Comerica (CMA) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $172 million, or $1.25 per share, up from $170 million in Q4 2024 and $138 million in Q1 2024, driven by stable net interest income, improved profitability, and expense discipline.

• Book value and tangible common equity grew over year-end 2024, reflecting robust capital management.

• Profitability improved with deposits, net interest income, and expenses outperforming guidance.

• Maintained strong liquidity, conservative capital position, and proven credit quality.

• Customer sentiment softened amid macroeconomic uncertainty, but the diversified business mix and relationship model are seen as competitive advantages.

Financial highlights

• Net income for Q1 2025 was $172 million, with EPS of $1.25, net interest income stable at $575 million, and noninterest income up to $254 million.

• Net interest margin rose to 3.18% from 3.06% in Q4 2024 and 2.80% in Q1 2024.

• Noninterest expenses decreased by $3 million to $584 million, with efficiency ratio at 70.28%.

• Average loans declined less than 1% quarter-over-quarter, mainly due to lower balances in National Dealer Services and commercial real estate.

• Tangible common equity ratio improved to 7.82% from 7.00% in Q4 2024.

Outlook and guidance

• Full-year 2025 average loans expected to be down 1%-2%, with loan growth anticipated to resume in the second half.

• Full-year average deposits forecasted to decline 2%-3%, with Q2 deposits expected to be flat versus Q1.

• Net interest income projected to increase 5%-7% for 2025, with quarter-to-quarter growth expected after Q2.

• Noninterest income and expenses both expected to rise 2%-3% for FY25.

• CET1 ratio expected to remain well above the 10% strategic target throughout 2025.