Comerica Reports Third Quarter 2005 Earnings

PRNewswire-FirstCall
DETROIT
(NYSE:CMA)
Oct 19, 2005

DETROIT, Oct. 19 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA) today reported third quarter 2005 earnings of $238 million, or $1.41 per diluted share, compared to $217 million, or $1.28 per diluted share, for the second quarter 2005 and $196 million, or $1.13 per diluted share, for the third quarter 2004.

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


   (dollar amounts
    in millions)          3rd Qtr '05        2nd Qtr '05        3rd Qtr '04
   Diluted EPS               $1.41              $1.28              $1.13
   Net Interest Income        $512               $483               $451
   Net Interest Margin        4.15%              4.09%              3.86%
   Provision for Loan Losses  $(30)                $2                $ -
   Noninterest Income         $232               $219               $206
   Noninterest Expenses       $422               $383               $372
   Net Income                 $238               $217               $196
   Return on Equity          18.59%             16.99%             15.68%


"Comerica's third quarter results demonstrate solid financial performance," said Ralph W. Babb Jr., chairman and chief executive officer. "They also reflect our continuing investments in people, branches and technology, which are aimed at improving the balance of our business mix."

Net Interest Income

Net interest income was $512 million for the third quarter 2005, compared to $483 million for the second quarter 2005 and $451 million for the third quarter 2004. In the third quarter 2005, the Corporation changed its warrant accounting, and recorded an adjustment to reflect its portfolio of warrants for non-marketable equity securities at fair value. Since a majority of these warrants were obtained as part of the loan origination process, the adjustment that resulted from the accounting change increased net interest income by $20 million in the third quarter 2005. The $29 million increase in net interest income from the second quarter 2005 resulted from the warrant accounting change discussed above, the spread improvement provided by non-interest bearing deposits in a rising interest rate environment, and the impact of one more day in the third quarter 2005. Average earning assets of $49.1 billion for the third quarter 2005 increased $1.7 billion from the second quarter 2005, primarily as a result of a $1.4 billion, or 3 percent, increase in average loans to $44.6 billion for the third quarter 2005. The Financial Services Division contributed $1.2 billion of the increase in average loans for the third quarter 2005. Average deposits of $41.3 billion for the third quarter 2005 increased $1.3 billion, or 3 percent, from the second quarter 2005. The Financial Services Division contributed $491 million of the increase in average deposits for the third quarter 2005. Average short-term borrowings increased $622 million in the third quarter 2005, when compared to the prior quarter.

The net interest margin increased six basis points from the second quarter 2005 to 4.15 percent in the third quarter 2005. The change in warrant accounting added 16 basis points to the net interest margin in the third quarter 2005. The net interest margin was also positively impacted by a greater contribution from noninterest-bearing deposits in a higher rate environment. Partially offsetting these increases were higher levels of low rate loans provided to customers of the Corporation's Financial Services Division.

Noninterest Income

Noninterest income was $232 million for the third quarter 2005, compared to $219 million for the second quarter 2005 and $206 million for the third quarter 2004. Included in other noninterest income in the third quarter 2005 was income (net of write-downs) from unconsolidated venture capital and private equity investments of $13 million, compared to write-downs (net of income distributions) of $5 million in the second quarter 2005. Also included in other noninterest income in the third quarter 2005 were risk management hedge ineffectiveness losses of $3 million, compared to $5 million of gains in the second quarter 2005.

Noninterest Expenses

Noninterest expenses were $422 million for the third quarter 2005, compared to $383 million for the second quarter 2005 and $372 million for the third quarter 2004. Salaries expense increased $12 million in the third quarter 2005, compared to the second quarter 2005, primarily from increases in business unit incentives, including a $4 million accrual related to the warrant accounting change discussed above. Customer services expense was $29 million in the third quarter 2005, compared to $10 million for the second quarter 2005. Customer services expense varies from period to period as a result of changes in the level of noninterest-bearing deposits in the Corporation's Financial Services Division and the earnings credit allowances provided on these deposits.

   Credit Quality
   (dollar amounts in millions)    3rd Qtr '05    2nd Qtr '05    3rd Qtr '04
   Net Charge-offs                    $21            $29            $33
   Net Charge-offs/
    Average Total Loans              0.18%          0.27%          0.33%
   Provision for Loan Losses         $(30)            $2            $ -
   Nonperforming Assets (NPAs)       $220           $246           $388
   NPAs/Total Loans,
   Other Real Estate &
   Nonaccrual Debt Securities        0.52%          0.57%          0.98%
   Allowance for Loan Losses         $558           $609           $729
   Allowance for Loan Losses/
    Total Loans                      1.33%          1.41%          1.83%
   Allowance for Credit Losses on
   Lending-related Commitments*       $14            $15            $24

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

During the third quarter 2005, $81 million of loans greater than $2 million were transferred to nonaccrual status, an increase of $34 million from the second quarter 2005. Of the loans transferred to nonaccrual during the third quarter 2005, $44 million were in the airline industry. Nonperforming assets were $220 million at September 30, 2005, a decrease of $26 million from June 30, 2005.

"Continued improvement in credit quality metrics in the third quarter 2005 resulted in a $51 million decline in the allowance for loan losses from the second quarter," said Babb. "Nonperforming assets and net charge-offs continued to improve from already low levels."

Balance Sheet and Capital Management

Total assets and common shareholders' equity were $54.3 billion and $5.1 billion, respectively, at September 30, 2005, compared to $54.7 billion and $5.1 billion, respectively, at June 30, 2005. There were approximately 165 million shares outstanding at September 30, 2005, compared to approximately 167 million shares outstanding at June 30, 2005. In the third quarter 2005, approximately 2.4 million shares were repurchased in the open market for $147 million. Comerica's third quarter 2005 estimated tier 1 common, tier 1 and total risk-based capital ratios were 8.00 percent, 8.62 percent and 11.99 percent, respectively.

Business Segments

Comerica's operations are strategically aligned into three major business segments: the Business Bank, Small Business & Personal Financial Services, 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 are presented on a fully taxable equivalent (FTE) basis.

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


   (dollar amounts in millions)    3rd Qtr '05    2nd Qtr '05    3rd Qtr '04
   Business Bank                   $186    75%    $163    71%    $173    70%
   Small Business &
    Personal Financial Services      40    16       49    21       48    20
   Wealth & Institutional
    Management                       23     9       17     8       25    10
                                    249   100%     229   100%     246   100%
   Finance                          (20)           (18)           (40)
   Other*                             9              6            (10)
       Total                       $238           $217           $196

* Includes items not directly associated with the major business segments or the Finance Division

Net income for the Business Bank was $186 million for the third quarter 2005, compared to $163 million for the second quarter 2005. Net interest income (FTE) of $367 million in the third quarter 2005 increased $17 million from the second quarter 2005. Third quarter 2005 net interest income (FTE) includes a $20 million adjustment resulting from the warrant accounting change discussed above, partially offset by higher levels of low rate loans in the Financial Services Division. The provision for loan losses decreased $41 million, to a negative $23 million in the third quarter 2005, compared to $18 million in the second quarter 2005, due to improvements in credit quality and an increase in recoveries. Average loans of $35.3 billion in the third quarter 2005 increased $1.2 billion, or 3 percent, compared to the second quarter 2005, primarily due to a $1.2 billion increase in loans in the Financial Services Division. Average deposits of $20.9 billion in the third quarter 2005 increased $525 million, or 3 percent, compared to the second quarter 2005, primarily due to higher deposits in the Financial Services Division. Third quarter 2005 noninterest expenses of $184 million increased $25 million from the second quarter 2005, primarily due to a $19 million increase in customer service expenses in the Financial Services Division and $4 million in incentive compensation accrual related to the warrant accounting change discussed above.

