Printer Friendly Version View printer-friendly version
<< Back
Comerica Reports Third Quarter 2008 Earnings
October 17, 2008 at 6:46 AM EDT
Core Operating Earnings Stable

DALLAS, Oct. 17 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA) today reported third quarter 2008 income from continuing operations of $27 million, or $0.18 per diluted share, compared to $56 million, or $0.37 per diluted share, for the second quarter 2008 and $180 million, or $1.17 per diluted share, for the third quarter 2007. Third quarter 2008 included a $174 million provision for credit losses, compared to $177 million for the second quarter 2008 and $45 million for the third quarter 2007. During the third quarter 2008, Comerica recognized a pre-tax charge of $96 million ($61 million after-tax, or $0.40 per diluted share), recorded in "litigation and operational losses," related to a previously announced offer to repurchase (at par) auction-rate securities (ARS) from customers. In addition, third quarter 2008 net income reflected a $27 million pre-tax gain ($17 million after-tax, or $0.11 per diluted share) related to the sale of shares in Visa, Inc. (Visa) and net after-tax charges of $7 million ($0.04 per diluted share) which included settlements with the Internal Revenue Service on disallowed foreign tax credits related to a series of loans to foreign borrowers and both the net interest income impact and tax-related interest on certain structured leasing transactions, as well as other adjustments to tax reserves.

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO)



    (dollar amounts in millions,
     except per share data)              3rd Qtr '08  2nd Qtr '08 3rd Qtr '07
    Net interest income                      $466*        $442*      $503
    Provision for loan losses                 165          170         45
    Noninterest income                        240          242        230
    Noninterest expenses                      514          423        423

    Income from continuing operations,
     net of tax                                27           56        180
    Net income                                 28           56        181

    Diluted EPS from continuing operations   0.18         0.37       1.17

    Return on average common shareholders'
     equity from continuing operations       2.12%        4.26%     14.27%
    Tier 1 capital ratio                     7.35**       7.45       7.68

    Net interest margin                      3.11*        2.91*      3.66

    *  Third quarter 2008 and second quarter 2008 net interest income declined
       $8 million and $30 million, respectively, and the net interest margin
       declined six basis points and 19 basis points, respectively, due to
       tax-related non-cash lease income charges. Excluding these charges, the
       net interest margin would have been 3.17 percent in the third quarter
       2008 and 3.10 percent in the second quarter 2008.

    ** September 30, 2008, ratio is estimated.


The following table illustrates the after-tax impact of certain items on income from continuing operations.

                                        3rd Qtr '08          2nd Qtr '08
    (dollar amounts in millions,
     except per share data)          Amount   Per Share    Amount  Per Share

    Gains on sales of Visa and
     MasterCard shares                $17       $0.11        $9      $0.06
    Offer to repurchase ARS           (61)      (0.40)        -         -
    Tax-related non-cash charges to
     lease income                      (6)      (0.04)      (19)     (0.13)
    Other tax-related items            (1)          -       (13)     (0.08)


"In an economic environment that is as challenging and volatile as any we have ever seen, Comerica's core operating earnings remained stable compared to the prior two quarters," said Ralph W. Babb Jr., chairman and chief executive officer. "As expected, net credit-related charge-offs and the provision for loan losses were unchanged.

"In this uncertain environment, we are taking actions to improve our capital ratios and enhance our balance sheet strength, including a previously announced intention to reduce our dividend and the execution of a loan optimization program, which is working and producing the desired results. Maintaining a solid capital position is prudent and provides us the flexibility to navigate these swift economic currents and continue to invest in our growth markets."

Third Quarter 2008 Compared to Second Quarter 2008

-- In response to Comerica's loan optimization plan, average loans declined seven percent on an annualized basis, with declines of five percent in the Texas market, three percent in the Midwest market and 13 percent in the Western market.

-- On an annualized basis, average noninterest-bearing deposits, excluding Financial Services Division (FSD) deposits, increased 13 percent.

-- September 30, 2008, core deposits, excluding the Financial Services Division, increased $273 million compared to June 30, 2008, due to increases in noninterest-bearing deposits and customer certificates of deposit.

-- The net interest margin was 3.11 percent in the third quarter 2008, or 3.17 percent excluding the charge to interest income on certain structured lease transactions.

-- Net credit-related charge-offs were $116 million, or 90 basis points as a percent of average total loans, for the third quarter 2008, compared to $113 million, or 86 basis points as a percent of average total loans, for the second quarter 2008. The provision for loan losses was $165 million for the third quarter 2008, compared to $170 million for the second quarter 2008, and the period-end allowance to total loans ratio increased to 1.38 percent from 1.28 percent at June 30, 2008.

-- Excluding net securities gains, noninterest income decreased $15 million, primarily the result of a $10 million decrease in deferred compensation asset returns (which is offset by a decrease in deferred compensation plan costs in noninterest expenses).

-- Noninterest expenses increased $91 million from the second quarter, due to the $96 million charge related to the offer to repurchase ARS, partially offset by a decrease in deferred compensation plan costs ($10 million).

-- The estimated Tier 1 common and Tier 1 capital ratios were 6.69 and 7.35 percent, respectively, both within the targeted ranges. The $96 million ($61 million, after-tax) ARS charge and related commitment to repurchase reduced the estimated Tier 1 common and Tier 1 capital ratios by 21 basis points and 22 basis points, respectively.



    Net Interest Income and Net Interest Margin

    (dollar amounts in millions)        3rd Qtr '08  2nd Qtr '08   3rd Qtr '07
    Net interest income                      $466*      $442*         $503

    Net interest margin                      3.11%*     2.91%*        3.66%

    Selected average balances:
     Total earning assets                 $59,946    $61,088       $54,641
     Total investment securities            8,146      8,296         4,405
     Total loans                           51,508     52,367        49,874

     Total core deposits**, excluding FSD  31,439     32,058        31,141
     Total noninterest-bearing deposits    10,646     10,648        10,840
     Total noninterest-bearing deposits,
      excluding FSD                         9,104      8,825         8,265

    *  Third quarter 2008 and second quarter 2008 net interest income declined
       $8 million and $30 million, respectively, and the net interest margin
       declined six basis points and 19 basis points, respectively, due to
       tax-related non-cash lease income charges. Excluding these charges, the
       net interest margin would have been 3.17 percent in the third quarter
       2008 and 3.10 percent in the second quarter 2008.

    ** Core deposits exclude institutional certificates of deposit and foreign
       office time deposits.


-- The $24 million increase in net interest income in the third quarter 2008, when compared to second quarter 2008, resulted primarily from the second quarter $30 million non-cash charge to lease income, partially offset by the third quarter $8 million non-cash charge to lease income.

-- The net interest margin of 3.11 percent increased seven basis points, after excluding the tax-related non-cash lease income charges of 19 basis points in the second quarter 2008 and six basis points in the third quarter 2008, due to improved loan spreads and lower deposit rates.

-- September 30, 2008, core deposits, excluding the Financial Services Division, increased $273 million compared to June 30, 2008, due to increases in noninterest-bearing deposits and customer certificates of deposit.

-- Total average Financial Services Division deposits decreased $368 million from the second quarter 2008 and $1.3 billion from the third quarter 2007. This division serves title and escrow companies that facilitate residential mortgage transactions and benefits from customer deposits related to mortgage escrow balances. Deposits declined due to cooling of the California housing market, combined with destabilization of the mortgage market.

Noninterest Income

Noninterest income was $240 million for the third quarter 2008, compared to $242 million for the second quarter 2008 and $230 million for the third quarter 2007. Net securities gains in noninterest income included a $27 million gain on the sale of Comerica's remaining ownership of Visa shares in the third quarter 2008 and a $14 million gain on the sale of MasterCard shares in the second quarter 2008. In addition, deferred compensation asset returns decreased $10 million in the third quarter 2008, when compared to the second quarter 2008 (which is offset by a decrease in deferred compensation plan costs in noninterest expenses). Certain categories of noninterest income are highlighted in the table below.


    (in millions)                      3rd Qtr '08  2nd Qtr '08  3rd Qtr '07
    Net securities gains                   $27          $14          $4
    Other noninterest income
      Net income (loss) from principal
       investing and warrants                1           (3)         11
      Deferred compensation asset returns*  (6)           4          (2)

    * Compensation deferred by Comerica officers is invested in stocks and
      bonds to reflect the investment selections of the officers. Income
      (loss) earned on these assets is reported in noninterest income and the
      offsetting increase (decrease) in the liability is reported in salaries
      expense.


Noninterest Expenses

Noninterest expenses were $514 million for the third quarter 2008, compared to $423 million for both the second quarter 2008 and third quarter 2007. The $91 million increase in noninterest expenses in the third quarter 2008, compared to the second quarter 2008, reflected the $96 million charge related to the offer to repurchase ARS (included in "litigation and operational losses"), partially offset by a decrease in deferred compensation plan costs ($10 million). The ARS repurchases from customers will be completed in the fourth quarter 2008. Certain categories of noninterest expenses are highlighted in the table below.



                                      3rd Qtr '08   2nd Qtr '08  3rd Qtr '07
    Salaries
       Regular salaries                   $155          $151         $162
       Severance                             2             1            -
       Incentives                           31            35           35
       Deferred compensation plan costs     (6)            4           (2)
       Share-based compensation             10            11           12
         Total salaries                    192           202          207
    Employee benefits                       46            48           49
    Customer services                        2             3           11
    Litigation and operational losses      105*            3            6
    Provision for credit losses on
     lending-related commitments             9             7            -
    Other noninterest expenses
       FDIC insurance                        6             2            1

    *  Third quarter 2008 litigation and operational losses included a
       $96 million charge related to an offer to repurchase auction-rate
       securities from customers.


Tax-related Items

The third quarter 2008 provision for income taxes reflected net after-tax charges of $1 million which included the acceptance of a global settlement offered by the Internal Revenue Service (IRS) on certain structured leasing transactions, settlement with the IRS on disallowed foreign tax credits related to a series of loans to foreign borrowers and other adjustments to tax reserves. The second quarter 2008 provision for income taxes reflected an after-tax charge of $13 million related to the structured leasing transactions. The reassessment of the size and timing of tax deductions related to the leasing transactions also resulted in the $8 million ($6 million after-tax) and $30 million ($19 million after-tax) respective charges to lease income in the third and second quarters of 2008 previously discussed.

Credit Quality

"Net charge-offs related to Western market residential real estate development were lower than the two previous quarters, reflecting our aggressive management of this portfolio," said Babb. "As expected, we are seeing softness in small business and middle market, which is consistent with our outlook."

-- The allowance to loan ratio increased to 1.38 percent at September 30, 2008, from 1.28 percent at June 30, 2008.

-- The provision for loan losses and loan quality reflected continuing challenges in residential real estate development located in the Western market (primarily California) and the economies in all major markets.

-- Net credit-related charge-offs in the Commercial Real Estate business line in the third quarter 2008 were $57 million, of which $39 million were from residential real estate developers in the Western market. Comparable numbers for the second quarter 2008 were $73 million in total, of which $56 million were from residential real estate developers in the Western market.

