MasterCard sees quarterly profits jump

MASTERCARD announced third quarter net profit of $518m (£323m) yesterday, up 14.6 per cent on a year earlier as a result of increased global card activity.

It said net revenue for the third quarter was $1.4bn, a 4.7 per cent increase on last year. Meanwhile gross dollar volume, or spending on MasterCard branded cards, grew 8.5 per cent from a year ago. Processed transactions increased 0.6 per cent, and cross-border volumes climbed 15 per cent, it said. Total operating costs also declined by 4.1 per cent, to $662m in the quarter.

Ajay Banga, president and chief executive of MasterCard said: “Consumers and businesses around the world continue to recognise the benefits of electronic payments and MasterCard remains at the heart of this evolution.

“Our year-to-date net income is up over 22 per cent, aided by strong volume growth from markets outside of the US”
MasterCard said it was continuing to expand into new markets particularly emerging markets such as China where it had reached a memorandum of understanding with China Union Pay and Singtel one of the largest mobile operators in Asia.