Net income for Small Business & Personal Financial Services was $40 million for the third quarter 2005, compared to $49 million for the second quarter 2005. Net interest income (FTE) of $153 million in the third quarter 2005 increased $1 million, compared to the second quarter 2005. The provision for loan losses increased $9 million, to $7 million in the third quarter 2005, compared to a negative $2 million in the second quarter 2005. Average loans of $5.9 billion in the third quarter 2005 increased $94 million, or 2 percent, over the second quarter 2005. Average deposits were $16.8 billion in the third quarter 2005, compared to $16.9 billion in the second quarter 2005.

Net income for Wealth & Institutional Management was $23 million for the third quarter 2005, compared to $17 million for the second quarter 2005. Net interest income (FTE) of $38 million in the third quarter 2005 increased $1 million from the second quarter 2005. Average loans were $3.4 billion in the third quarter 2005, compared to $3.3 billion in the second quarter 2005. Average deposits were $2.6 billion in the third quarter 2005, compared to $2.4 billion in the second quarter 2005. Noninterest income of $83 million in the third quarter 2005 increased $4 million from the second quarter 2005, primarily due to an increase in investment advisory revenue.

Geographic Market Segments

Comerica also provides market segment results for four primary geographic markets: Midwest & Other Markets, Western, Texas and Florida. The financial results below are presented on a FTE basis.

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


   (dollar amounts in millions)    3rd Qtr '05    2nd Qtr '05    3rd Qtr '04
   Midwest & Other Markets         $134    54%    $111    48%    $121    49%
   Western                           88    35       85    37       91    37
   Texas                             20     8       29    13       29    12
   Florida                            7     3        4     2        5     2
                                    249   100%     229   100%     246   100%
   Finance & Other                  (11)           (12)           (50)
       Total                       $238           $217           $196

Net income for the Midwest & Other markets was $134 million in the third quarter 2005, compared to $111 million in the second quarter 2005. Net interest income (FTE) of $272 million in the third quarter 2005 was unchanged, compared to the second quarter 2005. The provision for loan losses declined $30 million in the third quarter 2005, compared to the second quarter 2005, due to improvements in credit quality. Average loans were $23.8 billion in the third quarter 2005, compared to $23.9 billion in the second quarter 2005. Average deposits of $18.9 billion in the third quarter 2005 remained flat, compared to the second quarter 2005.

Net income for the Western market was $88 million for the third quarter 2005, compared to $85 million for the second quarter 2005. Net interest income (FTE) of $214 million in the third quarter 2005 increased $18 million from the second quarter 2005. Third quarter 2005 net interest income (FTE) includes a $20 million adjustment resulting from the warrant accounting change discussed above, partially offset by higher levels of low rate loans in the Financial Services Division. The provision for loan losses declined $13 million in the third quarter 2005, compared to the second quarter 2005, due to improvements in credit quality. Average loans of $14.2 billion in the third quarter 2005 increased $1.3 billion, compared to the second quarter 2005, primarily due to a $1.2 billion increase in loans in the Financial Service Division. Average deposits of $17.4 billion in the third quarter 2005 increased $638 million, primarily due to higher deposits in the Financial Services Division. Third quarter 2005 noninterest expenses increased $24 million to $122 million, compared to the second quarter 2005, primarily due to a $19 million increase in customer service expenses in the Financial Services Division and $4 million in incentive compensation accrual related to the warrant accounting change discussed above.

Net income for the Texas market was $20 million for the third quarter 2005, compared to $29 million for the second quarter 2005. Net interest income (FTE) of $61 million in the third quarter 2005 increased $1 million from the second quarter 2005. The provision for loan losses increased $12 million, to $2 million in the third quarter 2005, compared to a negative $10 million in the second quarter 2005. Average loans of $5.1 billion increased $125 million, or 3 percent, compared to the second quarter 2005. Average deposits were $3.6 billion in the third quarter 2005, compared to $3.7 billion in the second quarter 2005.

Net income for the Florida market was $7 million for the third quarter 2005, compared to $4 million for the second quarter 2005.

Conference Call and Webcast

Comerica will host a conference call to review third quarter 2005 financial results at 8 a.m. ET Wednesday, October 19, 2005. Interested parties may access the conference call by calling (706) 679-5261 (event ID No. 9528943). The call and supplemental financial information can also be accessed on the Internet at http://www.comerica.com/ . A replay of the conference call will be available approximately two hours following the call through Saturday, November 19, 2005. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 9528943). 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 Detroit, strategically aligned into three major business segments: the Business Bank, Small Business & Personal Financial Services, and Wealth & Institutional Management. Comerica focuses on relationships and helping businesses and people to be successful.

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 changes in the pace of an economic recovery and related changes in employment levels, 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 and floods, the implementation of Comerica's strategies and business models, management's ability to maintain and expand customer relationships, 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 industry, the anticipated performance of any new banking branches, the entry of new competitors in Comerica's markets, changes in the level of fee income, changes in 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 conditions and related credit and market conditions and adverse conditions in the stock market. Comerica cautions that the foregoing list of factors is not exclusive. 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.

      CONSOLIDATED FINANCIAL HIGHLIGHTS
      Comerica Incorporated and Subsidiaries

                                               Three Months Ended
                                     September 30,  June 30,   September 30,
  (in millions, except per share          2005         2005         2004
   data)
  PER SHARE AND COMMON STOCK DATA
  Diluted net income                      $1.41        $1.28        $1.13
  Cash dividends declared                  0.55         0.55         0.52
  Common shareholders' equity (at
   period end)                            30.81        30.60        29.52

  Average diluted shares (in
   thousands)                           168,387      169,608      172,864
  KEY RATIOS
  Return on average common
   shareholders' equity                   18.59%       16.99%       15.68%
  Return on average assets                 1.78         1.68         1.55
  Average common shareholders' equity
   as a percentage of average assets       9.57         9.88         9.91
  Tier 1 common capital ratio*             8.00         7.88         8.16
  Tier 1 risk-based capital ratio*         8.62         8.49         8.81
  Total risk-based capital ratio*         11.99        12.08        13.06
  Leverage ratio*                         10.10        10.36        10.28
  AVERAGE BALANCES
  Commercial loans                      $25,230      $24,122      $22,096
  Real estate construction loans          3,202        3,101        3,273
  Commercial mortgage loans               8,631        8,513        7,951
  Residential mortgage loans              1,418        1,357        1,239
  Consumer loans                          2,703        2,673        2,671
  Lease financing                         1,300        1,283        1,266
  International loans                     2,098        2,185        2,149
  Total loans                           $44,582      $43,234      $40,645
  Earning assets                         49,066       47,412       46,426
  Total assets                           53,462       51,635       50,348
  Interest-bearing deposits              25,540       25,005       25,722
  Total interest-bearing liabilities     31,488       30,501       30,435
  Noninterest-bearing deposits           15,734       14,995       14,012
  Common shareholders' equity             5,116        5,100        4,990
  NET INTEREST INCOME
  Net interest income (fully taxable
   equivalent basis)                       $513         $484         $452
  Fully taxable equivalent adjustment         1            1            1
  Net interest margin                      4.15%        4.09%        3.86%
  CREDIT QUALITY
  Nonaccrual loans                         $186         $212         $361
  Other real estate                          34           34           27
  Total nonperforming assets                220          246          388
  Loans 90 days past due and still
   accruing                                  14           24           20
  Gross charge-offs                          47           43           53
  Recoveries                                 26           14           20
  Net charge-offs                            21           29           33

