Comerica Q2 Earnings Top Estimates - Update

(RTTNews) - Financial services company Comerica Inc. (CMA) Tuesday reported a second-quarter profit that remained unchanged from last year, while earnings per share increased and topped analysts' expectations. The firm posted lower net interest income and non-interest income.

Ralph Babb Jr., chairman and chief executive officer of the company said, "Average loan growth and fee growth, expense control and continued solid credit quality, contributed to our 9 percent increase in earnings per share in the second quarter."

Looking ahead to full-year 2013, the firm expects lower net interest income, reflecting both a decline in purchase accounting accretion and effect of continued low rates.

In the second quarter, net income attributable to common shares remained flat at $141 million, while earnings per share improved to $0.76 from $0.73 per share in the previous year.

On average, 33 analysts polled by Thomson Reuters expected earnings per share of $0.70 for the quarter. Analysts' estimates typically exclude one-time items.

Quarterly net interest income declined to $414 million from $435 million in the prior year. Non-interest income was $208 million, lower than $211 million in the preceding year. Analysts estimated revenues of $621.29 million for the quarter.

Non-interest expenses declined to $416 million from $434 million in the year-ago quarter. Net interest margin fell to 2.83 percent from 3.10 percent in the previous year.

Provision for credit losses was $13 million, down from $19 million reported last year.

Total loans for the quarter advanced to $44.89 billion from $43.23 billion, and total deposits were $51.45 billion, higher than $48.67 billion in the prior year.

Tier 1 common capital ratio was 10.41 percent, compared to 10.39 percent a year ago.

During the quarter, the company repurchased 1.9 million shares under its share repurchase program and combined with dividends, returned 72 percent of second quarter net income to shareholders.

For the full year, the company projects continued growth in average loans at a slower pace, with demand impacted by economic uncertainty and a continued focus on maintaining pricing and structure discipline in a competitive environment.

CMA closed Monday's regular trading at $41.56 on the NYSE.