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.
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.