Comerica Incorporated (CMA) has reported a 41.74 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $163 million, or $0.92 a share in the quarter, compared with $115 million, or $0.64 a share for the same period last year.
Revenue during the quarter grew 7.51 percent to $687 million from $639 million in the previous year period. Net interest income for the quarter rose 5.08 percent over the prior year period to $455 million. Non-interest income for the quarter rose 0.38 percent over the last year period to $267 million.
Comerica Incorporated has made provision of $35 million for loan losses during the quarter, down 41.67 percent from $60 million in the same period last year.
Net interest margin improved 7 basis points to 2.65 percent in the quarter from 2.58 percent in the last year period. Efficiency ratio for the quarter improved to 63.58 percent from 68.92 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"2016 was a pivotal year with the development and implementation of our enterprise-wide GEAR Up initiative," said Ralph W. Babb, Jr., chairman and chief executive officer. "We have made significant progress in executing the expense savings and are fully committed to delivering on the efficiency and revenue opportunities to further enhance our profitability and shareholder value. We also benefited meaningfully from increased interest rates, and our overall credit metrics remained strong. "Our fourth quarter earnings per share increased 10 percent over the third quarter," said Babb. In addition, the rise in rates late in the quarter boosted our net interest income. While average loan balances were relatively stable, reflecting seasonality in some of our businesses along with the continued reduction of our Energy portfolio, average deposit growth was robust, increasing $1.6 billion over the third quarter."
Assets outpace liabilities growth
Total assets stood at $72,978 million as on Dec. 31, 2016, up 1.53 percent compared with $71,877 million on Dec. 31, 2015. On the other hand, total liabilities stood at $65,182 million as on Dec. 31, 2016, up 1.34 percent from $64,317 million on Dec. 31, 2015.
Loans, deposits remain almost stable
Net loans stood at $48,358 million as on Dec. 31, 2016, down 0.19 percent compared with $48,450 million on Dec. 31, 2015. Deposits stood at $58,985 million as on Dec. 31, 2016, down 1.45 percent compared with $59,853 million on Dec. 31, 2015.
Investments stood at $12,461 million as on Dec. 31, 2016, down 1.21 percent or $152 million from year-ago. Shareholders equity stood at $7,796 million as on Dec. 31, 2016, up 3.12 percent or $236 million from year-ago.
Return on average assets moved up 24 basis points to 0.88 percent in the quarter from 0.64 percent in the last year period. At the same time, return on average equity increased 240 basis points to 8.48 percent in the quarter from 6.08 percent in the last year period.
Credit quality deteriorates
Comerica Incorporated witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 55.24 percent or $216 million to $607 million on Dec. 31, 2016 from $391 million on Dec. 31, 2015. Nonperforming assets to total loans was 1.24 percent in the quarter, up from 0.80 percent in the last year period.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
