WASHINGTON (dpa-AFX) - Financial services company Comerica, Inc. (CMA) reported Tuesday a profit for the first quarter that increased four percent from last year, reflecting lower noninterest expenses and a decline in loan loss provisions. Earnings per share and quarterly revenues topped analysts' expectations.
Looking ahead, the company backed its average loan growth, net interest income and provision for credit losses outlook for the full-year 2014.
'Comerica's first quarter 2014 financial results reflect solid loan growth across our footprint and nearly all of our business lines,' chairman and CEO Ralph Babb Jr. said in a statement.
The Dallas, Texas-based company reported net income attributable to common shares of $137 million or $0.73 per share for the first quarter, higher than $132 million or $0.70 per share in the prior-year quarter.
On average, 31 analysts polled by Thomson Reuters expected the company to report earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.
Net interest income for the quarter decreased to $410 million, from $416 million a year ago, and non-interest income declined to $208 million from $213 million in the prior-year quarter. Twenty-two Wall Street analysts had a consensus revenue estimate of $615.57 million for the quarter.
Noninterest expenses declined to $406 million from $416 million a year ago. Provision for credit losses also declined to $9 million from last year's $16 million. The company noted that credit quality continued to be strong resulting in lower provisions.
Average total loans edged up 1 percent, primarily reflecting a 1 percent growth in commercial loans, partially offset by a 1 percent decline in combined commercial mortgage and real estate construction loans.
Average total deposits increased 4 percent, primarily reflecting a 1 percent increase in interest-bearing deposits and an 8 percent improvement in non-interest-bearing deposits.
Looking ahead to fiscal 2014, Comerica continues to expect average loan growth to be consistent with 2013 of 3 percent, and modestly lower net interest income reflecting a decrease in purchase accounting accretion. The company also still expects stable provision for credit losses and net charge-offs, but anticipates noninterest income for the year to be modestly lower.
'We were pleased the Federal Reserve did not object to our 2014 capital plan and contemplated capital distributions, including up to $236 million in share repurchases for the four-quarter period that ends in the first quarter of 2015. We remain focused on providing a good return to shareholders while maintaining our strong capital ratios,' Babb Jr. added.
CMA closed Monday's regular trading session at $48.59, down $0.22 on a volume of 1.90 million shares.
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