Comerica Incorporated (CMA), a provider of banking and wealth management services, reported on Tuesday a rise of 3.73 percent in net income for the first quarter of fiscal 2013.
The bank earned $139 million, or $0.73 a share in the fourth-quarter compared with $134 million or 0.70 a share, a year ago. Analysts on average had predicted net income of $0.72 a share.
The bank's revenues, which include net interest income and non-interest income, went down 1.75 percent over the prior year period to $618 million.
Net interest income for the quarter dropped 1.44 percent over the prior year period to $410 million.
Non-interest income of the bank went down 2.35 percent over the last year period to $208 million.
"Comerica's first quarter 2014 financial results reflect solid loan growth across our footprint and nearly all of our business lines," said Ralph W. Babb Jr., chairman and chief executive officer. "The more than $1 billion, or 2 percent, increase in average total loans, compared to the fourth quarter 2013, was led by increases in general Middle Market, Commercial Real Estate, Energy, Technology & Life Sciences, and Corporate Banking, partially offset by a decrease in Mortgage Banker Finance. Other highlights in the first quarter included an increase of $458 million in period-end deposits, to $53.8 billion. We also had continued strong credit quality and well-controlled expenses. The deep and enduring relationships we have with our customers are making a positive difference in our bottom line."
"Our capital position remains a source of strength to support our growth. We repurchased 6.9 million shares under our 2013 capital plan, including 1.5 million shares in the first quarter of 2014. Combined with dividends, we returned $107 million, or 77 percent of first quarter net income, to shareholders. We were pleased the Federal Reserve did not object to our 2014 capital plan and contemplated capital distributions, including up to $236 million in share repurchases for the four-quarter period that ends in the first quarter of 2015. We remain focused on providing a good return to shareholders while maintaining our strong capital ratios," he added.
The bank has made provision of $8 million for loan losses during the quarter, which was lower by 33.3 percent from $12 million in the same period last year.
During the quarter, net interest margin has contracted by 11 basis points over the previous year period to 2.77 percent.
Comerica's assets stood at $ 65,681 million as on Mar. 31, 2014, up 1.23 percent compared with $64,885 million on Mar. 31, 2013.
The bank's liabilities stood at $58,398 million as on Mar. 31, 2014, up 0.87 percent from $57,897 million on Mar. 31, 2013.