-- Net loan charge-offs, excluding the Commercial Real Estate business line, were $59 million in the third quarter 2008, or 52 basis points of average non-Commercial Real Estate loans, compared to $40 million, or 35 basis points, in the second quarter 2008.

-- Nonperforming assets increased to 1.71 percent of total loans and foreclosed property for the third quarter 2008. During the third quarter 2008, $280 million of loan relationships greater than $2 million were transferred to nonaccrual status, a decrease of $24 million from the second quarter 2008. Of the transfers of loan relationships greater than $2 million to nonaccrual in the third quarter 2008, $145 million were in the Commercial Real Estate business line, a decrease of $43 million from the second quarter 2008.



    (dollar amounts in millions)      3rd Qtr '08  2nd Qtr '08   3rd Qtr '07
    Net loan charge-offs                  $116        $112           $40
    Net lending-related commitment
     charge-offs                             -           1             -
        Total net credit-related
         charge-offs                       116         113            40
    Net loan charge-offs/Average
     total loans                          0.90%       0.86%         0.32%
    Net credit-related charge-offs/
     Average total loans                  0.90        0.86          0.32

    Provision for loan losses             $165        $170           $45
    Provision for credit losses on
     lending-related commitments             9           7             -
        Total provision for credit losses  174         177            45

    Nonperforming loans                    863         731           272
    Nonperforming assets (NPAs)            881         748           291
    NPAs/Total loans and foreclosed
     property                             1.71%       1.44%         0.59%

    Allowance for loan losses             $712        $663          $512
    Allowance for credit losses on
      lending-related commitments*          40          31            19
        Total allowance for credit losses  752         694           531
    Allowance for loan losses/Total loans 1.38%       1.28%         1.03%
    Allowance for loan losses/
     Nonperforming loans                    82          91           176

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


Balance Sheet and Capital Management

Total assets and common shareholders' equity were $65.2 billion and $5.1 billion, respectively, at September 30, 2008, compared to $66.0 billion and $5.1 billion, respectively, at June 30, 2008. There were approximately 150 million shares outstanding at September 30, 2008. No shares were repurchased in the open market in the first nine months of 2008.

Comerica's third quarter 2008 estimated Tier 1 common, Tier 1 and total risk-based capital ratios were 6.69 percent, 7.35 percent and 11.22 percent, respectively. The $96 million ($61 million, after-tax) ARS charge and related commitment to repurchase reduced the estimated Tier 1 common, Tier 1 and total capital ratios by 21 basis points, 22 basis points and 29 basis points, respectively.

Full-Year 2008 Outlook Compared to Full-Year 2007 from Continuing Operations

-- Low to mid single-digit full-year average loan growth, with loans declining in the fourth quarter 2008.

-- Mortgage-backed FNMA and FHLMC securities (AAA-rated) averaging about $8 billion for the fourth quarter 2008. In addition, about $1.4 billion of ARS will be repurchased during the fourth quarter 2008.

-- Average full-year net interest margin about 3.05 percent (3.10 percent excluding the second and third quarter lease income charges), with a net interest margin of about 3.00 percent in the fourth quarter 2008. The fourth quarter net interest margin reflects the three basis point negative impact of ARS repurchases and the 50 basis point reduction in the federal funds rate announced October 8, 2008. This full-year net interest margin reflects a five basis point decline from the previous outlook.

-- Full-year net credit-related charge-offs of about $450 million. The provision for credit losses is expected to exceed net charge-offs.

-- Mid single-digit growth in noninterest income.

-- Low single-digit increase in noninterest expenses (low single-digit decrease excluding the charge related to the offer to repurchase ARS).

-- Effective tax rate of about 27 percent for the full year, with a rate of about 20 percent for the fourth quarter 2008.

-- Maintain a Tier 1 capital ratio within a target range of 7.25 to 8.25 percent.

Business Segments

Comerica's continuing operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. The Finance Division also is included as a segment. The financial results below are based on the internal business unit structure of the Corporation and methodologies in effect at September 30, 2008 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses third quarter 2008 results compared to second quarter 2008.

    The following table presents net income (loss) by business segment.



     (dollar amounts in millions)  3rd Qtr '08   2nd Qtr '08   3rd Qtr '07
     Business Bank                 $65    186%   $57     73%   $137     70%
     Retail Bank                    21     57      7      9      39     20
     Wealth & Institutional
      Management                   (51)  (143)    14     18      20     10
                                    35    100%    78    100%    196    100%
     Finance                        (2)           (5)            (8)
     Other*                         (5)          (17)            (7)
          Total                    $28           $56           $181

     * Includes discontinued operations and items not directly associated with
       the three major business segments or the Finance Division.



    Business Bank

    (dollar amounts in millions)  3rd Qtr '08    2nd Qtr '08   3rd Qtr '07
    Net interest income (FTE)         $323           $296          $337
    Provision for loan losses          135            123            43
    Noninterest income                  75             92            82
    Noninterest expenses               175            185           177
    Net income                          65             57           137

    Net credit-related charge-offs      95             96            30

    Selected average balances:
    Assets                          41,357         42,335        40,796
    Loans                           40,506         41,510        39,745
       FSD loans                       401            469         1,191
    Deposits                        14,933         15,384        15,947
       FSD deposits                  2,449          2,817         3,789

    Net interest margin               3.17%          2.85%         3.36%


-- Average loans decreased $1.0 billion, led by declines in National Dealer Services and Middle Market.

-- Average deposits, excluding the Financial Services Division, decreased $83 million, primarily due to Technology and Life Sciences and smaller declines in other businesses, partially offset by an increase in Global Corporate. Financial Services Division deposits decreased $368 million.

-- The net interest margin was impacted by non-cash charges to lease income in both the third and second quarter 2008. Excluding these charges, the net interest margin increased 10 basis points from increased loan spreads and decreases in lower-spread money market accounts and certificates of deposit.

-- The provision for loan losses increased $12 million, primarily in Global Corporate, Technology and Life Sciences and Specialty Businesses, partially offset by a decline in Commercial Real Estate.

-- Noninterest income decreased $17 million, mostly due to a second quarter 2008 gain on the sale of MasterCard shares of $14 million.

-- Noninterest expenses decreased $10 million, partially due to lower salaries and employee benefits.



    Retail Bank

     (dollar amounts in millions)   3rd Qtr '08   2nd Qtr '08  3rd Qtr '07
     Net interest income (FTE)          $142          $146         $169
     Provision for loan losses            33            29            7
     Noninterest income                   80            54           56
     Noninterest expenses                161           161          160
     Net income                           21             7           39

     Net credit-related charge-offs       17            14            9

     Selected average balances:
     Assets                            7,046         7,100        6,854
     Loans                             6,362         6,348        6,111
     Deposits                         16,596        17,043       17,145

     Net interest margin                3.40%         3.44%        3.91%



    --  Average loans increased $14 million, or one percent on an annualized
basis.

-- Average deposits decreased $447 million, primarily due to decreases in money market investment accounts and customer certificates of deposit.

-- The net interest margin of 3.40 percent declined four basis points, primarily due to a decline in loan and deposit spreads.

-- The provision for loan losses increased $4 million due to Small Business.

-- Noninterest income increased $26 million, due to a third quarter 2008 gain of $27 million on the sale of Visa shares.

-- Eight new banking centers were opened in the third quarter 2008 (six in the Western market).



    Wealth and Institutional Management

    (dollar amounts in millions)   3rd Qtr '08     2nd Qtr '08    3rd Qtr '07
    Net interest income (FTE)          $37              $37           $37
    Provision for loan losses            7                5            (5)
    Noninterest income                  71               74            70
    Noninterest expenses               180               83            81
    Net income                         (51)              14            20

    Net credit-related charge-offs       4                3             1

    Selected average balances:
    Assets                           4,759            4,646         4,152
    Loans                            4,624            4,502         3,990
    Deposits                         2,351            2,493         2,378

    Net interest margin               3.17%            3.28%         3.59%


-- Average loans increased $122 million, or 11 percent on an annualized basis.

-- Average deposits decreased $142 million, primarily due to declines in money market investment account balances, interest-bearing transaction deposit accounts and customer certificates of deposit.

-- The net interest margin of 3.17 percent declined 11 basis points, primarily due to a decline in deposit spreads.

-- Noninterest expenses increased $97 million, due to the $96 million charge related to the offer to repurchase auction-rate securities from customers.

Geographic Market Segments

Comerica also provides market segment results for four primary geographic markets: Midwest, Western, Texas and Florida. In addition to the four primary geographic markets, Other Markets and International are also reported as market segments. The financial results below are based on methodologies in effect at September 30, 2008 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses third quarter 2008 results compared to second quarter 2008.

    The following table presents net income (loss) by market segment.

    (dollar amounts in millions)   3rd Qtr '08   2nd Qtr '08   3rd Qtr '07
    Midwest                       $51     144%  $52      68%   $79      40%
    Western                         9      25   (20)    (26)    55      28
    Texas                          13      36    17      21     27      14
    Florida                        (1)     (3)   (1)     (2)     2       1
    Other Markets                 (44)*  (123)   23      29     18       9
    International                   7      21     7      10     15       8
                                   35     100%   78     100%   196     100%
    Finance & Other Businesses**   (7)          (22)           (15)
         Total                    $28           $56           $181

    *  Third quarter 2008 included a $96 million charge ($61 million,
       after-tax) related to an offer to repurchase auction-rate securities
       from customers.

    ** Includes discontinued operations and items not directly
       associated with the geographic markets.



    Midwest

    (dollar amounts in millions)     3rd Qtr '08   2nd Qtr '08  3rd Qtr '07
    Net interest income (FTE)            $197         $172          $222
    Provision for loan losses              52           24            15
    Noninterest income                    142          136           119
    Noninterest expenses                  205          205           206
    Net income                             51           52            79

    Net credit-related charge-offs         44           42            23

    Selected average balances:
    Assets                             19,820       19,891        19,131
    Loans                              19,125       19,255        18,526
    Deposits                           15,926       16,056        15,636

    Net interest margin                  4.08%        3.58%         4.73%


-- Average loans decreased $130 million, led by declines in Middle Market and National Dealer, partially offset by growth in Global Corporate.

-- Average deposits decreased $130 million, primarily due to a decrease in Personal Banking, partially offset by an increase in Global Corporate.

-- The net interest margin was impacted by non-cash charges to lease income in both the third and second quarter 2008. Excluding these charges, the net interest margin increased seven basis points due to an increase in loan spreads.

-- The provision for loan losses increased $28 million due to Commercial Real Estate and Global Corporate.

-- Noninterest income increased $6 million and included $22 million of the third quarter 2008 gain on the sale of Visa shares, partially offset by a second quarter 2008 gain of $14 million on the sale of MasterCard shares.



