Entering text into the input field will update the search result below

Comerica: Earnings Depending On A Rising Interest-Rate Environment

Jan. 02, 2022 7:30 AM ETComerica Incorporated (CMA)6 Comments
Sheen Bay Research profile picture
Sheen Bay Research


  • Most of CMA’s loans are based on floating rates; therefore, they will reprice soon after an interest-rate hike. Meanwhile, the deposit cost will remain sticky due to the deposit mix.
  • Reversals of provisioning will likely taper off in early 2022. Nevertheless, the net provision expense will most probably remain below normal.
  • After a prolonged declining trend, the loan portfolio will likely turn around this year on the back of economic strength.
  • The December 2022 target price suggests a small downside from the current market price. Further, CMA is offering a modest dividend yield.

Comerica Bank branch

Sundry Photography/iStock Editorial via Getty Images

Earnings of Comerica Incorporated (NYSE:CMA) will likely dip next year after a phenomenal year as reserve releases will taper off once allowances have declined to a comfortable level. However, a rising interest-rate environment will

This article was written by

Sheen Bay Research profile picture
Around 10 years of experience covering Banks and Macroeconomics. Passionate about discovering lucrative investments and generating alpha.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: This article is not financial advice. Investors are expected to consider their investment objectives and constraints before investing in the stock(s) mentioned in the article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.