Comerica To Review Its Expense And Revenue Base; Q1 Profit Misses Estimates

(RTTNews) - Comerica Inc. (CMA) announced the company launched a comprehensive review of its expense and revenue base in order to meaningfully enhance profitability. The company expects to provide more information around the opportunities identified by the next quarterly earnings announcement and deliver to shareholders, as soon as practical, a broad, enterprise-wide plan, designed to help reach tangible targets.

Comerica reported first-quarter net income to shareholders of $59 million, compared to $132 million, a year ago. Earnings per share were $0.34 compared to $0.73. On average, 31 analysts polled by Thomson Reuters expected the company to report profit per share of $0.45 for the quarter. Analysts' estimates typically exclude special items.

Net interest income increased to $447 million from $413 million, a year ago. Noninterest income was $246 million compared to $252 million. Analysts expected revenue of $708.94 million for the quarter.

"Our first quarter results were impacted by the current oil and gas cycle, as we significantly increased our reserve for loan losses," said Ralph Babb, Jr., chairman and CEO.

The company said, excluding the first-quarter energy impact on the provision for credit losses, management expectations for full-year 2016 compared to full-year 2015, have not changed materially.