Comerica Inc. (CMA) saw a 1.2% increase in its stock during premarket trading on Friday following the release of its third-quarter financial results. The bank reported a 28% decrease in net income, which amounted to $251 million or $1.84 per share, compared to $351 million or $2.60 per share in the same quarter last year. Despite this decline, the bank exceeded the FactSet consensus estimate of $1.69 per share.
Strong Performance in Net Interest Income
Comerica's net interest income for the third quarter dropped to $601 million from $707 million. However, this figure still managed to surpass the analyst forecast of $392 million.
Steady Loan Growth and Deposit Decline
Total loans showed positive growth, increasing to $53.99 billion compared to $51.1 billion in the year-ago period. On the other hand, total deposits decreased from just under $74 billion to $65.9 billion.
Strategic Balance Sheet Management
Comerica's Chief Executive, Curtis C. Farmer, attributed the bank's ability to absorb $6 billion in wholesale funding maturities to strategic balance sheet management. He also highlighted that customer deposits experienced growth while loans were moderated.
Positioned for Future Growth
Farmer emphasized the bank's excess cash and significant liquidity capacity, which provide flexibility for future growth opportunities. Comerica is focused on prioritizing high-return growth in the coming years.
Overall, despite a decrease in net income, Comerica Inc. displayed resilience and strategic financial management during the third quarter.
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