  Allowance for loan losses as a
   percentage of total loans               1.33%        1.41%        1.83%
  Net loans charged off as a
   percentage of average total loans       0.18         0.27         0.33
  Nonperforming assets as a
   percentage of total loans, other
   real estate and nonaccrual debt
   securities                              0.52         0.57         0.98
  Allowance for loan losses as a
   percentage of total nonperforming
   assets                                   253          248          188
  ADDITIONAL DATA
  Goodwill                                 $247         $247         $247
  Other intangibles                           1            1            1
  Loan servicing rights                      19           19           20
  Deferred mutual fund distribution
   costs                                      7            7            9
  Amortization of intangibles                 -            -            -

                                                    Nine Months Ended
                                                       September 30,
  (in millions, except per share data)            2005              2004
  PER SHARE AND COMMON STOCK DATA
  Diluted net income                             $3.85             $3.15
  Cash dividends declared                         1.65              1.56
  Common shareholders' equity (at
   period end)

  Average diluted shares (in thousands)        169,687           174,346
  KEY RATIOS
  Return on average common
   shareholders' equity                          17.11%            14.57%
  Return on average assets                        1.68              1.44
  Average common shareholders' equity
   as a percentage of average assets              9.81              9.88
  Tier 1 common capital ratio*
  Tier 1 risk-based capital ratio*
  Total risk-based capital ratio*
  Leverage ratio*
  AVERAGE BALANCES
  Commercial loans                             $24,207           $21,997
  Real estate construction loans                 3,119             3,293
  Commercial mortgage loans                      8,488             7,989
  Residential mortgage loans                     1,362             1,225
  Consumer loans                                 2,703             2,650
  Lease financing                                1,281             1,276
  International loans                            2,173             2,171
  Total loans                                  $43,333           $40,601
  Earning assets                                47,716            46,960
  Total assets                                  51,959            50,891
  Interest-bearing deposits                     25,402            26,173
  Total interest-bearing liabilities            30,794            31,055
  Noninterest-bearing deposits                  14,955            13,910
  Common shareholders' equity                    5,096             5,029
  NET INTEREST INCOME
  Net interest income (fully taxable
   equivalent basis)                            $1,458            $1,346
  Fully taxable equivalent adjustment                3                 2
  Net interest margin                             4.08%             3.82%
  CREDIT QUALITY
  Nonaccrual loans
  Other real estate
  Total nonperforming assets
  Loans 90 days past due and still
   accruing
  Gross charge-offs                               $136              $213
  Recoveries                                        48                54
  Net charge-offs                                   88               159

  Allowance for loan losses as a
   percentage of total loans
  Net loans charged off as a percentage
   of average total loans                         0.27%             0.52%
  Nonperforming assets as a percentage
   of total loans, other real estate
   and nonaccrual debt securities
  Allowance for loan losses as a
   percentage of total nonperforming
   assets
  ADDITIONAL DATA
  Goodwill
  Other intangibles
  Loan servicing rights
  Deferred mutual fund distribution
   costs
  Amortization of intangibles                       $-                $1

  *September 30, 2005 ratios are estimated



       CONSOLIDATED BALANCE SHEETS
       Comerica Incorporated and Subsidiaries

  (in millions, except     September 30, June 30, December 31, September 30,
   share data)                 2005        2005       2004         2004

  ASSETS
  Cash and due from banks     $1,795      $1,687     $1,139       $1,560

  Short-term investments       3,619       3,402      3,230        5,055

  Investment securities
   available-for-sale          4,088       3,947      3,943        4,198

  Commercial loans            22,754      23,690     22,039       21,146
  Real estate construction
   loans                       3,289       3,168      3,053        3,276
  Commercial mortgage loans    8,700       8,536      8,236        7,931
  Residential mortgage loans   1,444       1,394      1,294        1,263
  Consumer loans               2,696       2,701      2,751        2,722
  Lease financing              1,286       1,296      1,265        1,260
  International loans          1,972       2,239      2,205        2,117
      Total loans             42,141      43,024     40,843       39,715
  Less allowance for loan
   losses                       (558)       (609)      (673)        (729)
      Net loans               41,583      42,415     40,170       38,986

  Premises and equipment         499         481        415          399
  Customers' liability on
   acceptances outstanding        39          35         57           41
  Accrued income and other
   assets                      2,726       2,722      2,812        2,720
      Total assets           $54,349     $54,689    $51,766      $52,959

  LIABILITIES AND
   SHAREHOLDERS' EQUITY
  Noninterest-bearing
   deposits                  $17,702     $19,236    $15,164      $16,811
  Interest-bearing deposits   25,968      24,817     25,772       25,424
      Total deposits          43,670      44,053     40,936       42,235

  Short-term borrowings          241         108        193          225
  Acceptances outstanding         39          35         57           41
  Accrued expenses and other
   liabilities                 1,242       1,067      1,189        1,021
  Medium- and long-term debt   4,066       4,309      4,286        4,401
      Total liabilities       49,258      49,572     46,661       47,923

  Common stock - $5 par value:
       Authorized -
        325,000,000 shares
       Issued -
        178,735,252 shares at
        9/30/05, 6/30/05,
        12/31/04 and 9/30/04     894         894        894          894
  Capital surplus                448         433        421          408
  Accumulated other
   comprehensive loss           (158)        (99)       (69)         (24)
  Retained earnings            4,683       4,546      4,331        4,222
  Less cost of common stock
   in treasury - 13,469,654
   shares at 9/30/05,
   11,513,612 shares at
   6/30/05, 8,259,328 shares
   at 12/31/04 and 8,169,292
   shares at 9/30/04            (776)       (657)      (472)        (464)
      Total shareholders'
       equity                  5,091       5,117      5,105        5,036
      Total liabilities and
       shareholders' equity  $54,349     $54,689    $51,766      $52,959



        CONSOLIDATED STATEMENTS OF INCOME
        Comerica Incorporated and Subsidiaries

                                          Three Months      Nine Months
                                             Ended             Ended
                                          September 30,    September 30,
  (in millions, except per share data)    2005    2004     2005     2004

  INTEREST INCOME
  Interest and fees on loans              $674    $514   $1,856   $1,510
  Interest on investment securities         38      36      107      111
  Interest on short-term investments         7       8       18       25
        Total interest income              719     558    1,981    1,646

  INTEREST EXPENSE
  Interest on deposits                     147      79      377      224
  Interest on short-term borrowings         16       1       28        2
  Interest on medium- and long-term
   debt                                     44      27      121       76
        Total interest expense             207     107      526      302
        Net interest income                512     451    1,455    1,344
  Provision for loan losses                (30)      -      (27)      85
        Net interest income after
         provision for loan losses         542     451    1,482    1,259

  NONINTEREST INCOME
  Service charges on deposit accounts       55      57      163      178
  Fiduciary income                          44      43      133      128
  Commercial lending fees                   16      14       44       41
  Letter of credit fees                     18      17       56       49
  Foreign exchange income                    9       9       27       28
  Brokerage fees                            10       9       27       27
  Investment advisory revenue, net          14       8       36       26
  Card fees                                 10       8       28       23
  Bank-owned life insurance                  9      10       28       28
  Equity in earnings of unconsolidated
   subsidiaries                              4       3       13       11
  Warrant income                             2       1        7        6
  Net securities losses                      -      (6)       -        -
  Net gain on sales of businesses            1       -        1        7
  Other noninterest income                  40      33       98      102
        Total noninterest income           232     206      661      654

