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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): January 15, 2004

COMERICA INCORPORATED
(Exact Name of Registrant as Specified in its Charter)


Delaware	1-10706	38-1998421

(State or other jurisdiction of	(Commission File Number)	(IRS Employer Identification
Incorporation)		Number)

Comerica Tower at Detroit Center
500 Woodward Avenue, MC 3391
Detroit, Michigan 48226
(Address of principal executive offices) (zip code)

(800) 521-1190
(Registrant’s telephone number, including area code)

TABLE OF CONTENTS


SIGNATURE
Press Release dated January 15, 2004
Earnings Presentation Slides

ITEMS 9 and 12. REGULATION FD DISCLOSURE AND DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The registrant today released its earnings for the quarter and year ended December 31, 2003. A copy of the press release and the presentation slides which will be discussed in the registrant’s webcast earnings call are attached hereto as Exhibits 99.1 and 99.2, respectively.

EXHIBITS


99.1		Press Release dated January 15, 2004

99.2		Earnings Presentation Slides

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunder duly authorized.


	COMERICA INCORPORATED

	By:	/s/ Jon W. Bilstrom
		Name:	Jon W. Bilstrom
		Title:	Executive Vice President — Governance,
			Regulatory Relations and Legal Affairs,
			and Secretary

January 15, 2004

EXHIBIT INDEX


Exhibit No.		Description

99.1		Press Release dated January 15, 2004

99.2		Earnings Presentation Slides

EX-99.1 3 k82058exv99w1.htm PRESS RELEASE DATED JANUARY 15, 2004 exv99w1

EXHIBIT 99.1

(COMERICA LOGO) NEWS RELEASE

COMERICA REPORTS FOURTH QUARTER AND 2003 EARNINGS

DETROIT/January 15, 2004 — Comerica Incorporated (NYSE: CMA) today reported fourth quarter 2003 earnings of $158 million, or $0.89 per diluted share, compared to $206 million, or $1.18 per diluted share, for the fourth quarter 2002.


(dollar amounts in millions)	4th Qtr ’03			3rd Qtr ’03			4th Qtr ’02

Diluted EPS	$	0.89		$	0.89		$	1.18
Net Interest Income	$	457		$	465		$	533
Net Interest Margin		3.83	%		3.70	%		4.41	%
Provision for Loan Losses	$	77		$	83		$	115
Noninterest Income	$	220		$	221		$	254
Noninterest Expenses	$	379		$	377		$	373
Net Income	$	158		$	157		$	206
Return on Equity		12.33	%		12.55	%		16.86	%

Net income for 2003 was $661 million, or $3.75 per diluted share, compared to $601 million, or $3.40 per diluted share for 2002. Return on average common shareholders’ equity was 13.12 percent and return on average assets was 1.25 percent for 2003, compared to 12.31 percent and 1.18 percent, respectively, for 2002.

“The quarter ended as we expected, given the challenges our customers faced as a result of the economy,” said Ralph W. Babb Jr., chairman, president and chief executive officer. “I believe we are now seeing the turn in credit quality and the business recovery appears to be taking hold.”

Net Interest Income
Net interest income was $457 million for the fourth quarter 2003, compared to $465 million for the third quarter 2003 and $533 million for the fourth quarter 2002. Average earning assets of $47.5 billion for the fourth quarter 2003 decreased $2.4 billion from the third quarter 2003, or five percent, as a result of declines in both average total loans ($1.0 billion) and average short-term investments ($1.3 billion). Average deposits for the fourth quarter 2003 also declined $2.2 billion, or five percent, from the third quarter 2003, as the slowdown in mortgage financing activity resulted in anticipated declines in title and escrow deposits.

Net interest income decreased $8 million, or one percent, from the third quarter 2003, as a result of the lower levels of average earning assets in the fourth quarter. Net interest margin increased 13 basis points from the third quarter 2003, primarily the result of a reduction in lower yielding short-term investments.

-more-

COMERICA REPORTS FOURTH QUARTER AND 2003 EARNINGS — 2

Noninterest Income
Noninterest income was $220 million for the fourth quarter 2003, compared to $221 million for the third quarter 2003 and $254 million for the fourth quarter 2002. Noninterest income decreased $1 million, or less than one percent, from the third quarter 2003. Net securities gains were approximately $4 million in both the third and fourth quarters of 2003, compared to $57 million for the fourth quarter of 2002.

Noninterest Expenses
Noninterest expenses were $379 million for the fourth quarter 2003, compared to $377 million for the third quarter 2003 and $373 million for the fourth quarter 2002. Noninterest expenses increased $2 million, or one percent, from the third quarter 2003.

