) continues its efforts to boost shareholder value. Recently, its
Board of Directors increased the current share buyback program by
up to 10 million shares. Additionally, the Board announced a
quarterly cash dividend of 17 cents per share. The dividend will
be paid on Jul 1, to common stock shareholders of record as of
These actions come following the Federal Reserve's approval of
Comerica's 2013 capital plan under the Comprehensive Capital
Analysis and Review (CCAR) in March. The plan included
share repurchase of up to $288 million for the upcoming four
quarters beginning in the second quarter of 2013 and ending in
the first quarter of the next year.
Comerica has maintained its healthy capital deployment activities
over the years. Earlier, in January, Comerica announced a 13%
increase in its quarterly dividend to 17 cents per share, which
was paid on Apr 1. This increase was part of the company's 2012
The latest boost in its share repurchase authorization reflects
the company's commitment to return value to shareholders with its
strong cash generation capabilities. Further, Comerica's current
capital position may allow it to further enhance shareholder
value. The company's cash and due from banks was $877 million as
of Mar 31, 2013.
Going forward, we believe that Comerica's continuous geographic
diversification beyond its traditional and relatively
slower-growing Midwest markets could bolster growth in the
upcoming quarters. Also, revenue synergies from the Sterling
acquisition should be a driver of top-line growth. However, the
company's significant exposure to risky commercial real estate
markets, unsettled economic environment and other regulatory
issues are matters of concern.
Comerica currently carries a Zacks Rank #3 (Hold). Other banks
that are performing better than Comerica include
JPMorgan Chase & Co.
Fifth Third Bancorp
State Street Corporation
). All these stocks carry a Zacks Rank #2 (Buy).
COMERICA INC (CMA): Free Stock Analysis
FIFTH THIRD BK (FITB): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
STATE ST CORP (STT): Free Stock Analysis
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