Visa's 2Q profits jump 21% as pandemic eases across globe

NEW YORK (AP) — Payment processing giant Visa's profits rose 21% in the first three months of the year fueled by a large jump in spending on the company's namesake credit and debit card network.

The San Francisco-based company reported Tuesday that it earned $3.65 billion, or $1.70 a share, in its fiscal second quarter that ended March 31. That was up from $3.03 billion, or $1.38 a share, in the same period a year earlier.

Its earnings adjusted to exclude one-time items amounted to $1.79 a share. The results topped the expectations of analysts, who were looking for Visa to earn $1.65 a share on an adjusted basis, according to FactSet.

Visa's results were driven largely by a significant jump in the amount of money and the number of transactions that went through its payment network. The company processed $3.384 trillion in payments on its network last quarter, up 17% from a year earlier. Visa earns a fee from every transactions that uses its network.

“While the geopolitical environment remains uncertain, we expect continued growth driven by a robust travel recovery and through the enablement of traditional and newer ways to pay globally,” Al Kelly, Visa’s CEO and chairman, said in a statement.

Visa’s stock was up more than 5% in after-hours trading following the earnings report. Visa shares are down roughly 7% for 2022, compared to the 12.4% year-to-date drop of the S&P 500.

The company has benefitted in recent years by a global shift of consumer behavior toward digital payments, particularly during the pandemic. Consumers have been buying more goods and services online, which often requires using a credit or debit card. Because Visa and its biggest competitor Mastercard dominate credit and debit card spending, that has translated directly into their bottom...