Comerica (CMA) 8-K Comerica Reports First Quarter 2003 Earnings

Exhibit 99.1

COMERICA REPORTS FIRST QUARTER 2003 EARNINGS

DETROIT/April 16, 2003— Comerica Incorporated (NYSE: CMA) today reported first quarter 2003 earnings of $176 million, or $1.00 per diluted share, compared with $214 million, or $1.20 per diluted share, for the first quarter of 2002.

	1st Qtr '03			4th Qtr '02			1st Qtr '02
Diluted EPS	$	1.00		$	1.18		$	1.20
Net Interest Income (in millions)	$	511		$	533		$	540
Net Interest Margin		4.30	%		4.41	%		4.77	%
Noninterest Income (in millions)	$	220		$	254		$	208
Noninterest Expense (in millions)	$	367		$	373		$	347
Net Income (in millions)	$	176		$	206		$	214
Return on Equity		14.13	%		16.86	%		17.84	%

“The economic and geopolitical environment continues to be characterized by uncertainty,” said Ralph W. Babb Jr., chairman, president and chief executive officer. “While challenging, we believe that improvements in loan growth and credit quality will parallel improvements in the economy, whenever the economy does begin to turn. We remain focused on our core strategy of relationship-based middle market lending, growing the Individual and Investment Banks to meet the needs of our small business and private banking customers, and enhancing our historically strong risk management process.”

Net Interest Income
Net interest income was $511 million for the first quarter 2003, compared to $533 million for the fourth quarter 2002 and $540 million for the first quarter 2002. Average earning assets of $48.3 billion for the first quarter 2003 were virtually unchanged from the previous quarter as the growth in average commercial loans ($730 million) was offset by decreases in both average investment securities available for sale ($453 million) and average short-term investments ($251 million).

Net interest income decreased $22 million, or four percent, from the fourth quarter 2002 as a result of the 11-basis-point decline in the net interest margin. This margin decline was primarily due to the ongoing restructuring of the investment portfolio, a narrowing of commercial loan spreads and a competitive deposit rate environment during a period of decreasing interest rates.

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COMERICA REPORTS FIRST QUARTER 2003 EARNINGS – 2

Noninterest Income
Noninterest income was $220 million for the first quarter 2003, compared with $254 million for the fourth quarter 2002 and $208 million for the first quarter 2002. Noninterest income decreased $34 million, or 13 percent, from the fourth quarter 2002, and included a gain of $13 million ($9 million after-tax, or $0.05 per diluted share) from the sale of securities, a $6 million ($4 million after-tax, or $0.02 per diluted share) net write-down of venture capital and private equity investments and $6 million ($4 million after-tax, or $0.02 per diluted share) of cash flow hedge ineffectiveness income related to ongoing risk management activities. Noninterest income in the fourth quarter of 2002 included a net gain of $57 million ($37 million after-tax, or $0.21 per diluted share) from the sale of securities and a $5 million ($3 million after-tax, or $0.02 per diluted share) loss on the disposal of loans held for sale.

Noninterest Expenses
Noninterest expenses were $367 million for the first quarter 2003, compared with $373 million for the fourth quarter 2002 and $347 million for the first quarter 2002. Noninterest expenses decreased $6 million, or two percent, from the fourth quarter 2002.

Credit Quality
	1st Qtr '03			4th Qtr '02			1st Qtr '02
Net Charge-offs (in millions)	$	96		$	82		$	60
Net Charge-offs/Average Total Loans		0.88	%		0.76	%		0.58	%
Loan Loss Provision (in millions)	$	106		$	115		$	75
Nonperforming Assets (NPAs) (in millions)	$	641		$	579		$	667
NPAs/Total Loans, Other Real Estate & Nonaccrual Debt Securities		1.51	%		1.37	%		1.64	%
Allowance for Loan Losses (in millions)	$	801		$	791		$	652
Allowance for Loan Losses/Total Loans		1.88	%		1.87	%		1.60	%
Allowance for Credit Losses on Lending-related Commitments (in millions)*	$	34		$	35		$	18

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

The composition of the first quarter 2003 net charge-offs was similar to the prior quarter and was reflective of the geographic markets and industries served. During the quarter, transfers to nonperforming loans brought nonperforming assets to $641 million at March 31, 2003, an increase of $62 million from December 31, 2002. Comerica increased its allowance for loan losses in the first quarter 2003 by $10 million from the fourth quarter of 2002 because of the effects of the continued weak economy on our lending customers.