    Western Market

      (dollar amounts in millions)   3rd Qtr '08   2nd Qtr '08   3rd Qtr '07
      Net interest income (FTE)          $169          $171          $185
      Provision for loan losses            82           113            23
      Noninterest income                   38            34            36
      Noninterest expenses                112           115           110
      Net income (loss)                     9           (20)           55

      Net credit-related charge-offs       51            59             7

      Selected average balances:
      Assets                           16,627        17,241        17,095
      Loans                            16,381        16,918        16,543
        FSD loans                         401           469         1,191
      Deposits                         11,729        12,345        13,009
        FSD deposits                    2,255         2,611         3,607

      Net interest margin                4.09%         4.04%         4.43%


-- Average loans decreased $537 million, due to declines in the National Dealer Services, Middle Market and Commercial Real Estate lines of businesses.

-- Average deposits, excluding the Financial Services Division, decreased $260 million, primarily due to decreases in Private Banking and Middle Market. Financial Services Division deposits decreased $356 million.

-- The net interest margin of 4.09 percent increased five basis points, primarily due to a decrease in low-rate loans in the Financial Services Division and decreases in lower-spread money market accounts and certificates of deposit.

-- The provision for loan losses decreased $31 million, primarily due to Commercial Real Estate, partially offset by increases in Technology and Life Sciences and Small Business.

-- Noninterest income increased $4 million, primarily due to an increase in principal investing and warrant income.

    --  Six new banking centers were opened in the third quarter 2008.



    Texas Market

      (dollar amounts in millions)  3rd Qtr '08    2nd Qtr '08  3rd Qtr '07
      Net interest income (FTE)         $73           $74           $73
      Provision for loan losses          18             6            (2)
      Noninterest income                 27            22            24
      Noninterest expenses               61            63            58
      Net income                         13            17            27

      Total net credit-related
       charge-offs                        9             3             1

      Selected average balances:
      Assets                          7,945         8,063         7,172
      Loans                           7,691         7,795         6,902
      Deposits                        3,956         4,061         3,920

      Net interest margin              3.75%         3.78%         4.17%


-- Average loans decreased $104 million, primarily due to declines in Energy Lending and National Dealer Services, partially offset by growth in Commercial Real Estate.

-- Average deposits decreased $105 million, primarily due to declines in Personal Banking and Technology and Life Sciences.

-- The net interest margin of 3.75 percent decreased three basis points, primarily due a decline in deposit balances and deposit spreads.

-- The provision for loan losses increased $12 million, primarily in Energy Lending.

-- Noninterest income increased $5 million and included $4 million of the third quarter 2008 gain on the sale of Visa shares.

    --  One new banking center opened in the third quarter 2008.



    Florida Market

     (dollar amounts in millions)  3rd Qtr '08     2nd Qtr '08   3rd Qtr '07
     Net interest income (FTE)         $12             $12           $12
     Provision for loan losses           7               7             3
     Noninterest income                  4               4             4
     Noninterest expenses               10              11            10
     Net income (loss)                  (1)             (1)            2

     Net credit-related charge-offs      3               8             1

     Selected average balances:
     Assets                          1,900           1,854         1,706
     Loans                           1,900           1,851         1,692
     Deposits                          262             306           271

     Net interest margin              2.53%           2.50%         2.94%

-- Average loans increased $49 million, primarily due to growth in Private Banking, Commercial Real Estate and Middle Market, partially offset by a decrease in National Dealer Services.

-- Average deposits decreased $44 million due to a decline in Private Banking and balance transfers in Global Corporate from Florida to Other Markets.

    --  One new banking center opened in the third quarter 2008.

Conference Call and Webcast

Comerica will host a conference call to review third quarter 2008 financial results at 7 a.m. CDT Friday, October 17, 2008. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 65151410). The call and supplemental financial information can also be accessed on the Internet at http://www.comerica.com. A replay will be available approximately two hours following the conference call through October 31, 2008. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 65151410). A replay of the Webcast can also be accessed via Comerica's "Investor Relations" page at http://www.comerica.com.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada, China and Mexico.

Forward-looking Statements

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 "anticipates," "believes," "feels," "expects," "estimates," "seeks," "strives," "plans," "intends," "outlook," "forecast," "position," "target," "mission," "assume," "achievable," "potential," "strategy," "goal," "aspiration," "outcome," "continue," "remain," "maintain," "trend," "objective" 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 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. 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 further economic downturns, changes in the pace of an economic recovery and related changes in employment levels, changes in real estate values, fuel prices, energy costs or other events that could affect customer income levels or general economic conditions, changes related to the headquarters relocation or to its underlying assumptions, the effects of war and other armed conflicts or acts of terrorism, the effects of natural disasters including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods, the disruption of private or public utilities, the implementation of Comerica's strategies and business models, management's ability to maintain and expand customer relationships, changes in customer borrowing, repayment, investment and deposit practices, management's ability to retain key officers and employees, changes in the accounting treatment of any particular item, the impact of regulatory examinations, declines or other changes in the businesses or industries in which Comerica has a concentration of loans, including, but not limited to, the automotive production industry and the real estate business lines, the anticipated performance of any new banking centers, the entry of new competitors in Comerica's markets, changes in the level of fee income, changes in applicable laws and regulations, including those concerning taxes, banking, securities and insurance, changes in trade, monetary and fiscal policies, including the interest rate policies of the Board of Governors of the Federal Reserve System, fluctuations in inflation or interest rates, changes in general economic, political or industry conditions and related credit and market conditions, the interdependence of financial service companies and adverse conditions in the stock market. Comerica cautions that the foregoing list of factors is not exclusive. For discussion of these and other factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. 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.

ADD: /FIRST AND FINAL ADD -- LAF507 -- Comerica Incorporated Earnings/

         CONSOLIDATED FINANCIAL HIGHLIGHTS
         Comerica Incorporated and Subsidiaries


                                                  Three Months Ended
                                          September 30, June 30, September 30,
    (in millions, except per share data)      2008        2008      2007
    PER SHARE AND COMMON STOCK DATA
    Diluted income from continuing
     operations                              $0.18       $0.37       $1.17
    Diluted net income                        0.19        0.37        1.18
    Cash dividends declared                   0.66        0.66        0.64
    Common shareholders' equity (at
     period end)                             33.89       33.78       33.56

    Average diluted shares (in thousands)  150,795     150,819     153,096
    KEY RATIOS
    Return on average common
     shareholders' equity from continuing
     operations                               2.12%       4.26%      14.27%
    Return on average common
     shareholders' equity                     2.25        4.25       14.41
    Return on average assets from
     continuing operations                    0.17        0.34        1.22
    Return on average assets                  0.18        0.33        1.23
    Average common shareholders' equity
     as a percentage of average assets        7.82        7.87        8.57
    Tier 1 common capital ratio *             6.69        6.79        7.01
    Tier 1 risk-based capital ratio *         7.35        7.45        7.68
    Total risk-based capital ratio *         11.22       11.21       11.44
    Leverage ratio *                          8.59        8.53        9.60
    AVERAGE BALANCES
    Commercial loans                       $28,521     $29,280     $28,052
    Real estate construction loans           4,675       4,843       4,607
    Commercial mortgage loans               10,511      10,374       9,829
    Residential mortgage loans               1,870       1,906       1,865
    Consumer loans                           2,599       2,549       2,320
    Lease financing                          1,365       1,352       1,319
    International loans                      1,967       2,063       1,882
    Total loans                             51,508      52,367      49,874

    Earning assets                          59,946      61,088      54,641
    Total assets                            64,863      65,963      58,546
    Interest-bearing deposits               29,267      33,116      30,276
    Total interest-bearing liabilities      47,560      48,483      41,406
    Noninterest-bearing deposits            10,646      10,648      10,840
    Common shareholders' equity              5,075       5,193       5,015
    NET INTEREST INCOME
    Net interest income (fully taxable
     equivalent basis)**                      $467        $443        $504
    Fully taxable equivalent adjustment          1           1           1
    Net interest margin**                     3.11%       2.91%       3.66%
    CREDIT QUALITY
    Nonaccrual loans                          $863        $731        $272
    Reduced-rate loans                           -           -           -
    Total nonperforming loans                  863         731         272
    Foreclosed property                         18          17          19
    Total nonperforming assets                 881         748         291

    Loans past due 90 days or more and
     still accruing                             97         112          63

    Gross loan charge-offs                     122         118          47
    Loan recoveries                              6           6           7
    Net loan charge-offs                       116         112          40
    Lending-related commitment charge-offs       -           1           -
    Total net credit-related charge-offs       116         113          40

    Allowance for loan losses                  712         663         512
    Allowance for credit losses on
     lending-related commitments                40          31          19
    Total allowance for credit losses          752         694         531

    Allowance for loan losses as a
     percentage of total loans                1.38%       1.28%       1.03%
    Net loan charge-offs as a percentage
     of average total loans                   0.90        0.86        0.32
    Net credit-related charge-offs as a
     percentage of average total loans        0.90        0.86        0.32
    Nonperforming assets as a percentage
     of total loans and foreclosed
     property                                 1.71        1.44        0.59
    Allowance for loan losses as a
     percentage of total nonperforming
     loans                                      82          91         188



                                                      Nine Months Ended
                                                         September 30,
    (in millions, except per share data)            2008              2007
    PER SHARE AND COMMON STOCK DATA
    Diluted income from continuing operations      $1.28             $3.61
    Diluted net income                              1.28              3.63
    Cash dividends declared                         1.98              1.92
    Common shareholders' equity (at period end)

    Average diluted shares (in thousands)        150,783           156,202
    KEY RATIOS
    Return on average common shareholders'
     equity from continuing operations              4.98%            14.86%
    Return on average common shareholders' equity   5.00             14.92
    Return on average assets from
     continuing operations                          0.40              1.30
    Return on average assets                        0.40              1.30
    Average common shareholders' equity as a
     percentage of average assets                   7.94              8.74
    Tier 1 common capital ratio *
    Tier 1 risk-based capital ratio *
    Total risk-based capital ratio *
    Leverage ratio *
    AVERAGE BALANCES
    Commercial loans                             $28,992           $28,046
    Real estate construction loans                 4,776             4,454
    Commercial mortgage loans                     10,343             9,713
    Residential mortgage loans                     1,898             1,788
    Consumer loans                                 2,532             2,351
    Lease financing                                1,354             1,293
    International loans                            2,013             1,880
    Total loans                                   51,908            49,525

    Earning assets                                60,183            54,036
    Total assets                                  64,917            57,923
    Interest-bearing deposits                     31,931            30,247
    Total interest-bearing liabilities            47,612            40,031
    Noninterest-bearing deposits                  10,638            11,540
    Common shareholders' equity                    5,153             5,065
    NET INTEREST INCOME
    Net interest income (fully taxable
     equivalent basis)**                          $1,387            $1,517
    Fully taxable equivalent adjustment                3                 3
    Net interest margin**                           3.08%             3.75%
    CREDIT QUALITY
    Nonaccrual loans
    Reduced-rate loans
    Total nonperforming loans
    Foreclosed property
    Total nonperforming assets

    Loans past due 90 days or more and still accruing

    Gross loan charge-offs                          $356              $124
    Loan recoveries                                   18                38
    Net loan charge-offs                             338                86
    Lending-related commitment charge-offs             1                 3
    Total net credit-related charge-offs             339                89

    Allowance for loan losses
    Allowance for credit losses on lending-related
     commitments
    Total allowance for credit losses

    Allowance for loan losses as a percentage
     of total loans
    Net loan charge-offs as a percentage
     of average total loans                         0.87%             0.23%
    Net credit-related charge-offs as a
     percentage of average total loans              0.87              0.24
    Nonperforming assets as a percentage
     of total loans and foreclosed property
    Allowance for loan losses as a percentage
     of total nonperforming loans

      * September 30, 2008 ratios are estimated

    ** Third quarter 2008 and second quarter 2008 net interest income declined
       $8 million and $30 million, respectively, due to tax-related non-cash
       lease income charges. Excluding these charges, the net interest margin
       would have been 3.17% and 3.10% for the three-month periods ended
       September 30, 2008, and June 30, 2008, respectively, and 3.16% for the
       nine-month period ended September 30, 2008.


