Comerica Incorporated Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter of 2016; Provides Outlook for the Full Year of 2017
For the year, the company reported total interest income of $1,909 million compared to $1,784 million a year ago. Net interest income was $1,797 million compared to $1,689 million a year ago. Income before income taxes was $670 million compared to $750 million a year ago. Net income attributable to common shares was $473 million or $2.68 per diluted share compared to $515 million or $2.84 per diluted share a year ago. Return on average common shareholders' equity was 6.22% compared to 6.91% a year ago. Return on average assets was 0.67% compared to 0.74% a year ago.
Net charge-offs increased $20 million to $36 million, or 0.29% of average loans, in the fourth quarter 2016, compared to $16 million, or 0.13%, in the third quarter 2016.
The company provided outlook for the full year of 2017. For full-year 2017 compared to full-year 2016, management expects the following, assuming a continuation of the current economic and low rate environment as well as contributions from the GEAR Up initiative of $30 million in revenue and $125 million in expense savings, are as follows: Average loans higher, in line with Gross Domestic Product growth, reflecting increases in most lines of business and reduced headwinds from a declining Energy portfolio. Net interest income higher, reflecting the benefit from the December 2016 short-term rate increase and loan growth, partially offset by higher funding costs and minor loan yield compression. Income tax expense to be approximate 33% of pre-tax income.