Comerica 2008 Annual Report Download - page 4

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Our nation is grappling with an economic downturn that
has affected individuals, families, and businesses of all sizes.
The challenged environment produced considerable market
turmoil in 2008, as job losses mounted and the national
economy weakened.
The U.S. government has taken an active role in trying
to shore up consumer and business confidence, and to
strengthen our country’s financial system. This has included
efforts to increase the flow of credit to households and
businesses. By year-end 2008, however, the credit markets
still remained strained.
While it was a difficult and tumultuous year, we
remained successful by staying close to our
customers, and delivering the exceptional service that
has been a hallmark of our company through many
years and various economic cycles. I will share some
of the more notable successes with you.
I also will discuss some of our plans for the future,
such as our banking center expansion program, which
remains a cornerstone of our deposit-gathering efforts and
helps attract thousands of new customers to Comerica.
Our plans also include lending to new and existing
relationship customers for whom we serve as trusted
advisors, particularly small businesses, middle market
companies and wealth management clients in the markets
we target for growth.
Without a doubt, this is an economic environment that is as
unsettling and volatile as any we have ever seen. Our chief
economist, Dana Johnson, has been following it closely.
Dana does not see a severe or prolonged period of
economic contraction, the so-called definition of a
depression. Nor does he envision a period of inflation. He
does, however, believe we are in the midst of a difficult
recession that will continue well into 2009.
For more on Dana’s perspectives, I encourage you to
visit the “Economic Insights” area of www.comerica.com.
I believe you will find his commentary on the national
economy, as well as the Texas, California and Michigan
economies, to be enlightening and informative.
In 2008, Comerica followed its business model and executed
its strategy, making enhancements to adapt to the changing
economy. Our credit management is evidenced in our
consistent credit standards, our limits on exposure, and the
fact we have had no subprime mortgage programs. Our
conservative investment strategy is demonstrated by our
primarily AAA-rated and liquid investment portfolio and
the lack of off-balance sheet structures, such as structured
investment vehicles, that made media headlines. We have
a relentless focus on expense management, as well as a
conservative expansion strategy. In addition, our size is a
competitive advantage in that it provides us the ability to
quickly identify issues and to act accordingly. Finally and
importantly, in this most unsettling of economic times, the
quality of our capital has remained strong.
To Our Shareholders:
Ralph W. Babb Jr.
Chairman and Chief Executive Officer