Fintech firm FIS' profit rises on strong demand for banking solutions
Nov 4 (Reuters) -Payments technology firm FIS FIS.N posted a 37% rise in its third-quarter profit on Monday, driven by increased demand at the banking and payments processing unit and for its capital market solutions.
A shift toward digital and online banking services has significantly increased demand for FIS' banking and payment processing solutions.
Small and mid-sized banks, in particular, require these services to stay competitive as customers expect robust digital banking facilities and payment flexibility.
For FIS, revenue at its banking solutions segment, which enables online transactions for banks and other financial institutions, rose 3% to $1.78 billion in the third quarter.
Expectations of a soft-landing for the U.S. economy and hopes of a policy easing by the Federal Reserve have also allowed clients to keep up their investment activities, buoying the company's capital market solutions unit.
Capital market solutions revenue was $730 million, up 8% over the year earlier.
FIS posted an adjusted profit of $765 million, or $1.40 per share, for the three months ended Sept. 30, compared with $557 million, or 94 cents per share, a year ago.
The company raised its adjusted profit forecast for 2024 to $5.15 to $5.20 per share, from the $5.03 to $5.11 per share expected earlier.
It also raised the low-end of its full-year revenue forecast to $10.14 billion from $10.12 billion, while keeping the upper end unchanged at $10.17 billion.
Reporting by Vedant Vinayak Vichare; Editing by Shilpi Majumdar
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