          CONSOLIDATED BALANCE SHEETS
          Comerica Incorporated and Subsidiaries


                                          September  June   December September
    (in millions, except share data)       30, 2008 30, 2008 31, 2007 30, 2007

    ASSETS
    Cash and due from banks                 $1,404   $1,698   $1,440   $1,271
    Federal funds sold and securities
     purchased under agreements to resell        3       77       36      129
    Other short-term investments               247      249      373      293
    Investment securities
     available-for-sale                      8,158    8,243    6,296    4,942
                                                 -
    Commercial loans                        28,604   28,763   28,223   27,392
    Real estate construction loans           4,565    4,684    4,816    4,759
    Commercial mortgage loans               10,588   10,504   10,048    9,994
    Residential mortgage loans               1,863    1,879    1,915    1,892
    Consumer loans                           2,644    2,594    2,464    2,397
    Lease financing                          1,360    1,351    1,351    1,319
    International loans                      1,931    1,976    1,926    1,843
         Total loans                        51,555   51,751   50,743   49,596
    Less allowance for loan losses            (712)    (663)    (557)    (512)
         Net loans                          50,843   51,088   50,186   49,084

    Premises and equipment                     668      674      650      635
    Customers' liability on acceptances
     outstanding                                21       15       48       39
    Accrued income and other assets          3,809    3,959    3,302    3,629
         Total assets                      $65,153  $66,003  $62,331  $60,022

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Noninterest-bearing deposits           $12,094  $11,860  $11,920  $11,290
    Money market and NOW deposits           13,553   14,506   15,261   14,814
    Savings deposits                         1,279    1,391    1,325    1,402
    Customer certificates of deposit         8,147    7,746    8,357    8,010
    Institutional certificates of deposit    3,670    5,940    6,147    5,049
    Foreign office time deposits               802      879    1,268    1,355
         Total interest-bearing deposits    27,451   30,462   32,358   30,630
         Total deposits                     39,545   42,322   44,278   41,920

    Short-term borrowings                    3,625    4,075    2,807    2,813
    Acceptances outstanding                     21       15       48       39
    Accrued expenses and other liabilities   1,486    1,651    1,260    1,276
    Medium- and long-term debt              15,376   12,858    8,821    8,906
         Total liabilities                  60,053   60,921   57,214   54,954

    Common stock - $5 par value:
         Authorized - 325,000,000 shares
         Issued - 178,735,252 shares at
          9/30/08, 6/30/08, 12/31/07 and
          9/30/07                              894      894      894      894
    Capital surplus                            586      576      564      551
    Accumulated other comprehensive loss      (129)    (207)    (177)    (238)
    Retained earnings                        5,379    5,451    5,497    5,475
    Less cost of common stock in treasury
     - 28,249,360 shares at 9/30/08,
     28,281,490 shares at 6/30/08,
     28,747,097 shares at 12/31/07 and
     27,725,572 shares at 9/30/07           (1,630)  (1,632)  (1,661)  (1,614)
         Total shareholders' equity          5,100    5,082    5,117    5,068
         Total liabilities and
          shareholders' equity             $65,153  $66,003  $62,331  $60,022



        CONSOLIDATED STATEMENTS OF INCOME
        Comerica Incorporated and Subsidiaries


                                            Three Months     Nine Months
                                               Ended            Ended
                                            September 30,    September 30,
    (in millions, except per share data)    2008    2007     2008     2007

    INTEREST INCOME
    Interest and fees on loans              $634    $895   $2,037   $2,628
    Interest on investment securities         99      52      288      140
    Interest on short-term investments         2       5       10       18
        Total interest income                735     952    2,335    2,786

    INTEREST EXPENSE
    Interest on deposits                     141     294      576      864
    Interest on short-term borrowings         30      29       78       75
    Interest on medium- and long-term debt    98     126      297      333
        Total interest expense               269     449      951    1,272
        Net interest income                  466     503    1,384    1,514
    Provision for loan losses                165      45      494      104
        Net interest income after provision
         for loan losses                     301     458      890    1,410

    NONINTEREST INCOME
    Service charges on deposit accounts       57      55      174      164
    Fiduciary income                          49      49      152      147
    Commercial lending fees                   17      19       53       52
    Letter of credit fees                     19      16       52       47
    Foreign exchange income                   11      11       33       30
    Brokerage fees                            10      11       30       32
    Card fees                                 15      14       45       40
    Bank-owned life insurance                 11       8       29       27
    Net securities gains                      27       4       63        4
    Net gain on sales of businesses            -       -        -        3
    Other noninterest income                  24      43       88      112
        Total noninterest income             240     230      719      658

    NONINTEREST EXPENSES
    Salaries                                 192     207      594      628
    Employee benefits                         46      49      141      145
         Total salaries and employee
          benefits                           238     256      735      773
    Net occupancy expense                     40      34      114      102
    Equipment expense                         15      15       46       45
    Outside processing fee expense            26      23       77       67
    Software expense                          18      16       57       46
    Customer services                          2      11       11       36
    Litigation and operational losses        105       6      100        -
    Provision for credit losses on
     lending-related commitments               9       -       20       (4)
    Other noninterest expenses                61      62      180      176
        Total noninterest expenses           514     423    1,340    1,241
    Income from continuing operations
     before income taxes                      27     265      269      827
    Provision for income taxes                 -      85       76      262
    Income from continuing operations         27     180      193      565
    Income (loss) from discontinued
     operations, net of tax                    1       1        -        2
    NET INCOME                               $28    $181     $193     $567

    Basic earnings per common share:
         Income from continuing operations $0.18   $1.18    $1.29    $3.67
         Net income                         0.19    1.20     1.29     3.69

    Diluted earnings per common share:
         Income from continuing operations  0.18    1.17     1.28     3.61
         Net income                         0.19    1.18     1.28     3.63

    Cash dividends declared on common stock   99      97      298      296
    Dividends per common share              0.66    0.64     1.98     1.92



        CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
        Comerica Incorporated and Subsidiaries


                                        Third  Second   First  Fourth   Third
    (in millions, except per           Quarter Quarter Quarter Quarter Quarter
     share data)                          2008    2008    2008    2007   2007

    INTEREST INCOME
    Interest and fees on loans            $634    $633    $770    $873   $895
    Interest on investment securities       99     101      88      66     52
    Interest on short-term investments       2       3       5       5      5
          Total interest income            735     737     863     944    952

    INTEREST EXPENSE
    Interest on deposits                   141     182     253     303    294
    Interest on short-term borrowings       30      19      29      30     29
    Interest on medium- and long-term
     debt                                   98      94     105     122    126
          Total interest expense           269     295     387     455    449
          Net interest income              466     442     476     489    503
    Provision for loan losses              165     170     159     108     45
          Net interest income after
           provision for loan losses       301     272     317     381    458

    NONINTEREST INCOME
    Service charges on deposit accounts     57      59      58      57     55
    Fiduciary income                        49      51      52      52     49
    Commercial lending fees                 17      20      16      23     19
    Letter of credit fees                   19      18      15      16     16
    Foreign exchange income                 11      12      10      10     11
    Brokerage fees                          10      10      10      11     11
    Card fees                               15      16      14      14     14
    Bank-owned life insurance               11       8      10       9      8
    Net securities gains                    27      14      22       3      4
    Other noninterest income                24      34      30      35     43
          Total noninterest income         240     242     237     230    230

    NONINTEREST EXPENSES
    Salaries                               192     202     200     216    207
    Employee benefits                       46      48      47      48     49
         Total salaries and employee
          benefits                         238     250     247     264    256
    Net occupancy expense                   40      36      38      36     34
    Equipment expense                       15      16      15      15     15
    Outside processing fee expense          26      28      23      24     23
    Software expense                        18      20      19      17     16
    Customer services                        2       3       6       7     11
    Litigation and operational losses
     (recoveries)                          105       3      (8)     18      6
    Provision for credit losses on
     lending-related commitments             9       7       4       3      -
    Other noninterest expenses              61      60      59      66     62
          Total noninterest expenses       514     423     403     450    423
    Income from continuing operations
     before income taxes                    27      91     151     161    265
    Provision for income taxes               -      35      41      44     85
    Income from continuing operations       27      56     110     117    180
    Income (loss) from discontinued
     operations, net of tax                  1       -      (1)      2      1
    NET INCOME                             $28     $56    $109    $119   $181

    Basic earnings per common share:
         Income from continuing
          operations                     $0.18   $0.37   $0.74   $0.78  $1.18
         Net income                       0.19    0.37    0.73    0.80   1.20

    Diluted earnings per common share:
         Income from continuing
          operations                      0.18    0.37    0.73    0.77   1.17
         Net income                       0.19    0.37    0.73    0.79   1.18

    Cash dividends declared on common stock 99     100      99      97     97
    Dividends per common share            0.66    0.66    0.66    0.64   0.64

    N/M - Not meaningful


                                             Third Quarter 2008 Compared To:
                                            Second Quarter     Third Quarter
                                                2008               2007
    (in millions, except per share data)    Amount  Percent   Amount  Percent

    INTEREST INCOME
    Interest and fees on loans                 $1      - %    $(261)   (29)%
    Interest on investment securities          (2)    (1)        47     92
    Interest on short-term investments         (1)   (32)        (3)   (53)
          Total interest income                (2)     -       (217)   (23)

    INTEREST EXPENSE
    Interest on deposits                      (41)   (22)      (153)   (52)
    Interest on short-term borrowings          11     55          1      1
    Interest on medium- and long-term debt      4      4        (28)   (22)
          Total interest expense              (26)    (9)      (180)   (40)
          Net interest income                  24      6        (37)    (7)
    Provision for loan losses                  (5)    (3)       120    N/M
          Net interest income after
           provision for loan losses           29     11       (157)   (34)

    NONINTEREST INCOME
    Service charges on deposit accounts        (2)    (1)         2      4
    Fiduciary income                           (2)    (2)         -      1
    Commercial lending fees                    (3)   (16)        (2)    (9)
    Letter of credit fees                       1      2          3     18
    Foreign exchange income                    (1)   (13)         -      2
    Brokerage fees                              -     (3)        (1)   (13)
    Card fees                                  (1)    (9)         1      7
    Bank-owned life insurance                   3     31          3     30
    Net securities gains                       13     87         23    N/M
    Other noninterest income                  (10)   (28)       (19)   (44)
          Total noninterest income             (2)    (1)        10      4

