This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEBAG0BO_M.jpg
Despite these changes and the Federal Reserve’s aggressive interest rate policy leading to increased funding costs, Comerica is holding steady on its net interest income (NII) projections. The bank anticipates a sequential NII decline of about 5-6% but expects this to be counterbalanced by a strong loan pipeline that supports a forecasted 7% loan growth in 2023.
The bank’s loan growth has been consistent, with a five-year compound annual growth rate (CAGR) of 0.9%. Furthermore, NII has experienced robust growth with a three-year CAGR of 13.6% and is projected to increase by 1-2% this year.
A significant factor impacting the bank’s expenses is an expected Federal Deposit Insurance Corporation (FDIC) special assessment of $109 million for the fourth quarter, which will contribute to an approximate 3% increase in non-interest expenses.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