Balance Sheet and Capital Management
Total assets and common shareholders’ equity were $55.8 billion and $5.0 billion, respectively, at March 31, 2003, compared with $53.3 billion and $4.9 billion, respectively, at December 31, 2002. There were 175 million shares outstanding at March 31, 2003 and December 31, 2002. There were no shares repurchased in the open market during the first quarter of 2003. Comerica’s first quarter 2003 estimated tier 1 common, tier 1 and total risk-based capital ratios are 7.44 percent, 8.09 percent and 11.70 percent, respectively.

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COMERICA REPORTS FIRST QUARTER 2003 EARNINGS – 3

Outlook for 2003
Comerica’s outlook for the second quarter 2003 includes modest loan growth and a lower net interest margin, with credit quality remaining at levels similar to the first quarter 2003. Due to the unusual economic uncertainties, Comerica will not provide a full year earnings per share outlook.

Conference Call and Webcast
Comerica will host a conference call to review first quarter 2003 financial results at 8 a.m. ET Wednesday, April 16, 2003. Interested parties may access the conference call by calling (706) 679-5261 (event ID No. 9203074). The call and supplemental financial information can be accessed via a Webcast at www.comerica.com. A replay of the conference call will be available approximately two hours following the call through Wednesday, May 14, 2003. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 9203074). A replay of the Webcast can also be accessed at www.comerica.com.

Comerica Incorporated is a multi-state financial services provider headquartered in Detroit, with bank subsidiaries in Michigan, California, and Texas, banking operations in Florida, and businesses in several other states. Comerica has an investment services affiliate, Munder Capital Management, commercial banking operations in Canada and a commercial banking subsidiary in Mexico.

Forward-looking Statement
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 “expect,” “believe,” “intend,” estimate,” “project,” “may” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are predicated on management’s beliefs and assumptions 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 the Company’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, such as changes in Comerica’s plans, objectives, expectations and intentionsand do not purport to speak as of any other date. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are the impact of the war in Iraq, changes in the pace of an economic recovery, changes in interest rates, changes in the accounting treatment of any particular item, the results of regulatory examinations, changes in industries in which Comerica has a concentration of loans, changes in political, economic and regulatory stability in countries where Comerica operates, changes in the level of fee income, changes in general economic conditions and related credit and market conditions, 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 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.

Media Contacts:	Investor Contacts:
Sharon R. McMurray	Helen L. Arsenault
(313) 222-4881	(313) 222-2840
Wayne J. Mielke	Judith M. Chavis
(313) 222-4732	(313) 222-6317

CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries

		Three Months Ended
(in millions, except per share data)		March 31,			December 31,			March 31,
		2003			2002			2002
PER SHARE AND COMMON STOCK DATA
Diluted net income		$	1.00		$	1.18		$	1.20
Cash dividends declared			0.50			0.48			0.48
Common shareholders’ equity (at period end)			28.56			28.31			27.21
Average diluted shares (in thousands)			175,643			175,613			178,488
KEY RATIOS
Return on average common shareholders’ equity			14.13	%		16.86	%		17.84	%
Return on average assets			1.33			1.57			1.72
Average common shareholders’ equity as a percentage of average assets			9.44			9.33			9.63
Tier 1 common capital ratio (March 2003 estimated)			7.44			7.39			7.53
Tier 1 risk-based capital ratio (March 2003 estimated)			8.09			8.05			8.22
Total risk-based capital ratio (March 2003 estimated)			11.70			11.72			12.04
Leverage ratio (March 2003 estimated)			9.47			9.29			9.55
AVERAGE BALANCES
Commercial loans		$	26,313		$	25,805		$	25,086
Real estate construction loans			3,558			3,400			3,279
Commercial mortgage loans			7,254			7,126			6,371
Residential mortgage loans			809			773			761
Consumer loans			1,534			1,531			1,483
Lease financing			1,290			1,275			1,208
International loans			2,760			2,839			3,053
	Total loans	$	43,518		$	42,749		$	41,241
Earning assets			48,278			48,213			45,901
Total assets			52,646			52,530			49,875
Interest-bearing deposits			27,550			26,617			25,149
Total interest-bearing liabilities			33,604			32,912			33,383
Noninterest-bearing deposits			13,288			14,004			10,824
Common shareholders’ equity			4,971			4,900			4,803
NET INTEREST INCOME
Net interest income (fully taxable equivalent basis)		$	512		$	534		$	541
Fully taxable equivalent adjustment			1			1			1
Net interest margin			4.30	%		4.41	%		4.77	%
CREDIT QUALITY
Nonaccrual loans		$	624		$	565		$	656
Other real estate			13			10			11
Nonaccrual debt securities			4			4			—
Total nonperforming assets			641			579			667
Loans 90 days past due and still accruing			50			43			94
Gross charge-offs			100			93			69
Recoveries			4			11			9
Net charge-offs			96			82			60
Allowance for loan losses as a percentage of total loans			1.88	%		1.87	%		1.60	%
Net loans charged off as a percentage of average total loans			0.88			0.76			0.58
Nonperforming assets as a percentage of total loans, other real estate and nonaccrual debt securities			1.51			1.37			1.64
Allowance for loan losses as a percentage of total nonperforming assets			125			136			98
ADDITIONAL DATA
Goodwill		$	247		$	247		$	333
Core deposit intangible			2			2			4
Other intangibles			1			1			1
Loan servicing rights			12			11			8
Deferred mutual fund distribution costs			17			19			31
Amortization of intangibles			—			1			1

CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries

			March 31,			December 31,			March 31,
(in millions, except share data)			2003			2002			2002
ASSETS
Cash and due from banks			$	2,264		$	1,902		$	1,806
Short-term investments				4,183			2,446			953
Investment securities available for sale				4,291			3,053			4,506
Commercial loans				25,213			25,242			24,389
Real estate construction loans				3,609			3,457			3,266
Commercial mortgage loans				7,406			7,194			6,626
Residential mortgage loans				826			789			763
Consumer loans				1,532			1,538			1,485
Lease financing				1,273			1,296			1,191
International loans				2,710			2,765			3,016
		Total loans		42,569			42,281			40,736
Less allowance for loan losses				(801	)		(791	)		(652	)
		Net loans		41,768			41,490			40,084
Premises and equipment				369			371			353
Customers’ liability on acceptances outstanding				28			33			23
Accrued income and other assets				2,902			4,006			2,500
		TOTAL ASSETS	$	55,805		$	53,301		$	50,225
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits			$	17,333		$	16,335		$	12,585
Interest-bearing deposits				27,040			25,440			24,876
		Total deposits		44,373			41,775			37,461
Short-term borrowings				545			540			786
Acceptances outstanding				28			33			23
Accrued expenses and other liabilities				788			790			905
Medium- and long-term debt				5,068			5,216			6,261
		Total liabilities		50,802			48,354			45,436
Common stock — $5 par value:
	Authorized - 325,000,000 shares
	Issued - 178,735,252 shares at 3/31/03 and 12/31/02 and 178,749,198 shares at 3/31/02			894			894			894
Capital surplus				365			363			345
Accumulated other comprehensive income				192			237			142
Retained earnings				3,761			3,684			3,563
Less cost of common stock in treasury - 3,576,115 shares at 3/31/03, 3,960,149 shares at 12/31/02 and 2,759,361 shares at 3/31/02				(209	)		(231	)		(155	)
		Total shareholders’ equity		5,003			4,947			4,789
		TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	55,805		$	53,301		$	50,225

CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries

			Three Months Ended
			March 31,
(in millions, except per share data)			2003		2002
INTEREST INCOME
Interest and fees on loans			$	593	$	645
Interest on investment securities				47		61
Interest on short-term investments				6		6
		Total interest income		646		712
INTEREST EXPENSE
Interest on deposits				104		122
Interest on short-term borrowings				3		11
Interest on medium- and long-term debt				28		39
		Total interest expense		135		172
		Net interest income		511		540
Provision for loan losses				106		75
		Net interest income after provision for loan losses		405		465
NONINTEREST INCOME
Service charges on deposit accounts				61		56
Fiduciary income				41		44
Commercial lending fees				15		13
Letter of credit fees				16		14
Foreign exchange income				10		9
Brokerage fees				8		10
Investment advisory revenue, net				7		10
Bank-owned life insurance				9		11
Equity in earnings of unconsolidated subsidiaries				2		3
Warrant income				—		2
Securities gains/(losses)				13		(1	)
Other noninterest income				38		37
		Total noninterest income		220		208
NONINTEREST EXPENSES
Salaries and employee benefits				222		208
Net occupancy expense				32		30
Equipment expense				16		16
Outside processing fee expense				17		15
Customer services				7		11
Other noninterest expenses				73		67
	Total noninterest expenses			367		347
Income before income taxes				258		326
Provision for income taxes				82		112
NET INCOME			$	176	$	214
Net income applicable to common stock			$	176	$	214
Basic net income per common share			$	1.01	$	1.22
Diluted net income per common share				1.00		1.20
Cash dividends declared on common stock				87		84
Dividends per common share				0.50		0.48

