 billion, and deposits decreased to $63.9 billion. Net interest income decreased to $2.2 billion, with a net interest margin of 2.88%. The provision for credit losses decreased to $49 million, and noninterest income decreased to $1.1 billion. Noninterest expenses decreased to $2.3 billion for the full year of 2024.
Following these announcements, the company's shares moved -5.0%, and are now trading at a price of $63.08. For the full picture, make sure to review Comerica's 8-K report.
