Upcoming AWS Coverage on ICICI Bank

LONDON, UK / ACCESSWIRE / January 19, 2017 / Active Wall St. announces its post-earnings coverage on Comerica Inc. (NYSE: CMA). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 17, 2017. The Dallas, Texas-based bank's quarterly diluted EPS rose 44% y-o-y, outperforming market forecasts. Register with us now for your free membership at:

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One of Comerica's competitors within the Money Center Banks space, ICICI Bank Ltd. (NYSE: IBN), is estimated to report earnings on January 26, 2017. AWS will be initiating a research report on ICICI Bank following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on CMA; touching on IBN. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=CMA

http://www.activewallst.com/registration-3/?symbol=IBN

Earnings Reviewed

In the three months ended on December 31, 2016, Comerica's total revenues (net interest income and total non-interest income) came in at $722 million compared to $699 million in the year ago quarter. However, total revenue numbers for the reported quarter lagged behind market expectations of $729 million.

During Q4 FY16, Comerica's net interest income increased to $455 million from $433 billion in Q4 FY15. However, total non-interest revenues remained flat at $267 million in Q4 FY16, from $266 million in the prior year's same quarter. Comerica's net interest margin improved to 2.71% as on December 31, 2016, from 2.60% on December 31, 2015. Furthermore, the Company reported non-interest expense of $461 million in Q4 FY16, which was 4% lower than $482 million reported in the year ago comparable period.

The financial services Company reported net income attributed to common shares of $163 million, or $0.92 per diluted share, in Q4 FY16, which was higher than $115 million, or $0.64 per diluted share, in Q4 FY15. Excluding after-tax impact of restructuring charges of 7 cents per share, the Company's adjusted net income for Q4 FY16 was $0.99 per diluted share, which beat market consensus estimates of $0.95 per diluted share.

For full-year FY16, Comerica's net interest income came in at $1.80 billion compared to $1.69 billion in the last year's corresponding period. The Company's total noninterest income for FY16 was $1.05 billion versus $1.04 billion in the year ago same period. Furthermore, the Company reported net income attributed to common shares of $473 million, or $2.68 per diluted share, compared to $515 million, or $2.84 per diluted share, in the prior year.

Performance Metrics

During Q4 FY16, Comerica reported total average loans of $48.92 billion, marginally above $48.55 billion in Q4 FY15. However, total deposits also fell marginally to $59.65 billion in Q4 FY16 from $59.74 billion in Q4 FY15.

In Q4 FY16, total assets grew to $74.13 billion from $71.91 billion in last year's corresponding quarter. For Q4 FY16, Comerica's return on average assets stood at 0.88% compared to 0.64% in the previous year's same period. The Company's return on equity also increased to 8.48% in Q4 FY16 from 6.08% reported in the year ago same quarter. Furthermore, the bank's efficiency ratio was 63.58% in Q4 FY16 versus 68.92% in Q4 FY15.

As on December 31, 2016, the bank's common equity tier 1 ratio was 11.07%, compared to 10.54% as on December 31, 2015. During Q4 FY16, non-performing assets rose to $607 million, or 1.24% of total loans and foreclosed property, from $391 million, or 0.80% of total loans and foreclosed property, in Q4 FY15. During the quarter, credit related charge-offs were $36 million, or 0.29% of average total loans, versus $51 million, or 0.42% of average total loans.

Segment Performance

For the reported period, the Company's business bank's net interest income fell to $354 million from $384 million in the previous year's same quarter. However, the segment's non-interest income remained flat at $146 million in Q4 FY16. Additionally, the segment net income improved to $205 million in Q4 FY16 from $198 million in Q4 FY15.

Retail Bank segment's net interest income also fell to $156 million from $160 million in the prior year's same quarter. The segment's non-interest income was also marginally down to $48 million in Q4 FY16 from $49 million in Q4 FY15. Furthermore, the segment net loss widened during Q4 FY16 to $4 million, from net loss of $1 million in Q4 FY15.

Comerica's Wealth Management reported net interest income of $42 million in Q4 FY16, compared to $47 million in the prior year quarter. The segment's non-interest income improved to $62 million in the reported quarter to $57 million in the year ago comparable period. Moreover, the segment's net income was $23 million in Q4 FY16 versus $21 million in Q4 FY15.

Share Repurchase

In full-year FY16, the Company repurchased 6.6 million shares under the equity repurchase program. Furthermore, the Company had issued share warrant and employee option exercises for 5.1 million shares. Comerica also informed that it had returned a total of $139 million to shareholders in the form of share repurchases and dividend in FY16.

Stock Performance

On Wednesday, January 18, 2017, the stock closed the trading session at $67.06, climbing 2.59% from its previous closing price of $65.37. A total volume of 2.35 million shares have exchanged hands. Comerica's stock price surged 40.00% in the last three months, 50.97% in the past six months, and 96.87% in the previous twelve months. The stock is trading at a PE ratio of 27.90 and has a dividend yield of 1.37%.

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SOURCE: Active Wall Street