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Mastercard profit surges in global economic recovery

Mastercard profit surges in global economic recovery

Mastercard Inc. reported on Thursday that second-quarter profits were up 36% above estimates.

The rise in profit results from global economic recovery as companies and travel agencies are back in business.

Due to the positive quarter results from Visa and American Express, the company’s share price rose about 2% in the pre-market.

As international travel increased, Mastercard’s foreign transactions rose 58% concerning the local currency.

In the same period the year before, foreign transactions had declined 45%.

“International travel is still in the early stages of recovery and represents additional upside potential,” said Michael Miebach, the Chief Executive Officer.

Due to the pandemic restricting international spending, cross-border trading was Mastercard’s biggest hardship last quarter.

Mastercard had fallen 17% last quarter compared to 11% at Visa.

Mastercard’s processed dollar volumes increased 33% to $1.9 trillion in the last quarter following the government’s massive stimulus packages.

Excluding exceptional items, the net income increased to $1.9 billion ($1.95 per share) from $1.4 billion ($1.36 per share) in the prior year.

According to Refinitiv IBES, experts had expected an average profit of $1.75 per share.

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