Visa’s profits grow on rising payment volumes and cross-border transactions

Visa announced a 10% increase in net income in the fourth quarter of fiscal 2022 thanks to higher payment volumes, cross-border transactions and transactions processed.

The payments company’s net income rose to $3.9 billion in the three months to the end of September, the company said in a filing with the U.S. Securities and Exchange Commission.

Quarterly revenue increased 19% year on year to $7.8 billion.

The company’s net income for the full fiscal year 2022 rose 21% on an annual basis to $15 billion, while its revenue jumped 22% to $29.3 billion. dollars.

“We saw the continuation of many spending trends present throughout 2022 … the strength of consumer payments, the resilience of e-commerce and the continued recovery of cross-border travel, said Alfred Kelly, president and CEO of Visa. .

“These trends contributed to strong results for the full year 2022, with net revenue, net income and EPS [earnings per share] all up more than 20% year-over-year, despite broader macroeconomic uncertainty and geopolitical unrest,” Kelly said.

After the earnings announcement, Visa stock jumped nearly 2% in after-hours trading to $198.1 per share.

The company’s total payment volume for the July-September period increased nearly 10% from the prior year period, while payment volume for the full fiscal year 2022 increased by about 15%.

Total transactions processed, which represents transactions processed by Visa, for the three months ended September 30, were $50.9 billion, an increase of 12% over the period of the year former. For the year as a whole, it was $192.5 billion, an annual increase of 17%.

Services revenue jumped nearly 11% to $3.5 billion in the fourth quarter, while data processing revenue rose 10% to $3.8 billion.

The company’s international transaction revenue rose 52% year over year to $2.9 billion in the September quarter. Other income jumped 13% to $551 million.

Customer incentives, a counter-revenue item, were $2.9 billion and accounted for nearly 27% of gross revenue in the fourth quarter, Visa said.

“As we look to the future, although there is some near-term uncertainty, we remain confident in Visa’s long-term growth trajectory for consumer payments, new flows and value-added services. “said Mr. Kelly.

The company’s cash, cash equivalents and investment securities were $20.7 billion as of September 30.

Last quarter, Visa repurchased 10.8 million shares at an average price of $197.5 per share for $2.1 billion. However, in the 12 months ending September 30, Visa repurchased a total of 56.2 million shares at an average price of $205.97 per share, using $11.6 billion dollars of cash, Visa said in a statement.

As we look to the future, although there is some near-term uncertainty, we remain confident in Visa’s long-term growth trajectory for consumer payments, new flows and value-added services.

Alfred Kelly, Chairman and CEO of Visa

The company had $5.1 billion in authorized funds remaining for stock repurchase as of September 30.

Earlier this month, the board authorized a new $12 billion share buyback program.

They also declared an increase to Visa’s quarterly cash dividend to $0.45 per share payable Dec. 1 to all holders of record as of Nov. 11.

Updated: October 26, 2022, 00:56

About Matthew R. Dailey

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