UPDATE 1-Comerica profit misses as commercial real estate loans fall
* Q3 EPS $0.61/shr vs. est. $0.65/shr
* Commercial real estate loans fall 3 pct
* Net interest margin 2.96 pct vs. 3.18 pct year ago
Oct 17 (Reuters) - U.S. regional bank Comerica Inc reported a third-quarter profit that missed analysts' expectations, mainly due to a drop in higher-yielding commercial real estate loans that hurt its net interest margin.
U.S. banks are experiencing shrinking margins as older loans with higher interest rates are paid down and there are fewer places to invest growing deposits.
"Net interest income declined slightly, reflecting the expected continued shift in loan portfolio mix...," Chief Executive Ralph Babb said in a statement.
The company said commercial real estate loans fell 3 percent in the latest quarter, while lower-yielding commercial loans rose 3 percent.
The Dallas-based bank said net income attributable to common shareholders rose to $116 million, or 61 cents per share, from $97 million, or 51 cents per share, a year earlier.
Analysts were expecting the lender to earn 65 cents per share, according to Thomson Reuters I/B/E/S.
Comerica said its net interest margin fell to 2.96 percent from 3.18 percent.
Shares of the company, which has a market value of $5.98 billion, closed at $31.04 on the New York stock Exchange on Tuesday.
- Radar showed missing plane may have turned back: Malaysia military
- Malaysian jetliner may have turned back before vanishing |
- Malaysian plane presumed crashed; questions over false IDs |
- Exclusive: Probe into missing Malaysia plane looks at possible mid-air disintegration - source