Comerica Q2 Earnings Top Estimates on Strength in NII & Loan Growth

Comerica Incorporated CMA has reported second-quarter 2025 adjusted earnings per share (EPS) of $1.42, beating the Zacks Consensus Estimate of $1.23. In the prior-year quarter, the company reported an EPS of $1.53.

Results benefited from a rise in net interest income (NII) and loan balance.  Yet, lower deposit balances, decline in non-interest income and weak asset quality were concerning.

Net income attributable to common shareholders (GAAP basis) was $187 million, which declined 6.5% from the year-ago quarter.

Comerica's Revenues & Expenses Rise

Total quarterly revenues were $849 million, up 3% year over year. The top line surpassed the consensus estimate by 0.5%.

Quarterly NII rose 7.9% on a year-over-year basis to $575 million. The net interest margin increased 30 basis points year over year to 3.16%.

Total non-interest income was $274 million, down 5.8% on a year-over-year basis. 

Non-interest expenses totaled $561 million, up 1.1% year over year. The rise was primarily due to an increase in Salaries and benefits expense and Occupancy expense. 

The efficiency ratio was 65.78% compared with the prior-year quarter’s 67.77%. A fall in this ratio indicates increased profitability.

CMA’s Loans Balance Rise & Deposit Declines

As of June 30, 2025, total loans rose 2.5% on a sequential basis to $51.2 billion. Total deposits declined 2.4% from the previous quarter to $60 billion.

Comerica's Credit Quality Deteriorates

The company recorded a provision for credit loss of $44 million in the second quarter compared with no provision in the year-ago quarter.

The allowance for credit losses was $735 million, which rose 2.5% year over year.

Total non-performing assets rose 10.2% year over year to $249 million. 

The allowance for credit losses to total loans ratio was 1.44% as of June 30, 2025, up from 1.38% as of June 30, 2024. Also, the company recorded net charge-offs of $28 million, significantly up from $11 million recorded in the year-ago quarter.

CMA's Capital Position Mixed Bag

The total capital ratio was 13.74%, down from 14.02% in the year-ago quarter. The Common Equity Tier 1 capital ratio was 11.94%, up from 11.55% in the prior-year quarter.

As of June 30, 2025, CMA's tangible common equity ratio was 8.04%, up from 6.49% in the prior-year quarter.

Comerica’s Capital Distribution Activities

The company repurchased $100 million of common stock under the share repurchase program.

Our View on CMA

The company’s decent capital position will aid capital distribution activities in the upcoming period, boosting investor confidence in the stock. Its focus on improving operational efficiency will support financials. The rise in NII looks encouraging. However, weak asset quality and a rise in expenses remain near-term concerns.

Comerica Incorporated Price, Consensus and EPS Surprise

Comerica Incorporated price-consensus-eps-surprise-chart | Comerica Incorporated Quote

Currently, Comerica carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Banks

Synovus Financial Corp. SNV reported second-quarter 2025 adjusted earnings per share of $1.48, which surpassed the Zacks Consensus Estimate of $1.25. This compares favorably with the earnings of $1.16 per share a year ago. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

SNV’s results benefited from strong year-over-year growth in NII and non-interest revenues, along with a fall in provisions for credit losses. Also, improving loan balances were a tailwind. An increase in expenses, however, was a major headwind.

First Horizon Corporation’s FHN second-quarter 2025 adjusted earnings per share (excluding notable items) of 45 cents surpassed the Zacks Consensus Estimate of 41 cents. This compares favorably with 36 cents in the year-ago quarter.

FHN’s results benefited from a rise in NII and non-interest income, along with a decline in expenses. Also, lower provisions and a rise in loans and deposit balances were other positives. 

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