    NONINTEREST EXPENSES
    Salaries                                  (10)    (5)       (15)    (7)
    Employee benefits                          (2)    (2)        (3)    (5)
         Total salaries and employee
          benefits                            (12)    (5)       (18)    (7)
    Net occupancy expense                       4      9          6     15
    Equipment expense                          (1)    (4)         -     (2)
    Outside processing fee expense             (2)    (8)         3     10
    Software expense                           (2)    (5)         2     16
    Customer services                          (1)    (1)        (9)   (74)
    Litigation and operational losses
     (recoveries)                             102    N/M         99    N/M
    Provision for credit losses on
     lending-related commitments                2     38          9    N/M
    Other noninterest expenses                  1      1         (1)    (3)
          Total noninterest expenses           91     22         91     21
    Income from continuing operations
     before income taxes                      (64)   (70)      (238)   (90)
    Provision for income taxes                (35)   N/M        (85)   N/M
    Income from continuing operations         (29)   (51)      (153)   (85)
    Income (loss) from discontinued
     operations, net of tax                     1    N/M          -    N/M
    NET INCOME                               $(28)   (48)%    $(153)   (84)%

    Basic earnings per common share:
         Income from continuing operations $(0.19)   (51)%   $(1.00)   (85)%
         Net income                         (0.18)   (49)     (1.01)   (84)

    Diluted earnings per common share:
         Income from continuing operations  (0.19)   (51)     (0.99)   (85)
         Net income                         (0.18)   (49)     (0.99)   (84)

    Cash dividends declared on common stock    (1)    -           2      3
    Dividends per common share                  -     -        0.02      3

    N/M - Not meaningful



        ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
        Comerica Incorporated and Subsidiaries


                                               2008                 2007
    (in millions)                     3rd Qtr 2nd Qtr 1st Qtr  4th Qtr 3rd Qtr

    Balance at beginning of period     $663     $605    $557    $512    $507

    Loan charge-offs:
      Commercial                         48       36      33      27      30
      Real estate construction:
        Commercial Real Estate business
         line                            40       57      52      24       6
        Other business lines              -        -       1       1       2
          Total real estate construction 40       57      53      25       8
      Commercial mortgage:
        Commercial Real Estate business
         line                            17       14      20       7       2
        Other business lines             11        7       2       9       4
          Total commercial mortgage      28       21      22      16       6
      Residential mortgage                1        1       -       -       -
      Consumer                            5        3       7       4       3
      Lease financing                     -        -       -       -       -
      International                       -        -       1       -       -
          Total loan charge-offs        122      118     116      72      47

    Recoveries on loans previously
     charged-off:
       Commercial                         3        5       3       7       5
       Real estate construction           1        -       1       -       -
       Commercial mortgage                -        1       1       1       1
       Residential mortgage               -        -       -       -       -
       Consumer                           1        -       1       1       1
       Lease financing                    1        -       -       -       -
       International                      -        -       -       -       -
           Total recoveries               6        6       6       9       7
    Net loan charge-offs                116      112     110      63      40
    Provision for loan losses           165      170     159     108      45
    Foreign currency translation
     adjustment                           -        -      (1)      -       -
    Balance at end of period           $712     $663    $605    $557    $512

    Allowance for loan losses as a
     percentage of total loans         1.38%    1.28%   1.16%   1.10%   1.03%

    Net loan charge-offs as a
     percentage of average total loans 0.90     0.86    0.85    0.50    0.32

    Net credit-related charge-offs as
     a percentage of average total
     loans                             0.90     0.86    0.85    0.50    0.32



         ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED
         COMMITMENTS
         Comerica Incorporated and Subsidiaries


                                                  2008                2007
                                            3rd    2nd    1st      4th   3rd
    (in millions)                           Qtr    Qtr    Qtr      Qtr   Qtr

    Balance at beginning of period          $31    $25    $21      $19    $19
    Less: Charge-offs on lending-related
     commitments (1)                          -      1      -        1      -
    Add: Provision for credit losses on
     lending-related commitments              9      7      4        3      -
    Balance at end of period                $40    $31    $25      $21    $19

    Unfunded lending-related commitments
     sold                                    $-     $2     $3      $22     $-

    (1) Charge-offs result from the sale of unfunded lending-related
        commitments.



         NONPERFORMING ASSETS
         Comerica Incorporated and Subsidiaries


                                               2008                2007
    (in millions)                    3rd Qtr 2nd Qtr 1st Qtr  4th Qtr  3rd Qtr

    SUMMARY OF NONPERFORMING ASSETS
     AND PAST DUE LOANS
    Nonaccrual loans:
      Commercial                        $206    $155    $87     $75     $64
      Real estate construction:
        Commercial Real Estate business
         line                            386     322    271     161      55
        Other business lines               5       4      4       6       4
            Total real estate
             construction                391     326    275     167      59
      Commercial mortgage:
        Commercial Real Estate business
         line                            137     143    105      66      63
        Other business lines             114      95     64      75      77
            Total commercial mortgage    251     238    169     141     140
      Residential mortgage                 8       4      1       1       1
      Consumer                             4       5      3       3       4
      Lease financing                      -       -      -       -       -
      International                        3       3      3       4       4
            Total nonaccrual loans       863     731    538     391     272
    Reduced-rate loans                     -       -      -      13       -
            Total nonperforming loans    863     731    538     404     272
    Foreclosed property                   18      17     22      19      19
            Total nonperforming assets  $881    $748   $560    $423    $291

    Nonperforming loans as a percentage
     of total loans                     1.67%   1.41%  1.03%   0.80%   0.55%
    Nonperforming assets as a percentage
     of total loans and foreclosed
     property                           1.71    1.44   1.07    0.83    0.59
    Allowance for loan losses as a
     percentage of total nonperforming
     loans                                82      91    112     138     188
    Loans past due 90 days or more and
     still accruing                      $97    $112    $80     $54     $56


    ANALYSIS OF NONACCRUAL LOANS
    Nonaccrual loans at beginning of
     period                             $731    $538   $391    $272    $244
         Loans transferred to
          nonaccrual (1)                 280     304    281     185      94
         Nonaccrual business loan
          gross charge-offs (2)         (116)   (113)  (108)    (68)    (44)
         Loans transferred to accrual
          status (1)                       -       -      -       -      (5)
         Nonaccrual business loans
          sold (3)                       (19)      -    (15)      -     (11)
         Payments/Other (4)              (13)      2    (11)      2      (6)
    Nonaccrual loans at end of period   $863    $731   $538    $391    $272

    (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     $116    $113   $108     $68     $44
          Performing watch list loans      -       1      1       -       -
          Consumer and residential
           mortgage loans                  6       4      7       4       3
             Total gross loan
              charge-offs               $122    $118   $116     $72     $47
    (3) Analysis of loans sold:

          Nonaccrual business loans      $19      $-    $15      $-     $11
          Performing watch list loans      3       7      6      13       -
             Total loans sold            $22      $7    $21     $13     $11
    (4) Includes net changes related to nonaccrual loans with balances less
        than $2 million, other than business loan gross charge-offs and
        nonaccrual loans sold, and payments on nonaccrual loans with book
        balances greater than $2 million.



     ANALYSIS OF NET INTEREST INCOME (FTE)

     Comerica Incorporated and Subsidiaries



                                               Nine Months Ended
                                               September 30, 2008
                                    Average                         Average
    (dollar amounts in millions)    Balance         Interest         Rate

    Commercial loans (1) (2)        $28,992          $1,135          5.23%
    Real estate construction loans    4,776             184          5.16
    Commercial mortgage loans        10,343             442          5.71
    Residential mortgage loans        1,898              85          5.99
    Consumer loans                    2,532             100          5.29
    Lease financing (3)               1,354              (4)          N/M
    International loans               2,013              79          5.24
    Business loan swap income (expense)   -              19             -
         Total loans (2)             51,908           2,040          5.25

    Investment securities
     available-for-sale               7,889             288          4.88
    Federal funds sold and
     securities purchased
     under agreements to resell         100               2          2.40
    Other short-term investments        286               8          3.93
         Total earning assets        60,183           2,338          5.19

    Cash and due from banks           1,228
    Allowance for loan losses          (661)
    Accrued income and other assets   4,167
         Total assets               $64,917

    Money market and NOW
     deposits (1)                   $14,774             170          1.54
    Savings deposits                  1,371               5          0.50
    Customer certificates of deposit  8,003             200          3.35
    Institutional certificates of
     deposit                          6,719             176          3.49
    Foreign office time deposits      1,064              25          3.09
         Total interest-bearing
          deposits                   31,931             576          2.41

    Short-term borrowings             4,084              78          2.54
    Medium- and long-term debt       11,597             297          3.42
         Total interest-bearing
          sources                    47,612             951          2.67

    Noninterest-bearing deposits (1) 10,638
    Accrued expenses and other
     liabilities                      1,514
    Shareholders' equity              5,153
         Total liabilities and
          shareholders' equity      $64,917

    Net interest income/rate
     spread (FTE)                                    $1,387          2.52

    FTE adjustment                                       $3

    Impact of net noninterest-bearing
     sources of funds                                                0.56
    Net interest margin (as a
     percentage of average earning
     assets) (FTE) (2) (3)                                           3.08%
    N/M - Not meaningful

    (1) FSD balances included above:
          Loans (primarily low-rate)   $557              $6          1.36 %
          Interest-bearing deposits     998              16          2.11
          Noninterest-bearing
           deposits                   1,752
    (2) Impact of FSD loans
         (primarily low-rate) on the
         following:
           Commercial loans                                         (0.07) %
           Total loans                                              (0.04)
           Net interest margin (FTE)
            (assuming loans were
            funded by
            noninterest-bearing
            deposits)                                               (0.02)
    (3) Year-to-date 2008 net interest income declined $38 million and the net
        interest margin declined eight basis points due to tax-related non-
        cash lease income charges.  Excluding these charges, the net interest
        margin would have been 3.16%.



