Comerica (CMA) Q4 2024 earnings summary

Executive summary

• 2024 marked a year of foundational strength, with enhanced capital, liquidity, and credit quality, positioning for long-term growth; CET1 ended at 11.89%, well above target.

• Book value and tangible book value per share grew year-over-year; share repurchases resumed in Q4, with $193 million returned to shareholders via buybacks and dividends.

• Strategic investments advanced in relationship managers, technology, and capital markets, with a focus on digital transformation and efficiency.

• Maintained strong credit quality with historically low net charge-offs and enhanced risk strategy.

• Customer deposit balances improved, supporting a reduction in wholesale funding and benefiting net interest income.

Financial highlights

• FY 2024 net income was $698 million ($5.02 per share); Q4 net income was $170 million ($1.22 per share); adjusted diluted EPS for 2024 was $5.39.

• Net interest income for 2024 was $2.19 billion, down $324 million year-over-year; Q4 net interest income rose $41 million sequentially to $575 million.

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

• Noninterest expenses for 2024 were $2.31 billion, down $52 million year-over-year, but Q4 expenses increased $25 million sequentially.

• Average loans for 2024 were $51.0 billion, down $2.9 billion year-over-year; average deposits were $63.9 billion, down $2.1 billion.

Outlook and guidance

• 2025 average loans projected to be flat to up 1%; excluding CRE, 2% growth expected.

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

• Net interest income forecasted to rise 6%-7% in 2025; noninterest income and expenses both projected to increase.

• Noninterest expenses expected to grow 3% in 2025, with Q1 up 2% sequentially; higher salaries and pension costs anticipated.

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