Credit Quality


(dollars amounts in millions)	4th Qtr ’03			3rd Qtr ’03			4th Qtr ’02

Net Charge-offs	$	76		$	83		$	82
Net Charge-offs/Average Total Loans		0.75	%		0.79	%		0.76	%
Provision for Loan Losses	$	77		$	83		$	115
Nonperforming Assets (NPAs)	$	538		$	627		$	579
NPAs/Total Loans, Other Real Estate & Nonaccrual Debt Securities		1.33	%		1.54	%		1.37	%
Allowance for Loan Losses	$	803		$	802		$	791
Allowance for Loan Losses/Total Loans		1.99	%		1.97	%		1.87	%
Allowance for Credit Losses on Lending-related Commitments*	$	33		$	29		$	35

* Included in “Accrued expenses and other liabilities” on the consolidated balance sheets.

“The $7 million decrease in net charge-offs during the quarter included higher levels of recoveries, which indicate the benefits of an improving economy to our non-performing borrowers,” added Babb.

During the quarter, $114 million of loans greater than $2 million were transferred to nonaccrual status, a decrease of $97 million from the third quarter of 2003. Nonperforming assets were $538 million at December 31, 2003, a decrease of $89 million from September 30, 2003.

Balance Sheet and Capital Management
Total assets and common shareholders’ equity were $52.6 billion and $5.1 billion, respectively, at December 31, 2003, compared to $54.8 billion and $5.1 billion, respectively, at September 30, 2003. There were 175 million shares outstanding at December 31, 2003 and September 30, 2003. In the fourth quarter of 2003, approximately 500,000 shares were repurchased in the open market for $27 million. Comerica’s fourth quarter 2003 estimated tier 1 common, tier 1 and total risk-based capital ratios were 8.06 percent, 8.73 percent and 12.72 percent, respectively.

-more-

COMERICA REPORTS FOURTH QUARTER AND 2003 EARNINGS — 3

Conference Call and Webcast
Comerica will host a conference call to review fourth quarter and full year 2003 financial results at 8 a.m. ET Thursday, January 15, 2004. Interested parties may access the conference call by calling (706) 679-5261 (event ID No. 4524313). The call and supplemental financial information can be accessed via a Webcast at www.comerica.com. A replay of the conference call will be available approximately two hours following the call through Thursday, February 12, 2004. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 4524313). A replay of the Webcast can also be accessed at www.comerica.com.

Comerica Incorporated is a financial services company headquartered in Detroit, strategically aligned into three major lines of business: the Business Bank, Small Business and Personal Financial Services, and Wealth and Institutional Management. Comerica focuses on relationships and helping businesses and people to be successful. To receive e-mail alerts of breaking Comerica news, go to www.comerica.com/newsalerts.

Forward-looking Statement
Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “believe,” “intend,” “estimate,” “project,” “may” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are predicated on management’s beliefs and assumptions based on information known to Comerica’s management as of the date of this news release 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, 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, such as changes in Comerica’s plans, objectives, expectations and intentions and do not purport to speak as of any other date. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in the pace of an economic recovery, interest rate margin compression, management’s ability to maintain and expand customer relationships, changes in the accounting treatment of any particular item, the impact of regulatory examinations, changes in the businesses or industries in which Comerica has a concentration of loans, the anticipated performance of any new banking branches, the entry of new competitors in Comerica’s markets, changes in the level of fee income, changes in general economic conditions and related credit and market conditions, and the impact of regulatory responses to any of the foregoing. 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 news release 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.


Media Contacts:		Investor Contacts:
Sharon R. McMurray		Helen L. Arsenault
(313) 222-4881		(313) 222-2840

Wayne J. Mielke		Judith M. Chavis
(313) 222-4732		(313) 222-6317

CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries


	Three Months Ended									Years Ended

	December 31,			September 30,			December 31,			December 31,
(in millions, except per share data)	2003			2003			2002			2003			2002

PER SHARE AND COMMON STOCK DATA
Diluted net income	$	0.89		$	0.89		$	1.18		$	3.75		$	3.40
Cash dividends declared		0.50			0.50			0.48			2.00			1.92
Common shareholders’ equity (at period end)		29.20			29.05			28.31
Average diluted shares (in thousands)		176,559			176,290			175,613			176,222			177,132

KEY RATIOS
Return on average common shareholders’ equity		12.33	%		12.55	%		16.86	%		13.12	%		12.31	%
Return on average assets		1.22			1.16			1.57			1.25			1.18
Average common shareholders’ equity as a percentage of average assets		9.92			9.27			9.33			9.50			9.55
Tier 1 common capital ratio*		8.06			7.92			7.39
Tier 1 risk-based capital ratio*		8.73			8.58			8.05
Total risk-based capital ratio*		12.72			12.64			11.72
Leverage ratio*		10.13			9.54			9.29

