Comerica (CMA) Reports Q1 Loss Per Share of $0.46

Comerica (NYSE: CMA) reported Q1 EPS of ($0.46), may not compare to the analyst estimate of $0.95.

• Allowance for Loan Losses of $916 Million, or 1.71% of Total Loans

Outlook for Second Quarter 2020 Compared to First Quarter 2020:

Based on management expectations for recessionary conditions:

• Growth in average loans, reflecting an increase in Mortgage Banker Finance and support of customers' liquidity needs, including through the Paycheck Protection Program, partly offset by customers' reduced working capital and capital expenditure needs.

• Growth in average deposits as customers conserve liquidity and receive benefits of economic stimulus programs, partly offset by customers using cash to meet operating needs.

• Decrease in net interest income due to the net impact of lower interest rates, partially offset by loan growth.

◦ Estimated $55 million net reduction from lower interest rates.

• Provision for credit losses highly uncertain, reflective of economic environment, including the effects resulting from the duration and severity of the COVID-19 pandemic. Current reserve is appropriate based on expected recessionary conditions as of March 31, 2020.

• Stable noninterest income with increase in card fees offset by reduced economic activity and lower market-based fees.

• Increase in noninterest expenses from higher outside processing expenses and costs related to the COVID-19 pandemic as well as the impact of merit increases, partially offset by continued expense discipline.

• Capital to reflect suspension of share repurchase program and focus on supporting customers' financing needs as well as providing an attractive dividend.

For earnings history and earnings-related data on Comerica (CMA) click here.

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