  NONINTEREST EXPENSES
  Salaries                                 209     185      595      567
  Employee benefits                         46      40      137      119
       Total salaries and employee
        benefits                           255     225      732      686
  Net occupancy expense                     30      32       90       93
  Equipment expense                         14      14       42       43
  Outside processing fee expense            19      16       56       51
  Software expense                          12      11       35       31
  Customer services                         29       8       50       17
  Litigation and operational losses          4      16       14       27
  Other noninterest expenses                59      50      160      165
        Total noninterest expenses         422     372    1,179    1,113
  Income before income taxes               352     285      964      800
  Provision for income taxes               114      89      310      250
  NET INCOME                              $238    $196     $654     $550

  Basic net income per common share      $1.43   $1.15    $3.90    $3.19
  Diluted net income per common share     1.41    1.13     3.85     3.15

  Cash dividends declared on common
   stock                                    92      88      277      268
  Dividends per common share              0.55    0.52     1.65     1.56



     CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
     Comerica Incorporated and Subsidiaries

                                      Third  Second  First   Fourth  Third
                                     Quarter Quarter Quarter Quarter Quarter
  (in millions, except per             2005   2005    2005     2004   2004
   share data)

  INTEREST INCOME
  Interest and fees on loans           $674   $616    $566     $544   $514
  Interest on investment securities      38     34      35       36     36
  Interest on short-term investments      7      5       6       11      8
         Total interest income          719    655     607      591    558

  INTEREST EXPENSE
  Interest on deposits                  147    122     108       91     79
  Interest on short-term borrowings      16      9       3        2      1
  Interest on medium- and long-term
   debt                                  44     41      36       32     27
         Total interest expense         207    172     147      125    107
         Net interest income            512    483     460      466    451
  Provision for loan losses             (30)     2       1      (21)     -
         Net interest income after
          provision for loan losses     542    481     459      487    451

  NONINTEREST INCOME
  Service charges on deposit accounts    55     54      54       53     57
  Fiduciary income                       44     43      46       43     43
  Commercial lending fees                16     16      12       14     14
  Letter of credit fees                  18     18      20       17     17
  Foreign exchange income                 9      9       9        9      9
  Brokerage fees                         10      9       8        9      9
  Investment advisory revenue, net       14     12      10        9      8
  Card fees                              10      9       9        9      8
  Bank-owned life insurance               9     10       9        6     10
  Equity in earnings of unconsolidated
   subsidiaries                           4      4       5        1      3
  Warrant income                          2      3       2        1      1
  Net securities losses                   -      -       -        -     (6)
  Net gain on sales of businesses         1      -       -        -      -
  Other noninterest income               40     32      26       32     33
         Total noninterest income       232    219     210      203    206

  NONINTEREST EXPENSES
  Salaries                              209    197     189      193    185
  Employee benefits                      46     44      47       40     40
       Total salaries and employee
        benefits                        255    241     236      233    225
  Net occupancy expense                  30     28      32       32     32
  Equipment expense                      14     14      14       15     14
  Outside processing fee expense         19     20      17       17     16
  Software expense                       12     11      12       12     11
  Customer services                      29     10      11        6      8
  Litigation and operational losses       4      7       3       (3)    16
  Other noninterest expenses             59     52      49       68     50
         Total noninterest expenses     422    383     374      380    372
  Income before income taxes            352    317     295      310    285
  Provision for income taxes            114    100      96      103     89
  NET INCOME                           $238   $217    $199     $207   $196

  Basic net income per common share   $1.43  $1.29   $1.18    $1.22  $1.15
  Diluted net income per common share  1.41   1.28    1.16     1.21   1.13

  Cash dividends declared on common
   stock                                 92     92      93       88     88
  Dividends per common share           0.55   0.55    0.55     0.52   0.52

                                        Third Quarter 2005 Compared To:
                                        Second Quarter     Third Quarter
                                             2005              2004
  (in millions, except per share data)  Amount Percent     Amount Percent

  INTEREST INCOME
  Interest and fees on loans               $58     9.6%     $160    31.2%
  Interest on investment securities          4    10.5         2     6.8
  Interest on short-term investments         2    16.6        (1)  (22.5)
         Total interest income              64     9.7       161    28.8

  INTEREST EXPENSE
  Interest on deposits                      25    20.3        68    85.2
  Interest on short-term borrowings          7    77.2        15     N/M
  Interest on medium- and long-term
   debt                                      3     8.0        17    62.2
         Total interest expense             35    20.3       100    92.7
         Net interest income                29     5.9        61    13.6
  Provision for loan losses                (32)    N/M       (30)    N/M
         Net interest income after
          provision for loan losses         61    12.6        91    20.2

  NONINTEREST INCOME
  Service charges on deposit accounts        1     4.5        (2)   (1.3)
  Fiduciary income                           1     1.4         1     3.8
  Commercial lending fees                    -    (3.3)        2     6.2
  Letter of credit fees                      -    (0.6)        1     4.5
  Foreign exchange income                    -    (3.9)        -    14.7
  Brokerage fees                             1    10.4         1    12.7
  Investment advisory revenue, net           2    22.7         6    64.7
  Card fees                                  1     4.5         2    24.9
  Bank-owned life insurance                 (1)  (11.5)       (1)   (9.1)
  Equity in earnings of unconsolidated
   subsidiaries                              -    19.0         1    64.9
  Warrant income                            (1)  (49.1)        1     6.3
  Net securities losses                      -     N/M         6     N/M
  Net gain on sales of businesses            1     N/M         1     N/M
  Other noninterest income                   8    26.4         7    20.4
         Total noninterest income           13     6.2        26    12.8

  NONINTEREST EXPENSES
  Salaries                                  12     5.6        24    12.7
  Employee benefits                          2     3.6         6    15.9
       Total salaries and employee
        benefits                            14     5.3        30    13.2
  Net occupancy expense                      2     5.6        (2)   (5.7)
  Equipment expense                          -       -         -     0.5
  Outside processing fee expense            (1)   (1.4)        3    18.7
  Software expense                           1     3.5         1     8.9
  Customer services                         19   193.1        21   249.0
  Litigation and operational losses         (3)  (51.6)      (12)  (79.4)
  Other noninterest expenses                 7    16.4         9    20.7
         Total noninterest expenses         39    10.1        50    13.5
  Income before income taxes                35    11.3        67    23.7
  Provision for income taxes                14    14.5        25    28.5
  NET INCOME                               $21     9.8%      $42    21.5%

  Basic net income per common share      $0.14    10.9%    $0.28    24.3%
  Diluted net income per common share     0.13    10.2      0.28    24.8

  Cash dividends declared on common
   stock                                     -     0.5         4     4.1
  Dividends per common share                 -       -      0.03     5.8

  N/M - Not meaningful



      ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
      Comerica Incorporated and Subsidiaries

                                              2005                2004
  (in millions)                     3rd Qtr 2nd Qtr 1st Qtr  4th Qtr 3rd Qtr

  Balance at beginning of period      $609    $636   $673      $729   $762

  Loans charged-off:
      Commercial                        20      29     28        39     41
      Real estate construction:
          Real estate construction
           business line                 1       -      -         -      1
          Other                          -       -      -         -      -
            Total real estate
             construction                1       -      -         -      1
      Commercial mortgage:
          Commercial real estate
           business line                 -       2      2         4      -
          Other                          4       5      3         -      7
            Total commercial mortgage    4       7      5         4      7
      Residential mortgage               -       -      -         -      1
      Consumer                           6       3      3         5      2
      Lease financing                   13       3      3         4      -
      International                      3       1      7         3      1
          Total loans charged-off       47      43     46        55     53