AVERAGE BALANCES
Commercial loans	$	23,556		$	24,653		$	25,805		$	25,084		$	25,460
Real estate construction loans		3,500			3,500			3,400			3,540			3,353
Commercial mortgage loans		7,727			7,617			7,126			7,521			6,786
Residential mortgage loans		867			823			773			831			758
Consumer loans		1,538			1,487			1,531			1,515			1,504
Lease financing		1,290			1,273			1,275			1,283			1,242
International loans		2,406			2,528			2,839			2,596			2,988

Total loans	$	40,884		$	41,881		$	42,749		$	42,370		$	42,091
Earning assets		47,481			49,846			48,213			48,841			47,053
Total assets		51,385			53,921			52,530			52,980			51,130
Interest-bearing deposits		27,131			27,409			26,617			27,609			25,871
Total interest-bearing liabilities		32,237			33,029			32,912			33,233			33,596
Noninterest-bearing deposits		13,198			15,079			14,004			13,910			11,841
Common shareholders’ equity		5,100			5,000			4,900			5,033			4,884

NET INTEREST INCOME
Net interest income (fully taxable equivalent basis)	$	458		$	466		$	534		$	1,929		$	2,136
Fully taxable equivalent adjustment		1			1			1			3			4
Net interest margin		3.83	%		3.70	%		4.41	%		3.95	%		4.55	%

CREDIT QUALITY
Nonaccrual loans	$	507		$	598		$	565
Other real estate		30			25			10
Nonaccrual debt securities		1			4			4
Total nonperforming assets		538			627			579
Loans 90 days past due and still accruing		32			56			43
Gross charge-offs		97			94			93		$	408		$	517
Recoveries		21			11			11			43			36
Net charge-offs		76			83			82			365			481

Allowance for loan losses as a percentage of total loans		1.99	%		1.97	%		1.87	%
Net loans charged-off as a percentage of average total loans		0.75			0.79			0.76			0.86	%		1.14	%
Nonperforming assets as a percentage of total loans, other real estate and nonaccrual debt securities		1.33			1.54			1.37
Allowance for loan losses as a percentage of total nonperforming assets		149			128			136

ADDITIONAL DATA
Goodwill	$	247		$	247		$	247
Core deposit intangible		1			2			2
Other intangibles		1			1			1
Loan servicing rights		17			16			11
Deferred mutual fund distribution costs		12			14			19
Amortization of intangibles		1			—			1		$	1		$	4

* December 31, 2003 ratios are estimated.

-4-

CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries


			December 31,			September 30,			December 31,
(in millions, except share data)			2003			2003			2002

ASSETS
Cash and due from banks			$	1,527		$	1,955		$	1,902
Short-term investments				4,013			4,805			2,446
Investment securities available-for-sale				4,489			5,086			3,053

Commercial loans				22,974			23,386			25,242
Real estate construction loans				3,397			3,496			3,457
Commercial mortgage loans				7,878			7,631			7,194
Residential mortgage loans				875			844			789
Consumer loans				1,568			1,511			1,538
Lease financing				1,301			1,289			1,296
International loans				2,309			2,478			2,765

		Total loans		40,302			40,635			42,281
Less allowance for loan losses				(803	)		(802	)		(791	)

		Net loans		39,499			39,833			41,490
Premises and equipment				374			368			371
Customers’ liability on acceptances outstanding				27			22			33
Accrued income and other assets				2,663			2,726			4,006

		Total assets	$	52,592		$	54,795		$	53,301

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits			$	14,104		$	16,198		$	16,335
Interest-bearing deposits				27,359			27,498			25,440

		Total deposits		41,463			43,696			41,775
Short-term borrowings				262			296			540
Acceptances outstanding				27			22			33
Accrued expenses and other liabilities				929			870			790
Medium- and long-term debt				4,801			4,818			5,216

		Total liabilities		47,482			49,702			48,354

Common stock — $5 par value:
	Authorized - 325,000,000 shares
	Issued - 178,735,252 shares at 12/31/03, 9/30/03 and 12/31/02			894			894			894
Capital surplus				384			378			363
Accumulated other comprehensive income				74			111			237
Retained earnings				3,973			3,909			3,684
Less cost of common stock in treasury - 3,735,163 shares at 12/31/03, 3,421,888 shares at 9/30/03 and 3,960,149 shares at 12/31/02				(215	)		(199	)		(231	)

