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DALLAS - Comerica Incorporated (NYSE:CMA) reported better-than-expected first quarter earnings on Monday.
The company’s shares were up 1.04% in premarket trading following the release.
The Dallas-based financial services company posted adjusted earnings per share of $1.25 for the quarter, beating analyst estimates of $1.16. Revenue came in at $829 million, slightly below the consensus forecast of $831.13 million but up 5.7% YoY from $784 million in Q1 2024.
"Today we reported first quarter earnings per share of $1.25," said Curtis C. Farmer, Comerica Chairman and Chief Executive Officer. "Stronger than expected noninterest-bearing balances and proactive deposit pricing strategies offset the impact of muted loan demand, contributing to net interest income outperforming our outlook for the quarter."
Net interest income was flat sequentially at $575 million but rose 4.9% YoY. The net interest margin expanded to 3.18%, up from 3.06% in Q4 2024 and 2.80% in Q1 2024.
Comerica saw lower expenses than in the fourth quarter, with noninterest expenses decreasing $3 million to $584 million. Credit quality remained stable, with net charge-offs of $26 million or 0.21% of average loans.
The company’s common equity tier 1 capital ratio improved to an estimated 12.05%, well above its 10% target.
Comerica’s stock was up 1.04% following the earnings release, as investors reacted positively to the earnings beat and improved profitability metrics.
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