Visa reported a 27 per cent increase in its 2022 fiscal first-quarter net profit on higher payment volumes, cross-border transactions and processed transactions.
Net profit of the payments company increased to $4 billion in the three months to the end of December.
Revenue rose 24 per cent on an annual basis to $7.1bn, the company said in a filing to the US Securities and Exchange Commission.
Visa delivered very strong results with revenue, net income and EPS all growing at 24 per cent or higher
Visa’s chairman and chief executive,
Alfred Kelly
The company recorded a total of 47.6 billion transactions in the last quarter, a 21 per cent increase over the same period in 2020.
"Visa delivered very strong results with revenue, net income and EPS [earnings per share] all growing at 24 per cent or higher,” said Visa’s chairman and chief executive, Alfred Kelly.
“The strength of our network, the growth in e-commerce, better than expected progress in the return of cross-border travel and a continuation of the recovery all contributed to an excellent quarter."
Total payments volume in the first quarter surged 20 per cent year on year, while the cross-border transactions increased by 40 per cent on an annual basis.
The company did not disclose the exact value of transactions.
The company’s cash, cash equivalents and investment securities stood at $18bn at the end of the last year.
In the quarter, Visa rebought 19.4 million shares at an average price of $210.05 each for $4.1bn. On December 13, the board of directors authorised a new $12bn common stock share repurchase programme.
Visa said it had $12.6bn of remaining authorised funds for share repurchase as of December 31.
Last month, Visa completed the acquisition of Currencycloud – a global platform that enables banks and FinTechs to provide innovative foreign exchange solutions for cross-border payments.
The acquisition will empower Visa and Currencycloud clients and partners to provide greater transparency, flexibility and control for consumers and businesses when making international payments or doing business in different currencies, Visa said.
The FinTech giant based in California is optimistic about future growth as Mr Kelly said the current surge in the Covid-19 pandemic would not curtail the recovery.
“We see economies around the world continuing to improve and, as restrictions are lifted, cross-border travel will continue to recover," he said.
"We remain confident that we are well-positioned, via our multi-pronged growth strategy, to deliver strong results well into the future."
On January 25, the company's board of directors declared a quarterly cash dividend of $0.37 a share payable on March 1 to all holders of record as of February 11 this year.
Visa did not issue an earnings guidance for the current and future quarters.
Company%C2%A0profile
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Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
Aggro%20Dr1ft
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
