EX-99.1 2 a2019annualmeetingpresen.htm EXHIBIT 99.1 a2019annualmeetingpresen
&RPHULFD,QFRUSRUDWHG $QQXDO0HHWLQJRI 6KDUHKROGHUV $SULO &RPHULFD%DQN7RZHU 'DOODV7H[DV 6DIH+DUERU6WDWHPHQW Any statements in this presentation that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,” “continue,” “remain,” “maintain,” “on track,” “trend,” “objective,” “looks forward,” “projects,” “models” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this presentation and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries as well as estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies; operational, systems or infrastructure failures; reliance on other companies to provide certain key components of business infrastructure; cybersecurity risks; whether Comerica may achieve opportunities for revenue enhancements and efficiency improvements under the GEAR Up initiative, or changes in the scope or assumptions underlying the GEAR Up initiative; Comerica's ability to maintain adequate sources of funding and liquidity; the effects of more stringent capital requirements; declines or other changes in the businesses or industries of Comerica's customers; unfavorable developments concerning credit quality; changes in regulation or oversight; heightened legislative and regulatory focus on cybersecurity and data privacy; fluctuations in interest rates and their impact on deposit pricing; transitions away from LIBOR towards new interest rate benchmarks; reductions in Comerica's credit rating; damage to Comerica's reputation; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; the interdependence of financial service companies; the implementation of Comerica's strategies and business initiatives; changes in customer behavior; management's ability to maintain and expand customer relationships; the effectiveness of methods of reducing risk exposures; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; the impacts of future legislative, administrative or judicial changes to tax regulations; any future strategic acquisitions or divestitures; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; losses due to fraud; the effects of terrorist activities and other hostilities; changes in accounting standards; the critical nature of Comerica's accounting policies; controls and procedures failures; and the volatility of Comerica’s stock price. Comerica cautions that the foregoing list of factors is not all-inclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2018. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this presentation or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. 2


 
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ichigan California  5(/$7,216+,3%$1.,1*675$7(*< $12.4 $18.3 RIGHSRVLWVDUH 25% 'HHSH[SHUWLVHLQVSHFLDOW\EXVLQHVVHV QRQLQWHUHVW 38% /RQJWHQXUHGHPSOR\HHV EHDULQJ Loans $48.8 *52:,1*5(9(18(  3RVLWLRQHGLQIDVWHUJURZLQJ QHWLQWHUHVW Other Markets Texas LQFRPHJURZWK PDUNHWV LQGXVWULHV $8.2 $9.9 17% 20% +,*+/<()),&,(17  *($58SOHYHUDJHGWHFKQRORJ\LQFUHDVLQJ HIILFLHQF\UDWLR Michigan FDSDFLW\WRVXSSRUWJURZWK California $20.2 $17.2 36% 31% 683(5,25&5(',70(75,&6 Deposits ESV $55.7 &RQVHUYDWLYHXQGHUZULWLQJ QHWFKDUJHRIIV 'LYHUVHSRUWIROLR Other 2 Texas $9.4 $8.9 67521*&$3,7$/ 17%  16% 6XSSRUWVIXWXUHJURZWK &(7 %FDSLWDOUHWXUQHGWRVKDUHKROGHUV 12/31/18 Ⴠ All metrics shown (on left side) are FYE18 & comparisons to FYE17 Ⴠ 1Source: S&P Global Market Intelligence; based on regulatory data for domestic financial holding companies using C&I loans Ⴠ 2Consists of Other Markets ($8.3B) & Finance/ Other ($1.1B) 4


