Financial services company Comerica Inc. (CMA) Tuesday reported a higher first-quarter profit that came above analysts' expectations, benefited by loan growth in each of its primary geographic markets, as well as tight expense controls. Meanwhile, the firm posted lower net interest income and non-interest income.
Looking ahead to full-year 2013, the company anticipates a lower net interest income.
Ralph Babb Jr., chairman and chief executive officer of the company stated, "Our commercial banking expertise drove our overall loan growth. An expected decline in Mortgage Banker Finance was more than offset by increases in general Middle Market, National Dealer Services, Energy, and Technology and Life Sciences."
In the first quarter, net income attributable to common shares increased to $132 million or $0.70 per share from $129 million or $0.66 per share in the previous year. On average, 33 analysts polled by Thomson Reuters expected the company to earn $0.68 per share for the quarter. Analysts' estimates typically exclude special items.
Net interest income for the quarter declined to $416 million from $442 million in the same quarter last year. Total non-interest income was $200 million, lower than $206 million a year earlier. Analysts estimated revenues of $622.61 million for the quarter.
However, non-interest expenses dropped to $416 million from $448 million in the preceding year. The company said non-interest expenses reflect its continued tight expense control.
Total loans increased to $44.62 million from $42.27 million a year ago.
Tier 1 common capital ratio was 10.4 percent, compared to 10.3 percent last year.
During the quarter, the firm repurchased 2.1 million shares and combined with dividends, returned 77 percent of first quarter net income to shareholders.
For full-year 2013, the company expects continued growth in average loans at a slower pace, with demand impacted by economic uncertainty.
CMA closed Monday's regular trading at $34.13 on the NYSE.
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