Comerica (CMA) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $199 million, up 16% sequentially, with EPS of $1.42, reflecting broad-based loan growth, higher noninterest income, and lower expenses, offsetting modest deposit pressures.

• CET1 capital ratio remained robust at 11.94%, well above the 10% target, after higher loan growth, dividends, and increased share repurchases.

• $193 million was returned to shareholders in Q2 2025 via dividends and share repurchases, with share repurchases increased to $100 million.

• Strategic investments in payments and deposit products, including new real-time payment solutions, are driving growth and positioning for future opportunities.

• Customer sentiment is improving, with increased investments and positive momentum in loan pipelines and deposit gathering.

Financial highlights

• Net interest income was stable at $575 million for Q2 2025; net interest margin decreased 2 bps to 3.16%.

• Noninterest income rose $20 million sequentially to $274 million, driven by capital markets and fiduciary income.

• Noninterest expenses fell $23 million to $561 million, mainly due to lower salaries, litigation, and FDIC assessment, with notable one-time benefits.

• Average loans grew 3% quarter-over-quarter to $51.2 billion; average deposits declined just over 1% to $61.2 billion.

• Net charge-offs were 22 bps, at the low end of the normal range; allowance for credit losses remained at 1.44% of total loans.

Outlook and guidance

• Full-year 2025 average loans expected to be flat to down 1%, an improvement from prior guidance; average deposits projected to be down 2–3%.

• Net interest income projected to grow 5–7% in 2025, but likely at the lower end of the range due to deposit trends and preferred stock redemption.

• Noninterest income expected to grow 2–7% for the year; noninterest expenses now forecast to rise only 2% year-over-year.

• Full-year net charge-offs expected at the lower end of the 20–40 bps range; tax rate anticipated at ~20% excluding discrete items.

• CET1 ratio to remain well above 10% target; $100 million in share repurchases planned for Q3 2025.