Comerica Inc (CMA) Reports Q3 2023 Earnings: Net Income of $251 Million, $1.84 Per Share
Comerica Inc (NYSE:CMA) reported a net income of $251 million for Q3 2023, translating to $1.84 per share.
The company's successful deposit strategy resulted in growth in customer balances.
Comerica Inc (NYSE:CMA) demonstrated prudent capital management and strong credit quality.
The company's CET1 ratio increased to 10.79%, surpassing its 10% target.
Comerica Inc (NYSE:CMA) released its Q3 2023 earnings on October 20, 2023, reporting a net income of $251 million, or $1.84 per share. The company's successful deposit strategy led to growth in customer balances, reflecting its strategic balance sheet management. The company's CET1 ratio increased to 10.79%, surpassing its 10% target, indicating strong capital management.
Financial Highlights
Comerica Inc (NYSE:CMA) reported a net interest income of $601 million, a decrease from $621 million in Q2 2023 and $707 million in Q3 2022. The provision for credit losses was $14 million, down from $33 million in Q2 2023 and $28 million in Q3 2022. Noninterest income was $295 million, slightly down from $303 million in Q2 2023 but up from $278 million in Q3 2022. The company's noninterest expenses increased to $555 million from $535 million in Q2 2023 and $502 million in Q3 2022.
Balance Sheet and Credit Quality
Comerica Inc (NYSE:CMA) reported average loans of $53,987 million and average deposits of $65,883 million. The company's return on average assets was 1.12%, and the return on average common shareholders' equity was 19.50%. The net interest margin was 2.84%, and the efficiency ratio was 61.86%. The company's common equity Tier 1 capital ratio was 10.79%, and the Tier 1 capital ratio was 11.29%.
Comerica's credit quality remained strong, with a net charge-off of 0.05% of average total loans. The allowance for credit losses increased to 1.38% of total loans, reflecting an uncertain economic outlook and credit migration, as well as changes in portfolio composition and lower loan volumes.
Future Outlook
Comerica Inc (NYSE:CMA) remains committed to running an efficient organization as it navigates expense pressures. The company's abundant liquidity and robust fee income provide flexibility as it positions itself to prioritize high-return growth in the future. The company's credit quality remains strong, and it expects further migration to remain manageable.
This article first appeared on GuruFocus.