  Recoveries on loans previously
   charged-off:
      Commercial                        23      12      7        14     13
      Real estate construction           -       -      -         -      -
      Commercial mortgage                1       1      -         1      1
      Residential mortgage               -       -      -         -      -
      Consumer                           2       -      1         -      1
      Lease financing                    -       -      -         -      -
      International                      -       1      -         5      5
          Total recoveries              26      14      8        20     20
  Net loans charged-off                 21      29     38        35     33
  Provision for loan losses            (30)      2      1       (21)     -
  Balance at end of period            $558    $609   $636      $673   $729

  Allowance for loan losses as a
   percentage of total loans          1.33%   1.41%  1.52%     1.65%  1.83%

  Net loans charged-off as a
   percentage of average total loans  0.18    0.27   0.36      0.34   0.33
  Allowance for credit losses on
   lending-related commitments*        $14     $15    $18       $21    $24

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

      NONPERFORMING ASSETS
      Comerica Incorporated and Subsidiaries

                                         2005                   2004
  (in millions)                 3rd Qtr 2nd Qtr 1st Qtr   4th Qtr 3rd Qtr

  SUMMARY OF NONPERFORMING
   ASSETS AND PAST DUE LOANS
  Nonaccrual loans:
      Commercial                  $81    $125    $161       $161    $181
      Real estate construction:
          Real estate
           construction business
           line                     4       8      18         31      28
          Other                     -       2       2          3       3
              Total real estate
               construction         4      10      20         34      31
      Commercial mortgage:
          Commercial real estate
           business line            9       9      11          6      10
          Other                    35      32      38         58      70
              Total commercial
               mortgage            44      41      49         64      80
      Residential mortgage          1       2       2          1       1
      Consumer                      1       2       1          1       2
      Lease financing              39       9      12         15      19
      International                16      23      24         36      47
              Total nonaccrual
               loans              186     212     269        312     361
  Reduced-rate loans                -       -       -          -       -
              Total
               nonperforming
               loans              186     212     269        312     361
  Other real estate                34      34      42         27      27
  Nonaccrual debt securities        -       -       -          -       -
              Total
               nonperforming
               assets            $220    $246    $311       $339    $388

  Nonperforming loans as a
   percentage of total loans     0.44%   0.49%   0.64%      0.76%   0.91%
  Nonperforming assets as a
   percentage of total loans,
   other real estate and
   nonaccrual debt
   securities                    0.52    0.57    0.75       0.83    0.98
  Allowance for loan losses
   as a percentage of total
   nonperforming assets           253     248     204        198     188
  Loans past due 90 days or more
   and still accruing             $14     $24     $23        $15     $20


  ANALYSIS OF NONACCRUAL LOANS
  Nonaccrual loans at beginning
   of period                     $212    $269    $312       $361    $404
       Loans transferred to
        nonaccrual (1)             81      47      66         71     106
       Nonaccrual business loan
        gross charge-offs (2)     (40)    (38)    (42)       (49)    (48)
       Loans transferred to
        accrual status (1)          -       -      (4)        (7)      -
       Nonaccrual business loans
        sold (3)                  (19)      -     (14)       (33)    (16)
       Payments/Other (4)         (48)    (66)    (49)       (31)    (85)
  Nonaccrual loans at end of
   period                        $186    $212    $269       $312    $361

(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                    $40     $38     $42        $49     $48
        Performing watch list
         loans                      1       2       1          1       2
        Consumer loans and
         residential mortgage
         loans                      6       3       3          5       3
      Total gross loan charge-
       offs                       $47     $43     $46        $55     $53
  (3) Analysis of loans sold:

        Nonaccrual business
         loans                    $19      $-     $14        $33     $16
        Performing watch list
         loans sold                34       7       4          7      30
      Total loans sold            $53      $7     $18        $40     $46

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

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

                                                Three Months Ended
                                                 September 30, 2005
                                            Average               Average
  (dollar amounts in millions)              Balance    Interest     Rate

  Commercial loans                          $25,230      $378      5.95%
  Real estate construction loans              3,202        60      7.40
  Commercial mortgage loans                   8,631       138      6.37
  Residential mortgage loans                  1,418        20      5.76
  Consumer loans                              2,703        41      6.04
  Lease financing                             1,300        10      2.98
  International loans                         2,098        33      6.27
  Business loan swap income                       -        (5)      -
         Total loans                         44,582       675      6.01

  Investment securities available-for-
   sale (1)                                   3,935        38      3.80
  Short-term investments                        549         7      4.76
         Total earning assets                49,066       720      5.82

  Cash and due from banks                     1,788
  Allowance for loan losses                    (601)
  Accrued income and other assets             3,209
         Total assets                       $53,462

  Money market and NOW deposits             $16,987        89      2.09
  Savings deposits                            1,531         2      0.52
  Certificates of deposit                     5,912        44      2.92
  Foreign office time deposits                1,110        12      4.21
         Total interest-bearing
          deposits                           25,540       147      2.28

  Short-term borrowings                       1,804        16      3.52
  Medium- and long-term debt                  4,144        44      4.26
         Total interest-bearing sources      31,488       207      2.61
                                                                    -
  Noninterest-bearing deposits               15,734
  Accrued expenses and other
   liabilities                                1,124
  Common shareholders' equity                 5,116
         Total liabilities and
          shareholders' equity              $53,462

  Net interest income/rate spread (FTE)                  $513      3.21

  FTE adjustment                                           $1

  Impact of net noninterest-bearing
    sources of funds                                               0.94
  Net interest margin (as a percentage
    of average earning assets) (FTE)                               4.15%

                                                 Three Months Ended
                                                   June 30, 2005
                                            Average               Average
  (dollar amounts in millions)              Balance    Interest     Rate

  Commercial loans                          $24,122      $329      5.46%
  Real estate construction loans              3,101        54      6.99
  Commercial mortgage loans                   8,513       129      6.06
  Residential mortgage loans                  1,357        20      5.75
  Consumer loans                              2,673        38      5.75
  Lease financing                             1,283        13      4.08
  International loans                         2,185        31      5.77
  Business loan swap income                       -         3       -
         Total loans                         43,234       617      5.72

  Investment securities available-for-
   sale (1)                                   3,681        34      3.67
  Short-term investments                        497         5      4.54
         Total earning assets                47,412       656      5.54

  Cash and due from banks                     1,697
  Allowance for loan losses                    (645)
  Accrued income and other assets             3,171
         Total assets                       $51,635

  Money market and NOW deposits             $17,190        77      1.80
  Savings deposits                            1,568         1      0.42
  Certificates of deposit                     5,509        36      2.57
  Foreign office time deposits                  738         8      4.23
         Total interest-bearing
          deposits                           25,005       122      1.96

  Short-term borrowings                       1,182         9      3.06
  Medium- and long-term debt                  4,314        41      3.83
         Total interest-bearing sources      30,501       172      2.26

  Noninterest-bearing deposits               14,995
  Accrued expenses and other
   liabilities                                1,039
  Common shareholders' equity                 5,100
         Total liabilities and
          shareholders' equity              $51,635

  Net interest income/rate spread (FTE)                  $484      3.28

  FTE adjustment                                           $1

  Impact of net noninterest-bearing
    sources of funds                                               0.81
  Net interest margin (as a percentage
    of average earning assets) (FTE)                               4.09%

                                               Three Months Ended
                                               September 30, 2004
                                            Average               Average
  (dollar amounts in millions)              Balance    Interest     Rate