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries

		First		Fourth		Third
		Quarter		Quarter		Quarter
(in millions, except per share data)		2003		2002		2002
INTEREST INCOME
Interest and fees on loans		$	593	$	620	$	625
Interest on investment securities			47		58		63
Interest on short-term investments			6		8		6
	Total interest income		646		686		694
INTEREST EXPENSE
Interest on deposits			104		116		119
Interest on short-term borrowings			3		4		11
Interest on medium- and long-term debt			28		33		36
	Total interest expense		135		153		166
	Net interest income		511		533		528
Provision for loan losses			106		115		275
	Net interest income after provision for loan losses		405		418		253
NONINTEREST INCOME
Service charges on deposit accounts			61		58		56
Fiduciary income			41		41		42
Commercial lending fees			15		19		16
Letter of credit fees			16		15		16
Foreign exchange income			10		8		11
Brokerage fees			8		9		9
Investment advisory revenue, net			7		6		2
Bank-owned life insurance			9		9		15
Equity in earnings of unconsolidated subsidiaries			2		1		3
Warrant income			—		—		1
Securities gains/(losses)			13		57		(6	)
Net gain on sales of businesses			—		—		12
Other noninterest income			38		31		39
	Total noninterest income		220		254		216
NONINTEREST EXPENSES
Salaries and employee benefits			222		214		214
Net occupancy expense			32		30		31
Equipment expense			16		14		15
Outside processing fee expense			17		18		16
Customer services			7		7		4
Goodwill impairment			—		—		86
Other noninterest expenses			73		90		77
	Total noninterest expenses		367		373		443
Income before income taxes			258		299		26
Provision for income taxes			82		93		2
NET INCOME		$	176	$	206	$	24
Net income applicable to common stock		$	176	$	206	$	24
Basic net income per common share		$	1.01	$	1.18	$	0.14
Diluted net income per common share			1.00		1.18		0.14
Cash dividends declared on common stock			87		83		84
Dividends per common share			0.50		0.48		0.48

N/M-Not meaningful

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (continued)
Comerica Incorporated and Subsidiaries

		Second			First
		Quarter			Quarter
(in millions, except per share data)		2002			2002
INTEREST INCOME
Interest and fees on loans		$	634		$	645
Interest on investment securities			64			61
Interest on short-term investments			7			6
	Total interest income		705			712
INTEREST EXPENSE
Interest on deposits			122			122
Interest on short-term borrowings			11			11
Interest on medium- and long-term debt			41			39
	Total interest expense		174			172
	Net interest income		531			540
Provision for loan losses			170			75
	Net interest income after provision for loan losses		361			465
NONINTEREST INCOME
Service charges on deposit accounts			57			56
Fiduciary income			44			44
Commercial lending fees			21			13
Letter of credit fees			15			14
Foreign exchange income			12			9
Brokerage fees			10			10
Investment advisory revenue, net			9			10
Bank-owned life insurance			18			11
Equity in earnings of unconsolidated subsidiaries			1			3
Warrant income			2			2
Securities gains/(losses)			(9	)		(1	)
Net gain on sales of businesses			—			—
Other noninterest income			42			37
	Total noninterest income		222			208
NONINTEREST EXPENSES
Salaries and employee benefits			208			208
Net occupancy expense			31			30
Equipment expense			17			16
Outside processing fee expense			16			15
Customer services			4			11
Goodwill impairment			—			—
Other noninterest expenses			76			67
	Total noninterest expenses		352			347
Income before income taxes			231			326
Provision for income taxes			74			112
NET INCOME		$	157		$	214
Net income applicable to common stock		$	157		$	214
Basic net income per common share		$	0.89		$	1.22
Diluted net income per common share			0.88			1.20
Cash dividends declared on common stock			84			84
Dividends per common share			0.48			0.48

N/M-Not meaningful

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (continued)
Comerica Incorporated and Subsidiaries