		Total shareholders’ equity		5,110			5,093			4,947

		Total liabilities and shareholders’ equity	$	52,592		$	54,795		$	53,301

-5-

CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries


		Three Months Ended				Years Ended
		December 31,				December 31,

(in millions, except per share data)		2003		2002		2003		2002

INTEREST INCOME
Interest and fees on loans		$	511	$	620	$	2,211	$	2,524
Interest on investment securities			41		58		165		246
Interest on short-term investments			8		8		36		27

	Total interest income		560		686		2,412		2,797
INTEREST EXPENSE
Interest on deposits			77		116		370		479
Interest on short-term borrowings			1		4		7		37
Interest on medium- and long-term debt			25		33		109		149

	Total interest expense		103		153		486		665

	Net interest income		457		533		1,926		2,132
Provision for loan losses			77		115		377		635

	Net interest income after provision for loan losses		380		418		1,549		1,497
NONINTEREST INCOME
Service charges on deposit accounts			59		58		238		227
Fiduciary income			44		41		169		171
Commercial lending fees			17		19		63		69
Letter of credit fees			16		15		65		60
Foreign exchange income			6		8		35		40
Brokerage fees			10		9		34		38
Investment advisory revenue, net			8		6		30		27
Bank-owned life insurance			9		9		42		53
Equity in earnings of unconsolidated subsidiaries			1		1		6		8
Warrant income			3		—		4		5
Net securities gains/(losses)			4		57		50		41
Net gain on sales of businesses			—		—		—		12
Other noninterest income			43		31		151		149

	Total noninterest income		220		254		887		900
NONINTEREST EXPENSES
Salaries and employee benefits			227		214		897		844
Net occupancy expense			32		30		128		122
Equipment expense			15		14		61		62
Outside processing fee expense			18		18		71		65
Software expense			9		7		37		33
Customer services			7		7		25		26
Goodwill impairment			—		—		—		86
Other noninterest expenses			71		83		264		277

	Total noninterest expenses		379		373		1,483		1,515

Income before income taxes			221		299		953		882
Provision for income taxes			63		93		292		281

NET INCOME		$	158	$	206	$	661	$	601

Net income applicable to common stock		$	158	$	206	$	661	$	601

Basic net income per common share		$	0.90	$	1.18	$	3.78	$	3.43
Diluted net income per common share			0.89		1.18		3.75		3.40
Cash dividends declared on common stock			88		83		350		335
Dividends per common share			0.50		0.48		2.00		1.92

-6-

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries


		Fourth		Third		Second		First		Fourth		Fourth Quarter 2003 Compared To:
		Quarter		Quarter		Quarter		Quarter		Quarter		Third Quarter 2003						Fourth Quarter 2002
(in millions, except per share data)		2003		2003		2003		2003		2002		Amount			Percent			Amount			Percent

INTEREST INCOME
Interest and fees on loans		$	511	$	530	$	577	$	593	$	620	$	(19	)		(3.6	)%	$	(109	)		(17.6	)%
Interest on investment securities			41		37		40		47		58		4			14.7			(17	)		(28.3	)
Interest on short-term investments			8		12		10		6		8		(4	)		(33.8	)		—			(0.6	)

	Total interest income		560		579		627		646		686		(19	)		(3.1	)		(126	)		(18.3	)
INTEREST EXPENSE
Interest on deposits			77		86		103		104		116		(9	)		(9.3	)		(39	)		(33.3	)
Interest on short-term borrowings			1		1		2		3		4		—			(30.5	)		(3	)		(78.9	)
Interest on medium- and long-term debt			25		27		29		28		33		(2	)		(9.2	)		(8	)		(24.6	)

	Total interest expense		103		114		134		135		153		(11	)		(9.5	)		(50	)		(32.6	)

	Net interest income		457		465		493		511		533		(8	)		(1.4	)		(76	)		(14.2	)
Provision for loan losses			77		83		111		106		115		(6	)		(7.2	)		(38	)		(33.0	)

	Net interest income after provision for loan losses		380		382		382		405		418		(2	)		(0.2	)		(38	)		(9.0	)
NONINTEREST INCOME
Service charges on deposit accounts			59		60		58		61		58		(1	)		(1.3	)		1			0.5
Fiduciary income			44		42		42		41		41		2			2.7			3			7.5
Commercial lending fees			17		16		15		15		19		1			4.9			(2	)		(11.9	)
Letter of credit fees			16		17		16		16		15		(1	)		(5.0	)		1			5.8
Foreign exchange income			6		10		9		10		8		(4	)		(38.0	)		(2	)		(21.8	)
Brokerage fees			10		8		8		8		9		2			12.2			1			6.2
Investment advisory revenue, net			8		8		7		7		6		—			5.1			2			26.4
Bank-owned life insurance			9		12		12		9		9		(3	)		(20.5	)		—			(7.9	)
Equity in earnings of unconsolidated subsidiaries			1		2		1		2		1		(1	)		(52.3	)		—			51.5
Warrant income			3		1		—		—		—		2			N/M			3			N/M
Net securities gains/(losses)			4		4		29		13		57		—			(10.2	)		(53	)		(92.8	)
Other noninterest income			43		41		29		38		31		2			8.3			12			47.2

