CEO Curtis C. Farmer said that stronger-than-expected non-interest-bearing balances and proactive deposit pricing strategies offset the impact of muted loan demand.
Financial services company Comerica’s first quarter report was in the spotlight on Monday morning after earnings surpassed Wall Street estimates, but revenue failed to meet expectations.
First-quarter (Q1) revenue stood at $829 million compared to a Wall Street estimate of $837 million. However, earnings per share (EPS) came in at $1.25, beating an analyst estimate of $1.13.
Net interest income (NII), the difference between interest earned and expended, rose 5% year-over-year (YoY) to $575 million during the quarter.
Non-interest income rose 8% YoY to $254 million during the quarter.
On a sequential basis, Comerica clarified that excluding the impact of a $19 million loss related to repositioning the securities portfolio in fourth quarter (Q4) of 2024, non-interest income decreased $15 million, which included decreases of $5 million in capital markets income, $3 million in card fees and smaller declines in other categories.
Net income rose 25% YoY to $172 million during the quarter.
Net interest margin (NIM) rose 12 basis points quarter-on-quarter (QoQ) to 3.18%.
Sequentially, Comerica reported a $1 million decline in provision for credit losses to $20 million during the quarter. Asset quality improved with non-performing assets decreasing $7 million to $301 million.
CEO Curtis C. Farmer said that stronger-than-expected non-interest-bearing balances and proactive deposit pricing strategies offset the impact of muted loan demand.
“The increase in non-interest income reflected the fourth quarter 2024 loss related to our securities repositioning. Credit quality remained a competitive strength as migration was manageable, and net charge-offs remained low,” he added.
Comerica shares have declined by nearly 14% in 2025 and are up 0.65% over the past 12 months.
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