NEW YORK (AP) — Comerica said Tuesday it will cut close to 800 jobs and close 40 banks to cut costs. The regional bank also reported a bigger quarterly profit than analysts expected.
Comerica said it wants to eliminate $160 million in annual spending by the end of 2018. The company said it will eliminate about 9 percent of its jobs, which would be 791 workers based on recent employment figures. Comerica will also close 40 banks and outsource some technology functions to reduce spending.
Bank officials said the specifics on which branches will be closed will be announced later.
The Dallas-based company had 473 banks as of June 30, with almost half of them in Michigan. It has been closing a few banks a year in recent years.
Comerica Inc. also said it had net income of $104 million, or 58 cents per share, in the second quarter. Excluding restructuring costs and other one-time items, Comerica said it earned 77 cents per share. Comerica’s net interest income grew to $445 million and non-interest income edged up to $269 million.
Analysts had forecast net income of 68 cents per share, according to Zacks Investment Research.
Comerica Inc. stock rose 65 cents to $44.38 in afternoon trading. The stock is up about 6 percent this year, slightly more than the Standard & Poor’s 500 index. Comerica shares have declined about 6 percent over the last year.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CMA at http://www.zacks.com/ap/CMA