Mastercard’s fourth-quarter profit jumps 11% on resilient spending
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The company reported a profit of US$2.8 billion (S$3.75 billion), or US$2.97 per share, for the three months ended Dec 31, 2023.
PHOTO: REUTERS
BENGALURU - Payments processor Mastercard on Jan 31 reported an 11 per cent jump in fourth-quarter profit, driven by resilient consumer spending during the holiday season as labour markets remained strong and fears of a recession eased.
The company reported a profit of US$2.8 billion (S$3.75 billion), or US$2.97 per share, for the three months ended Dec 31, compared with US$2.5 billion, or US$2.62 per share, a year earlier.
Growing expectations of a “soft landing” – where inflation cools without tipping the economy into a recession – has boosted consumer confidence.
A survey by the University of Michigan showed that US consumer sentiment hit its highest level in 2½ years in January.
Gross dollar volume, the dollar value of all transactions processed on Mastercard’s platform, climbed 10 per cent. Cross-border volume, a gauge of travel demand that tracks spending on cards outside the country of their issue, jumped 18 per cent.
Net revenue rose 13 per cent to US$6.5 billion, Mastercard said.
Last week, Visa also reported a better-than-expected quarterly profit, thanks to a strong holiday season. REUTERS
