Visa reports smallest rise in quarterly profit in two years
2023.07.25 16:46
© Reuters. Visa credit and debit cards are seen in this picture illustration taken August 2, 2022. REUTERS/Benoit Tessier
(Reuters) -Payments processor Visa (NYSE:) reported its smallest jump in quarterly profit in over two years as consumers worried about an economic downturn tightened spending.
Rising borrowing costs, wide-ranging layoffs and chances of a mild recession later this year are starting to deter pandemic-weary travelers and shoppers who had fueled a recovery in payment volumes for companies such as Visa and Mastercard (NYSE:) in 2022.
Visa’s payment volumes rose 9% in the quarter, while cross-border volumes climbed 17%.
Peer American Express (NYSE:) reported record spending in its quarterly report on Friday, but kept its full-year profit forecast unchanged. Mastercard is scheduled to report quarterly earnings on Thursday.
Excluding one-time costs, Visa posted a profit of $4.5 billion, or $2.16 per share, for the three months ended June 30, up 7% from a year ago.
The single-digit percentage growth was the smallest since the second quarter of fiscal 2021, when profit had contracted.
Shares of Visa were up 0.3% at $239.38 in aftermarket trading, slightly paring gains from earlier.
The San Francisco, California-based company has undergone a change of guard this year with long-time Visa executive Ryan McInerney becoming the CEO in February and videogame publisher Electronic Arts (NASDAQ:)’ former finance chief Chris Suh taking on the CFO role.