                                                September 30, 2007
                                    Average                         Average
    (dollar amounts in millions)    Balance         Interest         Rate

    Commercial loans (1) (2)        $28,046          $1,538          7.33%
    Real estate construction loans    4,454             282          8.47
    Commercial mortgage loans         9,713             534          7.35
    Residential mortgage loans        1,788              82          6.12
    Consumer loans                    2,351             125          7.12
    Lease financing (3)               1,293              32          3.26
    International loans               1,880              99          7.07
    Business loan swap income
     (expense)                            -            (61)             -
        Total loans (2)              49,525           2,631          7.10

    Investment securities
     available-for-sale               4,080             140          4.47
    Federal funds sold and
     securities purchased
     under agreements to resell         189               8          5.36
    Other short-term investments        242              10          5.73
         Total earning assets        54,036           2,789          6.89

    Cash and due from banks           1,390
    Allowance for loan losses          (513)
    Accrued income and other assets   3,010
         Total assets               $57,923

    Money market and NOW
     deposits (1)                   $14,858             344          3.09
    Savings deposits                  1,393               9          0.91
    Customer certificates of
     deposit                          7,505             250          4.46
    Institutional certificates of
    deposit                           5,490             224          5.45
    Foreign office time deposits      1,001              37          4.92
         Total interest-bearing
          deposits                   30,247             864          3.82

    Short-term borrowings             1,919              75          5.24
    Medium- and long-term debt        7,865             333          5.65
         Total interest-bearing
          sources                    40,031           1,272          4.25

    Noninterest-bearing
     deposits (1)                    11,540
    Accrued expenses and other
     liabilities                      1,287
    Shareholders' equity              5,065
    Total liabilities and
     shareholders' equity           $57,923

    Net interest income/rate
     spread (FTE)                                    $1,517          2.64

    FTE adjustment                                       $3

    Impact of net noninterest-bearing
     sources of funds                                                1.11
    Net interest margin (as a
     percentage of average earning
     assets) (FTE) (2) (3)                                           3.75%
    N/M - Not meaningful

    (1) FSD balances included above:
          Loans (primarily low-rate) $1,445              $7          0.63 %
          Interest-bearing deposits   1,230              36          3.95
          Noninterest-bearing
           deposits                   3,097
    (2) Impact of FSD loans (primarily
         low-rate) on the following:
          Commercial loans                                          (0.36)%
          Total loans                                               (0.20)
          Net interest margin (FTE)
           (assuming loans were funded by
           noninterest-bearing deposits)                            (0.09)

    (3)  Year-to-date 2008 net interest income declined $38 million and the
         net interest margin declined eight basis points due to tax-related
         non-cash lease income charges.  Excluding these charges, the net
         interest margin would have been 3.16%.


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


                                                  Three Months Ended
                                                  September 30, 2008
                                            Average                  Average
    (dollar amounts in millions)            Balance    Interest       Rate

    Commercial loans (1) (2)                  $28,521      $347       4.85%
    Real estate construction loans              4,675        55       4.65
    Commercial mortgage loans                  10,511       142       5.38
    Residential mortgage loans                  1,870        28       5.92
    Consumer loans                              2,599        31       4.83
    Lease financing (3)                         1,365         4       1.07
    International loans                         1,967        24       4.85
    Business loan swap income (expense)             -         4          -
            Total loans (2)                    51,508       635       4.91

    Investment securities available-for-sale    8,146        99       4.85
    Federal funds sold and securities purchased
     under agreements to resell                    70         -       1.87
    Other short-term investments                  222         2       3.49
            Total earning assets               59,946       736       4.89

    Cash and due from banks                     1,228
    Allowance for loan losses                    (723)
    Accrued income and other assets             4,412
            Total assets                      $64,863

    Money market and NOW deposits (1)         $14,204        45       1.26
    Savings deposits                            1,350         1       0.42
    Customer certificates of deposit            7,690        53       2.73
    Institutional certificates of deposit       5,209        37       2.81
    Foreign office time deposits                  814         5       2.51
            Total interest-bearing
             deposits                          29,267       141       1.92

    Short-term borrowings                       5,413        30       2.20
    Medium- and long-term debt                 12,880        98       3.02
            Total interest-bearing
             sources                           47,560       269       2.25

    Noninterest-bearing deposits (1)           10,646
    Accrued expenses and other
     liabilities                                1,582
    Shareholders' equity                        5,075
            Total liabilities and
             shareholders' equity             $64,863

    Net interest income/rate spread (FTE)                  $467       2.64

    FTE adjustment                                           $1

    Impact of net noninterest-bearing
      sources of funds                                                0.47
    Net interest margin (as a percentage
      of average earning assets) (FTE)
       (2) (3)                                                        3.11%
    N/M - Not meaningful

    (1) FSD balances included above:
            Loans (primarily low-rate)           $401        $2       1.74%
            Interest-bearing deposits             907         4       1.65
            Noninterest-bearing deposits        1,542
    (2) Impact of FSD loans (primarily low-rate) on the following:
            Commercial loans                                         (0.05)%
            Total loans                                              (0.02)
            Net interest margin (FTE)
             (assuming loans were
              funded by noninterest-
              bearing deposits)                                      (0.01)
    (3) Third quarter 2008 and second quarter 2008 net interest income
        declined $8 million and $30 million, respectively, and the net
        interest margin declined six basis points and 19 basis points,
        respectively, due to tax-related non-cash lease income charges.
        Excluding these charges, the net interest margin would have been 3.17%
        in the third quarter 2008 and 3.10% in the second quarter 2008.



                                                   Three Months Ended
                                                     June 30, 2008
                                              Average                Average
    (dollar amounts in millions)              Balance    Interest     Rate

    Commercial loans (1) (2)                  $29,280      $357       4.90%
    Real estate construction loans              4,843        59       4.89
    Commercial mortgage loans                  10,374       141       5.47
    Residential mortgage loans                  1,906        29       6.03
    Consumer loans                              2,549        32       5.06
    Lease financing (3)                         1,352       (19)       N/M
    International loans                         2,063        25       4.86
    Business loan swap income (expense)             -        10          -
            Total loans (2)                    52,367       634       4.87

    Investment securities available-for-sale    8,296       101       4.89
    Federal funds sold and securities purchased
     under agreements to resell                   150         1       2.17
    Other short-term investments                  275         2       3.73
            Total earning assets               61,088       738       4.86

    Cash and due from banks                     1,217
    Allowance for loan losses                    (664)
    Accrued income and other assets             4,322
            Total assets                      $65,963

    Money market and NOW deposits (1)         $14,784        46       1.26
    Savings deposits                            1,405         2       0.45
    Customer certificates of deposit            8,037        64       3.20
    Institutional certificates of deposit       7,707        61       3.21
    Foreign office time deposits                1,183         8       2.77
            Total interest-bearing deposits    33,116       181       2.20

    Short-term borrowings                       3,326        19       2.33
    Medium- and long-term debt                 12,041        95       3.15
            Total interest-bearing sources     48,483       295       2.45

    Noninterest-bearing deposits (1)           10,648
    Accrued expenses and other liabilities      1,639
    Shareholders' equity                        5,193
            Total liabilities and shareholders'
             equity                           $65,963

    Net interest income/rate spread (FTE)                  $443       2.41

    FTE adjustment                                           $1

    Impact of net noninterest-bearing
     sources of funds                                                 0.50
    Net interest margin (as a percentage
     of average earning assets) (FTE) (2) (3)                         2.91%
    N/M - Not meaningful

    (1) FSD balances included above:
            Loans (primarily low-rate)           $469        $2       1.42%
            Interest-bearing deposits             994         4       1.81
            Noninterest-bearing deposits        1,823
    (2) Impact of FSD loans (primarily
         low-rate) on the following:
            Commercial loans                                         (0.06)%
            Total loans                                              (0.03)
            Net interest margin (FTE)
             (assuming loans were
              funded by noninterest-
              bearing deposits)                                      (0.01)
    (3) Third quarter 2008 and second quarter 2008 net interest income
        declined $8 million and $30 million, respectively, and the net
        interest margin declined six basis points and 19 basis points,
        respectively, due to tax-related non-cash lease income charges.
        Excluding these charges, the net interest margin would have been 3.17%
        in the third quarter 2008 and 3.10% in the second quarter 2008.



                                                  Three Months Ended
                                                  September 30, 2007
                                              Average                Average
    (dollar amounts in millions)              Balance    Interest     Rate

    Commercial loans (1) (2)                  $28,052      $520       7.37%
    Real estate construction loans              4,607        97       8.33
    Commercial mortgage loans                   9,829       181       7.30
    Residential mortgage loans                  1,865        29       6.12
    Consumer loans                              2,320        41       7.06
    Lease financing (3)                         1,319        11       3.25
    International loans                         1,882        33       6.98
    Business loan swap income (expense)             -       (16)         -
            Total loans (2)                    49,874       896       7.13

    Investment securities available-for-sale    4,405        52       4.60
    Federal funds sold and securities purchased
     under agreements to resell                    99         1       5.25
    Other short-term investments                  263         4       5.27
            Total earning assets               54,641       953       6.91

    Cash and due from banks                     1,351
    Allowance for loan losses                    (521)
    Accrued income and other assets             3,075
            Total assets                      $58,546

    Money market and NOW deposits (1)         $14,996       119       3.14
    Savings deposits                            1,380         3       0.97
    Customer certificates of deposit            7,702        87       4.48
    Institutional certificates of deposit       5,170        72       5.49
    Foreign office time deposits                1,028        13       4.96
            Total interest-bearing deposits    30,276       294       3.85

    Short-term borrowings                       2,278        29       5.15
    Medium- and long-term debt                  8,852       126       5.61
            Total interest-bearing sources     41,406       449       4.29

    Noninterest-bearing deposits (1)           10,840
    Accrued expenses and other
     liabilities                                1,285
    Shareholders' equity                        5,015
            Total liabilities and
             shareholders' equity             $58,546

    Net interest income/rate spread (FTE)                  $504       2.62

    FTE adjustment                                           $1

    Impact of net noninterest-bearing
     sources of funds                                                 1.04
    Net interest margin (as a percentage
     of average earning assets) (FTE) (2) (3)                         3.66%
    N/M - Not meaningful

    (1) FSD balances included above:
            Loans (primarily low-rate)         $1,191        $2       0.71%
            Interest-bearing deposits           1,214        12       4.06
            Noninterest-bearing deposits        2,575
    (2) Impact of FSD loans (primarily low-rate)
         on the following:
            Commercial loans                                         (0.30)%
            Total loans                                              (0.16)
            Net interest margin (FTE)
             (assuming loans were
             funded by noninterest-
             bearing deposits)                                       (0.07)
    (3) Third quarter 2008 and second quarter 2008 net interest income
        declined $8 million and $30 million, respectively, and the net
        interest margin declined six basis points and 19 basis points,
        respectively, due to tax-related non-cash lease income charges.
        Excluding these charges, the net interest margin would have been 3.17%
        in the third quarter 2008 and 3.10% in the second quarter 2008.



