Shares of Comerica Incorporated (NYSE: CMA), a financial services company, are up sharply in trading today after the company reported its fourth-quarter financial results.
For the fourth quarter of 2012, CMA reported net income of $130 million, or $0.68 per share, compared to $117 million, or $0.61 per share reported for the same period in the previous year. For the full year, the Dallas, Texas-based company reported net income of $521 million, up 33% over 2011.
Ralph W. Babb Jr., Chairman and CEO of Comerica, said that loan and fee income growth combined with expense control contributed to the company’s 11% increase in net income, when compared to the third quarter. Babb said that in this slow growing national economy, the company continues to benefit from its position in growth markets and industry expertise, which helped drive an increase in average total loans of $522 million, primarily reflecting an increase of 3% in commercial loans.
The increase in commercial loans was mainly driven by increases in National Dealer Services, Energy, general Middle Market and Mortgage Banker Finance, partially offset by a decrease in Corporate.
Commenting on the credit quality, Babb said that it continued to be strong in the fourth quarter, with lower nonaccrual loans, watch lists loans and provision for credit losses. The CEO added that with net charge offs of 34 basis points; the company is well within its historically normal range.
For 2013, the company expects continued growth in average loan at a slower pace. The company expects provision for credit losses to remain stable, reflecting loan growth offset by a decline in nonperforming loans and net charge-offs.
CMA shares rose to an intra-day high of $33.20 in trading today. At last check, the stock was trading 3.48% higher at $32.98 on above average volume of 2.37 million.
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