Strength of Leadership
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strength of leadership Comerica Incorporated Comerica Tower at Detroit Center 500 Woodward Avenue, MC 3391 Detroit, Michigan 48226 2000 www.comerica.com Annual Report 2000 Annual Report 1 Financial Highlights Comerica’s Vision We are in business to help our customers, employees, communities and shareholders be successful. We are committed to delivering the highest quality financial services by: Change 2000 1999 Amount Percent Income Statement • Providing outstanding value and building enduring Net interest income $ 1,659 $ 1,547 $ 112 7% Net income 749 673 76 11 customer relationships. Basic net income per share 4.68 4.20 0.48 11 Diluted net income per common share 4.63 4.14 0.49 12 Cash dividends per common share 1.60 1.44 0.16 11 • Creating a positive environment for our colleagues, built on trust, Book value per common share 23.94 20.60 3.34 16 Market value per share 59.38 46.69 12.69 27 teamwork and respect. Ratios Return on average common shareholders’ equity 21.16% 21.86% • Demonstrating leadership in our communities. Return on average assets 1.86 1.82 Average common shareholders’ equity as a • Ensuring a consistent, superior return for our owners. percentage of average assets 8.58 8.11 Balance Sheet (at December 31) Total assets $41,985 $38,653 $ 3,332 9% Total earning assets 38,903 36,046 2,857 8 Corporate Description Loans 36,060 32,693 3,367 10 Comerica Incorporated (NYSE: CMA) is a multi-state financial services provider Business loans 33,817 30,473 3,344 11 Contents headquartered in Detroit with banking subsidiaries in Michigan, California and Deposits 27,168 23,291 3,877 17 Texas; banking operations in Florida; and, businesses in several other states. Common shareholders’ equity 3,757 3,225 532 17 Comerica has an investment services affiliate, Munder Capital Management, 1 Financial Highlights and operates commercial banking subsidiaries in Canada and Mexico. A Fortune 2 At a Glance 500 company, Comerica at year-end 2000 was the 22nd largest banking 4 Letter to Shareholders company in the United States, with $42 billion in total assets. 8 Strength of Leadership Comerica is the business bank of choice for owner-managed companies. It ranks 16 Directors and Officers Net Income Diluted Net Income among the top 20 U.S. bank holding companies in small business lending and 22 Financial Review and Reports (In Millions) Per Common Share (In Dollars) ranks first among the nation’s top 50 bank holding companies in commercial loans 749 4.63 as a percent of total assets. 673 4.14 Comerica’s more than 10,000 employees deliver comprehensive financial services 607 3.72 through a diverse network that includes offices in select high growth metropolitan 530 markets, web and telephone banking, approximately 330 branch and supermarket 3.19 locations, and 625 automated teller machines. 417 Comerica is organized into three focused operating units: 2.38 Business Bank Corporate Banking (National Business Finance; U.S. Banking; Middle Market Banking; W.Y. Campbell) International Finance, Treasury Management Services Individual Bank Private Banking, Small Business Banking and Personal Financial Services Investment Bank Investment Services (Comerica Securities; Munder Capital 96 97 98 99 00 96 97 98 99 00 Management; Wilson, Kemp & Associates), Comerica Insurance Group, Institutional Trust, Retirement Services 2 Comerica Incorporated 2000 Annual Report 3 At a Glance Our Strengths and Strategies Overview Strengths Strategies Core Competencies Comerica’s Business Bank provides • One of the nation’s premier business • Leverage relationships by cross-selling companies with an array of credit banks. products and services. Comerica forges and non-credit financial products • Expertise in forming strong • Emphasize skill-based commercial and services. It builds long-lasting relationships with corporate clients. banking activities. long-term customer relationships with business customers, with an emphasis on middle market • Lending units organized by customer • Focus on high-growth metropolitan relationships with a companies. The Business Bank offers characteristics and location. markets. strong focus on its Business Bank corporate clients highly professional • Experienced and seasoned staff. • Leverage growing Internet capabilities business lending, credit underwriting to enhance quality of service. and cash management services. • Technologically advanced treasury principal strengths: management and international • Build upon the strength of locally business lending and trade services with a North American based loan decision making. commercial banking platform. asset gathering. The bank’s three primary operating units are Comerica’s Individual Bank focuses • Proven expertise in gathering • Continue to grow market share among aligned to ensure on deepening relationships with consumer assets. profitable segments. consumers, and owners and managers profitability, growth of small businesses. It also delivers • Nationally recognized small • Leverage strong referrals from internal highly responsive and personalized business lender. and