Visa reported a 10 per cent increase in its 2022 fiscal fourth-quarter net profit on higher payment volumes, cross-border transactions and processed transactions.
Net profit of the payments company increased to $3.9 billion in the three months to the end of September, the company said in a filing to the US Securities and Exchange Commission.
Quarterly revenue rose 19 per cent on an annual basis to $7.8bn.
The company’s net income for the full 2022 financial year rose 21 per cent on an annual basis to $15bn, while its revenue surged 22 per cent to $29.3bn.
“We saw a continuation of many of the spending trends present throughout 2022 … strength in consumer payments, resilience in e-commerce and ongoing recovery in cross-border travel,” said Alfred Kelly, chairman and chief executive of Visa.
“These trends contributed to robust full-year 2022 results, with net revenues, net income and EPS [earnings per share] all up more than 20 per cent year-over-year, despite broader macroeconomic uncertainty and geopolitical turmoil,” Mr Kelly said.
Following the earnings announcement, Visa’s stock jumped about 1 per cent in after-hours trading to $196.02 a share.
The company’s total payments volume for the July-September period increased nearly 10 per cent over the prior year period, whereas the payments volume for the full 2022 fiscal increased about 15 per cent.
Total processed transactions, which represent transactions processed by Visa, for the three months ended on September 30, were $50.9bn — a 12 per cent increase over the prior year period. For the full year, it stood at $192.5bn, an annual increase of 17 per cent.
Service revenue jumped nearly 11 per cent to $3.5bn in the fourth quarter, while data processing revenue rose 10 per cent to $3.8bn.
The company’s international transaction revenue grew 52 per cent over the prior year to $2.9bn in the September quarter. Other revenue surged 13 per cent to $551 million.
Client incentives, a contra-revenue item, were $2.9bn and represented almost 27 per cent of gross revenue in the fourth quarter, Visa said.
“As we look ahead, while some short-term uncertainty exists, we remain confident in Visa's long-term growth trajectory across consumer payments, new flows and value added services,” Mr Kelly said
The company’s cash, cash equivalents and investment securities stood at $20.7bn as of September 30.
In the last quarter, Visa repurchased 10.8 million shares at an average price of $197.5 per share for $2.1bn. However, in the 12-month period that ended on September 30, Visa repurchased a total of 56.2 million shares at an average price of $205.97 per share, using $11.6bn of cash on hand, Visa said in a statement.
The company had $5.1bn of remaining authorised funds for share repurchase as of September 30.
Earlier this month, the board of directors authorised a new $12bn share repurchase programme.
They also declared an increase to Visa's quarterly cash dividend to $0.45 per share payable on December 1, to all holders of record as of November 11.
