Comerica (CMA) Q4 2024 earnings summary

Executive summary

• 2024 featured strong credit quality, conservative capital management, and enhanced liquidity, with CET1 at 11.89% and resumed share repurchases.

• Full-year net income was $698 million ($5.02/share), with Q4 net income of $170 million ($1.22/share); book value and tangible book value per share increased year-over-year.

• Strategic investments were made in relationship managers, technology, risk management, and community support, advancing growth and efficiency.

• Customer sentiment improved late in the year, supporting expectations for growth in 2025.

• Focus remained on capital and liquidity improvement, expense discipline, and digital transformation.

Financial highlights

• FY24 net income was $698M, with EPS of $5.02 and adjusted EPS of $5.39; Q4 net income was $170M, EPS $1.22.

• Net interest income for 2024 was $2.19B, down from $2.51B in 2023; Q4 net interest income rose $41M to $575M.

• Average loans for 2024 were $51.0B, down $2.9B year-over-year; average deposits were $63.9B, down $2.1B, mainly due to reduced brokered deposits.

• Noninterest income for 2024 was $1.05B, down $24M year-over-year, including a $19M loss from securities repositioning.

• Efficiency ratio for 2024 was 70.68%, up from 65.56% in 2023.

Outlook and guidance

• 2025 average loans projected to be flat to up 1%, with 2% growth excluding commercial real estate.

• Net interest income expected to increase 6%-7% in 2025; noninterest income to rise 4%; expenses to grow 3%.

• Full-year average customer deposits (excluding brokered CDs) expected to grow 1%; overall average deposits to decline 2%-3% due to brokered CD reduction.

• Net charge-offs projected at the lower end of the 20-40 bps range; CET1 ratio to remain well above 10% target, likely above 11% for 2025.

• Share repurchases targeted at approximately $50 million in Q1 2025.