external networks. and quality. Each unit private banking services to affluent • Well-established, powerful • Continue to maximize the business individuals. Individual Bank distribution sales culture. potential of strategic alliances. contributes to Comerica’s Individual Bank channels include branch offices, banking by personal computer and • Diversity of products and services • Roll out new products to enhance success in the financial telephone, automated teller machines with competitive pricing. business opportunities in the and supermarkets. marketplace. services marketplace. • Team-based, relationship management approach. • Enhance the electronic delivery of retail products and services. Comerica’s Investment Bank offers • Solid partnerships with Business Bank • Continue to broaden product offerings a full range of investment products and Individual Bank customers. and delivery channels. and services to individuals, companies • Investment services affiliate, Munder • Continue focus on gathering and other entities. Major areas of focus Capital Management, is one of the client assets. include institutional trust, retirement nation’s leading money management services, full-service brokerage services • Enhance Internet-based brokerage companies. and insurance. The Investment Bank and trust services. • National delivery platform. Investment Bank plays a vital role in keeping client assets • Leverage affiliation with Munder focused within Comerica. • Blue-chip investment client base. Capital Management. • Expanded online outreach capabilities. • Expand insurance offerings through strategic alliances. 4 Comerica Incorporated 2000 Annual Report 5 Chairman’s Letter Dear Fellow Shareholders, The year 2000 ended as it opened — with an exciting event illustrating Comerica’s strength and leadership. From Return on Average Dividends Per Common Share Common Equity (In Dollars) the cold, snowy opening day in April at Comerica Park in downtown Detroit, to our November announcement in (In Percentages) 1.60 22.54 Los Angeles of our acquisition of Imperial Bancorp, 2000 was an important year for Comerica. 21.86 21.32 21.16 1.44 1.28 18.02 16.91 1.15 16.10 16.22 15.98 15.50 1.01 We continued to lead the industry, ranking in the top 10 of the 50 largest U.S. bank holding companies as measured by return on equity. Return on assets was 1.86 percent, and return on common equity was 21.16 percent, ranking Comerica number five and number nine respectively among 96 97 98 99 00 96 97 98 99 00 the top 50 U.S. bank holding companies. Our efficiency Comerica Industry Average ratio is one of the lowest, at 48 cents on the dollar. offering full-scale retail services in our home state of our customers manage their businesses through the ups The market rewarded our strong performance; our stock Michigan, and on an accommodation basis in our and downs of an economic cycle. price increased 27 percent in the year 2000, well ahead other markets. Over the years we have shed ancillary of the 19 percent gain in the Keefe 50-Bank Index. businesses and refocused our entire company on those Our expertise in relationship banking also serves us segments of the market that we believe offer the best well as we execute our asset gathering strategy to gather As we have in the past 32 consecutive years, Comerica growth opportunities and the best match with our skills. and manage the assets of our individual customers. increased its annual dividend. In January 2001, we raised As a result of our unwavering focus on our strategy, more We are with them through their entire life cycle: from their the quarterly dividend for common stock by 10 percent than 90 percent of all loans in our portfolio are to business first savings account, to their first home mortgage, to to $0.44 per share. enterprises. Our well-developed credit culture serves as financing their children’s college education, to retirement the foundation of our business lending. and estate planning. Our success is the result of our highly disciplined strategy, our expertise in relationship banking and our people. Working hand-in-hand with our business lending strategy And often times, paths cross. For example, many a business is our emphasis on relationship banking. We continuously owner has sold the business we helped to grow and prosper, Our strategy is to be a premier business lender in major cultivate long-term relationships. As a result, we can help and turned to us for financial planning, and trust and metropolitan markets throughout the United States, while retirement services. Eugene A. Miller Chairman, President and Chief Executive Officer 6 Comerica Incorporated 2000 Annual Report 7 Working hand-in-hand with our business lending strategy is our emphasis on relationship banking. We continuously cultivate long-term relationships. Comparison of Five Year Cumulative Total Return Our acquisition of Imperial is a perfect strategic fit. We to phase in cost savings and one year to convert to common A vital component to our success is brand recognition Among Comerica Incorporated, Keefe 50-Bank Index and S&P 500 Index (Assumes $100 Invested waited four years for the right one.