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The Markets
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Financial Services

Comerica 3Q profits slide on lower interest income

Comerica (NYSE:CMA) reported third quarter earnings and revenue that topped Wall Street estimates, despite its profits decreasing almost 30% year-over-year.

The Dallas, Texas-based financial services company posted a decrease in profits from $351 million in the year-ago quarter to $251 million.

Its net interest income fell about 15% from $708 million to $601 million but its non-interest income, from card and capital market fees, rose from $278 million to $295 million.

Earnings per share (EPS) fell 29.3% from $2.60 in the year-ago quarter to $1.84.

Analysts had been expecting EPS of $1.70, according to Zacks Investment Research.

Revenue also topped expectations of $880.9 million at $896 million. However, this was a 9% decline from the year-ago quarter.

Despite beating Street estimates, the company’s drop in profit and revenue saw investors retreat from the stock. It fell 6.5% to US$38.82 shortly before noon on Friday.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on X, formerly known as Twitter, @emilyjjarvie

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