Comerica Inc. (CMA) posted its Q3 2024 earnings, reporting $184 million in net income, or $1.33 per diluted share, despite facing slower loan demand.
Comerica Inc. is a financial services company headquartered in Dallas, Texas, specializing in commercial banking, wealth management, and retail banking.
The quarter’s results were driven by robust deposit growth and disciplined cost management.
Key Financial Highlights: Revenue and Deposit Growth
Comerica achieved $534 million in net interest income, a slight increase from the previous quarter, supported by solid deposit growth.
Average deposits grew by $841 million, reaching $63.9 billion, largely through higher interest-bearing deposits.
This boost in deposits helped maintain a stable net interest margin of 2.80%, even as loan demand remained moderate.
CHECK THIS OUT: Pfizer Beats Q3 Forecasts, Eyes Growth in Weight-Loss Market.
Focus on Cost Efficiency and Credit Quality
The bank saw a 14% drop in noninterest income to $277 million, primarily due to reduced income from risk management hedges.
Noninterest expenses rose to $562 million, driven by higher salaries and occupancy costs, partially offset by lower FDIC expenses. Comerica’s efficiency ratio was 68.8%, reflecting its continued focus on cost control.
Credit quality remained strong, with net charge-offs at 0.08%, well below historical averages, and a credit loss allowance of 1.43% of total loans. This solid credit standing provides a cushion against economic uncertainties.
Capital Strength and Shareholder Returns
Comerica’s Common Equity Tier 1 capital ratio improved to 11.97%, comfortably exceeding regulatory targets.
The board declared $94 million in dividends and confirmed plans to resume share buybacks, targeting $100 million in Q4 2024.
Chairman and CEO Curtis C. Farmer stated,
“Our strong capital and disciplined expense management position us well for growth, allowing us to deliver value to shareholders while managing risk effectively.”
Comerica’s Q3 results emphasize its focus on deposit growth, solid credit quality, and shareholder returns, reinforcing its position in a challenging banking environment.
READ ALSO: Visa Q3 2024: Revenue Reaches $8.9B, Driven by Cross-Border Gains and Super Micro Shares Drop 30% as Auditor Resigns Over Concerns.
