Q2 2024 Comerica Inc Earnings Call Transcript
Key Points
- Comerica Inc (CMA) reported second-quarter earnings of $206 million, or $1.49 per share, outperforming the first quarter.
- Credit quality remained strong with net charge-offs at 9 basis points, below historical averages.
- Noninterest income increased by $55 million, driven by growth across most customer-related categories.
- Expenses improved by $48 million over the prior quarter, with significant reductions in salaries, benefits, and FDIC expenses.
- The company's estimated CET1 ratio grew to 11.55%, remaining above the 10% strategic target.
- Average loans declined due to muted first-quarter demand and low utilization trends in certain sectors.
- Average deposit balances decreased by $2.3 billion, with significant pressure on noninterest-bearing balances.
- Net interest income decreased by $15 million, impacted by lower Fed deposits and loan balances.
- Comerica Inc (CMA) was not selected to continue serving as the financial agent for the Direct Express prepaid debit card program, potentially impacting future deposit balances.
- The company expects a 14% decline in net interest income year-over-year due to ongoing deposit and loan pressures.
Hello, and welcome to the Comerica second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It's now my pleasure to turn the call over to Kelly Gage, Director of Investor Relations. Please go ahead, Kelly.
Thanks, Kevin. Good morning, and welcome to Comerica's second-quarter 2024 earnings conference call. Participating on this call will be our President, Chairman and CEO, Curt Farmer; Chief Financial Officer, Jim Herzog; Chief Credit Officer, Melinda Chausse; and Chief Banking Officer, Peter Sefzik.
During this presentation, we will be referring to slides which provide additional details. The presentation slides and our press release are available on the SEC's website as well as on the Investor Relations section of our website, Comerica.com.
The presentation and this conference call contain forward-looking statements. In that regard, you should be mindful of the risks and uncertainties that can cause actual
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