		First Quarter 2003 Compared To:
		Fourth Quarter 2002						First Quarter 2002
(in millions, except per share data)		Amount			Percent			Amount			Percent
INTEREST INCOME
Interest and fees on loans		$	(27	)		(4.3	)%	$	(52	)		(8.1	)%
Interest on investment securities			(11	)		(20.3	)		(14	)		(23.5	)
Interest on short-term investments			(2	)		(17.9	)		—			0.9
	Total interest income		(40	)		(5.8	)		(66	)		(9.3	)
INTEREST EXPENSE
Interest on deposits			(12	)		(10.6	)		(18	)		(15.2	)
Interest on short-term borrowings			(1	)		(18.6	)		(8	)		(72.2	)
Interest on medium- and long-term debt			(5	)		(13.8	)		(11	)		(27.8	)
	Total interest expense		(18	)		(11.5	)		(37	)		(21.8	)
	Net interest income		(22	)		(4.2	)		(29	)		(5.3	)
Provision for loan losses			(9	)		(7.8	)		31			41.3
	Net interest income after provision for loan losses		(13	)		(3.2	)		(60	)		(12.8	)
NONINTEREST INCOME
Service charges on deposit accounts			3			2.8			5			8.1
Fiduciary income			—			1.9			(3	)		(6.1	)
Commercial lending fees			(4	)		(19.7	)		2			19.4
Letter of credit fees			1			2.6			2			10.7
Foreign exchange income			2			25.8			1			19.2
Brokerage fees			(1	)		(13.8	)		(2	)		(27.9	)
Investment advisory revenue, net			1			0.3			(3	)		(34.6	)
Bank-owned life insurance			—			(8.4	)		(2	)		(16.7	)
Equity in earnings of unconsolidated subsidiaries			1			179.7			(1	)		(27.6	)
Warrant income			—			(100.6	)		(2	)		(100.1	)
Securities gains/(losses)			(44	)		(76.5	)		14			N/M
Net gain on sales of businesses			—			—			—			—
Other noninterest income			7			30.0			1			3.1
	Total noninterest income		(34	)		(13.5	)		12			5.8
NONINTEREST EXPENSES
Salaries and employee benefits			8			4.1			14			7.3
Net occupancy expense			2			3.7			2			4.8
Equipment expense			2			6.1			—			(3.0	)
Outside processing fee expense			(1	)		(3.9	)		2			15.4
Customer services			—			3.5			(4	)		(34.9	)
Goodwill impairment			—			—			—			—
Other noninterest expenses			(17	)		(18.6	)		6			9.0
	Total noninterest expenses		(6	)		(1.7	)		20			5.9
Income before income taxes			(41	)		(13.8	)		(68	)		(20.9	)
Provision for income taxes			(11	)		(11.2	)		(30	)		(26.3	)
NET INCOME		$	(30	)		(15.0	)%	$	(38	)		(18.0	)%
Net income applicable to common stock		$	(30	)		(15.0	)%	$	(38	)		(18.0	)%
Basic net income per common share		$	(0.17	)		(14.4	)%	$	(0.21	)		(17.2	)%
Diluted net income per common share			(0.18	)		(15.3	)		(0.20	)		(16.7	)
Cash dividends declared on common stock			4			4.4			3			3.6
Dividends per common share			0.02			4.2			0.02			4.2

N/M-Not meaningful

QUARTERLY SELECTED ASSET QUALITY DATA
Comerica Incorporated and Subsidiaries

				First			Fourth
				Quarter			Quarter
(in millions)				2003			2002
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period				$	791		$	758
Loans charged off:
	Commercial				72			66
	Real estate construction:
		Real estate construction business line			—			—
		Other			1			1
			Total real estate construction		1			1
	Commercial mortgage:
		Commercial real estate business line			—			6
		Other			5			3
			Total commercial mortgage		5			9
	Consumer				2			3
	Lease financing				—			—
	International				20			14
		Total loans charged off			100			93
Recoveries on loans previously charged off:
	Commercial				2			9
	Real estate construction				—			—
	Commercial mortgage				—			1
	Consumer				1			—
	Lease financing				—			1
	International				1			—
		Total recoveries			4			11
		Net loans charged off			96			82
Provision for loan losses					106			115
Balance at end of period				$	801		$	791
Allowance for loan losses as a percentage of total loans					1.88	%		1.87	%
Net loans charged off as a percentage of average total loans					0.88			0.76
ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS *				$	34		$	35
NONPERFORMING ASSETS
Nonaccrual loans:
	Commercial			$	400		$	372
	Real estate construction:
		Real estate construction business line			38			17
		Other			1			2
			Total real estate construction		39			19
	Commercial mortgage:
		Commercial real estate business line			8			8
		Other			49			45
			Total commercial mortgage		57			53
	Residential mortgage				—			—
	Consumer				2			2
	Lease financing				35			5
	International				91			114
	Nonaccrual loans held for sale				—			—
		Total nonaccrual loans			624			565
Reduced-rate loans					—			—
		Total nonperforming loans			624			565
Other real estate					13			10
Nonaccrual debt securities					4			4
		Total nonperforming assets		$	641		$	579
Nonperforming loans as a percentage of total loans					1.47	%		1.34	%
Nonperforming assets as a percentage of total loans, other real estate and nonaccrual debt securities					1.51			1.37
Allowance for loan losses as a percentage of total nonperforming assets					125			136
Loans past due 90 days or more and still accruing				$	50		$	43

* Included in “Accrued expenses and other liabilities” on the balance sheets.

