Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 250

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 250
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 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, controlling and managing risks, and Comerica's management expends significant effort and resources in risk management. Nevertheless, Comerica may not be able to effectively mitigate its risk exposures in particular market environments or against particular types of risk, which could have a material adverse impact on Comerica's business, financial condition or results of operations. Comerica also utilizes various asset and liability management strategies to manage net interest income exposure to interest rate risk; these may not always be completely effective. 

For more information regarding risk management, please see "Risk Management" in the Financial Section of this report.

•Catastrophic events may adversely affect the general economy, financial and capital markets, specific industries, and Comerica.

Acts of terrorism, cyber-terrorism, political unrest, war, civil disturbance, armed regional and international hostilities and international responses