Comerica Stock Tumbles as Bank Likely To Lose Exclusive Treasury Contract

Shares of Comerica (CMA) tumbled Friday contempt second-quarter results beating estimates, arsenic nan location slope said it has been informed by nan U.S. Treasury that it apt won't beryllium selected to proceed exclusively providing nan Direct Express card.

Comerica's quarterly net surpassed analysts' expectations, but profits and net liking income (NII) fell year-over-year, arsenic greater deposit costs person offset nan benefits of higher liking rates for both regional and big banks.

Comerica's net income fell to $206 cardinal from $273 cardinal successful nan aforesaid 4th past year, but topped nan $165.4 cardinal statement estimate of analysts compiled by Visible Alpha.

Comerica Likely To Lose Direct Express Card

The slope provided an update connected its business pinch nan U.S. Treasury, which it has worked pinch since 2008 to supply nan Direct Express card, a measurement to administer national benefits to those who whitethorn not person a slope account. Comerica said nan paper had "approximately 4.5 cardinal national use recipients arsenic of June 30, 2024."

The Treasury has fixed Comerica preliminary announcement that it apt won't beryllium chosen to proceed offering nan card, aft being selected to support nan programme successful 2008, 2014, and 2020. Comerica said its statement pinch nan Treasury expires early adjacent year.

Comerica shares sank 12% to $49.50 arsenic of 11:10 a.m. ET Friday to autumn into antagonistic territory for nan year.