        CONSOLIDATED STATISTICAL DATA
        Comerica Incorporated and Subsidiaries

                                          September 30, June 30,   March 31,
    (in millions, except per share data)     2008         2008       2008

    Commercial loans:
      Floor plan                            $2,151      $2,645      $2,913
      Other                                 26,453      26,118      26,562
         Total commercial loans             28,604      28,763      29,475
    Real estate construction loans:
      Commercial Real Estate business line   3,937       4,013       3,990
      Other business lines                     628         671         656
         Total real estate construction
          loans                              4,565       4,684       4,646
    Commercial mortgage loans:
      Commercial Real Estate business line   1,668       1,620       1,541
      Other business lines                   8,920       8,884       8,941
         Total commercial mortgage loans    10,588      10,504      10,482
    Residential mortgage loans               1,863       1,879       1,926
    Consumer loans:
       Home equity                           1,693       1,649       1,619
       Other consumer                          951         945         829
         Total consumer loans                2,644       2,594       2,448
    Lease financing                          1,360       1,351       1,341
    International loans                      1,931       1,976       2,034
         Total loans                       $51,555     $51,751     $52,352

    Goodwill                                  $150        $150        $150
    Loan servicing rights                       12          12          12

    Tier 1 common capital ratio*              6.69%       6.79%       6.75%
    Tier 1 risk-based capital ratio*          7.35        7.45        7.40
    Total risk-based capital ratio *         11.22       11.21       11.06
    Leverage ratio*                           8.59        8.53        8.82

    Book value per share                    $33.89      $33.78      $34.93

    Market value per share for the quarter:
      High                                  $54.00      $40.62      $45.19
      Low                                    19.31       25.61       34.51
      Close                                  32.79       25.63       35.08

    Quarterly ratios:
      Return on average common shareholders'
       equity from continuing operations      2.12%      4.26%        8.51%
      Return on average common shareholders'
       equity                                 2.25        4.25        8.42
      Return on average assets from continuing
       operations                             0.17        0.34        0.69
      Return on average assets                0.18        0.33        0.68
      Efficiency ratio                       75.53       63.02       58.25

    Number of banking centers                  424         416         420

    Number of employees - full time
     equivalent                             10,347      10,530      10,643

    * September 30, 2008 ratios are estimated



                                               December 31,     September 30,
    (in millions, except per share data)          2007              2007

    Commercial loans:
      Floor plan                                 $2,878            $2,601
      Other                                      25,345            24,791
        Total commercial loans                   28,223            27,392
    Real estate construction loans:
      Commercial Real Estate business line        4,089             4,007
      Other business lines                          727               752
        Total real estate construction loans      4,816             4,759
    Commercial mortgage loans:
      Commercial Real Estate business line        1,377             1,467
      Other business lines                        8,671             8,527
        Total commercial mortgage loans          10,048             9,994
    Residential mortgage loans                    1,915             1,892
    Consumer loans:
      Home equity                                 1,616             1,582
      Other consumer                                848               815
        Total consumer loans                      2,464             2,397
    Lease financing                               1,351             1,319
    International loans                           1,926             1,843
        Total loans                             $50,743           $49,596

    Goodwill                                       $150              $150
    Loan servicing rights                            12                13

    Tier 1 common capital ratio*                    6.85%             7.01%
    Tier 1 risk-based capital ratio*                7.51              7.68
    Total risk-based capital ratio *               11.20             11.44
    Leverage ratio*                                 9.26              9.60

    Book value per share                          $34.12            $33.56

    Market value per share for the quarter:
      High                                        $54.88            $61.34
      Low                                          39.62             50.26
      Close                                        43.53             51.28

    Quarterly ratios:
      Return on average common shareholders'
       equity from continuing operations            9.20%            14.27%
      Return on average common shareholders'
       equity                                       9.35             14.41
      Return on average assets from continuing
       operations                                   0.77              1.22
      Return on average assets                      0.79              1.23
      Efficiency ratio                             62.76             58.00

    Number of banking centers                        417               403

    Number of employees - full time equivalent    10,782            10,683

    * September 30, 2008 ratios are estimated



      PARENT COMPANY ONLY BALANCE SHEETS
      Comerica Incorporated


                                      September 30, December 31, September 30,
    (in millions, except share data)      2008         2007         2007

    ASSETS
    Cash and due from subsidiary bank      $16           $1           $5
    Short-term investments with subsidiary
     bank                                  158          224          222
    Other short-term investments            99          102          101
    Investment in subsidiaries, principally
     banks                               5,849        5,840        5,799
    Premises and equipment                   5            4            4
    Other assets                           163          166          152
         Total assets                   $6,290       $6,337       $6,283

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Medium- and long-term debt            $969         $968         $956
    Other liabilities                      221          252          259
         Total liabilities               1,190        1,220        1,215

    Common stock - $5 par value:
      Authorized - 325,000,000 shares
      Issued - 178,735,252 shares at
       9/30/08, 12/31/07, and 9/30/07      894          894          894
    Capital surplus                        586          564          551
    Accumulated other comprehensive loss  (129)        (177)        (238)
    Retained earnings                    5,379        5,497        5,475
    Less cost of common stock in treasury
     - 28,249,360 shares at 9/30/08,
     28,747,097 shares at 12/31/07 and
     27,725,572 shares at 9/30/07       (1,630)      (1,661)      (1,614)
         Total shareholders' equity      5,100        5,117        5,068
         Total liabilities and
          shareholders' equity          $6,290       $6,337       $6,283



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

                                              Accumulated
                          Common Stock          Other                  Total
                                               Compreh-         Treas- Share-
    (in millions, except    In          Capital ensive Retained  ury  holders'
     per share data)      Shares Amount Surplus  Loss  Earnings Stock  Equity

    BALANCE AT JANUARY 1,
     2007                 157.6   $894   $520  $(324)  $5,230 $(1,219) $5,101
    Net income                -      -      -      -       567      -     567
    Other comprehensive
     income, net of tax       -      -      -     86        -       -      86
    Total comprehensive
     income                                                               653
    Cash dividends declared
     on common stock ($1.92
     per share)               -      -      -      -     (296)      -    (296)
    Purchase of common
     stock                 (9.0)     -      -      -        -    (533)   (533)
    Net issuance of common
     stock under employee
     stock plans            2.4      -    (16)     -      (26)    139      97
    Recognition of share-
     based compensation
     expense                  -      -     46      -        -       -      46
    Employee deferred
     compensation
     obligations              -      -      1      -        -      (1)      -
    BALANCE AT SEPTEMBER
     30, 2007             151.0   $894   $551  $(238)  $5,475 $(1,614) $5,068

    BALANCE AT JANUARY 1,
     2008                 150.0   $894   $564  $(177)  $5,497 $(1,661) $5,117
    Net income                -      -      -      -      193       -     193
    Other comprehensive
     loss, net of tax         -      -      -     48        -       -      48
    Total comprehensive
     income                                                               241
    Cash dividends declared
     on common stock ($1.98
     per share)               -      -      -      -     (298)      -    (298)
    Purchase of common
     stock                    -      -      -      -        -      (1)     (1)
    Net issuance of common
     stock under employee
     stock plans            0.5      -    (19)     -      (13)     32       -
    Recognition of share-
     based compensation
     expense                  -      -     41      -        -       -      41
    BALANCE AT SEPTEMBER
     30, 2008             150.5   $894   $586  $(129)  $5,379 $(1,630) $5,100



         BUSINESS SEGMENT FINANCIAL RESULTS
         Comerica Incorporated and Subsidiaries

                                                                  Wealth &
    (dollar amounts in millions)             Business    Retail Institutional
    Three Months Ended September 30, 2008      Bank       Bank   Management
    Earnings summary:
    Net interest income (expense) (FTE)        $323       $142        $37
    Provision for loan losses                   135         33          7
    Noninterest income                           75         80         71
    Noninterest expenses                        175        161        180
    Provision (benefit) for income taxes
     (FTE)                                       23          7        (28)
    Income from discontinued operations,
      net of tax                                  -          -          -
    Net income (loss)                           $65        $21       $(51)
    Net credit-related charge-offs              $95        $17         $4

    Selected average balances:
    Assets                                  $41,357     $7,046     $4,759
    Loans                                    40,506      6,362      4,624
    Deposits                                 14,933     16,596      2,351
    Liabilities                              15,633     16,583      2,359
    Attributed equity                         3,318        656        340

    Statistical data:
    Return on average assets (1)               0.64%      0.48%     (4.29)%
    Return on average attributed equity        7.98      12.53     (60.04)
    Net interest margin (2)                    3.17       3.40       3.17
    Efficiency ratio                          43.92      82.39        N/M



                                                                  Wealth &
                                             Business    Retail Institutional
    Three Months Ended June 30, 2008           Bank       Bank    Management
    Earnings summary:
    Net interest income (expense) (FTE)        $296       $146        $37
    Provision for loan losses                   123         29          5
    Noninterest income                           92         54         74
    Noninterest expenses                        185        161         83
    Provision (benefit) for income taxes (FTE)   23          3          9
    Income from discontinued operations,
      net of tax                                  -          -          -
    Net income (loss)                           $57         $7        $14
    Net credit-related charge-offs              $96        $14         $3

    Selected average balances:
    Assets                                  $42,335     $7,100     $4,646
    Loans                                    41,510      6,348      4,502
    Deposits                                 15,384     17,043      2,493
    Liabilities                              16,156     17,041      2,501
    Attributed equity                         3,277        657        333

    Statistical data:
    Return on average assets (1)               0.53%      0.15%      1.19%
    Return on average attributed equity        6.86       4.13      16.57
    Net interest margin (2)                    2.85       3.44       3.28
    Efficiency ratio                          49.26      80.61      75.20


                                                                  Wealth &
                                            Business     Retail Institutional
    Three Months Ended September 30, 2007     Bank        Bank    Management
    Earnings summary:
    Net interest income (expense) (FTE)        $337       $169        $37
    Provision for loan losses                    43          7         (5)
    Noninterest income                           82         56         70
    Noninterest expenses                        177        160         81
    Provision (benefit) for income taxes (FTE)   62         19         11
    Income from discontinued operations,
      net of tax                                  -          -          -
    Net income (loss)                          $137        $39        $20
    Net credit-related charge-offs              $30         $9         $1

    Selected average balances:
    Assets                                  $40,796     $6,854     $4,152
    Loans                                    39,745      6,111      3,990
    Deposits                                 15,947     17,145      2,378
    Liabilities                              16,783     17,159      2,385
    Attributed equity                         2,903        848        338

    Statistical data:
    Return on average assets (1)               1.35%      0.86%      1.90%
    Return on average attributed equity       18.96      18.23      23.42
    Net interest margin (2)                    3.36       3.91       3.59
    Efficiency ratio                          42.90      70.90      75.92

    (1) Return on average assets is calculated based on the greater of
        average assets or average liabilities and attributed equity.
    (2) Net interest margin is calculated based on the greater of average
        earning assets or average deposits and purchased funds.
    FTE - Fully Taxable Equivalent
    N/M - Not Meaningful


         BUSINESS SEGMENT FINANCIAL RESULTS
         Comerica Incorporated and Subsidiaries


    (dollar amounts in millions)
    Three Months Ended September 30, 2008      Finance     Other      Total
    Earnings summary:
    Net interest income (expense) (FTE)         $(26)       $(9)       $467
    Provision for loan losses                      -        (10)        165
    Noninterest income                            20         (6)        240
    Noninterest expenses                           3         (5)        514
    Provision (benefit) for income taxes (FTE)    (7)         6           1
    Income from discontinued operations,
      net of tax                                   -          1           1
    Net income (loss)                            $(2)       $(5)        $28
    Net credit-related charge-offs                $-         $-        $116

    Selected average balances:
    Assets                                   $10,096     $1,605     $64,863
    Loans                                         (3)        19      51,508
    Deposits                                   5,588        445      39,913
    Liabilities                               24,359        854      59,788
    Attributed equity                            878       (117)      5,075