QUARTERLY SELECTED ASSET QUALITY DATA (continued)
Comerica Incorporated and Subsidiaries

				Third			Second			First
				Quarter			Quarter			Quarter
(in millions)				2002			2002			2002
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period				$	741		$	652		$	637
Loans charged off:
	Commercial				235			61			63
	Real estate construction:
		Real estate construction business line			—			—			—
		Other			—			—			—
			Total real estate construction		—			—			—
	Commercial mortgage:
		Commercial real estate business line			—			—			—
		Other			1			—			—
			Total commercial mortgage		1			—			—
	Consumer				2			2			2
	Lease financing				1			7			1
	International				29			17			3
		Total loans charged off			268			87			69
Recoveries on loans previously charged off:
	Commercial				6			5			7
	Real estate construction				—			—			—
	Commercial mortgage				1			—			—
	Consumer				1			1			1
	Lease financing				2			—			—
	International				—			—			1
		Total recoveries			10			6			9
		Net loans charged off			258			81			60
Provision for loan losses					275			170			75
Balance at end of period				$	758		$	741		$	652
Allowance for loan losses as a percentage of total loans					1.82	%		1.80	%		1.60	%
Net loans charged off as a percentage of average total loans					2.44			0.78			0.58
ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS *				$	31		$	21		$	18
NONPERFORMING ASSETS
Nonaccrual loans:
	Commercial			$	365		$	467		$	497
	Real estate construction:
		Real estate construction business line			16			16			8
		Other			1			2			1
			Total real estate construction		17			18			9
	Commercial mortgage:
		Commercial real estate business line			—			1			1
		Other			15			13			17
			Total commercial mortgage		15			14			18
	Residential mortgage				1			—			1
	Consumer				4			3			5
	Lease financing				1			3			6
	International				101			118			120
	Nonaccrual loans held for sale				—			—			—
		Total nonaccrual loans			620			623			656
Reduced-rate loans					—			—			—
		Total nonperforming loans			620			623			656
Other real estate					12			11			11
Nonaccrual debt securities					8			4			—
		Total nonperforming assets		$	640		$	638		$	667
Nonperforming loans as a percentage of total loans					1.49	%		1.52	%		1.61	%
Nonperforming assets as a percentage of total loans, other real estate and nonaccrual debt securities					1.54			1.55			1.64
Allowance for loan losses as a percentage of total nonperforming assets					118			116			98
Loans past due 90 days or more and still accruing				$	51		$	66		$	94

* Included in “Accrued expenses and other liabilities” on the balance sheets.

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

		Three Months Ended
		March 31, 2003								December 31, 2002
		Average					Average			Average					Average
(dollar amounts in millions)		Balance			Interest		Rate			Balance			Interest		Rate
Commercial loans		$	26,313		$	273		4.20	%	$	25,805		$	294		4.52	%
Real estate construction loans			3,558			45		5.14			3,400			47		5.49
Commercial mortgage loans			7,254			101		5.65			7,126			105		5.84
Residential mortgage loans			809			14		6.84			773			13		6.96
Consumer loans			1,534			22		5.90			1,531			24		6.26
Lease financing			1,290			17		5.12			1,275			17		5.18
International loans			2,760			30		4.41			2,839			32		4.44
Business loan swap income			—			92		—			—			89		—
	Total loans		43,518			594		5.53			42,749			621		5.76
Investment securities available for sale (1)			3,972			47		4.74			4,425			58		5.37
Short-term investments			788			6		3.31			1,039			8		3.00
	Total earning assets		48,278			647		5.43			48,213			687		5.67
Cash and due from banks			1,799								1,977
Allowance for loan losses			(826	)							(811	)
Accrued income and other assets			3,395								3,151
	Total Assets	$	52,646							$	52,530
Money market and NOW deposits		$	16,452			55		1.35		$	15,178			58		1.51
Savings deposits			1,549			2		0.61			1,556			3		0.88
Certificates of deposit			8,862			41		1.87			9,167			49		2.11
Foreign office time deposits			687			6		3.40			716			6		3.31
	Total interest-bearing deposits		27,550			104		1.53			26,617			116		1.73
Short-term borrowings			976			3		1.33			1,020			4		1.53
Medium- and long-term debt			5,078			28		2.23			5,275			33		2.45
	Total interest-bearing sources		33,604			135		1.63			32,912			153		1.84
Noninterest-bearing deposits			13,288								14,004
Accrued expenses and other liabilities			783								714
Common shareholders’ equity			4,971								4,900
	Total Liabilities and Shareholders’ Equity	$	52,646							$	52,530
Net interest income/Rate spread (FTE)					$	512		3.80					$	534		3.83
FTE adjustment					$	1							$	1
Impact of net noninterest-bearing sources of funds								0.50								0.58
Net interest margin (as a percentage of average earning assets)(FTE)								4.30	%							4.41	%

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

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

		Three Months Ended
		March 31, 2002
		Average					Average
(dollar amounts in millions)		Balance			Interest		Rate
Commercial loans		$	25,086		$	304		4.91	%
Real estate construction loans			3,279			47		5.87
Commercial mortgage loans			6,371			100		6.35
Residential mortgage loans			761			14		7.31
Consumer loans			1,483			25		6.87
Lease financing			1,208			17		5.46
International loans			3,053			38		5.06
Business loan swap income			—			101		—
	Total loans		41,241			646		6.35
Investment securities available for sale (1)			4,199			61		5.88
Short-term investments			461			6		5.62
	Total earning assets		45,901			713		6.30
Cash and due from banks			1,803
Allowance for loan losses			(678	)
Accrued income and other assets			2,849
	Total Assets	$	49,875
Money market and NOW deposits		$	10,986			38		1.40
Savings deposits			1,774			5		1.19
Certificates of deposit			11,654			73		2.54
Foreign office time deposits			735			6		3.43
	Total interest-bearing deposits		25,149			122		1.97
Short-term borrowings			2,511			11		1.86
Medium- and long-term debt			5,723			39		2.74
	Total interest-bearing sources		33,383			172		2.10
Noninterest-bearing deposits			10,824
Accrued expenses and other liabilities			865
Common shareholders’ equity			4,803
	Total Liabilities and Shareholders’ Equity	$	49,875
Net interest income/Rate spread (FTE)					$	541		4.20
FTE adjustment					$	1
Impact of net noninterest-bearing sources of funds								0.57
Net interest margin (as a percentage of average earning assets)(FTE)								4.77	%

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

CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries

				March 31,			December 31,			September 30,
(in millions, except per share data)				2003			2002			2002
Commercial loans:
	Floor plan			$	2,715		$	2,631		$	2,016
	Other				22,498			22,611			22,642
		Total commercial			25,213			25,242			24,658
Real estate construction loans					3,609			3,457			3,446
Commercial mortgage loans					7,406			7,194			7,034
Residential mortgage loans					826			789			747
Consumer loans:
		Home equity			1,121			1,128			1,122
		Other consumer			411			410			419
			Total consumer		1,532			1,538			1,541
Lease financing					1,273			1,296			1,288
International loans					2,710			2,765			2,875
			Total loans	$	42,569		$	42,281		$	41,589
Goodwill				$	247		$	247		$	247
Core deposit intangible					2			2			3
Other intangible assets					1			1			1
Loan servicing rights					12			11			10
Deferred mutual fund distribution costs					17			19			20
Amortization of intangibles (quarterly)					—			1			1
Tier 1 common capital ratio*					7.44	%		7.39	%		7.32	%
Tier 1 risk-based capital ratio*					8.09			8.05			7.99
Total risk-based capital ratio*					11.70			11.72			11.71
Leverage ratio*					9.47			9.29			9.25
Book value per share				$	28.56		$	28.31		$	27.52
Market value per share for the quarter:
	High			$	46.74		$	50.30		$	63.80
	Low				37.10			35.20			47.00
	Close				37.88			43.24			48.22
Quarterly ratios:
	Return on average common shareholders’ equity				14.13	%		16.86	%		1.93	%
	Return on average assets				1.33			1.57			0.19
	Efficiency ratio				51.10			51.02			59.05
Number of commercial banking offices					352			352			351
Number of employees-full time equivalent					11,477			11,358			11,356

