Comerica reported fourth-quarter 2025 diluted earnings per share of $1.45, exceeding the consensus estimate of $1.30. Net income for the quarter rose to $235 million, up from $210 million in the year-ago period. Return on average assets improved to 1.18%, compared with 1.05% in Q4 2024, reflecting stronger interest margins and diversified fee revenues.

Net interest income climbed 7% year-over-year to $695 million as average interest-earning assets increased by $2.3 billion and the net interest margin expanded by 12 basis points to 2.90%. Non-interest fee income grew 5% to $160 million, led by a 9% jump in wealth management fees and a 6% gain in treasury services fees, offsetting modest declines in mortgage origination income.

Total loans declined by 3% sequentially to $52.4 billion, as commercial and industrial commitments contracted by 4% reflecting tighter lending standards. Provision for credit losses totaled $28 million, compared with a release of $5 million in the prior quarter, as management added reserves against potential stress in select energy and hospitality exposures. Net charge-offs remained low at 12 basis points of average loans.

Operating expenses rose 8% year-over-year to $390 million, driven by higher technology investments and expanded compliance staffing. Efficiency ratio widened to 54.2% from 50.8% a year earlier. With total assets of $80.1 billion at December 31, 2025, Comerica affirmed its pending merger with Fifth Third Bancorp will close in mid-2026, and management foresees cost synergies of $150 million within two years post-close.