Comerica Reports $172 Million Net Income in Q1 2025, Driven by Increased Net Interest Income

Comerica Incorporated reported a net income of $172 million for the first quarter of 2025, reflecting a $34 million increase from $138 million in the same period last year. This growth was primarily driven by a rise in net interest income, which reached $575 million, up from $548 million in the first quarter of 2024. The increase in net interest income was attributed to a favorable shift in the interest rate environment and a decrease in noninterest expenses, which fell to $584 million from $603 million year-over-year. The diluted earnings per share also improved to $1.25, compared to $0.98 in the prior year.

In comparison to the previous quarter, net income increased slightly from $170 million in the fourth quarter of 2024. The provision for credit losses decreased to $20 million from $21 million, while noninterest income rose to $254 million from $250 million. The bank's total assets decreased to $77.6 billion, down from $79.3 billion at the end of 2024, primarily due to a reduction in interest-bearing deposits and total loans. Total liabilities also decreased to $70.6 billion, reflecting a decline in noninterest-bearing deposits and medium- and long-term debt.

Operationally, Comerica's loan portfolio saw a decrease of $403 million, with total loans amounting to $50.2 billion as of March 31, 2025. The decline was driven by reductions in specific sectors, including a $333 million decrease in National Dealer Services. The bank's allowance for credit losses remained stable at 1.44% of total loans, with the total allowance amounting to $719 million. Nonperforming loans decreased slightly to $301 million, representing 0.60% of total loans.

Strategically, Comerica continues to focus on its three major business segments: Commercial Bank, Retail Bank, and Wealth Management. The Commercial Bank segment reported a net income of $238 million, down from $278 million a year earlier, while the Retail Bank saw a significant increase in net income to $79 million from $39 million. The Wealth Management segment also experienced growth, with net income rising to $21 million from $13 million. The bank's capital ratios remained strong, with a Common Equity Tier 1 (CET1) capital ratio of 12.05%, exceeding the regulatory minimum requirements.

Looking ahead, Comerica's management remains cautious amid economic uncertainties, including inflation and potential changes in monetary policy. The bank is actively monitoring its credit risk and adjusting its strategies to maintain stability in its loan portfolio. The outlook for the remainder of 2025 will depend on various factors, including market conditions and the effectiveness of the bank's risk management strategies.