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A MasterCard sign on a door in New Yor (Mark Lennih/AP Pho)
A MasterCard sign on a door in New Yor (Mark Lennih/AP Pho)

MasterCard profit rises 14 per cent Add to ...

MasterCard Inc, the world’s second-largest debit and credit card company, posted a 14 per cent rise in quarterly profit as more people used cards to shop.

MasterCard’s worldwide purchase volume increased 10 per cent on a local currency basis to $759-billion.

Purchase volumes in the United States rose 9 per cent to $268-billion from a year earlier.

“We kicked off the year with a strong quarter, despite a mixed global economy. We secured several new agreements, including three of the largest retailers,” MasterCard Chief Executive Ajay Banga said.

U.S. consumer sentiment rose sharply in the first quarter as optimism about the economic outlook improved, according to a global survey, which also showed rising confidence in debt-laden euro zone countries.

The company’s net income rose to $870-million, or 73 cents per share, for the first quarter ended March 31, from $766-million, or 62 cents per share, a year earlier.

Net revenue rose about 14 per cent to $2.18-billion.

Analysts on average had expected the company to earn 72 cents per share on revenue of $2.14-billion, according to Thomson Reuters I/B/E/S.

Larger rival Visa Inc said last week that U.S. sanctions on Russia were hurting its card transaction and that revenue growth would slow further this quarter.

MasterCard made no mention of any impact from Russia in its statement on Thursday.

MasterCard’s shares were up 0.6 per cent at $74 in premarket trading. The stock has fallen 11.1 per cent so far this year, underperforming the broader S&P 500 Index, which has risen 1.6 per cent.

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