* Q2 EPS $0.73 vs est $0.62
* Q2 total loans up 10 pct
* Q2 provision for loan losses fell 58 pct
* Sees FY12 net interest income to rise 3 pct-5 pct
July 17 U.S. regional bank Comerica Inc
posted a second-quarter profit above analysts' expectations,
helped by an increase in commercial loans and said it expects
loan and non-interest income to grow due to its acquisition of
Comerica bought smaller rival Sterling last July for about
$ 1 billion in stock to bolster its position in the oil-backed
The company expects provision for credit losses and net
charge-offs at or near the second-quarter levels for the rest of
the year, Chief Financial Officer Karen Parkhill said on a
For the second quarter, provision for credit losses fell 58
percent to $19 million and charge-offs fell 50 percent to $45
Larger banks JPMorgan Chase & Co and Wells Fargo &
Co reported strong growth in their mortgage lending
businesses and lower loan losses last week. Wells and JPMorgan
also said charge-offs for bad loans declined.
Net income attributable to Comerica's common shareholders
was $142 million, or 73 cents per share, while analysts expected
the company to earn 62 cents per share.
Net interest income rose about 11 percent to $435 million.
For the full year the company expects net interest income to
increase 3 percent to 5 percent.
Total loans grew about 10 percent to $43.22 billion, boosted
by about 20 percent growth in commercial loans.
The increase in commercial loans was broad-based with
increases across nearly all of Comerica's businesses, Chief
Executive Ralph Babb said on the call.
Comerica, which has operations in Arizona, Texas and
California, continues to feel the pinch of a prolonged low
interest rate environment. Net interest margin fell to 3.10
percent from 3.14 percent, a year earlier.
Comerica shares, which have gained about 43 percent since
touching a low of $21.48 last September, were up slightly at
$30.84 in morning trade on the New York Stock Exchange.