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Banks in the United States have got a much-needed boost from the
Federal Reserve raising overnight interest rates. The Fed has
raised rates three times since second quarter last year, the
latest increase coming in June.
Comerica's net income attributable to common shareholders rose
to $202 million, or $1.13 per share, in the second quarter ended
June 30, from $103 million, or 58 cents per share, a year
earlier. (http://bit.ly/2tBhIwJ)
Analysts on average had estimated earnings of $1.06 per share,
according to Thomson Reuters I/B/E/S.
Excluding items, the Dallas-based bank earned $1.15 per share.
Net interest income rose 12.4 percent to $500 million.
"Quarter over quarter, our revenue increased 5 percent as we
benefited meaningfully from increased interest rates as well as
our relationship banking strategy, which is driving loan and fee
growth" Chief Executive Officer Ralph Babb said.
Non-interest expenses declined 11.8 percent to $457 million.
Provisions for credit losses fell 65.3 percent to $17 million.
Comerica, like several other U.S. regional banks, has struggled
with bad energy loans due to the steep fall in oil prices since
mid-2014.
Total loans dropped nearly 2 percent to $49.41 billion.
U.S. lenders have recently seen a slowdown in loan growth,
driven partly by an uptick in interest rates that dissuaded
consumers and companies from refinancing mortgage loans.
(Reporting by Diptendu Lahiri in Bengaluru; Editing by Shounak
Dasgupta)
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