NYSE$CMA

Comerica Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Generated first quarter earnings, driven by a reduction in credit reserve, robust fee-generating activity, and expense discipline.

Comerica reported a strong start to the year with Q1 2021 earnings of $2.43 per share, a 59% increase over the fourth quarter. The results were driven by a reduction in the credit reserve, robust fee-generating activity, and expense discipline. The company plans to resume share repurchases in the second quarter.

  • Net income was $350 million, or $2.43 per share.
  • Credit quality improved with a reduction in the credit reserve due to improvements in the economic outlook and decreases in nonaccrual and criticized loans.
  • Noninterest income increased 2% over the previous quarter, driven by robust fee-generating activity.
  • Expenses decreased 4% due to expense discipline.

Headline financials

Total Revenue

$713M

Previous: $750M-4.9%
EPS (adj)

$2.43

Previous: -$0.46+628.3%
Efficiency Ratio

62.5%

Previous: 56.6%+10.6%
Net Interest Margin

2.3%

Previous: 3.1%-25.2%
CET1 Capital Ratio

11.1%

Previous: 9.5%+16.6%
Common Equity Ratio

9.0%

No prior period
Net Income

$350M

Previous: -$65M+638.5%
Operating Income

$472M

Previous: $195M+142.1%
Gross Profit

$531M

Previous: $339M+56.6%
Cash & Equivalents

$14.9B

Previous: $4.86B+206.3%
Total Assets

$86.3B

Previous: $76.3B+13.0%
Stock-Based Comp

$22M

Previous: $8M+175.0%

Revenue & EPS history

Comerica · Revenue · Quarterly

$713M

Q1 2021-4.9%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Management expects continued improvement in economic conditions. The second quarter of 2021, compared to the first quarter of 2021, expects increase in net interest income as lease residual adjustment ($17 million in first quarter) does not repeat.

Tailwinds

  • Solid average loan growth in nearly all business lines (excluding PPP)
  • Average deposits to remain strong, benefiting from latest stimulus.
  • Increase in net interest income as lease residual adjustment ($17 million in first quarter) does not repeat.
  • Strong credit quality continues, with provision reflecting economic conditions.
  • Resume share purchases; CET1 target of approximately 10 percent.

Headwinds

  • Average loans (excluding PPP) reflect decline in PPP loans due to forgiveness process.
  • Average deposits begin to wane as customers put cash to use.
  • Net interest income reflects lower securities yields.
  • Decrease in noninterest income as first quarter levels of derivatives, warrants and deferred compensation asset returns not expected to repeat.
  • Stable noninterest expenses reflect lower salaries and benefits (annual stock-based compensation and deferred compensation asset returns not expected to repeat, as well as seasonally lower payroll taxes partly offset by merit increases and one additional day in the second quarter) offset by increase in outside processing as well as seasonal increases in occupancy and advertising.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

-0.3%

Avg return

Earnings day

-1.9%

Avg return

5 days after

+0.0%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+7.7%

Q3 2016

Best reaction

-12.9%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025+2.0%+3.3%
Q3 2025+1.4%+3.7%+6.0%
Q2 2025+4.6%+6.7%+8.8%
Q1 2025-4.4%+0.3%+5.6%
Q4 2024-5.6%-5.3%-1.3%
Q3 2024-1.0%-1.0%+10.1%
Q2 2024-9.3%-8.9%-0.1%
Q1 2024+3.5%+5.7%+9.4%
Q4 2023+2.6%+0.3%-8.8%
Q3 2023-7.8%-7.8%+8.9%
Q2 2023-2.1%+1.0%-10.8%
Q1 2023-7.1%-13.5%-18.6%
Q4 2022+4.8%+7.9%+10.5%
Q3 2022-12.9%-9.5%-6.2%
Q2 2022+1.9%+1.5%+9.2%
Q1 2022-8.1%-6.9%-18.9%
Q4 2021-6.0%-9.0%-3.7%
Q3 2021+3.1%
Q2 2021+2.2%
Q1 2021-0.3%
Q4 2020-1.0%
Q3 2020+2.9%
Q2 2020+5.0%
Q1 2020+2.8%
Q4 2019-3.4%
Q3 2019-3.6%
Q2 2019-3.4%
Q1 2019+0.4%
Q4 2018+7.6%
Q3 2018+1.9%
Q2 2018+3.4%
Q1 2018-2.9%
Q4 2017+1.8%
Q3 2017+1.6%
Q2 2017-2.7%
Q1 2017+1.6%
Q4 2016-4.1%
Q3 2016+7.7%
Q2 2016+3.4%
Q1 2016+6.0%
Q4 2015-5.7%
Q3 2015-1.8%
Q2 2015-4.7%
Q1 2015-1.0%
Q4 2014-1.3%
Q3 2014-1.4%
Q2 2014+0.7%
Q1 2014-0.0%
Q4 2013+4.4%
Q3 2013+3.0%
Q2 2013-1.2%
Q1 2013+0.8%
Q4 2012+5.1%
Q4 2011+2.0%
Q3 2012-4.5%
Q2 2012+2.6%
Q1 2012+1.4%
Q3 2011-0.1%
Q2 2011-2.4%
Q1 2010+0.2%
Q1 2011+0.5%
Q1 2009-1.9%
Q4 2010-1.9%
Q4 2009-1.9%
Q4 2008-1.9%
Q3 2010+0.5%
Q3 2009+0.5%
Q2 2010+1.6%
Q2 2009+1.6%

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