MasterCard says consumers are still spending as its net income jumps 38pc

 
City A.M. Reporter
MASTERCARD reported sharply higher third-quarter profit yesterday, easily beating Wall Street estimates on double-digit increases in volumes.

The company’s chief executive also said on a conference call with analysts that consumers were still spending despite economic uncertainty, though growth comparisons will start to get harder from this month.

The New York-based card processing company reported net income of $716m (£448.9m), up from $519m a year before. Net income attributable to the company was $717m, versus $518m a year earlier. It was the company’s biggest earnings beat in the last two years, according to Reuters data.

Revenue rose more than 27 per cent to $1.8bn.

MasterCard said gross dollar volume rose 18.1 percent, while transactions processed rose 20.5 per cent.

The firm’s shares hit an all-time high in morning trading before giving up some gains, though they closed up 6.99 per cent at $23.36.

MasterCard said it is also having some success internationally, particularly in Brazil and the Netherlands.