 
)LQDQFLDO$FFRPSOLVKPHQWV LQFUHDVHLQSUHWD[LQFRPH LQFUHDVHLQHDUQLQJVSHUVKDUH 3UHWD[,QFRPH *52:,1*5(9(18( LQPLOOLRQV • 5HYHQXHLQFUHDVHGWRDQDOOWLPHKLJK 1,535 • LQFUHDVHLQQHWLQWHUHVWLQFRPHDVLQWHUHVWUDWHVURVH  1,234 VNLOOIXOO\PDQDJHGORDQ GHSRVLWSULFLQJ 670 • ,QFUHDVHGFXVWRPHUGULYHQIHHLQFRPHVXFKDVFDUGILGXFLDU\ EURNHUDJHIHHV 2016 2017 2018 (;3(16( &5(',7',6&,3/,1( • 7LJKWH[SHQVHFRQWURODLGHGE\*($58SLQLWLDWLYHVKHOSHGGULYH (DUQLQJV3HU6KDUH HIILFLHQF\UDWLRWRXQGHU 'LOXWHGSHUFRPPRQVKDUH • 6WURQJFUHGLWTXDOLW\ZLWKQHWFUHGLWUHODWHGFKDUJHRIIVRIESV • &ULWLFL]HGORDQVGHFOLQHGDQGUHSUHVHQWHGRQO\RIWRWDO $7.20 SHULRGHQGORDQV $4.14 $&7,9(&$3,7$/0$1$*(0(17 $2.68 • &DSLWDO7DUJHW &(7E\)<( • %UHWXUQHGWRVKDUHKROGHUVD00LQFUHDVH • 'LYLGHQGLQFUHDVHG WRSHUVKDUH 2016 2017 2018 • 5HWXUQRQHTXLW\ 52( LQFUHDVHGWR 12/31/18; FY18 compared to FY17 Ⴠ 1Through dividends and share repurchase program 5 4)LQDQFLDO$FFRPSOLVKPHQWV LQFUHDVHLQHDUQLQJVSHUVKDUH 4YV4 3UHWD[,QFRPH *52:,1*5(9(18( LQPLOOLRQV 424 • %LQFUHDVHLQDYHUDJHORDQV 400 • *UHZUHYHQXHLQFOXGLQJ00LQFUHDVHLQQHWLQWHUHVW 335 LQFRPHDVZHOODVJURZWKLQV\QGLFDWLRQ FDUGIHHV (;3(16( &5(',7',6&,3/,1( 1Q18 4Q18 1Q19 • ([SHQVHGLVFLSOLQHKHOSHGGULYHHIILFLHQF\UDWLRWR • 6WURQJFUHGLWTXDOLW\ZLWKQHWFKDUJHRIIVRIESV (DUQLQJV3HU6KDUH • 1RQDFFUXDOORDQVGHFOLQHGWRESVRIWRWDOSHULRGHQGORDQV 'LOXWHGSHUFRPPRQVKDUH $2.11 $1.88 $&7,9(&$3,7$/0$1$*(0(17 $1.59 • ,QFUHDVHGGLYLGHQGSDLG$SULOWRSHUVKDUH • 5HWXUQHGDWRWDORI00WRVKDUHKROGHUVLQFOXGLQJGLYLGHQGV  VKDUHUHSXUFKDVHRI00 00VKDUHV  • 5HWXUQRQHTXLW\ 52( LQFUHDVHGWR 1Q18 4Q18 1Q19 3/31/19; 1Q19 compared to 1Q18 Ⴠ 1Through share repurchase program 6


