Visa tops profit estimates on higher consumer spending
Visa Inc, the world’s largest payments network, topped analysts’ estimates for thirdquarter profit on Wednesday, as an expanding US economy encouraged more people to spend using their credit and debit cards
Total payments volume rose 11 percent to US$ 2.10 trillion, on a constant dollar basis, with the United States -– its largest market – comprising about 44 per cent of the total.
Consumer spending, which accounts for more than two-thirds of US economic activity, rose in the most recent quarter in an economy that is expected to have grown at its fastest annualised rate in three years.
Cross-border volumes - the value of transactions made outside the United States - saw a 11 per cent growth in the quarter also on a constant currency basis.
Visa’s strong results reflect robust quarterly growth in credit card businesses of large US banks, including JPMorgan Chase and Co and Citigroup Inc.
Visa’s net income rose to US$ 2.33 billion, or US$ 1 per Class A share, in the third quarter ended June 30 from US$ 2.06 billion, or 86 cents per Class A share, a year earlier.
On an adjusted basis, the company earned US$ 1.20 per share, beating analysts’ average estimate of US$ 1.09, according to Thomson Reuters.
Net operating revenue rose 15 per cent to US$ 5.24 billion. — Reuters