Visa net profit grows 17% on higher payment volumes and transactions

Visa, the world’s largest payments company, has reported a 17 per cent annual increase in its 2023 fiscal secondquarter net profit, driven by a surge in payment volumes, cross-border transactions and processed transactions.

The net profit of the California-headquartered company jumped to $4.3 billion in the three months to the end of March, increasing almost 2.4 per cent on a quarterly basis, it said on Tuesday.

Revenue rose 11 per cent on a yearly basis to $8 billion, Visa said in a filing to the US Securities and Exchange Commission.

It said it had recorded 50.1 billion processed transactions in the last quarter – a 12 per cent increase over the same period in 2022.

However, it was 4.5 per cent down on a quarterly basis.

“Visa’s strong fiscal second-quarter performance reflects continued focus on our growth levers … consumer payments, new flows and value added services,” said Visa chief executive Ryan McInerney.

“We have a compelling strategy, a world-class team, fantastic clients and an incredible set of capabilities that I believe are second to none.

“While there is macroeconomic uncertainty, I feel confident in Visa’s ability to manage through changing environments.”

Shares have increased by more than 14 per cent in the past year and rose 1.2 per cent to $232.40 in after-hours trading on Tuesday. Earnings per share rose 20 per cent to $2.03 in the second quarter.

In the last quarter, Visa said it had repurchased 10 million shares at an average cost of $222.09 per share for $2.2 billion. It said it had $11.8 billion of remaining authorised funds for share repurchase as of March 31.

This week, Visa declared a quarterly dividend of $0.45 per share payable on June 1.