Payments processor FIS posts higher profit on boost from banking solutions unit
Fidelity National Information Services, Inc. FIS | 0.00 |
May 8 (Reuters) - Banking and payments processing firm Fidelity National Information Services FIS.N on Friday posted a higher profit for the first quarter, helped by strong demand for its financial products and services.
Shares of the company rose about 1% in premarket trading.
Consumer spending remained resilient during the quarter despite concerns of economic uncertainty fueled by the Iran war and U.S. tariffs.
Higher spending volumes benefit payments tech providers that charge merchants and banks a fee for processing transactions.
The Jacksonville, Florida-based company's banking solutions unit reported a 45% rise in revenue to $2.37 billion in the three months ended March 31. Revenue in its capital markets segment grew 5% to $823 million.
"The market is strong, banks are investing," said FIS CEO and President Stephanie Ferris.
Analysts believe the bank technology business to be very stable, characterized by high recurring revenue and long-term contracts.
On an adjusted basis, FIS posted net income of $705 million, or $1.36 per share, for the quarter, up from $643 million, or $1.21 per share, a year earlier.
