Comerica revises Q4 outlook citing loan declines and FDIC fees By Investing.com

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<span>© Reuters. </span><br />
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<p>Comerica Incorporated (NYSE:) has updated its fourth-quarter forecast, indicating a decrease in average loans to $53 billion from the previous quarter&#8217;s $54 billion. This decline is attributed to reduced activity in certain sectors, although it has been partially offset by increases in others. Additionally, the bank has observed a slight dip in average deposits to $65.8 billion, with notable shifts between different types of deposits.</p>
<p>Despite these changes and the Federal Reserve&#8217;s aggressive interest rate policy leading to increased funding costs, Comerica is holding steady on its net interest income (NII) projections. The bank anticipates a sequential NII decline of about 5-6% but expects this to be counterbalanced by a strong loan pipeline that supports a forecasted 7% loan growth in 2023.</p>
<p>The bank&#8217;s loan growth has been consistent, with a five-year compound annual growth rate (CAGR) of 0.9%. Furthermore, NII has experienced robust growth with a three-year CAGR of 13.6% and is projected to increase by 1-2% this year.</p>
<p>A significant factor impacting the bank&#8217;s expenses is an expected Federal Deposit Insurance Corporation (FDIC) special assessment of $109 million for the fourth quarter, which will contribute to an approximate 3% increase in non-interest expenses.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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<br /><a href="https://www.investing.com/news/stock-market-news/comerica-revises-q4-outlook-citing-loan-declines-and-fdic-fees-93CH-3251926">Source link </a></p><p>The post <a href="https://forextraderhub.com/comerica-revises-q4-outlook-citing-loan-declines-and-fdic-fees-by-investing-com.html">Comerica revises Q4 outlook citing loan declines and FDIC fees By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>