  Commercial loans                          $22,096      $234      4.21%
  Real estate construction loans              3,273        46      5.58
  Commercial mortgage loans                   7,951       104      5.22
  Residential mortgage loans                  1,239        18      5.63
  Consumer loans                              2,671        31      4.68
  Lease financing                             1,266        11      3.46
  International loans                         2,149        26      4.87
  Business loan swap income                       -        45         -
         Total loans                         40,645       515      5.04

  Investment securities available-for-
   sale (1)                                   4,225        36      3.31
  Short-term investments                      1,556         8      2.17
         Total earning assets                46,426       559      4.78

  Cash and due from banks                     1,652
  Allowance for loan losses                    (774)
  Accrued income and other assets             3,044
         Total assets                       $50,348

  Money market and NOW deposits             $17,526        47      1.06
  Savings deposits                            1,652         1      0.36
  Certificates of deposit                     5,826        26      1.79
  Foreign office time deposits                  718         5      2.76
         Total interest-bearing
          deposits                           25,722        79      1.22

  Short-term borrowings                         251         1      1.36
  Medium- and long-term debt                  4,462        27      2.45
         Total interest-bearing sources      30,435       107      1.40

  Noninterest-bearing deposits               14,012
  Accrued expenses and other
   liabilities                                  911
  Common shareholders' equity                 4,990
         Total liabilities and
          shareholders' equity              $50,348

  Net interest income/rate spread (FTE)                  $452      3.38

  FTE adjustment                                           $1

  Impact of net noninterest-bearing
    sources of funds                                               0.48
  Net interest margin (as a percentage
    of average earning assets) (FTE)                               3.86%

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

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

                                                     Nine Months Ended
                                                     September 30, 2005
                                                Average              Average
  (dollar amounts in millions)                  Balance    Interest    Rate

  Commercial loans                              $24,207      $993      5.48%
  Real estate construction loans                  3,119       163      6.97
  Commercial mortgage loans                       8,488       385      6.07
  Residential mortgage loans                      1,362        58      5.70
  Consumer loans                                  2,703       115      5.70
  Lease financing                                 1,281        36      3.72
  International loans                             2,173        95      5.82
  Business loan swap income                           -        14         -
      Total loans                                43,333     1,859      5.73

  Investment securities available-for-sale (1)    3,802       107      3.69
  Short-term investments                            581        18      4.18
      Total earning assets                       47,716     1,984      5.55

  Cash and due from banks                         1,709
  Allowance for loan losses                        (644)
  Accrued income and other assets                 3,178
      Total assets                              $51,959

  Money market and NOW deposits                 $17,326       235      1.81
  Savings deposits                                1,560         6      0.45
  Certificates of deposit                         5,661       110      2.60
  Foreign office time deposits                      855        26      4.08
      Total interest-bearing deposits            25,402       377      1.98

  Short-term borrowings                           1,148        28      3.26
  Medium- and long-term debt                      4,244       121      3.82
      Total interest-bearing sources             30,794       526      2.28

  Noninterest-bearing deposits                   14,955
  Accrued expenses and other liabilities          1,114
  Common shareholders' equity                     5,096
      Total liabilities and shareholders'
       equity                                   $51,959

  Net interest income/rate spread (FTE)          $1,458      3.27

  FTE adjustment                                     $3

  Impact of net noninterest-bearing
    sources of funds                                         0.81
  Net interest margin (as a percentage
    of average earning assets) (FTE)                         4.08%

                                                     Nine Months Ended
                                                     September 30, 2004
                                                Average              Average
  (dollar amounts in millions)                  Balance    Interest    Rate

  Commercial loans                              $21,997      $669      4.06%
  Real estate construction loans                  3,293       129      5.24
  Commercial mortgage loans                       7,989       304      5.08
  Residential mortgage loans                      1,225        52      5.71
  Consumer loans                                  2,650        92      4.62
  Lease financing                                 1,276        39      4.05
  International loans                             2,171        73      4.46
  Business loan swap income                           -       154         -
      Total loans                                40,601     1,512      4.97

  Investment securities available-for-sale (1)    4,411       111      3.32
  Short-term investments                          1,948        25      1.73
      Total earning assets                       46,960     1,648      4.68

  Cash and due from banks                         1,681
  Allowance for loan losses                        (805)
  Accrued income and other assets                 3,055
      Total assets                              $50,891

  Money market and NOW deposits                 $17,772       131      0.99
  Savings deposits                                1,636         5      0.38
  Certificates of deposit                         6,110        76      1.66
  Foreign office time deposits                      655        12      2.47
      Total interest-bearing deposits            26,173       224      1.14

  Short-term borrowings                             275         2      1.05
  Medium- and long-term debt                      4,607        76      2.22
      Total interest-bearing sources             31,055       302      1.30

  Noninterest-bearing deposits                   13,910
  Accrued expenses and other liabilities            897
  Common shareholders' equity                     5,029
      Total liabilities and shareholders'
       equity                                   $50,891

  Net interest income/rate spread (FTE)                    $1,346      3.38

  FTE adjustment                                               $2

  Impact of net noninterest-bearing
    sources of funds                                                   0.44
  Net interest margin (as a percentage
    of average earning assets) (FTE)                                   3.82%

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

      CONSOLIDATED STATISTICAL DATA
      Comerica Incorporated and Subsidiaries

                                       September 30, June 30,    March 31,
  (in millions, except per share data)     2005        2005        2005

  Commercial loans:
       Floor plan                         $2,065      $2,766      $2,668
       Other                              20,689      20,924      20,112
        Total commercial loans            22,754      23,690      22,780
  Real estate construction loans:
       Real estate construction
        business line                      2,674       2,587       2,451
       Other                                 615         581         584
        Total real estate construction
         loans                             3,289       3,168       3,035
  Commercial mortgage loans:
       Commercial real estate business
        line                               1,440       1,465       1,555
       Other                               7,260       7,071       6,860
        Total commercial mortgage loans    8,700       8,536       8,415
  Residential mortgage loans               1,444       1,394       1,335
  Consumer loans:
       Home equity                         1,818       1,867       1,797
       Other consumer                        878         834         903
        Total consumer loans               2,696       2,701       2,700
  Lease financing                          1,286       1,296       1,262
  International loans                      1,972       2,239       2,209
        Total loans                      $42,141     $43,024     $41,736

  Goodwill                                  $247        $247        $247
  Other intangible assets                      1           1           1
  Loan servicing rights                       19          19          19
  Deferred mutual fund distribution
   costs                                       7           7           7
  Amortization of intangibles (quarterly)      -           -           -

  Tier 1 common capital ratio*              8.00%       7.88%       8.04%
  Tier 1 risk-based capital ratio*          8.62        8.49        8.66
  Total risk-based capital ratio*          11.99       12.08       12.49
  Leverage ratio*                          10.10       10.36       10.50

  Book value per share                    $30.81      $30.60      $29.81

  Market value per share for the
   quarter:
       High                               $63.38      $59.29      $61.40
       Low                                 56.80       53.17       53.70
       Close                               58.90       57.80       55.08

  Quarterly ratios:
       Return on average common
        shareholders' equity               18.59%      16.99%      15.73%
       Return on average assets             1.78        1.68        1.57
       Efficiency ratio                    56.63       54.49       55.70

  Number of banking offices                  369         363         375

  Number of employees - full time
   equivalent                             10,779      10,826      10,803

                                             December 31,     September 30,
  (in millions, except per share data)           2004             2004

