Muted Lending, Low Rates to Hurt Comerica (CMA) Q4 Earnings
Muted Lending, Low Rates to Hurt Comerica (CMA) Q4 Earnings. The company’s third-quarter results were supported by non-interest income growth, higher deposits and lower expenses. However, lower loans and rise in provisions were the undermining factors. Muted Net Interest Income (NII): Per the Fed’s latest data, commercial and industrial, and revolving home equity loans slowed down in the quarter, which is likely to have affected NII. Also, the Fed’s interest rate cuts might have hurt Comerica’s net interest margin. However, the Zacks Consensus Estimate for average earning assets of $66.4 billion for the quarter indicates 1.1% year-over-year growth.