Core Insights - Comerica Incorporated (CMA) is set to report its third-quarter 2025 results on October 17, with expectations of increased revenues but a decline in earnings compared to the previous year [1][11] Financial Performance Expectations - The Zacks Consensus Estimate for third-quarter 2025 earnings is $1.28 per share, reflecting a 6.6% decline from the year-ago quarter [2] - The consensus estimate for revenues is $843.6 million, indicating a 4% increase from the year-ago figure [3][11] Factors Influencing Earnings - Lending activity remained decent in Q3 2025, supported by improving macroeconomic conditions, despite uncertainties surrounding tariff policies [4] - Average loans are expected to remain flat sequentially, with management projecting slight pressure on earlier guidance of exceeding $50.7 billion [5] - Average earning assets are estimated to have grown modestly to $71.1 billion, a 1% increase sequentially [6] Net Interest Income (NII) and Non-Interest Income - The consensus estimate for NII is $569.4 million, indicating a 1% decline from the prior quarter [7] - Non-interest income is expected to be relatively flat, with capital market fees projected to rise by 5% to $44.1 million [10][11] Deposits and Service Charges - Average deposits rose 2.3% to $62.6 billion, exceeding earlier guidance, which is likely to boost service charges on deposits to an estimated $47.3 million, a 0.7% increase from the prior quarter [12] Expenses and Asset Quality - Higher expenses are anticipated due to increased compensation costs and lower gains on real estate sales, with non-interest expenses expected to rise slightly from $561 million [14][15] - The Zacks Consensus Estimate for non-performing loans is $249 million, indicating a marginal rise from the previous quarter [16] Earnings Prediction Model - The model indicates low chances of CMA beating earnings estimates, with an Earnings ESP of -1.92% and a Zacks Rank of 3 [17]

Core Viewpoint - Bank of America (BAC) is expected to report solid second-quarter 2025 results, with revenues projected at $26.59 billion, reflecting a 4.8% year-over-year growth, driven by strong trading performance and an increase in net interest income (NII) [1][2]. Financial Performance - The consensus estimate for BAC's earnings in the upcoming quarter has been revised down by 1.1% to 86 cents, indicating a 3.6% increase from the same quarter last year [2]. - The Zacks Consensus Estimate for NII is $14.86 billion, suggesting a 7.2% year-over-year increase, while trading revenues are expected to grow by 9.1% to $5.11 billion [8][14]. Earnings Surprise History - Bank of America has a strong earnings surprise history, having outperformed the Zacks Consensus Estimate in the last four quarters with an average surprise of 6.63% [5][7]. Loan Demand and NII - The Federal Reserve's decision to keep interest rates unchanged is likely to support BAC's NII, with solid demand for commercial, industrial, real estate, and consumer loans observed during the quarter [8][9]. - BAC is expected to see a modest rise in loan demand, similar to its peers JPMorgan and Citigroup [8]. Investment Banking Fees - Despite a challenging environment due to tariffs, global M&A activity improved towards the end of the quarter, likely leading to a marginal rise in advisory fees for BAC [10]. - The IPO market showed a revival, contributing to an increase in underwriting fees, which account for nearly 40% of total investment banking fees [11]. Trading Income - Strong client activity and market volatility are expected to boost BAC's trading revenues, projected to grow in the mid-to-high single-digit range [13][14]. Expenses and Asset Quality - Non-interest expenses are anticipated to rise by 4% year-over-year, driven by expansion efforts and digitization initiatives [15]. - The provision for credit losses is estimated at $1.54 billion, reflecting concerns over potential delinquent loans amid higher interest rates and tariff impacts [16]. Stock Performance and Valuation - BAC shares gained 18.6% in the second quarter, outperforming the S&P 500 Index, while trading at a price-to-tangible book (P/TB) ratio of 1.76X, below the industry average of 2.86X [21][24]. - Compared to JPMorgan and Citigroup, BAC's stock appears inexpensive, with JPMorgan at 3.04X and Citigroup at 0.97X [27]. Strategic Positioning - The company is focusing on aggressive branch expansion and technology investments to enhance customer relationships and drive NII growth over time [29]. - While the outlook remains promising, challenges such as high deposit costs and volatile capital markets may impact fee income growth [30].