Comerica 2014 Annual Report Download - page 31

17
• The introduction, implementation, withdrawal, success and timing of business initiatives and strategies may be
less successful or may be different than anticipated, which could adversely affect Comerica's business.
Comerica makes certain projections and develops plans and strategies for its banking and financial products. If Comerica
does not accurately determine demand for its banking and financial product needs, it could result in Comerica incurring
significant expenses without the anticipated increases in revenue, which could result in a material adverse effect on its
business.
• Comerica may not be able to utilize technology to efficiently and effectively develop, market, and deliver new
products and services to its customers.
The financial services industry experiences rapid technological change with regular introductions of new technology-
driven products and services. The efficient and effective utilization of technology enables financial institutions to better
serve customers and to reduce costs. Comerica's future success depends, in part, upon its ability to address the needs of
its customers by using technology to market and deliver products and services that will satisfy customer demands, meet
regulatory requirements, and create additional efficiencies in Comerica's operations. Comerica may not be able to
effectively develop new technology-driven products and services or be successful in marketing or supporting these
products and services to its customers, which could have a material adverse impact on Comerica's financial condition
and results of operations.
• Competitive product and pricing pressures among financial institutions within Comerica's markets may change.
Comerica operates in a very competitive environment, which is characterized by competition from a number of other
financial institutions in each market in which it operates. Comerica competes in terms of products and pricing with large
national and regional financial institutions and with smaller financial institutions. Some of Comerica's larger competitors,
including certain nationwide banks that have a significant presence in Comerica's market area, may make available to
their customers a broader array of product, pricing and structure alternatives and, due to their asset size, may more easily
absorb loans in a larger overall portfolio. Some of Comerica's smaller competitors may have more liberal lending policies
and processes.
Additionally, the financial services industry has recently been subject to increasing regulation. For more information, see
the “Supervision and Regulation” section of this report. Such regulations may require significant additional investments
in technology, personnel or other resources or place limitations on the ability of financial institutions, including Comerica,
to engage in certain activities. Comerica's competitors may be subject to a significantly different or reduced degree of
regulation due to their asset size or types of products offered. They may also have the ability to more efficiently utilize
resources to comply with regulations or may be able to more effectively absorb the costs of regulations into their existing
cost structure.
If Comerica is unable to compete effectively in products and pricing in its markets, business could decline, which could
have a material adverse effect on Comerica's business, financial condition or results of operations.
• Changes in customer behavior may adversely impact Comerica's business, financial condition and results of
operations.
Comerica uses a variety of financial tools, models and other methods to anticipate customer behavior as a part of its
strategic planning and to meet certain regulatory requirements. Individual, economic, political, industry-specific
conditions and other factors outside of Comerica's control, such as fuel prices, energy costs, real estate values or other
factors that affect customer income levels, could alter predicted customer borrowing, repayment, investment and deposit
practices. Such a change in these practices could materially adversely affect Comerica's ability to anticipate business
needs and meet regulatory requirements.
Further, difficult economic conditions may negatively affect consumer confidence levels. A decrease in consumer
confidence levels would likely aggravate the adverse effects of these difficult market conditions on Comerica, Comerica's
customers and others in the financial institutions industry.
• Any future strategic acquisitions or divestitures may present certain risks to Comerica's business and operations.
Difficulties in capitalizing on the opportunities presented by a future acquisition may prevent Comerica from fully
achieving the expected benefits from the acquisition, or may cause the achievement of such expectations to take longer
to realize than expected.
Further, the assimilation of the acquired entity's customers and markets could result in higher than expected deposit
attrition, loss of key employees, disruption of Comerica's businesses or the businesses of the acquired entity or otherwise
adversely affect Comerica's ability to maintain relationships with customers and employees or achieve the anticipated
benefits of the acquisition. These matters could have an adverse effect on Comerica for an undetermined period. Comerica