DALLAS - Comerica Inc (NYSE:CMA) disclosed its financial achievements for the fourth quarter and the entirety of 2023 today, marking a year of mixed fortunes. The Dallas-based financial services company celebrated a record in annual net interest income and average loan growth, yet faced a downturn in its annual net income, which fell to $881 million, or $6.44 per diluted share. This represents a decrease from the $1,151 million, or $8.47 per diluted share, recorded in the previous year.
The final quarter of 2023 proved particularly challenging for Comerica, with net income plummeting to $33 million, or $0.20 per diluted share, largely due to extraordinary charges, including a one-time Federal Deposit Insurance Corporation (FDIC) assessment. This assessment significantly impacted the quarter's earnings.
Revenue for the fourth quarter also saw a downturn, landing at $782 million, alongside a dip in earnings per share (EPS) to $1.46 from the $2.58 reported in the same period the year before. Despite falling short of the Zacks Consensus Estimate in terms of revenue, Comerica's net interest margin aligned with expectations, maintaining a steady 2.9%.
Operational efficiency, however, experienced a setback, with the efficiency ratio deteriorating to 91.9%. Additionally, the bank saw an uptick in net charge-offs, which rose to 0.2%. On a more positive note, Comerica's capital ratios outperformed its strategic objectives, boasting a Tier 1 capital ratio of 11.6% and a total capital ratio of 13.5%.
Comerica's footprint extends beyond Texas, reaching into California, Michigan, other states across the U.S., and Canada, positioning it as a significant player in the North American banking sector.
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