April 21 (Reuters) - Credit bureau Equifax reported a jump in first-quarter profit on Tuesday, as higher loan demand lifted its U.S. mortgage business, and maintained its full-year revenue outlook, citing macroeconomic uncertainty.
Its shares rose 0.5% in premarket trading after results.
After a prolonged lull tied to elevated interest rates, loan demand has picked up, supported by a still-strong labor market and steady economic backdrop. Rising lending activity has boosted demand for credit scores and risk analytics used to assess borrowers, benefiting providers such as Equifax.
Equifax's revenue jumped 14% to $1.65 billion in the quarter, while net income attributable rose 29% to $171.5 million in the three months ended March 31.
"The revenue outperformance was principally driven by very strong U.S. Mortgage revenue growth of 38% principally in January and February before rates increased from the Iran conflict," the company said.
On a per-share basis, quarterly profit came in at $1.42 versus $1.06 a year earlier.
IRAN CONFLICT, MACRO ENVIRONMENT DRIVE UP RATES
CEO Mark Begor said in a statement that Equifax maintained its revenue forecast, despite strong quarterly results, due to the reduction in U.S. mortgage activity from higher rates since the Iran conflict began.
He also cited the uncertainty in the global macroeconomic environment and direction of U.S. inflation and interest rates.
The turmoil in the Middle East has clouded the interest rate outlook, as a surge in oil and gas prices risks pushing inflation higher and complicating the U.S. Federal Reserve's plans to cut benchmark lending rates.
Credit scores are used across the financial system to assess borrower risk, shaping decisions on mortgages, credit cards, auto loans and personal loans, while influencing interest rates, credit limits and loan approvals.
Equifax said it is maintaining its full-year 2026 guidance midpoint for local-currency revenue growth of about 10%.
Reporting by Manya Saini in Bengaluru; Editing by Tasim Zahid
Source: Reuters