Mastercard's second-quarter profit beat expectations as customers kept up spending heavily using its cards, sending shares of the payments giant nearly 3% higher before the open on Wednesday.
A tight labor market has ensured job security for customers, allowing them to make purchases without restraint even as the U.S. Federal Reserve keeps monetary policy tight.
However, several of Mastercard's peers have flagged slowing growth, particularly from low-income customers, as wage inflation moderates and elevated interest rates weigh on customer sentiment.
Mastercard's switched volume, which measures the value of transactions processed on its network, were 10% higher than last year.
Cross-border volume, a gauge of travel demand that tracks spending on cards outside the country of their issue, climbed 17% in the same quarter.
Commentary from payments companies is being watched closely for signs that the Fed's rate-hiking campaign is bearing fruit.
Mastercard's profit rose 17%, to $3.3 billion, or $3.50 per share for the three months ended June 30. Excluding one-time costs, it earned $3.59 per share, versus the estimate of $3.51, according to LSEG data.
Its revenue rose 13% from a year ago on a currency-neutral basis, to $7 billion.
The company's shares have risen nearly 5% so far this year, outperforming its chief rival Visa's 1% gain.
Peers American Express, Capital One and Discover Financial have jumped 35%, 16% and 29%, respectively. Capital One agreed to buy Discover in a $35.3-billion deal earlier this year.
Source: https://ca.finance.yahoo.com/news/mastercards-quarterly-profit-jumps-buoyant-120923627.html
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