Fri, Jul 26, 8:24 PM (43 days ago)
Comerica Incorporated's Q2 2024 financial results showed a mixed performance. Net income was $206 million, up $68 million from Q1 2024, driven by higher noninterest income and lower noninterest expenses, despite a decline in net interest income. Net interest income fell by $15 million to $533 million, influenced by lower deposit balances at the Federal Reserve and loan volumes, partially offset by reduced high-cost funding sources. The provision for credit losses was zero, reflecting improved economic outlooks and portfolio composition changes. Noninterest income rose by $55 million, mainly due to gains in risk management hedging and capital markets income. Noninterest expenses decreased by $48 million, with significant reductions in FDIC insurance and salaries and benefits. Year-over-year, net income for the first half of 2024 dropped by $253 million to $344 million, impacted by higher interest expenses and lower loan volumes. The allowance for credit losses decreased slightly to $717 million, and nonperforming assets increased to $226 million, reflecting higher nonaccrual business and retail loans. The commercial real estate and automotive sectors remained key focus areas, with the former comprising 36% of total loans. The bank's capital ratios remained strong, with a CET1 ratio of 11.55%. Overall, Comerica's financial health showed resilience with strategic cost management, though challenges persisted in interest income and credit quality. Future operations will likely focus on optimizing loan and deposit balances and managing credit risks amidst economic uncertainties.