Equifax business up as banks loosen credit

By J. Scott Trubey

The Atlanta Journal-Constitution

Growth in Equifax’s U.S. consumer business helped improve earnings for the fourth quarter 2011, the Atlanta-based credit bureau said Wednesday.

Equifax said revenue in its U.S. Consumer Information Solutions unit climbed 13 percent overall, driven by banks doing more business checking consumer credit and underwriting for mortgage refinances. That suggests a loosening of consumer credit by banks that use Equifax.

Jeff Dodge, head of investor relations for Equifax, said on a national level, “Banks are now more active in lending and that’s really helping us out.”

Equifax reported net income from continuing operations of $72.9 million, or 60 cents per share, up from $62.2 million, or 50 cents per share in the fourth quarter 2010. Taking out a tax benefit and expenses related to an acquisition, earnings per share were 68 cents, in line with company expectations.

Revenue was up 6 percent to $509.7 million, though, excluding the deconsolidation of its Brazilian operations, revenue grew 10 percent. Equifax merged its Brazilian unit with that country’s second largest consumer credit bureau in second quarter 2011.

Net income per common share from continuing operations for full year 2011 was $1.87, up a cent from 2010. Full year revenue from continuing operations was up 5 percent to $2 billion.

Equifax said revenue in first quarter 2012 is expected to grow 9 percent to 12 percent on a continuing operations basis.