Comerica -2.2% after Q2 EPS misses, NIM slips

|About: Comerica Incorporated (CMA)|By:, SA News Editor

Comerica (NYSE:CMAslides 2.2% in premarket trading after Q2 EPS of $1.94 misses the average analyst estimate of $2.00 and compares with $2.08 in Q1 and $1.90 in the year-ago quarter.

Q2 net interest income of $603M slips from $606M in Q1, up from $590M in the year-ago quarter; net interest margin of 3.67% slides from 3.79% and Q1 and improves from 3.62% in Q2 2018.

Average loans of $51.0B rises 3% Q/Q from $49.7B and vs. $49.2B in Q2 2018; average deposits of $55.0B increased from $54.0B in Q1 and fell from $55.8B in Q2 2018.

Provision for credit losses of $44M compares with a credit of $13M in Q1 and a credit of $29M in Q2 2018.

Efficiency ratio of 49.65% vs. 50.81% in Q1 and 53.24% in Q2 2018.

Outlook for FY2019: Sees average loans up 3%-4%; average deposits down ~2%; net interest income up 2%; provision for credit losses at $25M-$35M per quarter for the rest of the year; noninterest income up 1%-2%; noninterest expenses down 1%-2%; tax rate ~23%; and targest ~10% CET1.

Previously: Comerica EPS misses by $0.06, misses on revenue (July 17)

Subscribe for full text news in your inbox