	Total noninterest income		220		221		226		220		254		(1	)		(0.2	)		(34	)		(13.3	)
NONINTEREST EXPENSES
Salaries and employee benefits			227		229		219		222		214		(2	)		(0.7	)		13			6.4
Net occupancy expense			32		34		30		32		30		(2	)		(5.1	)		2			4.3
Equipment expense			15		16		14		16		14		(1	)		(9.4	)		1			(1.5	)
Outside processing fee expense			18		18		18		17		18		—			(2.5	)		—			(0.5	)
Software expense			9		10		9		9		7		(1	)		(0.2	)		2			32.3
Customer services			7		6		5		7		7		1			24.4			—			5.5
Other noninterest expenses			71		64		65		64		83		7			11.4			(12	)		(13.4	)

	Total noninterest expenses		379		377		360		367		373		2			0.9			6			1.8

Income before income taxes			221		226		248		258		299		(5	)		(2.1	)		(78	)		(26.1	)
Provision for income taxes			63		69		78		82		93		(6	)		(7.4	)		(30	)		(31.2	)

NET INCOME		$	158	$	157	$	170	$	176	$	206	$	1			0.2	%	$	(48	)		(23.9	)%

Net income applicable to common stock		$	158	$	157	$	170	$	176	$	206	$	1			0.2	%	$	(48	)		(23.9	)%

Basic net income per common share		$	0.90	$	0.90	$	0.98	$	1.01	$	1.18	$	—			—	%	$	(0.28	)		(23.7	)%
Diluted net income per common share			0.89		0.89		0.97		1.00		1.18		—			—			(0.29	)		(24.6	)
Cash dividends declared on common stock			88		88		87		87		83		—			0.5			5			5.0
Dividends per common share			0.50		0.50		0.50		0.50		0.48		—			—			0.02			4.2

N/M — Not meaningful

-7-

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
Comerica Incorporated and Subsidiaries


				2003												2002

(in millions)				4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr

Balance at beginning of period				$	802		$	802		$	801		$	791		$	758
Loans charged-off:
	Commercial				75			71			87			72			66
	Real estate construction:
		Real estate construction business line			1			—			—			—			—
		Other			—			—			—			1			1

			Total real estate construction		1			—			—			1			1
	Commercial mortgage:
		Commercial real estate business line			—			—			4			—			6
		Other			6			4			3			5			3

			Total commercial mortgage		6			4			7			5			9
	Consumer				2			2			2			2			3
	Lease financing				—			—			4			—			—
	International				13			17			17			20			14

		Total loans charged-off			97			94			117			100			93
Recoveries on loans previously charged-off:
	Commercial				16			5			6			2			9
	Real estate construction				—			—			—			—			—
	Commercial mortgage				—			1			—			—			1
	Consumer				—			1			—			1			—
	Lease financing				—			—			—			—			1
	International				5			4			1			1			—

		Total recoveries			21			11			7			4			11

Net loans charged-off					76			83			110			96			82
Provision for loan losses					77			83			111			106			115

Balance at end of period				$	803		$	802		$	802		$	801		$	791

Allowance for loan losses as a percentage of total loans					1.99	%		1.97	%		1.89	%		1.88	%		1.87	%
Net loans charged-off as a percentage of average total loans					0.75			0.79			1.02			0.88			0.76

Allowance for credit losses on lending-related commitments*				$	33		$	29		$	33		$	34		$	35

* Included in “Accrued expenses and other liabilities” on the consolidated balance sheets.

