LONDON, January 27, 2015 /PRNewswire/ --
Investor-Edge.com has issued free earnings review on Comerica Inc. (NYSE: CMA). On January 16, 2015, the company reported its financial results for Q4 FY14 and full year FY14 (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Comerica&d=27-Jan-2015&s=CMA to read our free earnings review on Comerica Inc. (Comerica). During FY14, the company's average total loans were up by $2.18 billion, or 5% Y-o-Y, while average total deposit grew $3.07 billion, or 6% Y-o-Y. Further, Comerica's 2014 net income increased 10% from a year ago, which according to Chairman and CEO, Ralph W. Babb Jr., reflects lower litigation-related expenses, a decrease in pension expense, and the company's continued drive for efficiency. He also added that company's credit quality continued to be strong. Our free coverage report can be accessed at:
During Q4 FY14, Comerica's average total loan improved to $47.36 billion from $44.05 billion in Q4 FY13. Further, the company's average total deposits also increased to $57.76 billion in Q4 FY14 from $52.77 billion in Q4 FY13. Comerica also reported net interest income of $415 million in Q4 FY14 compared to $430 million in Q4 FY13. During Q4 FY14, the company's net interest margin stood at 2.57% compared with 2.86% in Q4 FY13. Additionally, Comerica's Q4 FY14 noninterest income improved to $225 million from $219 million in Q4 FY13.The free research on CMA can be downloaded as in PDF format at:
In Q4 FY14, Comerica's net income attributable to common shares was $148 million compared to $115 million in Q4 FY13. The company reported diluted earnings per share of $0.80 in Q4 FY14 as compared to $0.62 in Q4 FY13. Analysts from Bloomberg had expected net income attributable to common shares of $141 million, or $0.76 per diluted share, in the quarter. During Q4 FY14, Comerica repurchased approximately 1.3 million shares of common stock under share repurchase program. The company has returned $95 million to shareholders, together with a dividend of $0.20 per share, in Q4 of 2014.
For FY14, Comerica's average total loan increased to $46.59 billion from $44.41 billion in FY13. The company's average total deposits also increased to $54.78 billion in FY14 from $51.71 billion in FY13. Furthermore, Comerica reported net interest income of $1.66 billion in FY14 compared to $1.68 billion in FY13. In FY14, net interest margin stood at 2.70% compared with 2.84% in FY13. Comerica's FY14 noninterest income stood at $868 million compared to $882 million in FY13. Sign up and read the free analyst's notes on CMA at:
As on December 31, 2014, Comerica's estimated Tier 1 common capital ratio was 10.53%, while tangible common equity ratio was 9.85%. Additionally, Comerica's estimated Tier 1 common ratio under fully phased-in Basel III capital rules and excluding most elements of accumulated other comprehensive income (AOCI) was 10.3%.
Mr. Babb stated that the while the company continues to manage headwinds, including the low-rate environment as well as rising technology and regulatory expenses, it remains focused on the long term. Comerica believes that its diverse geographic footprint is well situated, and along with the relationship banking strategy should contribute to its long-term growth.
For FY15, Comerica expects average full-year loan growth to be consistent with FY14, and relatively stable net interest income and noninterest income. The management anticipates higher provision for credit losses and rise in noninterest expenses in FY15. Visit Investor-Edge and access the latest research on CMA at:
On the day of the earnings release, January 16, 2015, Comerica's stock gained 1.25% to end the session at $41.47. Since then, the stock has moved both ways with gains outperforming the losses. On the last close, Monday, January 26, 2014, the company's shares finished 1.46% higher at $42.48, after vacillating between $41.63 and $42.54. A total of 1.51 million shares were traded which was below its three months average volume of 2.04 million shares. In the previous three trading sessions, Comerica's shares have gained 4.12%. However, the stock has lost 9.25% in the last one month and 6.66% in the past three months. Shares in Comerica are trading below their 50-day and 200-day moving averages of $45.70 and $48.11, respectively. Furthermore, the stock traded at a PE ratio of 13.83.
Sneak Peek to Corporate Insider Trading
In the last one month, Comerica has reported only one corporate insider transaction to the U.S. Securities and Exchange Commission (SEC). On January 20, 2015, Reginald M. Turner Jr., Director at Comerica, bought 495 shares, at a price of $40.43 per share, for a total value of $20,010. Complimentary in-depth research on CMA is available at:
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