NEW YORK (AP) — Payment processing giant Visa Inc. said its second-quarter profits jumped 14% from a year earlier on an adjusted basis, as the company continues to benefit from a global increase in credit card and debit card usage.
The San Francisco-based company said it earned a profit of $4.38 billion, or $2.09 a share, excluding one-time charges related partially to the Russia-Ukraine war and other accounting adjustments. That compared to an adjusted profit of $3.84 billion, or $1.79 a share, from a year earlier. The result beat analysts' forecasts.
For the past several quarters, Visa's fortunes have been bolstered by a global increase in online payments and usage of credit and debit cards. The company processed $2.955 trillion in transactions on its payment network last quarter, up 10% from a year earlier. The biggest growth is still happening in U.S., Europe and Asia, which make up more than 80% of the company's overall market.
Visa takes a fee from every transaction processed on its network. The fee varies depending on the industry the merchant operates in, where they are located and whether they are using a credit or debit card, but generally the fee is between 1% and 3%.
While increase card use is boosting profits, Visa's fortunes are still tied deeply to the performance of the global economy. When the pandemic impacted travel and economic activity, Visa's profits fell sharply. Now, there are worries about a worldwide recession as central banks raise interest rates to fight inflation.
Visa's new CEO, Ryan McInerney, who took over earlier this year, said that while the company sees “macroeconomic uncertainty," he remains confident in "Visa’s ability to manage through changing environments."
Visa shares rose nearly 2% in after-hours trading.