-8-

NONPERFORMING ASSETS
Comerica Incorporated and Subsidiaries


				2003												2002

(in millions)				4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr

SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonaccrual loans:
	Commercial			$	300		$	388		$	346		$	400		$	372
	Real estate construction:
		Real estate construction business line			21			28			37			38			17
		Other			3			4			3			1			2

			Total real estate construction		24			32			40			39			19
	Commercial mortgage:
		Commercial real estate business line			3			3			3			8			8
		Other			84			65			52			49			45

			Total commercial mortgage		87			68			55			57			53
	Residential mortgage				1			—			—			—			—
	Consumer				3			3			2			2			2
	Lease financing				24			25			26			35			5
	International				68			82			90			91			114

			Total nonaccrual loans		507			598			559			624			565
Reduced-rate loans					—			—			—			—			—

			Total nonperforming loans		507			598			559			624			565
Other real estate					30			25			18			13			10
Nonaccrual debt securities					1			4			4			4			4

			Total nonperforming assets	$	538		$	627		$	581		$	641		$	579

Nonperforming loans as a percentage of total loans					1.26	%		1.47	%		1.32	%		1.47	%		1.34	%
Nonperforming assets as a percentage of total loans,
	other real estate and nonaccrual debt securities				1.33			1.54			1.37			1.51			1.37
Allowance for loan losses as a percentage
	of total nonperforming assets				149			128			138			125			136
Loans past due 90 days or more and still accruing				$	32		$	56		$	42		$	50		$	43

ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period				$	598		$	559		$	624		$	565		$	620
	Loans transferred to nonaccrual (1)				114			211			148			187			185
	Nonaccrual business loan gross charge-offs (2)				(94	)		(92	)		(115	)		(98	)		(90	)
	Loans transferred to accrual status (1)				—			—			(6	)		(9	)		(4	)
	Nonaccrual business loans sold (3)				(48	)		(37	)		(56	)		(3	)		(115	)
	Payments/Other (4)				(63	)		(43	)		(36	)		(18	)		(31	)

Nonaccrual loans at end of period				$	507		$	598		$	559		$	624		$	565

(1)	Based on an analysis of nonaccrual loans with book balances greater than $2 million.
(2)	Analysis of gross loan charge-offs:
	Nonaccrual business loans			$	94		$	92		$	115		$	98		$	90
	Performing business loans				1			—			—			—			—
	Consumer loans				2			2			2			2			3

			Total gross loan charge-offs	$	97		$	94		$	117		$	100		$	93

(3)	Analysis of loans sold:
	Nonaccrual business loans			$	48		$	37		$	56		$	3		$	115
	Performing business loans				15			—			—			—			—

			Total loans sold	$	63		$	37		$	56		$	3		$	115

(4)	Net change related to nonaccrual loans with balances less than $2 million, other than business loan charge-offs and loans sold, are included in Payments/Other.

-9-

ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries


		Three Months Ended

		December 31, 2003								September 30, 2003								December 31, 2002

		Average					Average			Average					Average			Average					Average
(dollar amounts in millions)		Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate

Commercial loans		$	23,556		$	242		4.08	%	$	24,653		$	251		4.04	%	$	25,805		$	294		4.52	%
Real estate construction loans			3,500			44		5.00			3,500			44		4.94			3,400			47		5.49
Commercial mortgage loans			7,727			100		5.11			7,617			101		5.23			7,126			105		5.84
Residential mortgage loans			867			13		6.16			823			13		6.30			773			13		6.96
Consumer loans			1,538			17		4.48			1,487			20		5.49			1,531			24		6.26
Lease financing			1,290			15		4.58			1,273			15		4.63			1,275			17		5.18
International loans			2,406			26		4.36			2,528			25		3.95			2,839			32		4.44
Business loan swap income			—			54		—			—			62		—			—			89		—

	Total loans		40,884			511		4.97			41,881			531		5.03			42,749			621		5.76
Investment securities available-for-sale (1)			4,792			42		3.47			4,817			37		3.00			4,425			58		5.37
Short-term investments			1,805			8		1.72			3,148			12		1.49			1,039			8		3.00

	Total earning assets		47,481			561		4.69			49,846			580		4.61			48,213			687		5.67
Cash and due from banks			1,703								1,872								1,977
Allowance for loan losses			(832	)							(831	)							(811	)
Accrued income and other assets			3,033								3,034								3,151

	Total assets	$	51,385							$	53,921							$	52,530

Money market and NOW deposits		$	17,991			44		0.98		$	17,665			49		1.09		$	15,178			58		1.51
Savings deposits			1,592			2		0.42			1,566			2		0.43			1,556			3		0.88
Certificates of deposit			6,991			28		1.58			7,607			31		1.63			9,167			49		2.11
Foreign office time deposits			557			4		2.62			571			4		2.81			716			6		3.31

	Total interest-bearing deposits		27,131			78		1.13			27,409			86		1.24			26,617			116		1.73
Short-term borrowings			334			1		0.98			447			1		1.06			1,020			4		1.53
Medium- and long-term debt			4,772			24		2.04			5,173			27		2.07			5,275			33		2.45

