Comerica (CMA) Goldman Sachs 2024 U.S. Financial Services Conference summary

Business performance and outlook

• Exceeded 3Q24 guidance and expect strong growth in 4Q24 and into 2025, with positive net interest income trajectory and broad-based business growth.

• Loan balances remained flat through 11/30/24, with optimism for increased demand as policy clarity emerges in 2025.

• Customer sentiment is positive heading into 2025, with continued momentum in core deposit growth and noninterest income.

• Net interest income is tracking in line with guidance, with structural benefits expected from maturing swaps and securities over the next year.

• Credit quality remains strong, with low net charge-offs and well-managed portfolio migration.

Deposit and loan trends

• Core customer deposits increased by $500 million, while brokered deposits declined by $1.2 billion.

• Average deposits in 4Q24 are projected to exceed prior guidance, driven by growth in interest-bearing deposits and reductions in brokered time deposits.

• Noninterest-bearing deposits made up 38% of total deposits in 3Q24, supporting a strong funding mix.

• CRE loan declines are attributed to natural paydowns, while other segments show healthy demand and conversations.

• Loan growth is expected to resume across most business lines in 2025 as policy certainty improves.

Strategic investments and growth initiatives

• Investments in capital markets, treasury management, wealth management, and regional expansion are driving revenue opportunities.

• Focus remains on organic growth, with continued expansion in the Southeast and Mountain West and talent acquisition in key markets.

• Digital and technology enhancements, as well as risk management, are priorities as the bank approaches the $100 billion asset threshold.

• No immediate plans for inorganic growth; any acquisition would require a strong strategic fit.

• Wealth management contributed ~27% of noninterest income, with over $210B in assets under administration.