UPDATE 1-Comerica doubles qtrly dividend, to buy back shares

Tue Nov 16, 2010 5:18pm EST

* Ups qtrly dividend to $0.10 from $0.05

* Approves buyback of 12.6 mln common shares

Nov 16 (Reuters) - Comerica Inc (CMA.N) said it would buy back 7 percent of its outstanding common shares, and doubled its quarterly dividend to 10 cents a share.

The U.S. regional bank approved a plan to repurchase up to 12.6 million common shares, and outstanding warrants to buy up to another 11.5 million shares.

"With respect to the authorization to repurchase shares of common stock and warrants, until the banking industry has more clarity on regulatory targeted capital levels, we expect to remain cautious in managing our capital," CEO Ralph Babb Jr said in a statement.

Dallas-based Comerica, which has branches in California, Florida, Arizona, Michigan and Texas, said the new repurchase program will supersede its prior share repurchase programs.

Shares of Comerica -- one of the few regional banks to have repaid the bailout funds it received from the U.S. Treasury and redeemed its trust preferred securities -- have rallied 2 percent since the bank reported third-quarter results last month.

They were up about 3 percent in trading after the bell, and closed at $36.74 on Tuesday on the New York Stock Exchange. (Reporting by Tenzin Dekeva in Bangalore; Editing by Roshni Menon)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.