Strong consumer spending supported Visa’s profit growth | Finance and Markets

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Visa has managed to meet Wall Street’s expectations for its last quarter profit. The largest payment network in the world has benefited from higher credit card and debit card costs as well as from the growth of the US economy.

Total card payments of Visa grew by 11% for the three months to September, while the number of processed transactions increased by 12%. The amount of payments is the amount in dollars of purchases made with the cards.

The rising salaries and employment, as well as lower taxes, have boosted consumer confidence in the US, which has reached its highest level since nearly two decades. This stimulates purchases of all kind of goods.

Visa, its rival Mastercard and the credit card company American Express as a result report more transactions and higher fee revenues.

Visa’s net profit rose to 2.85 billion USD in the fourth quarter. For comparison, an year earlier it amounted to 2.14 billion USD.

With no one-off effects, the company reports a profit of 1.21 USD per share, slightly above analysts’ expectations of 1.20 USD. The financial report is the 9th consecutive quarter with better-than-expected results for Visa.

The net operating revenues also increased by 12% to 5.43 billion USD.

The company’s shares, which have grown by 21% since the beginning of the year, have risen by almost 1.7% in the aftermarket.