Despite the Fed's efforts, long-term U.S. Treasury yields have shot up over the past several weeks. UBS analyst Brian Meredith on Monday included Comerica in a list of 10 financial stocks poised to benefit greatly in a rising-rate environment.
Comerica's fourth-quarter non-interest income totaled $204 million, increasing from $197 million in the third quarter, and $182 million in the fourth quarter of 2011, which the company said was "primarily due to increases in customer driven categories."
The company's fourth-quarter return on average assets was 0.81%, improving from 0.74% the previous quarter and 0.63% a year earlier. The return on average equity was 7.36% in the fourth quarter, increasing from 6.67% in the third quarter and 5.51% in the fourth quarter of 2011.
CEO Ralph Babb said that "loan and fee income growth combined with expense control contributed to our 11 percent increase in net income, when compared to the third quarter," and that "in this slow growing national economy, we continue to benefit from our position in growth markets and industry expertise.'Jefferies analyst Ken Usdin said in a note that Comerica "beat our estimate of $0.66 (ex. merger charges) on lower provision expense, better-than-expected purchase accounting accretion, and decent fee growth. The larger starting point for the balance sheet and the guide for flat provision
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