on July 19 reportedsecond-quarter net income attributable to common shares of $103 million, or 58cents per share, compared to the year-ago period's $134 million, or per share.
TheS&P Capital IQ consensus normalized EPS estimate for the recent quarter was69 cents.
Revenue was helped by card fees' 11% year-over-year increaseto $77 million and foreign exchange income's 16% increase to $11 million.However, a new efficiency plan resulted in an after-tax restructuring charge of19 cents per share.
TheDallas-based company's net interest margin for the second quarter was 2.74%, comparedto 2.81% in the first quarter and 2.65% in the second quarter of 2015.
Nonperformingassets amounted to $635 million, or 1.26% of total loans and foreclosedproperty, compared with $714 million, or 1.45%, at the end of the previousquarter. Comerica also noted an improvement in its energy portfolio'scredit quality.
Provisionfor credit losses was $49 million, down sequentially from $148 million and upfrom $47 million a year ago. Net credit-related charge-offs were $47 million,or 0.38% of average loans, compared to $58 million, or 0.49%, in the linkedquarter and $18 million, or 0.15%, in the second quarter of 2015. Energy netcredit-related charge-offs were $32 million during the second quarter, downfrom $42 million in the first.
Ifthe current economic and low-rate environments continue, Comerica expects itsfull year 2016 to see a continued decline in energy, but one that is more thanoffset by the increases in most other business lines. Net charge-offsfor the rest of the year are likely to be between 35 basis points and 45 basispoints. The impact of the company's efficiency and revenue initiative will alsobe felt. The program, called GEAR Up, is expected to bring revenue up by about$30 million by the end of 2017, further increased to $70 million by the end of2018. Cost saves are pegged at approximately $110 million and $160 million overthe same periods. The expense cuts will involve a roughly 9% headcountreduction and the consolidation of some 40 banking centers. And even with noadditional rate hikes, the efficiency ratio is expected to decline to the low60s by the end of 2017 and at, or below, 60% by the end of the following year.
GEAR Up's pretax restructuring charges are likely to reach$140 million to $160 million through 2018. Pretax benefits are estimated toreach $140 million by the end of fiscal 2017 and annual run-rate benefit ofabout $230 million by 2018's end.