 
*($58S*URZWKLQ(IILFLHQF\$QG5HYHQXH Achieved 2018 targets ([SHQVH 72% %HQHILWV f00 52% (IILFLHQF\ UDWLR 侓E\ )<( 5HYHQXH 2Q16 4Q18 %HQHILWV f00 16.36% 'ULYLQJWRD GRXEOHGLJLW 5.44% 5HVWUXFWXULQJ 52( ([SHQVHV 00 2Q16 4Q18 Pre-tax $ Ⴠ GEAR Up initiative launched post 2Q16 Ⴠ 1Noninterest expenses as a percentage of net interest income & noninterest income excluding net gains (losses) from securities & a derivative contract tied to the conversion rate of Visa Class B shares 7 %HQHILWIURP5LVHLQ,QWHUHVW5DWHV Utilizing interest rate hedges to reduce asset sensitivity /RDQV3UHGRPLQDQWO\)ORDWLQJ5DWH LQELOOLRQV4 3HULRGHQG Fixed Rate )<QHWLQWHUHVWLQFRPHJURZWK 8% UHVXOWLQJIURPUDWHLQFUHDVHV Prime- Total 30-Day based $50.3 LIBOR ~$312MM 16% 67% 60-Day+ LIBOR 9% &XPXODWLYH,PSDFWRI5DWH,QFUHDVHV 'HSRVLWV3ULPDULO\1RQLQWHUHVWEHDULQJ LQELOOLRQV4$YHUDJH 5.07 • &RPPHUFLDORIQRQLQWHUHVWEHDULQJ 2.50 - 0.78 • 5HWDLORILQWHUHVWEHDULQJ 3.17 - Retail Commercial Noninterest- Noninterest- Beta 84% Beta 28% bearing bearing 8% 0.25 0.14 Total 42% Retail $54.0 Commercial Interest- Interest- 3Q15 1Q19 3Q15 1Q19 3Q15 1Q19 bearing bearing )HG)XQGV /RDQ<LHOGV 'HSRVLW&RVWV 29% 21% 3/31/19 Ⴠ 1Beta: change in loan yields or interest-bearing deposit costs expressed as a percentage of the increase in the federal funds rate 8


 
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&0$6WRFN3ULFH3HUIRUPDQFH$PRQJ3HHU%DQNV <7' +LJKHVW<HDU $SSUHFLDWLRQ 6WRFN3HUIRUPDQFH   18% 64% 17% 17% 16% 16% 14% 14% 14% 14% 49% 47% 13% 39% 23% 18% 18% 17% 15% 12% 8% -9% RF RF STI BBT CFR FHN KEY MTB FHN CFR KEY FITB CMA MTB FITB ZION CMA ZION BOKF HBAN BOKF HBAN +LJKHVW<HDU +LJKHVW<HDU 6WRFN3HUIRUPDQFH 6WRFN3HUIRUPDQFH   246% 44% 37% 36% 35% 185% 149% 24% 23% 18% 82% 16% 13% 74% 73% 71% 68% 66% 12% 11% 10% 58% 56% 42% RF RF STI STI CFR BBT FHN KEY MTB CFR BBT FHN KEY FITB CMA MTB FITB ZION CMA ZION BOKF HBAN BOKF HBAN Source: S&P Global Market Intelligence; BBT & STI excluded from YTD comparison due to pending merger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Ⴠ 1Preliminary 2018 results versus 2012 baseline; final results will be published in Comerica’s 2018 Corporate Responsibility Report 12


 
:HOO3RVLWLRQHGIRUWKH)XWXUH Provided superior shareholder returns in 2018 5HWXUQRQ$VVHWV ,QSHUFHQWDJHSRLQWV $/($',1*%$1.)25%86,1(66 1.75 1.64 LONGNG HISTORYISS 1.54 RYY 1.47 1.47 5(/$7,216+,3%$1.,1*675$7(*< 1.43 1.38 1.35 1.34 1.33 1.33 1.28 NIMBLEN MB SSIZEE $74B IN ASSETS *52:,1*5(9(18( RF STI CFR BBT FHN KEY MTB FITB CMA ZION BOKF HBAN 5HWXUQRQ(TXLW\ +,*+/<()),&,(17 $YHUDJHFRPPRQHTXLW\,QSHUFHQWDJHSRLQWV 15.82 13.85 683(5,25&5(',70(75,&6 13.72 12.60 12.33 12.27 12.05 11.95 11.95 11.65 11.65 11.50 11.50 11.44 11.44 10.95 67521*&$3,7$/ RF STI BBT CFR FHN KEY MTB FITB CMA ZION BOKF HBAN 1Source for peer group data: S&P Global Market Intelligence 13