First Quarter 2017 Financial Review
Financial Summary
1Q17
4Q16
1Q16
Diluted income per common share
$1.11
$0.92
$0.34
Net interest income
$470
$455
$447
Net interest margin
2.86%
2.65%
2.81%
Provision for credit losses
16
35
148
Net credit-related charge-offs to average loans
0.28%
0.29%
0.49%
Noninterest income
271
267
244
Noninterest expenses
457
461
458
Restructuring expenses
Net income
Average loans
11
20
202
164
60
$47,900
$48,915
$48,392
Average deposits
57,779
59,645
56,708
Efficiency ratio²
61.63%
63.58%
65.99%
Return on average common shareholders' equity
10.42
8.43
3.14
Return on average assets
1.14
0.88
0.35
Common equity Tier 1 capital ratio
11.54%¹
11.09%
10.58%
Average diluted shares (millions)
180
177
176
$ in millions, except per share data ⚫1Estimated 2Noninterest expenses as a percentage of the sum of net interest income (FTE) and
noninterest income excluding net securities gains (losses).
Comerica Bank
First Quarter 2017 Results
Net income increased 23% over 4Q16
1Q17
Average loans
Change From
4Q16 1Q16
$47,900 $(1,015) $(492)
Average deposits
57,779 (1,866)
1,071
Net interest income
470
15
23
Provision for credit losses
16
(19)
(132)
Net credit-related charge-offs
33
(3)
(19)
Noninterest income
271
4
27
Noninterest expenses¹
457
(4)
(1)
Key QoQ Performance Drivers
Loans reflect Mortgage Banker seasonality
& Energy portfolio reduction
Deposits show typical 1Q decline
Net interest income benefitted from
increase in interest rates
Provision & net charge-offs decreased with
Energy credit improvement
Noninterest income grew with higher
deposit service charges, investment
banking & fiduciary income
Provision for income tax²
66
4
41
Expenses reflect lower restructuring
Net income
202
38
142
charges & GEAR Up driven expense cuts
partly offset by seasonally elevated comp
Earnings per share (EPS)³
1.11
0.19
0.77
Equity repurchases4
105
6
63
Lower tax rate due to benefit from
employee stock transactions
3
$ in millions, except per share data
1Q17 compared to 4Q16
Active capital management continued
Included restructuring charge of $11MM ($0.04 per share, after tax) in
1Q17 & $20MM ($0.07 per share, after tax) in the 4Q16 ⚫ 2Included tax benefit of $24MM ($0.13 per share) from employee stock
transactions EPS based on diluted income per share ⚫41Q17 repurchases under the equity repurchase program
Comerica Bank
4View entire presentation