- After reporting better-than-expected Q1 results, Comerica (NYSE:CMA) should outperform its peers, writes Robert W. Baird's David George in a note.
- That doesn't seem to by applying to Comerica's recent stock action--shares are down 2.0%, while the SPDR S&P Regional Banking ETF (NYSEARCA:KRE) falls only 0.1% in early trading.
- George's reasons for his optimism: "Core EPS beat driven by strong loan growth, NIM expansion, and lower-than-expected credit costs."
- He notes that average loan growth, at 1.7% Q/Q, was better than expected, 9 basis points of NIM expansion from Q4, sturdy expense controls, lower net charge-offs, and 5.1M share buyback; on the negative side, "criticized loans" increased ~$250M Q/Q to 3.6% of loans from 3.1%.
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Analyst ratings.
- Previously: Comerica Q1 loans rise, deposits fall (April 16)