Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 351

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1A
Chunk 351
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 well as other commodities, are subject to large and unanticipated fluctuations caused by changes to supply and demand conditions, which could directly or indirectly affect Comerica’s business and/or clients.

Rapid changes to the economy have impacted demand for residential and commercial real estate, including single-family and multifamily residential properties, as well as office, industrial, and retail commercial real estate properties. These changes have affected, and could continue to affect, the economic health of downtowns in major cities and other regions where economic activity has changed in recent years, and have impacted, and could continue to impact, real estate prices, construction activity, and sales. In addition, the weakness of regional real estate markets could affect municipal tax revenues and fiscal health, with knock-on effects to broader regional economies.

Adverse economic conditions related to a potential recession, including changes in inflation, unemployment, or interest rates, may, directly and indirectly, adversely affect Comerica. Furthermore, changes in trade policies or other economic policies, including tariffs and trade wars, immigration policies, state and local municipal finances, federal government finances and the U.S. federal debt, are outside of Comerica's control and may affect the operating environment affecting Comerica.

•Inflation has impacted, and could continue to negatively impact, Comerica's business, profitability and stock price.

Prolonged periods of inflation have impacted, and may continue to impact, Comerica's profitability by negatively impacting its fixed costs and expenses, including increasing funding costs and expenses related to talent acquisition 

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and retention, and negatively impacting the demand for its products and services. Additionally, inflation has led, and may continue to lead, to a decrease in consumer and client purchasing power and has negatively affected the need or demand for Comerica's products and services. If significant inflation continues, Comerica's business could continue to be negatively affected by, among other things, increased default rates leading to credit losses, which could decrease the appetite for new credit extensions. These inflationary pressures could result in missed earnings and budgetary projections causing Comerica's stock price to suffer.

•Methods of reducing risk exposures might not be effective.

Comerica assumes various types of risk as a result of conducting business in the normal course. Instruments, systems and strategies used to hedge or otherwise manage exposure to various types of credit, market, liquidity, technology, operational, compliance, financial reporting and strategic risks could be less effective than anticipated. Comerica's enterprise risk management framework provides a process for identifying, measuring