Post Earnings Coverage as Comerica’s Q1 Bottom-line Surged 239%

Upcoming AWS Coverage on State Bank Financial Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 24, 2017 / Active Wall St. announces its post-earnings coverage on Comerica Inc. (NYSE: CMA). The Company reported its financial results for the first quarter fiscal 2017 (Q1 FY17) on April 18, 2017. The Dallas, Texas-based bank’s quarterly net income surged 239% y-o-y. Register with us now for your free membership at:

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One of Comerica’s competitors within the Money Center Banks space, State Bank Financial Corp. (NASDAQ: STBZ), announced on April 06, 2017, that it will release its financial results for Q1 ended March 31, 2017, in a press release before the market opens on Thursday, April 27, 2017. AWS will be initiating a research report on State Bank Financial in the coming days.

Today, AWS is promoting its earnings coverage on CMA; touching on STBZ. Get our free coverage by signing up to

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Earnings Reviewed

In the three months ended on March 31, 2017, Comerica’s net interest income increased to $470 million from $447 million in Q1 FY16. Total non-interest revenues also improved to $271 million in Q1 FY17 from $244 million in the prior year’s same quarter. Comerica’s net interest margin improved to 2.86% as on March 31, 2017, from 2.81% on March 31, 2016. Furthermore, the Company reported non-interest expense of $457 million, Q1 FY17, which came in flat with respect to $458 million reported in the year ago comparable period.

The financial services Company reported net income attributable to common shares of $200 million, or $1.11 per diluted share, in Q1 FY17, surging from $59 million, or $0.34 per diluted share, in Q1 FY16. Furthermore, the Company’s Q1 FY17 net income included $24 million, $0.13 per share of tax benefits from employee stock transactions and the $7 million, $0.04 per share after-tax impact of restructuring charges associated with GEAR Up. Wall Street had expected the Company to report net income of $0.94 per diluted share.

Performance Metrics

During Q1 FY17, Comerica reported total average loans of $47.90 billion, which was lower than $48.39 billion in Q1 FY16. However, total deposits increased to $57.78 billion in Q1 FY17 from $56.71 billion in Q1 FY16.

In Q1 FY17, total earnings assets grew to $66.65 billion from $64.12 billion in last year’s comparable quarter. For Q1 FY17, Comerica’s return on average assets surged to 1.14% compared to 0.35% in the previous year’s corresponding period. The Company’s return on average common shareholders’ equity also increased to 10.42% in Q1 FY17 from 3.14% reported in the year ago same quarter. Furthermore, the bank’s efficiency ratio was 61.63% in Q1 FY17, versus 65.99% in Q1 FY16.

As on March 31, 2017, the bank’s common equity tier 1 ratio was 11.54%, compared with 10.58% as on March 31, 2016. During Q1 FY17, non-performing assets were down to $545 million, or 1.13% of total loans and foreclosed property from $714 million, or 1.45% of total loans and foreclosed property, in Q1 FY16. During the quarter, net related charge-offs were $33 million, or 0.28% of average total loans, versus $58 million, or 0.49% of average total loans.

Segment Performance

For the reported period, Business Bank’s net interest income fell to $332 million from $357 million in the previous year’s comparable quarter. However, the segment’s non-interest income increased to $144 million in Q1 FY17 from $136 million in Q1 FY16. Additionally, the segment net income rose to $177 million in Q1 FY17 from $92 million in Q1 FY16.

Retail Bank segment’s net interest income grew to $160 million from $155 million in the prior year’s same quarter. The segment’s non-interest income was increased to $48 million in Q1 FY17 from $44 million in Q1 FY16. Furthermore, the segment’s net income came in flat at $11 million in Q1 FY17.

Comerica’s Wealth Management reported net interest income of $41 million in Q1 FY17 compared to $43 million in the prior year’s same quarter. The segment’s non-interest income improved to $64 million in the reported quarter to $58 million in the year ago same period. Moreover, the segment’s net income was $23 million in Q1 FY17 versus $21 million in Q1 FY16.

Share Repurchase

In Q1 FY17, the Company repurchased 1.5 million shares under the equity repurchase program for $105 million.

Stock Performance

At the closing bell, on Friday, April 21, 2017, Comerica’s stock slightly slipped 0.72%, ending the trading session at $68.71. A total volume of 3.36 million shares were traded at the end of the day, which was higher than the 3-month average volume of 1.69 million shares. In the last six months and previous twelve months, shares of the Company have surged 33.59% and 64.40%, respectively. The Company’s shares are trading at a PE ratio of 19.99 and have a dividend yield of 1.34%. At Friday’s closing price, the stock’s net capitalization stands at $12.39 billion.

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