On Wednesday, Visa Inc, the world’s largest payments network, surpassed analysts’ third-quarter profit projections, as an improving US economy encouraged more consumers to spend using their credit and debit cards.
On a constant-dollar basis, overall payments volume increased 11 percent to $2.10 trillion, with the United States accounting for almost 44 percent of the total.
Consumer spending increased in the most recent quarter, accounting for more than two-thirds of US economic activity in an economy that is set to grow at its quickest annualised rate in three years.
Cross-border volumes, or the value of transactions conducted outside the United States, increased by 11% in the third quarter on a constant currency basis.
Visa’s excellent earnings reflect substantial quarterly growth in leading U.S. banks’ credit card businesses, notably JPMorgan Chase & Co and Citigroup Inc.
Visa’s net income increased in the third quarter ended June 30 to $2.33 billion, or $1 per Class A share, up from $2.06 billion, or 86 cents per Class A share, the previous year.
According to Thomson Reuters I/B/E/S, the firm earned $1.20 per share on an adjusted basis, exceeding analysts’ average estimate of $1.09.
Net operating revenue increased by 15% to $5.24 billion.
