Mastercard earnings beat expectations amid ‘robust’ spending

Mastercard Inc. became the latest payments company to report upbeat spending trends as the card giant recorded a strong pace of profits and said it had yet to see the noticeable effects of inflation on its volumes.

The company’s second-quarter net income rose to $2.28 billion, or $2.34 per share, from $2.07 billion, or $2.08 per share, a year earlier. Analysts tracked by FactSet were modeling $2.34 per share earnings on a GAAP basis.

After adjustments, Mastercard MA,
earned $2.56 per share in the quarter, from $1.95 per share a year ago, while analysts had expected $2.36 per share.

Mastercard’s revenue rose from $4.53 billion to $5.50 billion and topped the FactSet consensus, which was $5.27 billion.

“Rising inflationary pressures have not yet had a significant impact on overall consumer spending, but we will continue to monitor this closely,” Chief Executive Michael Miebach said in a statement. “We have a well-diversified business model and the demonstrated ability to generate strong operating margins through both up and down cycles.”

He called consumer spending trends “robust.”

Gross dollar volume increased 14% in local currency in the second quarter, while cross-border volume increased 58%. Mastercard saw 12% growth in dial-up transactions.

Mastercard’s results follow upbeat reports from American Express Co. AXP,
and Visa Inc. V,
the last days. Amex’s chief financial officer told MarketWatch that the company saw “no signs of stress from a credit perspective,” while Visa’s chief financial officer said on an earnings call that the company had no saw “no evidence of a pullback” in consumer spending.

Visa and Mastercard have recently drawn attention after the Wall Street Journal reported on Wednesday that senators are considering proposing card routing legislation that would seek to give merchants the ability to process credit transactions through an “unsecured” network. affiliate” different from that of Visa. or Mastercard appeared on a given card.

Such a bill has yet to be introduced, however, and even if it was, analysts were unsure whether it would be a top priority or gain enough favor to pass.