Comerica Inc (NYSE:CMA) reported a sharp year-over-year decline in profits for the fourth quarter and full-year 2023 as higher interest rates and other macroeconomic pressures continued to weigh on regional banks.
The Dallas, Texas-based financial services company reported a drop in profits from $2.58 per share to $1.46, which exceeded Wall Street analyst expectations of $1.38.
During the quarter loans decreased by $1.2 billion to $52.8 billion while deposits were stable at $66 billion. Net interest income decreased by $17 million to $584 million.
Its quarterly results were impacted by several items, including a special Federal Deposit Insurance Corporation assessment and hedging losses from the shutdown of the Bloomberg Short-Term Bank Yield Index.
For the full year, Comerica's profit fell from $8.47 per share to $7.75 per share, ahead of estimates of $7.65 per share.
Loans decreased by $3.4 billion to $53.9 billion, securities decreased by $1.6 billion to $17.4 billion, and deposits decreased by $9.5 billion to $66 billion. Net interest income, however, increased by $48 million to $2.5 billion.
"In 2023, we demonstrated the strength and resilience of our model as we navigated disruptive industry events," Comerica CEO Curtis Farmer said in a statement.
"We produced record average loans of $53.9 billion and the highest year of net interest income in our history.”
Comerica shares traded higher following the release of its results, gaining 1.4% at US$53 before Friday’s opening bell.