Mastercard reported benefits much higher than expected for the fourth quarter followed on October 28. Thus, one of the two most recognized credit card brands in the world, together with Visa, begins to definitively emerge from the problems derived from the covid pandemic.
The company said that easing restrictions after the coronavirus crisis was key to what it called “a healthy recovery,” thanks to increased consumer spending, both within countries and in cross-border interaction.
Thus, Mastercard shares rose almost immediately in the premarket: more than 3.1 percent, to $ 344 per unit, reports Reuters.
After more than 12 months of confinements of varying degrees, Mastercard and other credit card customers have started traveling, dining out and having lunch, and doing other social and recreational activities, resulting in a sharp increase in spending volumes.
According to the accounting report, Mastercard earned 2.38 per share, breaking the estimates of analysts, who spoke of 2.19, on average.
Net income, meanwhile, grew 30 percent to $ 5 billion in just one quarter.
Its rivals, American Express and Visa, also reported earnings that beat estimates in early October, in both cases, driven by an increase in spending.
Visa, by case, reported an increase in profits this week because payment companies are seeing how volumes recover after the fall induced by the coronavirus. The increase in consumption was presented, according to the company, due to government stimuli and the deployment of vaccines, unleashing the demand for both goods and services.
Visa’s net income increased to $ 3.58 billion for the fourth quarter ended September 30, from $ 2.14 billion.
According to Visa, the total cross-border transaction volume grew 38 percent – in constant dollars – over the previous year.
[Noticia en proceso de actualización]