Visa’s profit rises on strong consumer spending

By Thomson Reuters Apr 23, 2024 | 3:11 PM

(Reuters) – Visa reported a rise in its second-quarter profit on Tuesday, as consumers shrugged off worries of a broad economic slowdown and continued to spend on dining out and travel.

U.S. consumer spending has remained remarkably resilient despite higher-for-longer interest rates, with Americans still looking to spend on big-ticket purchases and international travel.

Visa’s payment volume climbed 8% in the quarter. Cross-border volume excluding intra-Europe, a gauge of international travel demand, jumped 16%.

Net revenue in the quarter rose 10% to $8.8 billion.

Credit card giant and processor American Express last week beat expectations for first-quarter profit, thanks to strong spending by its affluent consumers.

The world’s largest payments processor posted adjusted net income of $5.1 billion, or $2.51 per share, in the three months ended March 31, compared with $4.4 billion, or $2.09 per share, a year earlier.

(Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar)