Business Units or Product Lines

Comerica Incorporated operates primarily through three business segments: The Business Bank, The Retail Bank, and Wealth Management. The Business Bank provides companies with credit, cash management, capital markets, and international trade services. The Retail Bank delivers consumer-oriented banking services, mostly to meed the needs of small business and individual consumer customers. The Wealth Management segment offers investment products, retirement services, and financial planning.

Business Models for Each Product Line

The Business Bank generates revenue primarily through interest income from loans and service charges on deposit accounts. Major expenses include provision for credit losses and operating expenses. The Retail Bank estimates similar revenue from interest on loans and transactional fees, with expenses largely in administrative and operational fields. Wealth Management earns through management fees for assets under management and advisory services, with staff compensation and technology being significant expenses.

Future Opportunities for Growth

Comerica sees growth potential in expanding its digital banking platform, leveraging technology to enhance customer experience and capture younger demographics. There's also opportunity in expanding services to mid-size companies and penetrating further into markets outside its traditional urban hubs.

Potential Major Risks

The major risks include potential downturns in the economy which could affect loan repayment and increase default rates. Regulatory changes and compliance requirements can impose additional costs. Interest rate fluctuations could impact net interest margin profitability, while increasing competition from fintech and large national banks could affect market share.