  Commercial loans:
       Floor plan                               $2,575            $2,270
       Other                                    19,464            18,876
         Total commercial loans                 22,039            21,146
  Real estate construction loans:
       Real estate construction
        business line                            2,461             2,641
       Other                                       592               635
         Total real estate construction
          loans                                  3,053             3,276
  Commercial mortgage loans:
       Commercial real estate business
        line                                     1,556             1,498
       Other                                     6,680             6,433
         Total commercial mortgage loans         8,236             7,931
  Residential mortgage loans                     1,294             1,263
  Consumer loans:
       Home equity                               1,837             1,815
       Other consumer                              914               907
         Total consumer loans                    2,751             2,722
  Lease financing                                1,265             1,260
  International loans                            2,205             2,117
         Total loans                           $40,843           $39,715

  Goodwill                                        $247              $247
  Other intangible assets                            1                 1
  Loan servicing rights                             20                20
  Deferred mutual fund distribution costs            8                 9
  Amortization of intangibles (quarterly)            -                 -

  Tier 1 common capital ratio*                    8.13%             8.16%
  Tier 1 risk-based capital ratio*                8.77              8.81
  Total risk-based capital ratio*                12.75             13.06
  Leverage ratio*                                10.37             10.28

  Book value per share                          $29.94            $29.52

  Market value per share for the
   quarter:
       High                                     $63.80            $61.48
       Low                                       57.81             53.00
       Close                                     61.02             59.35

  Quarterly ratios:
       Return on average common
        shareholders' equity                     16.39%            15.68%
       Return on average assets                   1.63              1.55
       Efficiency ratio                          56.61             56.08

  Number of banking offices                        376               364

  Number of employees - full time
   equivalent                                   10,892            10,839

  *September 30, 2005 ratios are estimated



  PARENT COMPANY ONLY BALANCE SHEETS
  Comerica Incorporated


                                  September 30,  December 31,  September 30,
  (in millions, except share          2005           2004          2004
   data)

  ASSETS
  Cash and due from subsidiary bank    $16             $1            $1
  Short-term investments with
   subsidiary bank                     289            289           215
  Investment in subsidiaries,
   principally banks                 5,597          5,585         5,611
  Premises and equipment                 3              3             3
  Other assets                         256            304           294
        Total assets                $6,161         $6,182        $6,124

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Long-term debt                      $817           $824          $827
  Other liabilities                    253            253           261
        Total liabilities            1,070          1,077         1,088

  Common stock - $5 par value:
     Authorized - 325,000,000
      shares
     Issued - 178,735,252
      shares at 9/30/05,
      12/31/04 and 9/30/04             894            894           894
  Capital surplus                      448            421           408
  Accumulated other
   comprehensive loss                 (158)           (69)          (24)
  Retained earnings                  4,683          4,331         4,222
  Less cost of common stock in
   treasury - 13,469,654
   shares at 9/30/05,
     8,259,328 shares at
     12/31/04 and 8,169,292
     shares at 9/30/04                (776)          (472)         (464)
        Total shareholders'
         equity                      5,091          5,105         5,036
        Total liabilities and
         shareholders' equity       $6,161         $6,182        $6,124


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

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

  BALANCE AT JANUARY 1, 2004    $894   $384     $74  $3,973   $(215) $5,110
  Net income                       -      -       -     550       -     550
  Other comprehensive loss,
   net of tax                      -      -     (98)      -       -     (98)
  Total comprehensive income                                            452
  Cash dividends declared on
   common stock ($1.56 per
   share)                          -      -       -    (268)      -    (268)
  Purchase of 5,977,723 shares
   of common stock                 -      -       -       -    (336)   (336)
  Net issuance of common stock
   under employee stock plans      -     (2)      -     (33)     87      52
  Recognition of stock-based
   compensation expense            -     26       -       -       -      26
  BALANCE AT
   SEPTEMBER 30, 2004           $894   $408    $(24) $4,222   $(464) $5,036

  BALANCE AT JANUARY 1, 2005    $894   $421    $(69) $4,331   $(472) $5,105
  Net income                       -      -       -     654       -     654
  Other comprehensive loss,
   net of tax                      -      -     (89)      -       -     (89)
  Total comprehensive income                                            565
  Cash dividends declared on
   common stock ($1.65
   per share)                      -      -       -    (277)      -    (277)
  Purchase of 6,516,700 shares
   of common stock                 -      -       -       -    (379)   (379)
  Net issuance of common stock
   under employee stock plans      -     (5)      -     (25)     75      45
  Recognition of stock-based
   compensation expense            -     32       -       -       -      32
  BALANCE AT
   SEPTEMBER 30,2005            $894   $448   $(158) $4,683   $(776) $5,091



   BUSINESS SEGMENT FINANCIAL RESULTS
   Comerica Incorporated and Subsidiaries


  (dollar amounts in millions)                   Business Bank
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)       $367        $350        $345
  Provision for loan losses                  (23)         18          (5)
  Noninterest income                          71          71          65
  Noninterest expenses                       184         159         143
  Provision (benefit) for income taxes
   (FTE)                                      91          81          99
  Net income (loss)                         $186        $163        $173
  Net charge-offs                            $16         $21         $28

  Selected average balances:
  Assets                                 $36,661     $35,435     $32,969
  Loans                                   35,273      34,110      31,785
  Deposits                                20,877      20,352      19,386
  Liabilities                             21,678      21,151      20,086
  Attributed equity                        2,548       2,501       2,438

  Statistical data:
  Return on average assets (1)              2.03%       1.84%       2.10%
  Return on average attributed equity      29.17       26.08       28.42
  Net interest margin (2)                   4.12        4.10        4.30
  Efficiency ratio                         42.08       37.89       34.88

                                                      Finance
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)       $(47)       $(56)       $(80)
  Provision for loan losses                    -           -           -
  Noninterest income                          11          21          16
  Noninterest expenses                         -           -           -
  Provision (benefit) for income taxes
   (FTE)                                     (16)        (17)        (24)
  Net income (loss)                         $(20)       $(18)       $(40)
  Net charge-offs                            $ -         $ -         $ -

  Selected average balances:
  Assets                                  $5,526      $5,192      $6,737
  Loans                                      (22)        (22)        (17)
  Deposits                                 1,008         338       1,123
  Liabilities                              6,995       5,844       5,834
  Attributed equity                          517         519         616

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


                                Small Business & Personal Financial Services
  (dollar amounts in millions)
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)       $153        $152        $149
  Provision for loan losses                    7          (2)          1
  Noninterest income                          54          53          53
  Noninterest expenses                       138         132         126
  Provision (benefit) for income taxes
   (FTE)                                      22          26          27
  Net income (loss)                          $40         $49         $48
  Net charge-offs                             $7          $5          $4

  Selected average balances:
  Assets                                  $6,575      $6,446      $6,348
  Loans                                    5,862       5,768       5,618
  Deposits                                16,774      16,874      16,757
  Liabilities                             16,774      16,871      16,751
  Attributed equity                          805         792         774

  Statistical data:
  Return on average assets (1)              0.91%       1.10%       1.09%
  Return on average attributed equity      19.79       24.56       24.64
  Net interest margin (2)                   3.62        3.63        3.52
  Efficiency ratio                         66.96       64.34       62.29

                                                       Other
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)         $2          $1         $ -
  Provision for loan losses                  (10)        (15)          5
  Noninterest income                          13          (5)         (3)
  Noninterest expenses                        11           4          29
  Provision (benefit) for income taxes
   (FTE)                                       5           1         (27)
  Net income (loss)                           $9          $6        $(10)
  Net charge-offs                            $ -         $ -         $ -

  Selected average balances:
  Assets                                    $984        $940        $803
  Loans                                       41          43          26
  Deposits                                    65          22           1
  Liabilities                                344         247         212
  Attributed equity                          826         876         752