	Total interest-bearing sources		32,237			103		1.27			33,029			114		1.37			32,912			153		1.84
Noninterest-bearing deposits			13,198								15,079								14,004
Accrued expenses and other liabilities			850								813								714
Common shareholders’ equity			5,100								5,000								4,900

	Total liabilities and shareholders’ equity	$	51,385							$	53,921							$	52,530

Net interest income/rate spread (FTE)					$	458		3.42					$	466		3.24					$	534		3.83

FTE adjustment					$	1							$	1							$	1

Impact of net noninterest-bearing sources of funds								0.41								0.46								0.58

Net interest margin (as a percentage of average earning assets) (FTE)								3.83	%							3.70	%							4.41	%

(1) The average rate for investment securities available-for-sale was computed using average historical cost.

-10-

ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries



		Years Ended

		December 31, 2003								December 31, 2002

		Average					Average			Average					Average
(dollar amounts in millions)		Balance			Interest		Rate			Balance			Interest		Rate

Commercial loans		$	25,084		$	1,037		4.13	%	$	25,460		$	1,198		4.70	%
Real estate construction loans			3,540			178		5.04			3,353			193		5.74
Commercial mortgage loans			7,521			403		5.35			6,786			416		6.12
Residential mortgage loans			831			54		6.47			758			54		7.15
Consumer loans			1,515			82		5.41			1,504			98		6.55
Lease financing			1,283			59		4.59			1,242			67		5.37
International loans			2,596			115		4.44			2,988			140		4.70
Business loan swap income			—			285		—			—			361		—

	Total loans		42,370			2,213		5.22			42,091			2,527		6.00
Investment securities available-for-sale (1)			4,529			166		3.65			4,360			247		5.74
Short-term investments			1,942			36		1.85			602			27		4.45

	Total earning assets		48,841			2,415		4.94			47,053			2,801		5.96
Cash and due from banks			1,811								1,800
Allowance for loan losses			(831	)							(739	)
Accrued income and other assets			3,159								3,016

	Total assets	$	52,980							$	51,130

Money market and NOW deposits		$	17,359			204		1.18		$	13,081			192		1.47
Savings deposits			1,571			8		0.50			1,643			16		1.01
Certificates of deposit			8,061			139		1.72			10,376			245		2.36
Foreign office time deposits			618			19		3.15			771			26		3.36

	Total interest-bearing deposits		27,609			370		1.34			25,871			479		1.85
Short-term borrowings			550			7		1.20			1,962			37		1.85
Medium- and long-term debt			5,074			109		2.14			5,763			149		2.58

	Total interest-bearing sources		33,233			486		1.46			33,596			665		1.98
Noninterest-bearing deposits			13,910								11,841
Accrued expenses and other liabilities			804								809
Common shareholders’ equity			5,033								4,884

	Total liabilities and shareholders’ equity	$	52,980							$	51,130

Net interest income/rate spread (FTE)					$	1,929		3.48					$	2,136		3.98

FTE adjustment					$	3							$	4

Impact of net noninterest-bearing sources of funds								0.47								0.57

Net interest margin (as a percentage of average earning assets) (FTE)								3.95	%							4.55	%

(1) The average rate for investment securities available-for-sale was computed using average historical cost.

-11-

CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries


			December 31,			September 30,			June 30,			March 31,			December 31,
(in millions, except per share data)			2003			2003			2003			2003			2002

Commercial loans:
	Floor plan		$	2,731		$	2,053		$	2,752		$	2,715		$	2,631
	Other			20,243			21,333			22,321			22,498			22,611

		Total commercial loans		22,974			23,386			25,073			25,213			25,242
Real estate construction loans:
	Real estate construction business line			2,754			2,866			2,959			3,016			2,900
	Other			643			630			619			593			557

		Total real estate construction loans		3,397			3,496			3,578			3,609			3,457
Commercial mortgage loans:
	Commercial real estate business line			1,655			1,574			1,687			1,682			1,626
	Other			6,223			6,057			5,920			5,724			5,568

		Total commercial mortgage loans		7,878			7,631			7,607			7,406			7,194
Residential mortgage loans				875			844			828			826			789
Consumer loans:
	Home equity			1,176			1,110			1,127			1,121			1,128
	Other consumer			392			401			369			411			410

		Total consumer loans		1,568			1,511			1,496			1,532			1,538
Lease financing				1,301			1,289			1,275			1,273			1,296
International loans				2,309			2,478			2,607			2,710			2,765

		Total loans	$	40,302		$	40,635		$	42,464		$	42,569		$	42,281

Goodwill			$	247		$	247		$	247		$	247		$	247
Core deposit intangible				1			2			2			2			2
Other intangible assets				1			1			1			1			1
Loan servicing rights				17			16			14			12			11
Deferred mutual fund distribution costs				12			14			15			17			19
Amortization of intangibles (quarterly)				1			—			—			—			1

