(Reuters) - Comerica Inc (CMA.N) beat analysts’ forecasts for fourth-quarter profit on Tuesday as the U.S. regional lender earned higher interest income.
Dallas-based Comerica’s net interest income jumped 19.8 percent to $545 million in the quarter ended Dec. 31, helped in part by a series of interest rate hikes by the U.S. Federal Reserve.
The Federal Reserve raised interest rates three times last year, a pace policymakers are expected to maintain through this year and the next.
Comerica’s profit fell 31.3 percent to $112 million or 63 cents per share in the fourth quarter, hurt by a $107-million charge to adjust deferred taxes due to new U.S. tax laws.
But net earnings rose 28 percent to $226 million or $1.28 per share after adjusting for the charge and other one-time items, beating analysts’ average estimate of $1.21 per share, according to Thomson Reuters I/B/E/S.
Comerica’s non-interest expenses rose 4.8 percent to $483 million.
Reporting by Diptendu Lahiri in Bengaluru; editing by Sai Sachin Ravikumar