- Commerce posted better than expected earnings in Q2'21, including a roughly one-third contribution from better-than-expected pre-provision earnings, driven by non-spread income.
- Loan growth remains weak both in absolute and relative terms, with business clients simply not in the market for new loans now.
- Commerce should see core PPNR growth resume in 2022, and the bank is flush with surplus capital, but the shares don't look like much of a bargain today.
For further details see:
Commerce Bancshares: Overcapitalized With Lackluster Growth And High Valuation; Shares Aren't Compelling