Tier 1 common capital ratio*				8.06	%		7.92	%		7.61	%		7.47	%		7.39	%
Tier 1 risk-based capital ratio*				8.73			8.58			8.26			8.12			8.05
Total risk-based capital ratio *				12.72			12.64			12.30			11.73			11.72
Leverage ratio*				10.13			9.54			9.38			9.46			9.29

Book value per share			$	29.20		$	29.05		$	29.02		$	28.56		$	28.31

Market value per share for the quarter:
	High		$	56.34		$	49.75		$	53.58		$	46.74		$	50.30
	Low			46.38			45.28			37.79			37.10			35.20
	Close			56.06			46.60			46.50			37.88			43.24

Quarterly ratios:
	Return on average common shareholders’ equity			12.33	%		12.55	%		13.51	%		14.13	%		16.86	%
	Return on average assets			1.22			1.16			1.27			1.33			1.57
	Efficiency ratio			56.34			55.28			52.02			51.10			51.02

Number of commercial banking offices				360			358			357			352			352
Number of employees — full time equivalent				11,282			11,302			11,479			11,477			11,358

* December 31, 2003 ratios are estimated

-12-

PARENT COMPANY ONLY BALANCE SHEETS
Comerica Incorporated


			December 31,			September 30,			December 31,
(in millions, except share data)			2003			2003			2002

ASSETS
Cash and due from banks			$	—		$	—		$	17
Short-term investments with subsidiary bank				296			199			28
Investment in subsidiaries, principally banks				5,599			5,659			5,421
Premises and equipment				3			3			3
Other assets				262			294			357

		Total assets	$	6,160		$	6,155		$	5,826

LIABILITIES AND SHAREHOLDERS’ EQUITY
Commercial paper			$	—		$	—		$	130
Long-term debt				826			836			176
Subordinated debt issued to and advances from subsidiaries				—			—			352
Other liabilities				224			226			221

		Total liabilities		1,050			1,062			879

Common stock — $5 par value:
	Authorized — 325,000,000 shares
	Issued — 178,735,252 shares at 12/31/03, 9/30/03 and 12/31/02			894			894			894
Capital surplus				384			378			363
Accumulated other comprehensive income				74			111			237
Retained earnings				3,973			3,909			3,684
Less cost of common stock in treasury — 3,735,163 shares at 12/31/03, 3,421,888 shares at 9/30/03 and 3,960,149 shares at 12/31/02				(215	)		(199	)		(231	)

		Total shareholders’ equity		5,110			5,093			4,947

		Total liabilities and shareholders’ equity	$	6,160		$	6,155		$	5,826

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Comerica Incorporated and Subsidiaries


						Accumulated Other									Total
	Common		Capital			Comprehensive			Retained			Treasury			Shareholders’
(in millions, except share data)	Stock		Surplus			Income			Earnings			Stock			Equity

BALANCE AT JANUARY 1, 2002	$	894	$	331		$	225		$	3,448		$	(91	)	$	4,807
Net income		—		—			—			601			—			601
Other comprehensive income, net of tax		—		—			12			—			—			12

Total comprehensive income		—		—			—			—			—			613
Cash dividends declared on common stock ($1.92 per share)		—		—			—			(335	)		—			(335	)
Purchase of 3,536,300 shares of common stock		—		—			—			—			(210	)		(210	)
Net issuance of common stock under employee stock plans		—		10			—			(30	)		70			50
Recognition of stock-based compensation expense		—		22			—			—			—			22

BALANCE AT DECEMBER 31, 2002	$	894	$	363		$	237		$	3,684		$	(231	)	$	4,947

BALANCE AT JANUARY 1, 2003	$	894	$	363		$	237		$	3,684		$	(231	)	$	4,947
Net income		—		—			—			661			—			661
Other comprehensive income(loss), net of tax		—		—			(163	)		—			—			(163	)

Total comprehensive income		—		—			—			—			—			498
Cash dividends declared on common stock ($2.00 per share)		—		—			—			(350	)		—			(350	)
Purchase of 510,500 shares of common stock		—		—			—			—			(27	)		(27	)
Net issuance of common stock under employee stock plans		—		(5	)		—			(22	)		43			16
Recognition of stock-based compensation expense		—		26			—			—			—			26

BALANCE AT DECEMBER 31, 2003	$	894	$	384		$	74		$	3,973		$	(215	)	$	5,110

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Table of Contents

Table of Contents

Table of Contents

Table of Contents