Why Comerica Shares Are Trading Lower Today

Comerica Incorporated CMA reported Q3 2023 revenues of $896 million, beating the consensus of $878.71 million.

Net interest income slumped 15% to $601 million from $707 million a year ago, with net interest margin falling to 2.84% from 3.51%. EPS of $1.84 beat the consensus of $1.69.

Average loans increased 5.6% to $53.99 billion from $51.11 billion. Average deposits declined 10.9% to $65.88 billion from $73.98 billion.

Provision for credit losses decreased to $14 million from $28 million a year ago. CET1 capital ratio stood at 10.79% vs. 9.93% a year ago.

Total liquidity capacity at period-end totaled $45.1 billion, including cash and available liquidity through the FHLB, the FRB discount window and Bank Term Funding Program. 

"Credit migration continued in line with expectations and was more concentrated in customers or businesses with greater relative exposure to elevated rates and inflationary pressures. While the economic forecast improved slightly from the prior quarter, the economic outlook remained uncertain which, coupled with lower loan balances, contributed to an uptick in the allowance for credit losses to 1.38% of total loans. Consistent with our proven credit discipline, we continue to closely monitor our portfolio and expect further migration to remain manageable," said Curtis C. Farmer, Chairman and CEO.

Price Action: CMA shares are trading lower by 6.56% at $38.77 on the last check Friday.