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


  (dollar amounts in millions)           Wealth & Institutional Management
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)        $38         $37         $38
  Provision for loan losses                   (4)          1          (1)
  Noninterest income                          83          79          75
  Noninterest expenses                        89          88          74
  Provision (benefit) for income taxes
   (FTE)                                      13          10          15
  Net income (loss)                          $23         $17         $25
  Net charge-offs                            $(2)         $3          $1

  Selected average balances:
  Assets                                  $3,716      $3,622      $3,491
  Loans                                    3,428       3,335       3,233
  Deposits                                 2,550       2,414       2,467
  Liabilities                              2,555       2,422       2,475
  Attributed equity                          420         412         410

  Statistical data:
  Return on average assets (1)              2.45%       1.83%       2.91%
  Return on average attributed equity      21.67       16.13       24.77
  Net interest margin (2)                   4.35        4.38        4.65
  Efficiency ratio                         73.61       75.74       65.64

                                                       Total
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)       $513        $484        $452
  Provision for loan losses                  (30)          2           -
  Noninterest income                         232         219         206
  Noninterest expenses                       422         383         372
  Provision (benefit) for income taxes
   (FTE)                                     115         101          90
  Net income (loss)                         $238        $217        $196
  Net charge-offs                            $21         $29         $33

  Selected average balances:
  Assets                                 $53,462     $51,635     $50,348
  Loans                                   44,582      43,234      40,645
  Deposits                                41,274      40,000      39,734
  Liabilities                             48,346      46,535      45,358
  Attributed equity                        5,116       5,100       4,990

  Statistical data:
  Return on average assets (1)              1.78%       1.68%       1.55%
  Return on average attributed equity      18.59       16.99       15.68
  Net interest margin (2)                   4.15        4.09        3.86
  Efficiency ratio                         56.63       54.49       56.08

(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.

  N/M - Not Meaningful



   MARKET SEGMENT FINANCIAL RESULTS
   Comerica Incorporated and Subsidiaries

  (dollar amounts in millions)              Midwest & Other Markets
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)       $272        $272        $267
  Provision for loan losses                    -          30          20
  Noninterest income                         154         148         139
  Noninterest expenses                       233         229         207
  Provision (benefit) for income taxes
   (FTE)                                      59          50          58
  Net income (loss)                         $134        $111        $121
  Net charge-offs                            $23         $24         $19

  Selected average balances:
  Assets                                 $25,324     $25,305     $24,021
  Loans                                   23,832      23,879      22,731
  Deposits                                18,857      18,918      19,067
  Liabilities                             19,621      19,679      19,772
  Attributed equity                        2,162       2,132       2,129

  Statistical data:
  Return on average assets (1)              2.11%       1.76%       2.01%
  Return on average attributed equity      24.71       20.88       22.72
  Net interest margin (2)                   4.49        4.53        4.63
  Efficiency ratio                         54.77       54.43       50.92

                                                      Florida
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)        $11         $11         $10
  Provision for loan losses                   (4)          2           -
  Noninterest income                           4           4           4
  Noninterest expenses                         8           7           6
  Provision (benefit) for income taxes
   (FTE)                                       4           2           3
  Net income (loss)                           $7          $4          $5
  Net charge-offs                             $1         $ -         $ -

  Selected average balances:
  Assets                                  $1,446      $1,455      $1,352
  Loans                                    1,435       1,442       1,340
  Deposits                                   318         274         235
  Liabilities                                316         273         232
  Attributed equity                           74          68          62

  Statistical data:
  Return on average assets (1)              2.01%       1.04%       1.41%
  Return on average attributed equity      38.96       22.09       30.55
  Net interest margin (2)                   3.16        2.92        3.01
  Efficiency ratio                         51.08       47.94       44.35

  (dollar amounts in millions)                        Western
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)       $214        $196        $195
  Provision for loan losses                  (18)         (5)        (17)
  Noninterest income                          30          32          31
  Noninterest expenses                       122          98          88
  Provision (benefit) for income taxes
   (FTE)                                      52          50          64
  Net income (loss)                          $88         $85         $91
  Net charge-offs                            $(2)         $5         $14

  Selected average balances:
  Assets                                 $14,920     $13,616     $12,777
  Loans                                   14,226      12,947      12,067
  Deposits                                17,415      16,777      15,517
  Liabilities                             17,458      16,821      15,521
  Attributed equity                        1,055       1,042       1,002

  Statistical data:
  Return on average assets (1)              1.88%       1.89%       2.20%
  Return on average attributed equity      33.07       32.44       36.31
  Net interest margin (2)                   4.87        4.69        4.98
  Efficiency ratio                         50.17       43.02       39.03

                                           Finance & Other Businesses
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)       $(45)       $(55)       $(80)
  Provision for loan losses                  (10)        (15)          5
  Noninterest income                          24          16          13
  Noninterest expenses                        11           4          29
  Provision (benefit) for income taxes
   (FTE)                                     (11)        (16)        (51)
  Net income (loss)                         $(11)       $(12)       $(50)
  Net charge-offs                            $ -         $ -         $ -

  Selected average balances:
  Assets                                  $6,510      $6,132      $7,540
  Loans                                       19          21           9
  Deposits                                 1,073         360       1,124
  Liabilities                              7,339       6,091       6,046
  Attributed equity                        1,343       1,395       1,368

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

  (dollar amounts in millions)                         Texas
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)        $61         $60         $60
  Provision for loan losses                    2         (10)         (8)
  Noninterest income                          20          19          19
  Noninterest expenses                        48          45          42
  Provision (benefit) for income taxes
   (FTE)                                      11          15          16
  Net income (loss)                          $20         $29         $29
  Net charge-offs                            $(1)        $ -         $ -

  Selected average balances:
  Assets                                  $5,262      $5,127      $4,658
  Loans                                    5,070       4,945       4,498
  Deposits                                 3,611       3,671       3,791
  Liabilities                              3,612       3,671       3,787
  Attributed equity                          482         463         429

  Statistical data:
  Return on average assets (1)              1.54%       2.24%       2.55%
  Return on average attributed equity      16.88       24.85       27.64
  Net interest margin (2)                   4.73        4.86        5.30
  Efficiency ratio                         59.79       57.28       52.67

                                                      Total
                                       September 30,  June 30, September 30,
  Three Months Ended                        2005        2005        2004
  Earnings summary:
  Net interest income (expense) (FTE)       $513        $484        $452
  Provision for loan losses                  (30)          2           -
  Noninterest income                         232         219         206
  Noninterest expenses                       422         383         372
  Provision (benefit) for income taxes
   (FTE)                                     115         101          90
  Net income (loss)                         $238        $217        $196
  Net charge-offs                            $21         $29         $33

  Selected average balances:
  Assets                                 $53,462     $51,635     $50,348
  Loans                                   44,582      43,234      40,645
  Deposits                                41,274      40,000      39,734
  Liabilities                             48,346      46,535      45,358
  Attributed equity                        5,116       5,100       4,990

  Statistical data:
  Return on average assets (1)              1.78%       1.68%       1.55%
  Return on average attributed equity      18.59       16.99       15.68
  Net interest margin (2)                   4.15        4.09        3.86
  Efficiency ratio                         56.63       54.49       56.08

(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.

N/M - Not Meaningful

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SOURCE: Comerica Incorporated

CONTACT: Media Contacts: Sharon R. McMurray, +1-313-222-4881, Wayne J.
Mielke, +1-313-222-4732, or Investor Contacts: Paul E. Burdiss,
+1-313-222-2840, Paul Jaremski, +1-313-222-6317, all of Comerica Incorporated

Web site: http://www.comerica.com/