DETROIT, May 21, 2002 /PRNewswire-FirstCall via COMTEX/ -- In response to a
U.S. bank regulatory directive to banks with Argentine exposure, Comerica
Incorporated (NYSE: CMA) today announced that it will provide reserves for
Argentine transfer risk. Transfer risk is the risk that Argentine borrowers will
not be able to exchange pesos for U.S. dollars in order to pay their debts to
U.S. banks when due. Comerica will include an incremental charge in the second
quarter 2002 of up to $63 million ($41 million after-tax, or $0.23 cents per
share). Of the potential $63 million, $53 million would be recorded as a
provision for credit losses, with the remainder recorded as a securities loss to
write down the book value of Argentine securities exposure.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO ) Comerica's total
exposure to Argentina is $141 million, which consists of $96 million of loans,
$26 million of securities and $19 million of unfunded commitments. This exposure
is down from $156 million at March 31, 2002, and from $219 million at December
31, 2001. Comerica currently has $5 million of Argentine loans in nonperforming
assets.
"The economic and political environment in Argentina is very difficult, and we
continue to monitor the situation closely and reduce our position," said Ralph
W. Babb Jr., president and chief executive officer.
Comerica expects this incremental charge to reduce projected full year 2002
earnings from its previous estimate by up to $0.23 per share.
Comerica Incorporated is a financial services company focused on business
banking and asset gathering. Through its more than 500 customer-service
locations, including branch, lending and investment offices, Comerica helps
businesses and people be successful. Comerica is ideally positioned to deliver
high quality financial services in Michigan, California and Texas, as well as in
Florida, 19 other states, Canada and Mexico. Comerica has an investment services
affiliate, Munder Capital Management, ranked among the top 5 percent of money
managers worldwide. Comerica reported total assets of $50 billion at March 31,
2002.
Forward Looking Statement
Matters discussed in this news release contain certain forward-looking
statements that are based on management's beliefs and assumptions based on
information currently known to Comerica's management. 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 the Company's
revenue, earnings or other measures of economic performance, including
statements of profitability, business segments and subsidiaries, estimates of
credit quality trends and global stability. Such statements reflect the view of
Comerica's management as of this date with respect to future events and are
subject to risks and uncertainties, such as changes in Comerica's plans,
objectives, expectations and intentions and do not purport to speak as of any
other date. Should one or more of these risks materialize or should underlying
beliefs of assumptions prove incorrect, the Company's actual results could
differ materially from those discussed. Factors that could cause or contribute
to such differences are changes in interest rates, changes in the accounting
treatment of any particular item, changes in industries, or the political,
economic and regulatory stability in countries where Comerica has a
concentration in loans, changes in the level of fee income, changes in general
economic conditions and related credit and market conditions, continuing
consolidations in the banking industry and the impact of regulatory responses to
any of the foregoing. Forward-looking statements speak only as of the date they
are made. Comerica does not undertake to update forward-looking statements to
reflect circumstances or events that occur after the date the forward-looking
statements are made. Without limiting the foregoing, Comerica undertakes no
obligation to update earnings guidance including any of the factors that
influence earnings. 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.
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SOURCE Comerica Incorporated
CONTACT:
Media - Sharon R. McMurray, +1-313-222-4881, or
Wayne J. Mielke, +1-313-222-4732, or
Investor - Judith S. Love, +1-313-222-2840, or
Judith M. Chavis, +1-313-222-6317, all of Comerica
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PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
URL: http://www.comerica.com
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