Comerica (CMA) Q4 2024 earnings summary

Executive summary

• 2024 featured strong capital and liquidity positions, with CET1 at 11.89%, resumed share repurchases, and a focus on conservative capital management and digital transformation.

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

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

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

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

Financial highlights

• FY24 net income was $698M, down $183M from FY23; EPS was $5.02, down $1.42 year-over-year.

• Net interest income for 2024 was $2.19 billion, down from $2.51 billion in 2023; 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, reflecting lower FDIC insurance expense and other cost controls.

• 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%, with 2% growth excluding commercial real estate.

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

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

• 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.

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