* March 31, 2003 ratios are estimated

CONSOLIDATED STATISTICAL DATA (continued)
Comerica Incorporated and Subsidiaries

				June 30,			March 31,
(in millions, except per share data)				2002			2002
Commercial loans:
	Floor plan			$	2,328		$	2,025
	Other				22,053			22,364
		Total commercial			24,381			24,389
Real estate construction loans					3,397			3,266
Commercial mortgage loans					6,821			6,626
Residential mortgage loans					742			763
Consumer loans:
	Home equity				1,079			1,038
	Other consumer				420			447
		Total consumer			1,499			1,485
Lease financing					1,239			1,191
International loans					3,073			3,016
			Total loans	$	41,152		$	40,736
Goodwill				$	333		$	333
Core deposit intangible					4			4
Other intangible assets					1			1
Loan servicing rights					9			8
Deferred mutual fund distribution costs					28			31
Amortization of intangibles (quarterly)					1			1
Tier 1 common capital ratio*					7.46	%		7.53	%
Tier 1 risk-based capital ratio*					8.14			8.22
Total risk-based capital ratio*					11.93			12.04
Leverage ratio*					9.40			9.55
Book value per share				$	27.96		$	27.21
Market value per share for the quarter:
	High			$	66.09		$	64.85
	Low				59.70			52.75
	Close				61.40			62.57
Quarterly ratios:
	Return on average common shareholders’ equity				12.83	%		17.84	%
	Return on average assets				1.24			1.72
	Efficiency ratio				46.09			46.28
Number of commercial banking offices					346			344
Number of employees-full time equivalent					11,473			11,411

* March 31, 2003 ratios are estimated

PARENT COMPANY ONLY BALANCE SHEETS
Comerica Incorporated

				March 31,			December 31,			March 31,
(in millions, except share data)				2003			2002			2002
ASSETS
Cash and due from banks				$	17		$	17		$	1
Short-term investments with subsidiary bank					60			28			85
Investment in subsidiaries, principally banks					5,502			5,421			5,384
Premises and equipment					3			3			3
Other assets					284			357			234
		TOTAL ASSETS		$	5,866		$	5,826		$	5,707
LIABILITIES AND SHAREHOLDERS’ EQUITY
Commercial paper				$	100		$	130		$	165
Long-term debt					176			176			162
Subordinated debt issued to and advances from subsidiaries					353			352			351
Other liabilities					234			221			240
		Total liabilities			863			879			918
Common stock — $5 par value:
	Authorized - 325,000,000 shares Issued - 178,735,252 shares at 3/31/03 and 12/31/02 and 178,749,198 shares at 3/31/02				894			894			894
Capital surplus					365			363			345
Accumulated other comprehensive income					192			237			142
Retained earnings					3,761			3,684			3,563
Less cost of common stock in treasury - 3,576,115 shares at 3/31/03, 3,960,149 shares at 12/31/02 and 2,759,361 shares at 3/31/02					(209	)		(231	)		(155	)
			Total shareholders’ equity		5,003			4,947			4,789
		TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	5,866		$	5,826		$	5,707

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

						Accumulated
						Other
	Common		Capital			Comprehensive
(in millions, except share data)	Stock		Surplus			Income
BALANCE AT JANUARY 1, 2002	$	894	$	331		$	225
Net income		—		—			—
Other comprehensive income, net of tax		—		—			(83	)
Total comprehensive income		—		—			—
Cash dividends declared on common stock		—		—			—
Purchase of 1,643,700 shares of common stock		—		—			—
Net issuance of common stock under employee stock plans		—		13			—
Recognition of stock based compensation expense		—		1			—
BALANCE AT MARCH 31, 2002	$	894	$	345		$	142
BALANCE AT JANUARY 1, 2003	$	894	$	363		$	237
Net income		—		—			—
Other comprehensive income, net of tax		—		—			(45	)
Total comprehensive income		—		—			—
Cash dividends declared on common stock		—		—			—
Net issuance of common stock under employee stock plans		—		(5	)		—
Recognition of stock-based compensation expense		—		7			—
BALANCE AT MARCH 31, 2003	$	894	$	365		$	192

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Comerica Incorporated and Subsidiaries

							Total
	Retained			Treasury			Shareholders’
(in millions, except share data)	Earnings			Stock			Equity
BALANCE AT JANUARY 1, 2002	$	3,448		$	(91	)	$	4,807
Net income		214			—			214
Other comprehensive income, net of tax		—			—			(83	)
Total comprehensive income		—			—			131
Cash dividends declared on common stock		(84	)		—			(84	)
Purchase of 1,643,700 shares of common stock		—			(95	)		(95	)
Net issuance of common stock under employee stock plans		(15	)		31			29
Recognition of stock-based compensation expense		—			—			1
BALANCE AT MARCH 31, 2002	$	3,563		$	(155	)	$	4,789
BALANCE AT JANUARY 1, 2003	$	3,684		$	(231	)	$	4,947
Net income		176			—			176
Other comprehensive income, net of tax		—			—			(45	)
Total comprehensive income		—			—			131
Cash dividends declared on common stock		(87	)		—			(87	)
Net issuance of common stock under employee stock plans		(12	)		22			5
Recognition of stock-based compensation expense		—			—			7
BALANCE AT MARCH 31, 2003	$	3,761		$	(209	)	$	5,003