    Statistical data:
    Return on average assets (1)                N/M         N/M        0.18%
    Return on average attributed equity         N/M         N/M        2.25
    Net interest margin (2)                     N/M         N/M        3.11
    Efficiency ratio                            N/M         N/M       75.53


    Three Months Ended June 30, 2008           Finance     Other      Total
    Earnings summary:
    Net interest income (expense) (FTE)         $(28)       $(8)       $443
    Provision for loan losses                      -         13         170
    Noninterest income                            18          4         242
    Noninterest expenses                           2         (8)        423
    Provision (benefit) for income taxes (FTE)    (7)         8          36
    Income from discontinued operations,
      net of tax                                   -          -           -
    Net income (loss)                            $(5)      $(17)        $56
    Net credit-related charge-offs                $-         $-        $113

    Selected average balances:
    Assets                                   $10,333     $1,549     $65,963
    Loans                                          5          2      52,367
    Deposits                                   8,409        435      43,764
    Liabilities                               24,334        738      60,770
    Attributed equity                            949        (23)      5,193

    Statistical data:
    Return on average assets (1)                 N/M        N/M       0.33%
    Return on average attributed equity          N/M        N/M       4.25
    Net interest margin (2)                      N/M        N/M       2.91
    Efficiency ratio                             N/M        N/M      63.02


    Three Months Ended September 30, 2007      Finance     Other      Total
    Earnings summary:
    Net interest income (expense) (FTE)         $(32)       $(7)       $504
    Provision for loan losses                      -          -          45
    Noninterest income                            17          5         230
    Noninterest expenses                           2          3         423
    Provision (benefit) for income taxes (FTE)    (9)         3          86
    Income from discontinued operations,
      net of tax                                   -          1           1
    Net income (loss)                            $(8)       $(7)       $181
    Net credit-related charge-offs                $-         $-         $40

    Selected average balances:
    Assets                                    $5,564     $1,180     $58,546
    Loans                                          2         26      49,874
    Deposits                                   5,748       (102)     41,116
    Liabilities                               16,970        234      53,531
    Attributed equity                            614        312       5,015

    Statistical data:
    Return on average assets (1)                 N/M        N/M       1.23%
    Return on average attributed equity          N/M        N/M      14.41
    Net interest margin (2)                      N/M        N/M       3.66
    Efficiency ratio                             N/M        N/M      58.00

    (1) Return on average assets is calculated based on the greater of
        average assets or average liabilities and attributed equity.
    (2) Net interest margin is calculated based on the greater of average
        earning assets or average deposits and purchased funds.
    FTE - Fully Taxable Equivalent
    N/M - Not Meaningful



         MARKET SEGMENT FINANCIAL RESULTS
         Comerica Incorporated and Subsidiaries


    (dollar amounts in millions)
    Three Months Ended September 30,
     2008                                 Midwest   Western    Texas   Florida
    Earnings summary:
    Net interest income (expense) (FTE)     $197      $169      $73      $12
    Provision for loan losses                 52        82       18        7
    Noninterest income                       142        38       27        4
    Noninterest expenses                     205       112       61       10
    Provision (benefit) for income taxes
     (FTE)                                    31         4        8        -
    Income from discontinued operations,
      net of tax                               -         -        -        -
    Net income (loss)                        $51        $9      $13      $(1)
    Net credit-related charge-offs           $44       $51       $9       $3

    Selected average balances:
    Assets                               $19,820   $16,627   $7,945   $1,900
    Loans                                 19,125    16,381    7,691    1,900
    Deposits                              15,926    11,729    3,956      262
    Liabilities                           16,541    11,698    3,973      258
    Attributed equity                      1,631     1,367      623      131

    Statistical data:
    Return on average assets (1)            1.05%     0.21%    0.65%   (0.25)%
    Return on average attributed equity    12.70      2.61     8.22    (3.62)
    Net interest margin (2)                 4.08      4.09     3.75     2.53
    Efficiency ratio                       64.48     54.68    63.16    67.40


    Three Months Ended June 30, 2008      Midwest    Western   Texas   Florida
    Earnings summary:
    Net interest income (expense) (FTE)     $172      $171      $74      $12
    Provision for loan losses                 24       113        6        7
    Noninterest income                       136        34       22        4
    Noninterest expenses                     205       115       63       11
    Provision (benefit) for income taxes
     (FTE)                                    27        (3)      10       (1)
    Income from discontinued operations,
      net of tax                               -         -        -        -
    Net income (loss)                        $52      $(20)     $17      $(1)
    Net credit-related charge-offs           $42       $59       $3       $8

    Selected average balances:
    Assets                               $19,891   $17,241   $8,063   $1,854
    Loans                                 19,255    16,918    7,795    1,851
    Deposits                              16,056    12,345    4,061      306
    Liabilities                           16,750    12,326    4,076      302
    Attributed equity                      1,649     1,336      614      118

    Statistical data:
    Return on average assets (1)            1.05 %   (0.46)%   0.81 %  (0.37)%
    Return on average attributed equity    12.67     (5.97)   10.66    (5.84)
    Net interest margin (2)                 3.58      4.04     3.78     2.50
    Efficiency ratio                       69.48     56.09    65.55    72.21


    Three Months Ended September 30,
     2007                                  Midwest   Western   Texas   Florida
    Earnings summary:
    Net interest income (expense) (FTE)     $222      $185      $73      $12
    Provision for loan losses                 15        23       (2)       3
    Noninterest income                       119        36       24        4
    Noninterest expenses                     206       110       58       10
    Provision (benefit) for income taxes
     (FTE)                                    41        33       14        1
    Income from discontinued operations,
      net of tax                               -         -        -        -
    Net income (loss)                        $79       $55      $27       $2
    Net credit-related charge-offs
     (recoveries)                            $23        $7       $1       $1

    Selected average balances:
    Assets                               $19,131   $17,095   $7,172   $1,706
    Loans                                 18,526    16,543    6,902    1,692
    Deposits                              15,636    13,009    3,920      271
    Liabilities                           16,307    13,045    3,937      273
    Attributed equity                      1,700     1,201      597       97

    Statistical data:
    Return on average assets (1)            1.64 %    1.29 %   1.51 %   0.56 %
    Return on average attributed equity    18.50     18.34    18.09     9.78
    Net interest margin (2)                 4.73      4.43     4.17     2.94
    Efficiency ratio                       60.88     49.96    59.83    59.15
    (1) Return on average assets is calculated based on the greater of average
        assets or average liabilities and attributed equity.
    (2) Net interest margin is calculated based on the greater of average
        earning assets or average deposits and purchased funds.
    FTE - Fully Taxable Equivalent
    N/M - Not Meaningful



         MARKET SEGMENT FINANCIAL RESULTS
         Comerica Incorporated and Subsidiaries


    (dollar amounts in millions)                              Finance
                                            Other   Internat- & Other
    Three Months Ended September 30, 2008  Markets   ional   Businesses Total
    Earnings summary:
    Net interest income (expense) (FTE)      $36      $15      $(35)    $467
    Provision for loan losses                 15        1       (10)     165
    Noninterest income                         7        8        14      240
    Noninterest expenses                     117       11        (2)     514
    Provision (benefit) for income taxes
     (FTE)                                   (45)       4        (1)       1
    Income from discontinued operations,
      net of tax                               -        -         1        1
    Net income (loss)                       $(44)      $7       $(7)     $28
    Net credit-related charge-offs            $9       $-        $-     $116

    Selected average balances:
    Assets                                $4,493   $2,377   $11,701  $64,863
    Loans                                  4,134    2,261        16   51,508
    Deposits                               1,231      776     6,033   39,913
    Liabilities                            1,330      775    25,213   59,788
    Attributed equity                        406      156       761    5,075

    Statistical data:
    Return on average assets (1)           (3.91)%   1.24 %     N/M     0.18%
    Return on average attributed equity   (43.35)   18.83       N/M     2.25
    Net interest margin (2)                 3.49     2.64       N/M     3.11
    Efficiency ratio                         N/M    44.21       N/M    75.53



                                                              Finance
    Three Months Ended June 30, 2008        Other   Internat- & Other
                                           Markets   ional  Businesses  Total
    Earnings summary:
    Net interest income (expense) (FTE)      $36      $14      $(36)    $443
    Provision for loan losses                  7        -        13      170
    Noninterest income                        16        8        22      242
    Noninterest expenses                      25       10        (6)     423
    Provision (benefit) for income taxes
     (FTE)                                    (3)       5         1       36
    Income from discontinued operations,
      net of tax                               -        -         -        -
    Net income (loss)                        $23       $7      $(22)     $56
    Net credit-related charge-offs            $1       $-        $-     $113

    Selected average balances:
    Assets                                $4,589   $2,443   $11,882  $65,963
    Loans                                  4,212    2,329         7   52,367
    Deposits                               1,375      777     8,844   43,764
    Liabilities                            1,466      778    25,072   60,770
    Attributed equity                        389      161       926    5,193

    Statistical data:
    Return on average assets (1)            1.96%    1.21%      N/M     0.33%
    Return on average attributed equity    23.17    18.31       N/M     4.25
    Net interest margin (2)                 3.41     2.42       N/M     2.91
    Efficiency ratio                       48.61    45.61       N/M    63.02




                                                               Finance
    Three Months Ended September 30, 2007   Other   Internat-  & Other
                                           Markets   ional   Businesses Total
    Earnings summary:
    Net interest income (expense) (FTE)      $34      $17      $(39)    $504
    Provision for loan losses                 12       (6)        -       45
    Noninterest income                        14       11        22      230
    Noninterest expenses                      23       11         5      423
    Provision (benefit) for income taxes
     (FTE)                                    (5)       8        (6)      86
    Income from discontinued operations,
      net of tax                               -        -         1        1
    Net income (loss)                        $18      $15      $(15)    $181
    Net credit-related charge-offs
     (recoveries)                             $9      $(1)       $-      $40

    Selected average balances:
    Assets                                $4,428   $2,270    $6,744  $58,546
    Loans                                  4,047    2,136        28   49,874
    Deposits                               1,475    1,159     5,646   41,116
    Liabilities                            1,591    1,174    17,204   53,531
    Attributed equity                        343      151       926    5,015

    Statistical data:
    Return on average assets (1)            1.60%    2.68%      N/M     1.23%
    Return on average attributed equity    20.67    40.33       N/M    14.41
    Net interest margin (2)                 3.35     3.05       N/M     3.66
    Efficiency ratio                       48.71    42.95       N/M    58.00
    (1) Return on average assets is calculated based on the greater of average
        assets or average liabilities and attributed equity.
    (2) Net interest margin is calculated based on the greater of average
        earning assets or average deposits and purchased funds.
    FTE - Fully Taxable Equivalent
    N/M - Not Meaningful

SOURCE: Comerica Incorporated

Press releases, archived webcasts/presentations/conference calls, and SEC filings speak only to the date they are issued, made or filed, respectively. Investors should not rely on such information as being unchanged in making investment decisions.