Comerica Q1 2025 Earnings Top Wall Street Estimates, Revenue Fails To Meet Expectations As Loan Demand Remains Muted

CEO Curtis C. Farmer said that stronger-than-expected non-interest-bearing balances and proactive deposit pricing strategies offset the impact of muted loan demand.
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Bhavik Nair·Stocktwits
Updated Jul 02, 2025   |   8:31 PM GMT-04
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Financial services company Comerica’s first quarter report was in the spotlight on Monday morning after earnings surpassed Wall Street estimates, but revenue failed to meet expectations.

First-quarter (Q1) revenue stood at $829 million compared to a Wall Street estimate of $837 million. However, earnings per share (EPS) came in at $1.25, beating an analyst estimate of $1.13.

Net interest income (NII), the difference between interest earned and expended, rose 5% year-over-year (YoY) to $575 million during the quarter.

Non-interest income rose 8% YoY to $254 million during the quarter.

On a sequential basis, Comerica clarified that excluding the impact of a $19 million loss related to repositioning the securities portfolio in fourth quarter (Q4) of 2024, non-interest income decreased $15 million, which included decreases of $5 million in capital markets income, $3 million in card fees and smaller declines in other categories.

Net income rose 25% YoY to $172 million during the quarter.

Net interest margin (NIM) rose 12 basis points quarter-on-quarter (QoQ) to 3.18%.

Sequentially, Comerica reported a $1 million decline in provision for credit losses to $20 million during the quarter. Asset quality improved with non-performing assets decreasing $7 million to $301 million.

CEO Curtis C. Farmer said that stronger-than-expected non-interest-bearing balances and proactive deposit pricing strategies offset the impact of muted loan demand.

“The increase in non-interest income reflected the fourth quarter 2024 loss related to our securities repositioning. Credit quality remained a competitive strength as migration was manageable, and net charge-offs remained low,” he added.

Comerica shares have declined by nearly 14% in 2025 and are up 0.65% over the past 12 months.

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