Comerica Delivers Strong 2024 Earnings, Eyes Growth Amid Banking Challenges

Comerica (NYSE:CMA) reported robust earnings for 2024, totaling $698 million or $5.02 per share, despite challenges in the banking sector and subdued loan demand. The bank strengthened its Common Equity Tier 1 (CET1) capital ratio by 80 basis points, enabling resumed share repurchases and reinforcing its focus on long-term growth.

Loan demand was impacted by higher interest rates, particularly in the commercial real estate sector, where paydowns and refinancing pressures persist. However, customer sentiment showed signs of improvement toward the end of the year, positioning Comerica for growth in 2025, with opportunities anticipated beyond the commercial real estate space.

The bank's financial strategy focused on reducing brokered deposits and optimizing liquidity to enhance net interest income. Comerica also maintained a conservative capital approach, aiming for a long-term efficiency ratio in the 50s by balancing revenue growth with disciplined expense management.

Looking ahead, Comerica plans to emphasize organic growth in 2025, expecting modest increases in loans and deposits while navigating economic uncertainties. The bank remains committed to responsible growth and sustaining a strong capital position to support its long-term goals.