Comerica Q4 Earnings Top Estimates on Higher NII & Fee Income

Comerica Incorporated CMA reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.46, beating the Zacks Consensus Estimate of $1.28. In the prior-year quarter, the company posted an EPS of $1.20.

Results benefited from a rise in net interest income (NII), fee income and deposit balance.  Yet, lower loan balances and a rise in expenses were concerning.

The results excluded certain expenses related to the pending merger with Fifth Third Bancorp. After considering this, net income attributable to common shareholders (GAAP basis) was $176 million, which rose 3.5% from the year-ago quarter.

For 2025, adjusted earnings per share were $5.47, up from $5.02 in the year-ago period. The metric topped the Zacks Consensus Estimate of $5.23. Net income attributable to common shareholders (GAAP basis) was $723 million, which rose from $698 million in the year-ago period.

Comerica's Revenues & Expenses Rise

Total quarterly revenues were $850 million, up marginally year over year. The top line missed the consensus estimate of $850.1 million.

For 2025, total revenues were $3.37 billion, up from $3.24 billion in 2024. The top line beat the consensus estimate of $3.36 billion.

Quarterly NII rose marginally on a year-over-year basis to $577 million. The net interest margin increased 1 basis point year over year to 3.07%.

Total non-interest income was $273 million, up 9.2% on a year-over-year basis. 

Non-interest expenses totaled $617 million, up 5.1% year over year. 

The efficiency ratio was 72.30% compared with the prior-year quarter’s 69.51%. A rise in this ratio indicates declining profitability.

CMA’s Loan Balance Declines & Deposits Rise

As of Dec. 31, 2025, total loans fell marginally on a sequential basis to $50.7 billion. Total deposits rose 3.6% from the previous quarter to $64.9 billion.

Comerica's Credit Quality Improves

The company recorded a provision for credit loss of $14 million in the fourth quarter compared with $21 million in the year-ago quarter.

The allowance for credit losses was $695 million, which rose marginally year over year.

Total non-performing assets fell 18.5% year over year to $251 million. 

The allowance for credit losses to total loans ratio was 1.45% as of Dec. 31, 2025, up from 1.44% in the year-ago period. Also, the company recorded net charge-offs of $3 million, significantly down from $16 million in the year-ago quarter.

CMA's Capital Position Strong

The total capital ratio was 14.25%, up from 14.21% in the year-ago quarter. The Common Equity Tier 1 capital ratio was 12.02%, up from 11.89% in the prior-year quarter.

As of Dec. 31, 2025, CMA's tangible common equity ratio was 8.40%, up from 7% in the prior-year quarter.

Our View on CMA

Comerica’s results benefited from higher NII and fee income, while rising expenses tempered overall momentum.

Looking ahead, the planned merger with Fifth Third Bancorp will position Comerica for expanded scale, improved diversification, and enhanced competitiveness in key growth markets. The transaction is expected to close in the first quarter of 2026. While near-term challenges persist, the strategic combination and continued focus on operational efficiency may bolster long-term shareholder value.

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.

Performances of Other Banks

BOK Financial Corporation's BOKF fourth-quarter 2025 adjusted net income per share of $2.48 surpassed the Zacks Consensus Estimate of $2.13. The bottom line increased 16.9% from the prior-year quarter.

BOKF’s results benefited from higher NII and total fees and commissions. An increase in loans and deposit balances was another positive. However, the increase in operating expenses was a major undermining factor.

First Horizon Corporation’s FHN fourth-quarter 2025 adjusted earnings per share of 52 cents surpassed the Zacks Consensus Estimate of 47 cents. This compares favorably with 43 cents in the year-ago quarter.

FHN’s results benefited from higher NII and a significant rise in non-interest income, along with the absence of provision for credit losses. However, the rise in expenses remains a headwind.

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This article originally published on Zacks Investment Research (zacks.com).

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